Legislative history of the Employee retirement income security act of 1974

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Material Information

Title:
Legislative history of the Employee retirement income security act of 1974 Public law 93-406
Physical Description:
3 v. : ; 24 cm.
Language:
English
Creator:
United States
United States -- Congress. -- Senate. -- Committee on Labor and Public Welfare. -- Subcommittee on Labor
United States
Publisher:
U.S. Govt. Print. Off.
Place of Publication:
Washington
Publication Date:

Subjects

Subjects / Keywords:
Pension trusts -- Law and legislation -- United States   ( lcsh )
Retirement income -- United States   ( lcsh )
Pensions -- United States   ( lcsh )
Genre:
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.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 025828421
oclc - 02349652
lccn - 77600583 //r863
Classification:
lcc - KF3512.A315 A15 1976
System ID:
AA00024841:00003

Full Text







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LEISATViHSTR
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COMMITTEE ON LABOR AND PUBLIC WELFARE
HAWRISO A. WH.TJA S, JR., New Jerasgy, Chalrmas
JENNIGS RANDOLPH, West Virgalia JACOB K; JAVPAM, Newi Yo'rk CLAIBORNE PELL, Rhode Island RICHARD S. SRWaralt Pennsylvant
EDWARD M. KENNEDY, Massachusetts ROBERT TAFT, Ja., Ohie GAYLORD NELSON, Wiseonsia J. GIJENN BEALY., Ja,, Maryland WALTER F. MONDAlda, Minnesota RODERT STAFFORD, Varmnont THOMAS F. EAGLETON, Missouri PAULs LA'RAT Newaa ALAN CRANSTON, California WITLIAM D. HATHAWAY, Maln JOHN A. DURKIN, New Hampabire.
DONALD ELTxSBUse, Gomerst Oassea1 MArJonz M. WHrTrAKaR, Chief Olerk JAr B. CUTrLER, Maerlfr Couselt



SUBcOwrITE ON LABOE

HARRISON A. WILLIAMS, Ji., New Jersey, Chairman JENNINGS RANDOLPH, West Virginia JACOB K. JAVITS, New York CLAIBORNE PELL, Rhode Island RICHARD S. SCHWEIKEIR, Pensylvahl
GAYLORD NELSON, Wisconsin ROBERT TAFT, JR., Ohio
WALTER MONDALE, Minnesota ROBERT T. STAFFORD, Vermont
WILLIAM D. HATHAWAY, Maine JOHN A. DURKIN, New H1ampshire
DONALD ELIsavas, CaSeSel
Mi n x S c o&NzNB wm Associate Counsel
io ZIMEMNiiiiijf09"e












FOREWORD


Industrial pensions began in America more than 100 years ago and in the'laA 25 years, they have enjoyed enormous growth. Today, more than 30 million American workers are relying on private pension tad wedfare plans as a major source of economic security in old age. The assets of private pension arrangements increased from $2.4 bilHoh 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 bave radically altered the retirement security expectations of the Aifterican people.
But for the most part, -this phenomenaJ gr wth was largely unregulated. While the absence of substantive requirements helped promote growth of the private system, the resulting plans set up difficult and wMetimes *insurmountable obstacles to plan participants.
Passage of this legislation is the end product of years of stud and development byithe Committee on Labor and Public Welfare. For their work 'n 5 effort, I wish to extend a special thanks to all of my colleagues onthe 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 BRISA standards will demand an effective administration with a unique understanding of the impact of its requirements. 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. I
HARmsow A. WnLi&xs, Jr.,
Chairman.
(M)















ACKNOILEDGMENT


The indexes for this legislative history of the Employee Retitepeant Income Security Act of 1974 and the Explanatory Notes for Udgthe Indexes were prepared by staff of the U.S. Department of taboir at the direction of Paul J. Fasser, Jr., Assistant Secretary of Labor for Labor-Management Relations. For the dedication of that staff to the prjct, and for the- help of other employees who contributed significantly to the effort, I wish to express my appreciation, and my particular thanks to the following: Paul R. Antsen, Richard D. Barrone (of the Office of the Solicitor), Neilda C. Lee, Edwin A. Silver,' and Ellan H. Spring, who structured and compiled the indenes Bruce M. Leet, who helped to plan and start the project; Richard ood, who kept a chronicle of pension reform legislation; and Jhn8 Hunter, who guided the project.
HAMiBON A. WHMAMXS, Jr., ehaimm.


















CONTENTS

Page
F6reward ----------------------------------------------------------- III
Aekaowledgment ----------- : ------------------------------------------ V
------------------------------------------------------------- X1

Ja n-vary 8, 1973-House: VOLUME I
Private Pension Plaus,,introductory remarks of Mr. Dent
on IELIEL 2 and H.R. 462 ----------------------------------------- I
H.R. 2,. text of, as introduced ------------------------------------- 3
HJL 462, text of, as introduced ----------------------------------- 67
Jotguary 4, 1973---Senate:
Introductory remarks of Mr. Williams on S. 4 ---------------- 90-92
8. 4, text of, as introduced ---------------------------------------- 93
Ouffine of major provisions of S. 4-Williams-Javits Pension Reform
bill ----------------------------------------------------------- 190
Summary of major provisions of S. 4-Williams-Javits Pension Reform
bill ---------------------------------------- I ----------------- IW202
Introductory remarks of Mr. Javits -------------------------- 203-206
Introductory remarks of Mr. Ribicoff ------------------------------ 207
March 1% 1973-Senate.:
Introductory., remarks of Mr. Bentsen on S. 1179 -------------------- 210
S. U79, text of, as introduced ------------------------------------- 230
April 1% U =-Senate:
Introductory remarks of Mr. Javits on S. 1557 ---------------------- 273
bqAanatory statement of amendments to the Welfare and Pension Plans Disclosure Act made by the Employee Benefits Protection
Act --------------------------------------------------------- 274-279
S.:=7, text of,-as. introduced -------------------------------------- 280
APrR W 197"enate :
Introductory statement of Mr. Hansen on S. 1631 ------------------ 324
IL:1631, text of, as introduced ------------------------ 7 ------------ 325
EL 4, text of, as reported ----------------------------------------- 389 H
K
Henate Report 93-127 --------------------------------------------- 587
June 28 1978---House:
Tax Treatment of Survivor Benefit Plans of Uniform Services, unanimous consent consideration of H.R. 4200 ------------------------- 666
Jww 28, 1978-Senate:
Referral of H.R. 4200 to Committee on Finance -------------------- 672
July 18, 1973-Senate:
Submission of amendments to S. 4, Pension Reform ----------------- 673
to to S. 4:
No. 378 (by Mr. Mondale) ----------------------------------- 675
No. 379 (by Mr. Mondale) ---------------------- ----------- 677
to H.R. 4200:
o..380 (by Mr. Mondale) ----------------------------------- 678
No. 881 (by Mr. Mondale)-; ------------------------------------ 68D
July 20, 1973-genate:
Amendment No. 401 to S. 4 (by Mr. Stevenson) -------------------- 6W
*49ast 1, 197"enate:
t Unanimous consent autbority for Committees to file reports --------- 683 Angust 2, 1973-House:
HJEL 9W4, text of, as introduced ---------------------------------- 686
(VII)







VM

August 3, 1973-Senate:
Order for consideration of S. 4 on September 11, I= ---------------Bill reported during August Recess:
S. 1179, text of, as reported August 21, 1973 -------------------Senate Report 98-M ----- ----------------------------------September 10, 1973-Senate:
Vitiation of order previously entered on S. 4, the Pension and Welfare
Benefits bill --------------------------------------------------Order for limitation of debate on S. 4 ------------------------------ 1,
Order to consider S. 4 on Tuesday, September 18, 1973 -------------September 13, 1973-Senate:
Amendments to S. 4:
No. 478 (by Mr. Taft) ------------ ------------------No. 479 (by Mr. Taft) ---------------------No. 481 (by Mr. Hartke) -------------------------------------Introductory remarks by Mr. Hartke ------------------- 144wwrAF
No. 482 (by Mr. Hartke) -------------------------Introductory remarks by Mr. Hartke -------------------
No. 483 (by Mr. Hartke) ------------------- ------------Introductory remarks by Mr. Hartke -----------------------
No. 485 (by Mr. Hartke) ---- 2 ---------------------------Introductory remarks by Mr. Har'Sce ------ ---------Amendments to S. 1179:
No. 480 (by Mr. Taft) ---------------------------------- --No. 484 (by Mr. Hartke) -------------------------------------Introductory remarks by Mr. Hartke ----------------------- lZo
September 17, 1973-Senate:
Amendments to S. 4:
No. 488 (by Mr. Jackson) ------------------------------------No. d89 (by Mr. Jackson) ---------No. 496 by Mr. Nelson (for himself, Messrs. Long, aM
-------------Bennett) ---------------------------------------------- Ign-4491
No. 497,by Mr. Nelson (for himself, Messrs. Long, Bentsen, and
Bennett) ---------------------------------- ----- ----- 1409-1W
Amendment No. 495 to S. 1179 (by Mr. Tunney) ------------------Unanimous consent for consideration of Calendar No. 119, S. 4---- 120% =O H.R. 49% Text of, as reported -------------------------------------- 1"o
Senate Report 93-894 --------------- 0;- --------------- 15,72

VOLUME II
September 18, 1973-Senate:
Floor debate on S. 4--- --------------------------------------- IMAM
Amendments to S. 4:
No. 503 (by Mr. Curtis) ------------------------------------ -f.'-Jen
No. 504 (by Mr. Buckley to numbered Amendment No, 497 pro. jn, 'posed by Mr. Nelson ----------------------------------------- 1. 1674
No. 5W (by Mr. Nelson) -------------------------------------- 19M
No. 506 (by Mr. Nelson) --------------------------------No. 507, (by Mr. Tunney) --------------------------------------No. 508 (by Mr. Hartke to numbered Amendment No. 496 proposed
by Mr. Nelson --------------Analysis of Amendment No. 496 to September 19, 1973-Senate:
Floor debate on S. 4 --------------------------------- ------- 1732-1882
H.R. -1200, text of, as passed by Senate ---------------------- ------ 1883
October 2, 1973-House
H.R. 2, text of, as reported with amendments ------------------------ 21-81
House Report 93-M --------------------------------------------- 2046,
February 4, 1974-Houge:
H.R. 12491 as submitted and as reported February 5, 19T4 ---------- 23W
House Report 99-179 --------------------------------------------------- 2584
February 20, 1974-House: ..... ...
1E1.X 12906, text of, as introduced --------------------February 21,1074-House:
H.R. 12855, text of, as reported ---------------------------------- 2924
House Report 93-807 --------------------------- ---------- 3115







ix

X*braary 2k 1974-House: rage
Jftnployee Benefit Security Act of W4 Material explaining H.R.
'12M together with ental views (to accompany H.R. 2) _329&-W50
Yvibruary 26, 1974-House:
Cbadderation of House Resolution 896 ---------------------------- 8351
Floor debate on H. ReL 896 ------------------------ W -------------- 3351
floor debate on H.R. 2 ---------------------------------------- 8375-848JL
ftbrus47 27, 1974-House:
Floor debate on WEL 2 ---------------------------------------- 3482-8504
VOLUME III
1*wuary 28, 1974-House:
Inoor debate on H.R. 2 --------------------------------------- 3505-8519
Canceled companies with pension agrL*ments, 1973 (prepared by Ina nine% Penidon and Unemployment Benefits Department, United
Steelworkers of America) ---------------------------------- 3520-W21
31wr debate on HAL 2 continued ------------------------------ 3522-3596
Morth 4, 1974-Senate:
Ckmaideration of EUEL 2 -------- --------------------------------- 3507
HJL 2. text of, with amendments as passed by Senate --------- 3599-3M
Mareh 6, W4-Senate
Printing of additional copies of H.R. 2 ---------- I ----------------- 3897
XX % text of, as passed by House and printed ---------------- 3898-4250
Nuch 20, W4--Aenate:
Analysis of private pension -reform legislation, 93d Congress, March
IW4-Comparison. of Senate-Passed and House-Passed versions of
]EM 2 --------------------------------------------------------- 4251
Iftivate Pen" Reform Lim;islation--Comparlson of Senate-Passed ,
and House-Pawed versions of H.R. 2 ------ ; -------------------- 4252-4275
A pt% 2, W4-House:
Appointment of conferees on H.R. 2 ------------------------------ 4276
Axenat 12,'=4 -,House:
'House Report 93-IM to H.R. 2, conference report ------------- 4277-4654
Avgust JA 1974-Senate:
Submission of conference report on the Employee Retirement and
Income Security Act of 1974 (Report 93-1090) ------------------- 4W5
AVO* 20, M4-House:
Floor debate on conference report on H.R. 2 -------------------- 46564721
IEL Con. Res. 609, text of, as ordered to be printed and passed ---- 4722-4730 August 22, 1974-Senate:
Authorhation for Clerk of the House of Representatives to make corroentions in the enrollment of H.R. 2 ----------------------------- 4731
Floor debate on conference report on H.IEL 2 -------------------- 4733-4835
PubUc Law 93-406, text of, September A 1974 ------------------- 4836-5043
APPEN=
AdMiatstration Recommendations to the House and Senate Conferees on
11.4.. 2-To Provide for Pension Reform, April 19074 ------------------ 5047
Summary of Differences Between the Senate Version and the House VerSim 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, Punding, Actuaries, Jurisdiction,
and Portabift, May 15, 1974 ----------------------------------- 5151
Part Two-Termination Insurance; Reporting and Disclosure, June 5,
W4 ---------------------------------------------------------- 5205
Part Three-Fiduciary and Enforcement, June A :1974 -------------- 5249
Part Your-Ltmitations on Contributions and Benefits, Employee Savlngs 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, M4, volume 10, No, 36 ------------------------------ 5321




































JL






.... .. ....












INDEX


Ensw rn NOTES :OR USIG THE 11NDHIES
Use indeing techniques vary according to such factors as th pwto be served the nature of the subject matter indexed, and
apptions of persons who do the indexing, the following exnotes on the indexes publihed herein should be helphl, to
indexes were developed to facilitate use of the basic legislative
loqaetpin assisting to determine the CongresIa intent underousprvison of the Employee Retirement ]Income Security of 174 ERISA). This orientation and the complex nature of
on resulted in two basic design features. Furst, the index
are fashioned. primarily to describe subjects or concepts Wan specific legislative provisions or key words. This was nee-,to encompass the wide range of proposals, discussions, and modleading to the provisnons enacte in ERISA. Thus, it may be
on ccasion for the index user to relate a provision of
or of a: forerunner bill having a certain heading to an index
stated a different way.,
Second basic design feature is that subjects or concepts generally renced to single mdxhaigs. In other words, where multiple bindngsfor a 'particular subject could be used, only one heading is used for giving page references. Thus, once the user determines tha he has found a heading covering his subject, he need not be eoneerned that some other heading might also cover the subject with Possbly a difference in the page references. The "see" cross references Are used to help in finding the correct heading. The "see also" cos
rences are used to indicate that there is a closely related heading.
%er points on the'approach and techniques used in the indexes
1. There are nine basic indexes covering broad subject areas, as
Definitions
Reorting and Disclosure
Partcipation and Vesting
rundning
Fiduciary Responsibility
T1brmination insurance
Enforcement
Interal Reveue Code
Miselaneous








2. The documents indexed are limited to bills, reports, the "bill"prlbt ..
of broad amendments such as those in the nature of a substitute, sad floor debates. At the end of theseepantr notes is a list Of amob, documents printed in this legislative history. The list is anotte as to several documents which, in whole or in part, are not indeand for
the purpose of avoiding duplication. For example, II.R 4200 aspa l
by the Senate is not indexed because the same lgsainbcm h
Senat amendment to IR.2. Also, for example, the substitut Ibitl printed in the Conference Report is not indexed because of its close similarity to the final law. In addition, prints in committee report Of
the Wefare and Pension Plans Disclosure Act as it would be.
are not indexed.
While certain substantive amednt are not, indexed as 1if,
"bill" print, they are indexed as to the floor consideration on fv*
Technical, clerical, and conforming chages generally are not ihd El
where they are not descibed in the documents as to -their
matter.
3. The index titled Internal Revenue Code covers only Mattgr th$
lated to the Internal Revenue Code of 1954 as amended, which
fall within one of the other indexes.
4. The index titled Definitions covers definitions regrdes
subject area to which they pertain., As a rule, there are no cram r
ences from the other indexes to the Definitions index., Also
which seemed to have been used solely'-for cneicein dra# tag are omitted. An example would be where "Secretary" is defipe to mean "Secretary of Labor." Another example would be where (k ftt
is defined soliy for purposes of the provision immediately
the definition.
5. Certain index headings include page references Onlywhe
is broad treatment or application of the matter in the m#
These headings are:
Eff ective dates; Need for ..; Plans covered; Previous law;
Regulations/rules, general authority.
Instances of -narrow treatment or appiain to the extent
occur in the documents, generally are not indexed separately, but qua be found within the page reference given under the index headmg covering the particular subject to which they Pertain. For exCaMgly, a page reference to ERISA section 505., regarding atoiyto aUem regulations under Title I., is included under the "regulatione min heading in the Reporting and Disclosure index, Participation and Vesting index, etc.; specific authority to issue regulaions regarding the filing o-f annual reports may be found within-the pag reference given under "9Annual report or return=filing requiremeints in the
Renoorting and Disclosure index.
6.Teidx edn Prvoslw"rfmt d='=~s rsae
met buttesausoiiiefriM A-TeeoeiO e






XII

eeas include discussions addressed in terms of current law, since the dimsonsions took place before enactment of ERISA.
.The word "prticipants" in the indexes usually means "participeateand beneficziaries."
Finally, it should be noted that any interpretation of legislative 40cuentswhich is inherent or implied in the indexes or these exy.,aotes is not to be considered as the oficial view of the U.S.
en.of Labor.



........ .. .. .... . ......






iiiiii oii
















LIST OF DOGUIMTS

(1) H.R. 2 as Introduced ----------------------- -------------
(2) H.R. 462 as Introduced -------- ----------------------------- 67-W
(3) S. 4 as Introduced -------------- -------------------- - '9341w
(4) S. 1179 as Introduced ----------------------- -------------- W-72
(5) S. 1557 as Introduced ---------------------------------------- 29W=
(6) *8. 1631 as Introduced ---------------------------------------- 325--87
(7) S. 4 as Reported ------------------------------------ ------- 380-r"
(8) Senate Report on.S. 4 ----------- -------------------------(9) H.R. 9824 as Introduced ------- ---------------- ---- - -(10) S. 1179 as Reported ----------------------------------- ---(11) Senate Report on S. 1179 ------- ------------------------ I---- 1063-1224
(12) S. 4 Amendment No. 496 -------------------------------- ---- 1271-1497
(13) S. 4 Amendment No. 497 ----------------------------------- 14W-IM
(14) Senate Report on HJL 4200----- ---------- ------- ----- 1570-78
(15) Senate Consideration of S. 4 ------------------- -- --------- 1579-18C
(16) H.R. 4200 as Pamed by the Se=te I ---------------- 7 - ------- 1883-U78
(17) H.R. 2 as Reported ------------------------------------------ 2181-2347
(18) House Report on HJUL 2 ----------------------------------- -- 2348-M
(19) H.11L 12481 as Introduced ------------------------- ---------- 2MK-25M:
(20) House Report on H.R. 12481 ------------------------------ -- 2584--270
(21) H.R. 12906 as Introduced -------------------------------------- 2761-2922
(22) H.R. 12855 as Introduced -------------------------------- -- 2924-MI4
(23) House Report on H.R. 12855 ---------- ------------------ 3115-3292
(24) House Report explaining H.R. 12906 [printed in Congrenk"MI
Rword] --------------------------------------------- ---- 3293-3m
(25) House of Representatives Consideration of H.R. 2 ------------- SM-SM
(26) Senate Considerationof H.R. 2 ---------------- 7 -------------- 3w-w
(27) H.R. 2 as Passed by the Senate ------------------------------ 3590-3M
(28) H.R. 2 as Passed by the House of Representatives ------------- 3898-4250
(29) Conference Report on H.M 23 ------------------------------- 4277--MM
(30) House of Representatives Consideration of Conference Report to
accompany H.R. 2 -------------------- -------------------- 46V&--47M
(31) Senate Consideration of Conference Report to accompany IELIEL 2- 4TVV-480
(32) Public Law 93-406, approved by the President on September A
1974 ----------------------------------------------------- 4836-OM

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














DEFINITIONS
PAges In
eL Legislative History
- ------ ------------------------------------------- 12o
ttv, 1V M5, 1119p 240&-09, 2649- 293940, 31807-81, 8327-29, 8911, 4072It lljh 73, 4540t -484" 4912 isabilA. ---------
CUMI" 2257-58, 8912-13, 4844
---------- i -----------------Ah "Id portion of normal retiremen benefit --------------------------- 14,
59,76,495-96,544,1315-16,3745-46 MeA60 Pottion.ofthe regular retirement benefit ------------------------ 12-13,
695-98, 2252-55
matributions -------------- ----------------------------- 332-839
841% 2416, 2852-Wo 294647, 8626, 3989-90 408"1,,4868,,4917-18
f=ding deficiency --------------------------------------- 853,
1152, 1308, 2424, 2440, 2664, 2955 2970,,B196-97, 8335, 3638, 3998t
4089,4104,.4501,4876,4921
ted vesting deficiency ------------------------------------ 1323,3653
ate consideration ----------------------------------------------- 11-12,
148, 284-rW, 094, 971$ 1414, 2251, 2357, 3306, 374+-45, 3908--099
484"
------------------------------------------------------ 11-12
72-78, M-MI 14G-47& 283-84, 4924)3, 541-42, 693--94, 877, 961-62t 1412-13, 2250-61, 2452-M, M)82-83, 3331, 3743, 3907--08, M6-17P
4842, 4934-35
w actuarial cost method ----------------------- 2258,3913,4844
kyelved ----------------- 371,977-78,1471,3798,4984
benefits ------------------------------------------------ 1373,3702
' -Aumljl rtft date ------------------------------ 3000,3983,4134,4870,4943
er, participant ------------------------------------------------ 2293
ato conversion factor ---------------------------------------- 3329
843,2415,2852,2946,3625,3989,4080,4868 ,taxable w4gles ------------------------------------------------ 3348
--------- 1023-24, 1526, 2517-18, 3048, 3852, 4182, 4961, 5010
------------------------ 8,70-71,98,490,691,960,2248,3905,4841
'V1*n Services - ------------------------------------------------ 1171
'1h service --------------------------------------------- 4864,4911-12
---------------------- --------------------------------- 2449-51,
2635, 2680, 297W-81, 3107, $212, 3321-22, 3344-45, 3914-15, 4113-15,
48450 49&--U
---- ---------------------------------------------- 119P
288, 511, 846, 1117, 242o, 2653, 295o-lup 3V-;"6t 3W8p tMj dM5p
",480
-------------- ---- 9,69-70o 97,489,692,960,1338,2249,3906,4841
U(M - --------------------------------- 2518,3049,4183,4961,4966
t -------- ---------------------------------------------- 48P
180,818,575-76,740,949,1453,2299,3784,3966,4894 group of corporations ------- ----------------------- 2638 3170,4933
or d1mbility of conviction ----------------------------------- 481
170-W, 317, 075, 740, 948, 1453, 2299, 3782, 3965-M, 4894
-- ----------------------------- w- 1819,1323,1471-72,2440,2970,4104
--- ------ -------------- f371,8% 978,1471-72,3649,360,3799t 4984
period --------------------------------------------------- 371-72,
.864-4Z, 078-79, 13IM-201 1323-24, 1472, 2""1, 2970-71, 3649-M,
3653--54t 3799, 4104-M 49M
Wed* service ---------- ------------------ 76,103,148-49,544-45,1416,244r)
I value I -- -------------------------- ------ 14,698,2256,3912,48"
of teindlnati; ---------------------------------------------- I=
benefit plan.. ... ------------- 246K 2984,391k 4070-,80,4118,4845,49W
eontribution plan ------------------------------- 2454, 2984p 4n8p 4935
(XV)







i~iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iii iiiii=k a ti _. =u....
iiiiiiiiiiiiiiiiiiiii i iiiiiiiiiti
iiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiii iiiiia o &
Definitely determinable ---------- ---------------------- - 2%9, 32U, 3 M IIIIII
D i q a ii a i n d te- - - - -- - - -- - - 4 3
D iq ifi edp rsn--------------------------4 W.iW% 4
ri estretrem ntage-------------i000iiiii4Mi87i 4
Ea n d ic m - - - - - -- - - - = 3 3 0 0 N ,3
Eii b i ndiv dua amo nt pln....-- --- --.- --- --.- ---..__..
Employeeiii ------- ------- 8,7,9,4 0 9,24 ,2 5, 36 0, 8
Employe acre.en ft----.--------.--..3D3 ,89-1 W 2
Emloeebeeftiud SeiigoFud
14,i9ii4,61,1,i914& 4,35- 3C 34
Employee benefit plan-- 6-7.
............. i i -- 84,---- 689---- 9W 141-3,---47,3743,3904
Emlyeiranztoni-----7A 7,99i9-ii60,90i2',394 gi-EmlyeiesonbnfiilniSeEmlye eeitpa.
E m l yeitciiiiiipl n- -- - -- - -- - -- --i4 f 1
Emlye efaebneiilaiSeiiioE poyebnei pa)----i- 6j
224iiiii48
Em lye.---..70..,49W,61.M....07,1.228 3 ,305 8
E m l y rg o p - - -- - - - - - --i7 -1 4 0 M 3 9
E m loeiraiio er y -- -- -- -- -- -- -- -- -- - 8
E m l y r s c r t - - - - - - - - - - - 8

Enoledatu ry-------------------i48,394-5i470i85, M
Ex e s e e it p a - -- - -- - -- -- - -- --- -- - 4 4
Exescotiuios------------- 544, 957, 1i-t 937
Eei enedfiiny----------i---iK 12it3 K wA jm u
E ei en e l ss- - -- - -- - -- - - -- - -- - 2 M 1
i ui ari- -- - -- - --i- -- - -- - -- - --
15i2,26 32iiii141,i9i96i9i-6 17, 17 I4 4
223i25i8,2%i48i30,336Mii4,i76,31O- 5
484,i98i-8
isclyeroitepan(eePaiya.
iiiiiiiiti n m lte p o r p an - -- - -- - -- --i- 6 7
F u lliiii n d i g l m t t o - - - - - - - - -
iiiiiiii6 ,3 W 40 1-5, 19iKiiiii2 2
Fui llnd d --i-- - -- -- --i- -- -- --i4i1 1 4 4 % 6
Fu d(eiloE poyebnftiii-- ------ 7,9,41 4
F i ng -- - -- - -- -- --i-- --i4iiZ 4 W ,I LA
iiiiitp -- ----- -- -- 49 97,3 1,4 % 8 44 .O
Gu r n e d b n ftp lc - --- - - - - - - - 8
Ho ro evc - - -- - - --- - - -- 8 0 8 3 9 6 W

In iiu la c u tpa!- - - - --- - - - 9 5 8 8





iiiiiiiiii70,i97iA^ii489,ii92,i9iiZL 2249iiiM M 48i1 iti aliunfundeiliability--------- ---------- --------- ---------i3ii1iti4i

i tilufne atsrielaiiy---------------- 690







xvir

DEFINITIONS-Continued
Pages in
Legislative History
joa oyer plan --------------------------------------------------- .104,
41 496, 602, 89"5, 1158, =58-60, 2258, 2857, 2451-52, 2634, 2981,
3166, 8306, 3688-89, 3916-17, 4115-10, 4532, 4846, 4934, 5010
fidueiary --------------------------------------------------- 4564,4882
------------------------------ ------------------------ 2294,3961
of employer ---------------------- 9830 1155, 13979 .3726, 4641% W36
e benefits ------------ L ---------------------- -------------- 4633,5011
able --------------------------------------- 2251-52, 3306, 3909, 4843
eitable pension benefit --------------- 12, 148, 285, 544, 695, 1414-15, 3745
d6ftble right ----------------------------- 75, 103, 494--95, 602, 2357, 3306
9,fretirement age (See also Regular retirement age) -------------- 76,
108, 299, 4950 602, 1119, 2409-10, 2939-40, 3911, 4073-74, 4540, 4913
retirement benefit (See also Regular retirement benefit) --------- 75-76, 103, 495, 602, 4843, 4913
Nbrinal (service) cost ----------- 74-75 102, 494, 602, 699, 2257, 2357, 3912, 4844
Ofiiy &r break In service ------------------------ I ------------- 4864,4911-12
6*Aer-employee ------------------------------------------------- 1151,3854
Ni" termination, -------------------- 2296, 3346, 3729, 4013, 4643, 4659, 4670
---------- --------------------------------------------- 8
70, 98, 490, 691, 977, 959-W, 1342, 1483--84, 1840, 2248, 3671-729
SM, 4841
P&tiersblps; trust ---------------------------- 97&-77, 1470, 3797, 4983
In interest ----------------------------------------------------- 9-101
151-52, 282--83, 370, 54&47, 692-M 956, 973-75, 1171, 1417-18, 1466-68, 2249-50, 2256-57, 3306, 3748-49, 379&-96, 3797, 390"7,
3910-41, 4590, 4841-42t 4981-82
Pension benefit ---------------------------- 76, 103-04, 149, 495, 545, 1416, 3745
V &on plan (Afee al4p Retirement plan)-----. ---------- 71-72, 99, 492, ISM
------- ------------------- 9,71, 98, 490, 691, 960, 2248, 3905, 4841
(&e Employee benefit plan.)
sponsor ------------ I -------------------------------------------- 4842
--------------------------- --- ------ 7 -------------- -- "46
p6itability ----------------------------------------------------------- 596
Ptesent -value ------------------------------------- 14Y 698-99, 2256, 3912, 4844
Pi4sent value of annuity certain --------------------------- 699-700,2257,3912
Pftftlit value of underfunding ------------- I -------------------------- 4038
P* tkata share --------------------------------------------- 913-14, 1376, 3705
Pr6fessional individuals ---------------------------------------------- 5023
Profeasional, service employer ----------------------------------------- 5023
Profit-sharing plan --------------------------------------------------- 1338
Profit-sharing retirement plan ------- I -_ 72, 90-100, 491-92, 601, 2357, 3806, 3668
Prohibited transaction-- 36940,965-67, 1163-65,1460-61,1614,1728,3787-88, 4978 P roprietary employee ------ -------- 930-31, 1151, 1189, 1533, 1707, 1778, 3758-59
QrRalifiedactuary ----------------------------------------------------- 2265
Qualifiedemployer real property ------------------------------- 4584-85,4889
Qualified employer security ---------- 7 ----------------------- 4584, 4889, 4983
Qualified insurance carrier - - - - - - - T - - 77, 105, 496-97, 877, 1342-43, 3671
9ualified Joint and survivor annuity ----------------- 3000,3983,4134,487004943
Qualified 16int and survivor option ------------------------------ 2556-57, 3090
Qalifted plan ----------------------------- 877, 1341, 3671
" Iffled public accountant ----------------- 3923, 4849
Registered plan ------------------------------ ------------------- 72, 100,492
Regular retirement age (See also Normal retirement age) ------ 14, 698, 225546 Regular retirement benefit (See al8o Normal retirement benefit) -------- 13, 695,2252,3911
Relative (See allo Member of family) --------------------------------- 10,
.146, 283, 541, 693, 1412, 2250, 3743, 3907, 4842 Ret1rement plan (See al-go. Pension plan) ------------ --------- - 1438, 3768
Security ------------------ ------- ------ 12,
695, 1416, 2252, 3746-47, 8909-10





25-we 0 To 2 (Vcd. M)






iiiiiiiiiii
............................................................................................ .. .. . .. .. .
Lelat e fltf
S ep a ra te a c w u n t - - - - - - - - - -- -- -- -- - -- - - - -- - mp l u
IL4-8 8,5 ,4,69,99 6-6t11, 45M .2 l-74
iiiiiiiiii~ iiiii=H3 79 2 4%iiiiiii .....................

Shar holerimplyie--i---- --- --- --i--- ---i;i---- --- ---iiiii3 487
Sp ca a m n -- ---- --- ---- -- -- --- --7,|,4 0
Stti- -- - --i---iii- -- -- - -- -- - -- --
69i9,i8iii19,ii7iiii248iii54M 372 |W O(
Stc h lig - - - - - -- -- - -9 6 4 9 0 7 7 0

Su s an i l bu i esia dsiii- -- - -- ---ii- -- - --iL
24536i6i-1i26-6,326i09i10,48 ,4
Susatileon mch rdip---------------10 -5,i3 -3 33

Su sanilec n miin uri-- - -- -- -1 8-2ii.",i2,i8i28

Su stniaimpoy r---------------i939,ii5,138 3878ii"
Substantialiowneri-------------------- -----------------i;-- 4029ii4&3" 7,iiW
Su sa til (la )i prv m nt --- --- - -- ---I --1 2 0 71
Su cs rpan--- ---------------- 18 3 1,30 ,42 5
Suplmntrypan--------- --------- 30,39516 47, "
Tagtbnftpa ----------- 636,39,33,38,30,45
Taxablei perod----------------------.30,97,.47 -71.398.483 84
T i at~i on ben fi -- --- -- - -- -- - -- -- - --- ---..
T ruste re po si il t -------------------------------------------.- ---.....
.................ii i a e em pl yer -- - - - - - - -- - - 7 1 4 4 5 9
Unune acre iblt-----------------25,31,44
Unfundediii liblt -- -- -- -- -- --- -- - 3 7,11 9 ,4 1
U nfundediiiiiiiiiiiiiiiiiiiiiiiiiiii i bi li i s- - - - - - - - - - 7 0 ,
iVesii tedii iaiii es- -- - -- - --1 ,7,i0 ,4 7,M ,22 6 Di1 ,4 1
Vested riiiiiiiiiii i gh SeN nofetbergt) W age!!!!!!! increase.............. inde -- -- --......- - -- -- - -- -- 3
i ve u d ng d fce cy- - -- - - -- - - -- --- -- 0 .
1314-236,296,344,400,880,M Y e ariiiiii o f...........................- - - - - J- - -
Y eariiiiiiiii ......... p r iipi on ---- ---- ---- ---- ---- ---- ---- ---- ---iii7ii16
Yea s.f.la pici pa i n -- -- -- - -- -- -- -- -Y e a o f se v ic - - - - - - - - - - - - - - - - -- - - - 93
838--39,i~i~ 1285,ii 120-1 170 )3 379,208 43 62-52 280-51 2 W57 22728 238ii243i36465i378ii, 313613,iii~i 36921 978,39-4 02 59-,43;46,4@
iiiiiiiiiiiii4866,4906,4911?H = iiii















REPORTING A&ND DISCLOSURE
Legisative Meor


Plndescriptionl, registration, amendments, and documents--upv~ --mmay plan description--updating. A~etarijrpart filing requirements...--------------------------------- 27-28,
Akt16&-K4 297-98, 558-9, 681, 705406, 99&-94, 996, 1485, 2264-05,
286%,.2501,02, 268, 3024, 3214-15, 3298-3300, 341, 37W0-61, 3810-11, 3924, 3982-84, 4166-68, 4522, 4524-25, 4629-30, 4668, 4741,?
4759-60, 4848-50, 4852-53, 4952, 4954-55

NOBORMENT--Reporting and disclosure requirementa--generally.
9 yexw--Fuanding -status reports. 2
Mioz~i&ms--An'umstew--standards and qualifications for. .*"0" re oor return:
Discosur to participants. ..------...--------------------------- 28-80,
164-40, 299-30, 500-62, 614, 631, 701, 717-18, 1482-33, 2260, 22577* 286, 2867, 3298-98, 3877, 3461, 3495-06, 3762, 3764, 3919, 8087,
39, 4526.,4742.,4753.,4813.,4847-48, 4856
& qqirem ents: .-.---- ..---. -.. ----------------- .------------- 56-&A,
261-0, 404956-0 614, 630, 703, 711-10, 1056-57, 1061, 1215i., 422-82, 1561-42, 1008-04, 1664, 172"98, 2261-73, 2366, 24969 3020, 329849, 8879, 3461, 3495, 8752, 3754-62, 3890, 3921-35, 410
4522-24, 4742, 4759, 4847-54, 4952
Acturial report, filing requirements.
awWmgat--Reporting and disclosure requirements.
Fiancial g atements, annual audit of.
Audi tax(See, Plan description, registration, amendments, and docummt*-fe requirements.)
Certlleae o vested rights (See Statement of vested. rights.) Charges to articipants for disclosure :
Annal report or return--isclosure to participants.
Plndescription, registration, amendments, and documenta--isclsure to participants.
.umary plan description--disclosure to participants.

189, 321, 586, M2, 682, 743, 831-82, 992, 900, 1061, 1281, 1454, 1484, 1488, 2301, 230, 2400, 2505, 2747, 2750, 3021-22, 3036, 3280, 8282, 8301, 3378, 8612, 3784, 3800, 3813, 3895, 3970, 4155-56W, 4170, 452T,
4658, 4097, 4715, 4742, 4782, 4810, 4834, 4859, 4948, 49"Z5 Rximpions(See Seeretary of Labor--exemptions.) ft nca .satements, annual naulit of -------------------18,
158, 2-9"1, 551-52, 814, 681, 703-04, 706-11, 1423, 1604, 1850pH226102, 2300, 3208-80, 3461, 3753-54, 3921-23, 4522-25, 4692, 4742,P
4759-60 4848-40
GU MISRLLENEcO'UB-AccountantS---standards and qualifcations

VAM nd tail of reports (See Secretary of labor-form, detail, and in-. spetio. f reports and records.)
l~w~rnce.crriers and other entities, furnishing of information-_ 17-18,
24-25, 15&-i0, .161-462, 290, 551, 557, 710-11, 713, 1422-23, 2262, 220070, 2366, 3298-99, 3753--O, 3921-23, 3930, 4524, 4848-4, 485354
fo mroved41dicoure .-- ---------------- --------- 597,
613, 1600, 1664, 1872, 2=7-58i 329-96 335, 330, 336, 3375,
358. 8583 3592 4661, 4665-M,6 4668, 4004 4742









REPORTING AND DISOLOBUBB-Oontinued
Plan description, registration, amendments, and documents: Lo U
Certification of registration. ... --------------..-----.
113-14 497-e,98506-,s, o1w-1,2Mea, 28s4 aM M aDisclosure to participants... . --- --- --------------- --- -;(64-46, 287, 200-97, 500-62, 597, 614, M81, 701-04 710014f 16us, 22ses, 2e75-76, se=, 2so&se7, a=98-N, as75, 33% 54 8897, 84M1, 8495-00 8762, 870, 8919, 807-M0, 4W 240W -4728, 4758, 4750, 4847-48, 4855-560
Fee reu ir.ement - - - - -- --- - - -
500, 90M, 1178--80, 1482-88 1624, 1888, 1718, 2840-41 ---"
Fiing reqgnirernents------------------ ---- 47
28, 115-16, 154, 164, 288-80, 2044, W 549-ft50 M
16, 1421, 2204-61, 2278, 248544t 8208-99 0004r5 461 52, 8762, 8820-21, 805, 4522, 4798410i, 484 B
154-M, 289, 629, 702, 716-17, 1498, 2204 28M, 88% 0 ft45
4728, 4854-55
See elso: *
ENFOBORMENT--Reporting 8nd discl08ure reguiretlBO
Summary plan description.
.ux-.%e 15o-o, 2o8ed, a0s-M, 54e-48 Mn, 60t-wou 62 M 700-01, 1419, 2250, 235, 286, 2495, 8068 830, AM& = j T
8752, 388, 8918-19, 4100, 45=2-23, 4742, 484M-47, 485S-0Pi e law ---- ------------------..--ii.
0618, 1085, 2351, 2858, 2M0, 8184 3295-8) 808 880.3",M Public inspection of reports --------- ---2-0
86, 108, 164, 200, 500,.500, 719-20, 1057-80, 1081; 91
1485-8, 1508-N, 1600, 2248--74, 229i9 2406-68, 2478-490, 27
8009--12, 8282-88, 829, 3TUS, 8766-W7, 889, 8thik 80 %413
46i,4520, 4714, 4767--68, 4854 4857, 4947-19
Recordkeeping requirements -------------------....
108, 720, 2279-80, 2868, 260-54,81,80080,
See also:
ENSURcEmExw---Reporting and diseloue -recordkepn eurzm$s
PARTICIPATION AND VEsTINg-ReoDWOMAS $g requiMAremen Registration requirements:A
See:
Plan description, registration, amendments, -and doenanente
Statement of vested rights.
Regulations/rules, general authority, Seeretary of Lar---------- f
115, 38 50, 74, 778, 1484 1850, 288M, 2874, 3Mt 8741-4 40 ,401
Secretary of Labor:
E xem ptions .. ----- ------ ------- ------ ------ ------- ------...3- ,
287--8 548-499 629, 714-15, 1057, 1420, 2274, 2808, 2495, WX321 8481, 870f8884 98-88, 4100, 4528-28, 4525, 4071,4742,4 4=
Former, detail, and inspetion of reports and records.. ----------- 1-%
108, 11287O, 500, 624, 681, 1056-57, 186, 288$, 2W0, 2d95, 284, 8764-65, 8919, 4050-51, 4=2-24, 4526-27, 4TO9-0, 47M-g 00
4857-58
Rejectian of reportis20, 624, 715-16 2274--75, 23M6, 8209, 3036-837,52,45 Shmptified reports -------- ----- .. 18M, 875"-1, 45, 4742,454
Variances ------_-_ 287-88, 1420, 3307, 3750, 4523, 4600, 4742, 4760, 48448
Secretary of the Treasury, registration of plan (See Statement of vestd rigts) Statement of nonforfeitable rights and benefits (See Statement of vested rihs) Statement of rights under the Act ---- 287,-------M 629, 891920 --N
Statement of vested rights:
Disclosure to participants ------------------ --3116, 30"-1, 50&M)9, 605, 625, 701, 718, 1075, 1000, 1106-M 146,t 1270, 1434, 162, 1718, 2277--78, 2367, 2493--94 25004, 2W5 219, 2746, 3025, 3031--32, 3126, 3150, 3270--80, 3299p8, 33,831819 3379*
3430-i1,i3i61,i3i10,iii6iiiiiii15iii4i6i-68,i452ii4i, 4 "
4!68!469, 739 4&!491!5









RWORTING AND DIBCODURE- at vested righte--Oontinued UOM"* *v
Fiin requirements --------- -..-------- -98 --3 -1
116, 800-401, 508-00, 005, 825 828-29, 1975, 1000, 1106, 1145-4K 1277-78 182, 1719, 1723, 2277-78, 2867, 2491--M8, 2619, ST40-47 ans2-24, 8150, 8279-48, Ss, 3818-19, M81, asso-a, adeL Wag-, ageo-41, 41ss-as, 4ous-a, 468 4Wne, 47a9, 475s, 4768, 4e8s 4ggW
51, 496M12
V74, 85.8-0U St, MeL 844, aSs, 34al MM7, 4Me, 4545,
deg, 460, 4742, 4768,4850
Se ret~Y of TilWW duwies rvewlk wantool manwn benefits -----
880-82 10W5, 1009, 1106-07, 1140, 1146-48, 12794 13-1S4, IVA,

3126 als, also 827p-a, a2se, as1s, ass1, s3M, se4a74 349 ea& sto-11, 4184-0, 46e2Sa& 40M, d0M, 4789-40, 475W, 47764 4894
4854
mlalnof Information to Beeretary at HEFW - .-....-......... 319
eOW 718-19, 829-M0, 1IM 1099, 1100 11A2 1278-T9, 16$, 1719,
1723, 2278, 287, 9400 2505, 218, 2748;2 80 25, 8126, 81M0, 3278-0
a2se, S, a3al a3so soo, son, 4158-W, 4652-Ma, 47etra-40,H
4758, 47M 84oe 4051
vou tary fi ing. -- - -- - -IM----, -- - -
1278, 2493, 2747, 3024,328, 3604158,4951 Essumrmn--epOkfa and disclosure requirements.
plan u nritin
f14, 681, 148-88 8788 4M2, 4W68 4708 4714, 4728, 4742, 4753,
4755-58 470 4847--4
4525-26, 4847- 854
861 143376-6 4525, 4728,484885-W8 xe lo Awmmm.Beporting and disclosure requirements.
J~ilalreport, filing requirements ----.. ----- ----- 16,
153 27,548, M2, 701 714, 1420, 2260, 2273, 22956, 236, 320,
3750 81, 335 396243 4525 4837, 4760
Dslsure of:
Funaxwo--Variances-isclosfure to participants.
PAICIPAHON AND YE8HNO--Varlanees--diselosure toDRiinns















PARTEICIPATION AND VESTING

Anlnetor alienation of haninalB --------------B----1199, 51-1925, 1884-86 1720, 2470-71, 2490, 2617, 21MF 800, SMS-22 8148 3188-80, 8818, 332%-27, 3882, 8421), M04f
41W6, 45&- 547A, 4871-72, 4944, 4950
Back-loathng proviaoas (Htoe Vesting and benefit acenal. apecia raw-rate of current beine~arual.)
Collective-bargminew- plan a--------- -- --------38540, 6AW, 627, 751, 884-35, 874-954, 1002-45, 10*2--48, 1t00$41) 1109-11, 116, 1119, 1123, 128, 138, 1547-M0, 1812, 1719, 18M
28'7t, s240, 2445-18, 2505, 2000 26837, 20-40, R8,
2075-78, 318317, 3168-41, 3171-72, 3802, 3812-13, 3322 3408, 8417-A 8, 3442, 34W6-1, 3540-4-1, 36014-15, 3664-00 877-78, 4005-M8 491, 4531, 4051, 4004-05, 4675-76, 4697, 4788, 4702
4770, 4780, 4874, 4907, 4081, 4989-40, 4942
See eleo Varianes--colletlve hergminime plan&.
Effetive dates -- - -- - - -- - -- - - -- -
189, 248-19, 389, 5KS M22 S84 751, 83"-7, 851-52, 1078-74,. 1000, 1110, 1113, 1124, 125, 128-88, 180-4, 1386, 1812 1828, j881, 1720, 180&-.09, 1811, 1874, 2311, 2371, 2465-88 2400, 2504t-fg 2, 2611-12, 263W-40, 2059-60, 2996-08, 8021-22, 3125-26, 814 8143, 8171-72, 3192, 8303, 3812-13, 3815, 8322, 8594, 3888-8,t 3880 aeor-0418 4 3423, 3442, 3017, 8083-86, 3008 3875-4 3M0, 809H4%, 4t30-8W, 4155-68, 453X-34, 4004 4007, 471, 47WT, 4=82
47V5, 4779, 4807, 4819, 4830, 4874-75, 4959-42, 4950
.Toint and survivor annaitio ------ar------t--------,7
601, Mla 60, 7t33-n4 874-75, 1214, 18W4, 1880, 1017, 172tIW%
1881-85, 18W1-415, 220-91, 287 0, 2468-0W, 2490, 2504 2817,20-W
2707, 2M09400, 3021-22, 812, 3148 3187-88, 8240, 8801,:=0
3881-M1, 34917, 3510-16, 3571--7&, 36, 866 3981-88, 412-8&, 41M556, 454"7A, 4600, 4679, 4681, 4788, 4752, 4756-b, 4765i, 48015, digB
4o4s-44, 4one
Mergers or consolidations of plans ----------- ----- -- -.. 24t-70,
290, 20W5 2711, 8001-42, 3021-22, 3149, -3188,-3248-44 8818,
332,349,4185-W, 4155-56, 4852, 4872 4035-W0, 494, 40150
More liberal plan rii on .-..-.- -- -- -- -- - - ;. ---------1,
513-14, 607, M25, 113, 11-15, 1719, 2300, 2470, 2642 3173, 3801,: 3,
8880,38401,38079, 4096,47135-36 4786, 4791, 4865
Multlemployer plans --- - -- - -r--- -- - -- - - -- O ,
1108, 1110, 2448,24151--52, 2084 200, 2978, 2081-82, 3176, 8188, 381
8820, 4115-10, d,45 8, 4788, 4810, 48783,4932, 4034
See sise Varlances-anltlemployer plans Need for :
Participation standards. -- -------- --.-.---.. .. 1@
1071, 1078, 1081, 1087, 1174,11,16, 73 854,21-M8
.2860-61, 2502, 200, 2681-82, 3123, 3131, 315W-54, 3206 8805, 8811, M981, 8870, 8874, Sto8 3415-10, 8400, 3475, 4700, 4784-35 4780-89,
4800-0D1
Vestiag ad benefit secrnal man ind an--n-----a------1071, 1078, 1082, 1087, 1113-14, 1602 1619-20, 1634, 1008, 1708-04, 1773-74, 1791-1812 182-27, 1874, 2W5, 2502 280W-01, 2007, 264-2, 3123 3131-432, 3138-3%, 3173-74, 3206 3805 3323 495 3498, 3572-76, 3591, 4673, 4W82, 4687-488, 4700, 4710, 4735 479--2,
4800-011, 4811, 4831
Participation, basic standards :
Breaks in srie.56,
2309-2400, 2005-06 26=84, 2929--30, 3146-47, 3175-76, 8812 332021, 3W 092,ft 45831, 4751, 4754-W5, 4861, 4875, 406-YI 4M4 cz z









PARTICIPATON AND vaESING-womoiurs
Pariciaton, basie standards-Continued
Briath of coverage: PgsI
Collective-bargaining plans.
ExTsRAz BErvENuE CODE.-AntidiseriminatiOR rules.
Patcpation, speeil rules-non-resident allies.
Vestig and benefit acerual, special rule&-comparab~ity of
... .plans.
Maium age.-----. --------------------------- ------------- *2
11g8, 2ge,23e97, 200, 2684-M8, 2927, 3147, 174, 8812, 8821, 8417,
8978,4081, 452,4774, 4813>14, 4800, 40
am age and service----------------------------------- 52-W
116, 284-85,3828, 500, 005-00, 625, 745, 88i-33, le72, 1087, 1108, 1220, 128, 1611, 1625, 1689-41, 1648, 1700-02, 1719, 1774, 1821, 1875, 2804, 2800, 28 970, 2896-97, 2500, 2610, 268, 2926-27, 8124, 8185, 8164, 8801, 8811, 8819, 8852, 8880, 8895, 8407, 8415-16, 8456, 8400, 8495-06, 850-10, 854, 8572, 88, 8612-18, 8097-7, 4000-M1, 4527, 4529,
. ...400, 4674, 4687, 4605 4700, 4718-14, 4785, 4759-M4, 4778, 4786-87,
4792, 4800, 4805-,08,4812, 4818, 4825, 4860s 405- 08
Predesor employer service ---------------------------- 1108,
.... ..2448,2084, 2978,8100, 8821, 4112, 4531, 4878, 4082-883
Se a Mergers or consolidations of plans.
P reg-apation service.-------------- 55-M6, 2M&84, 8165-00W, 758--54, 4861
Yerof service:
general rule..---------------------------------- ---------- 1108,
1284, 1700-4M, 2897-08, 2004-05, 268504, 2927-28,38185-8, 8164-88, 880, 8416-17, 8618, 8785, 8751, 8754, 8091-4), 4061-62, 452"9-0
4659, 4674, 4713-144800, 49061
Maitme, insent aas ---------- 392,744an04860,4906
Tmpoarwy and sasnaempinyee--------------- 1108,
1112, 1771, 23890, 2615, 2W4, 2028 -29, 3180, 8185, 8811, 8819-20, 8416-17, 8540, 8572-74, 8092, 4062-68, 45W, 4785, 4754, 4806, 4800,
'Heals IimRsmexParticipation and vesting standards. Patiiatin, special res
A irilts -------- 2402,200,207, 2082,38187, 3169,8418,8541,4006, 4581, 4007
Cotrolled grobpe of corporations/Mlliated employers.. ------------ 88,
1111-15, 1286, 2448-49, 2688-9, 2978-79, 8170-71, 8618, 4112-48,
4W8, 4873-74, 4988
Keog (EIR 10) plan--- 1107--09,1612, 1718, 2681,265,38162,38167, 4582 No-r. sindent aliens - - - - - - - - - - 885,
878-74, 1111, 1285-M6, 1888-84, 2402, 2637--88,2082,43169-70, 8815,
886, 4000, 4M8, 4908
--Met ot benefits, commencement of... --------- ..--- .--------------- 57P
288--80, 749, 1720, 2809-10, 2370, 2471-72, 2008-0, 2085, 2041, 2649,
2657, 8140, 8166, 8178, 8181, 81190, 880, 8814 889,88,80182, 8786, 897t9--80, 4186-37, 4548-9, 4724, 4785, 4871, 4914-15 aUCVrwarlananeral le atnd excMww alusions:m
L bor requirements ---------- ------------------------.... ...... ... 51-82,
111-18, 504-05, 547-48, 604-05, 607, 62d, 744-45, 2802-M8, 2856,
2460, 3801, 8813, 8321-22, 3883, 8379, 3884, 397O-72, 4006-67, '
4085-40W, 4527-28, 4687, 4781, 4859
Tkas ry reg irements .. __ .. --- -- -- -- -- -- -- -- -- -- -- 248,li
1720, 2M0, 2421, 2594, 200-07, 2W8, 2009, SSAS-WB, 2950-1, 8125,
313T-48, 8167, 81,94, 841, 8444, 4527-28, 4008, 4919-20
fa le Tweeew Hwwwwrra R~=-Ofinm-A ntiow imaion rues.da
Vuntary coverage _---------------_------- 2403-W4,
2421, 2606, 2635, 265W, 2933, 2951-52, 3137, 3167, 3192, 3313, 3321-22,
3418, 3972, 4067, 4528, 4874-75, 4908
-8viu law:
Paticipation standards_. -------------------- 1070,
1079, 1107, 1-100, 1702, 2606 2619-20, 2631, 3137, 3151, 3163, 3295-96
Sting and benefit accrual standards ------------------ 591,
1L112-13, 1122, 1624,'1875, 2351-52, 2600-0)1, 2619-20, 2640-1, 2652,
3131-32 3151, 3173, 3185, 320596 3312, 3322-23, 4673, 4693















: daermiation(UPT oN arenessGasmous--Di

R a ec uritgrbeneuire oen s: ----------- ---Integration ...... .._.................
17.8 514-M age9i, su2-2, nd K 92 S,=1,S
40ea, 457, 4MOa4-as

1714N sANeD1 Dseaosu,--ttmn of sesedsont
Reguatinsarle4 81ner4 sutority, Scaryos-ar------,d50, 400-700 189020-, 49, d34i 3U1,& 7"

3e-a, an-s, se, earM, 400G 0U1,43.4277
12 sUM,8 287 2"14 2UO82W,36, 1-3,37- 1
34ago&4a, s469%adM
srex, etc.)s, 84 aa ss
oial lecuty bnivefnt plmaiiiiins








Diselosure to participants... ........ .ii i .....
1716,82127, 275 18W, 314319S2A4S 32-, 57
ades-a47, 441, o






Brfe s in -- - - --------------- 749-5..
246 23107, 2s1, 2o4l 2490 617, 1,2K32-2

2951, 3174, 335, 31318 3373,,32 38-t4W%45&I
4537, 4674,4735-, 47566, 481, 494,45
Emplee's pacrnseds bSenefi Megrrcnoidtosolm
231, 3-21, 182, 24080, M276145 -5,I-7 402, 4540-, 4733, 475M 644,2K34,37-6 1W
550, 11I1, 28, 504-11 587-8, 33-.3t-2,44-%4
145,1221, 189,4161,47 102
Coll i 4, 1700-1811,an 1821 ---27 17-76, -- -- 512
33 3-1,52,32,14422,51,3358, 3=274- W
35, 3494-05, 3400, 374-75, 3M,34,38-7,31-40@
47-4, 408-W8, 4M0-6 72
Vesb~4787 4792 4801t ccua, 4807, 4812,a481: B r e s co bnigagnn service ------ -----------1W
29, 108, 5111-15 2606M, 237, 0 JU-1,1861& 39 238, 337, 3387, 34, 34, 3 8 6 9 0 05W
407, 407&4K4, 435 465, 44I1, N
4751, 4, 475i, 3476-, 4776,M38 46,4077,406 0
4817, 4625, 483&-K1 486, 4800 6-9 4M416 = E m ly e' c ru d b neii---- ---i-- - -- -- --i
31,83-40 1192% 40-W 26K 93-W,31 327- 3-2
407i73 4NO 43", 4K 84-41,i91 Employe cotbtos ceue Or Graded -i ------ 3
55 1-8 3,591,57 %5CW 5 KIMMIO-3
M4-15 1=-2 129161 62C2,13-, 6i71-17374 701n 8-7 847,20- 33 3L2 4&)
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii1iiiiiiii3 3Ki 3313-14,i3=-24,i32, =8 337% ii, 397-SK 3W, 3CL96-W W7 44-,39, 947, 9 09-0 0 44M4
464-5 4i78,ii5i472i75-K 71-%45, 7 T
iiiiii4ii87, 4792, 4WIiii 4807,ii48Aii481iii483"L 48ft 4900i'
Rule co bnn gea dsrie ---------------- 31iiiiiiiiiiiiiii iiiiiiiiii iiiiiii5i 2iiiiiiiiiiii0,25928 21428
49,23- 90 32-6 M 15,MM 33 3
=43 330 W 47 4W 47 4fr 349 K-5 9
iiiiiiiiiiiiiiiiii iii 5 4 3 46A 4 ,4 7 ,46 0 7 % 4
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iii
4819, 4 = 4830-M 4 W .., 49M







xxv

P"TICIPATION AND VESTING-Continued
Pages In
Legislative History
WoUng and benefit accrual, basic standard&-Continued
jr-,XnqAoyer contribution% schedules for-Coutinued
4 Too-year xule --------------- --------------------------------55, 746-47, 852, 1073, 1090, 1114, 1290- K, 1W5, 1W, 1719, 18M, 1874, 2305-47, 2370, 2405-4W, 2", 2M8,I 26N, 2642-a, 2934-M, 29A 11214t 8139, 3175, &W1, 3318, WM-24, 3852, M 33TO, &8788, UM, UWj W70 U91-W, 3499, 3620, 3973-75, 3978, 4068-70, 4074, 45044, 4660, 4675, 46K 4M-96, 4712, 4735-M, 4751-529 4755, 4764-W, 4776, 4779, 4787, 4792, 4801, 4807t 4812, 4819, 4830-31,
4861w 49M
Prior service credited for ----------------------------------------- 99100, 118, 120, 512, 5W 6ft OK W5, 747, 839, 1073, lffig-89, 111516, IM-92, 1611, 16W, 1638-39, 1W, 1718-19, 1810-11, 1822, 1873,
2307--09, 2370, 2407-08 2508, 2609, 264" 2937-38, 2978, 31A [A
3176-78, 3301, 3814, =Z-26, SM, 302-03, I&420-21, 3465, 3619-21, 3976-77, 4071-72, 4535-V, 4675, 4737, 4779, 4786-K, 4801, 4807$
4819, 4663, 4911, 4932-M
Year of Service:
deneral rule ----------------------------------------- 12021, 2S7, 51,% 9184%, 1116, VAO-W,. 1822, 2408, 2413-14,
2= 26A 2938, 29K 3161-W, 3178, 3302, =6, 3619--FzO, &987-S8,
3904, 4072, 4OT8, 45360 4670, 4754, 486S, 4W"7, 4K1, 4915-16
Maritime industries----- 4530, 4536, 4754, 4864, 4867, 4911, 4917
Temporary and seasonal "employees ---------------------------- 1838,
2646, 3178, 3826 3572-74, 4536, 4754, 4832, 4863, 4867, 4911P
4916-17
$06 allO EMPORCEMENT-Participation and vesting standards. V60ting and beneftt accrual, special rules:
Accelerated vesting (See comparability of plans.)
Allocation between employer and employee contributions ---------- 331-34,
842, 1119L-21, 1294=97, 2414-18, 265142, 2944-48, 31&3434, 3329-30
3624-27, 398"1, 4078-432, MAS, 4867--68, 4917-19
Uagh out and pay, back provisions --------------------------------- 2409
2%7-0, 2939, 317%-,80, 3420, SW7, 40073, 4539-40, 4724, 4752, 4869,
4912-13
Changes in vesting schedules -------------------------------------- 511,
1305, 23M, 2370, 2410, 2647, 2650-51, 2MOV 3179, 3182-83, 3301, 3327, 3M, 3343-44, 3634-M, 3978-79, 4042, 4074, 4543, 4546, 4699,
4864,4913-14
Class year plans ------------------------------------------------ 118-19f
237-38, 511, 845-46, 1117, 1298, 2370, 2420, 2653, 2950-51, 3185-869 3301, 3548-49, 3627-28, 3975-76, 4084-M, 4545, 4863-W, 4911, 4919
Comparability of plans --------------------------------------------- 849,
1121-22, 1301-M, 1619-20, 1698-99, 1720, 2423, 2610, 265"9, 295354, 3141, 319"1, 3422, 4087--88, 4549, 4739, 4920
Permitted forfeitures, reductions, or suspensions of vested rights--- 334-W,
749-51, 1117-18, 2407, 2646-48, 293"7, 3178--80, 3326-27, 3397, 3018, 4070-71, 4538-39, 4669-70, 4738, 4772, 4809, 4862, 4869, 4909-10,4919
See allo:
FUNDrNG-Retrmedve plan amendments.
Withdrawalf employee contributions.
'Plan terminations - ------------------------------------------- 84"7Y
1118, 1299, 1810, 2419, 2641, 2653, 2949-W, 3173, 3185, 3330, 3629, A'
4083--84, 4544-45, 4919
Rate of current benefit accrual ----------------------------------- 748-49,2253-Z5, 2411 2503, 2543-", 20M, 2649, 2941-42, 3140, 3181-W, mm, 3314-15, 3328, 3401, =I-22, 3514, 3548 39&3--M, 4075--77, 4540-42, 4668-W, 473"7, 4756, 4762, 4797, 4806, 4865-66, 4914-16
&ee allo Collective-bargain Ing plans.
Itate of pre-enactment accrual ----------------------- 625, 4542,4866,4915
Transition rule to meet vesting standards --------------------------- 2306,
2648-44,2936 3175-76,3407, SM, 3975,407% 4675,4765
See a,14w:
'Ookeetive bargaining plans.
Multiemployer plans.







XIM

PARTIMPAT]ION AND VESTING-CouthrUed WIthdrawal of employee contr2mdons-------M, 748, 8K 1117-IK 1.19% 12W-W =W 263-74, 2Wi 8190, Wn, =A 362A 3M-M 4M 4539-M, 4M 475* 4M, MO- MM






























.........


























L











%i



G
Pun In
ir Leghfttl" Matory
IIE wm te of W 45K 48781 4M

am IOK-Ws IIW MI-13, 1722, 242%-W, 2515-46, 2680,
UM 2W M47. Mt SUS-14 3W, 3W 3W, 364L WM 40K
4BU424 48M 4M
#&M MMMLAmwuo-Acbaflai-- advisory board.

BeporW by (See Funding states reporbL)
Stand for (See MImmm p" LtuaAai-- dnrds and quaU
fWations for.)
Ckileddve-bargalning tin
IFxmdh&g - -------2446-47,2677.2976-77, 30% SM 4110-11, 455Z OR PUs year --------- 2""7.20M, 2976-77,3M, U43,4UO-U
I*x deduedelh --------- 2447-48,
2W7,20M 29"-M 3M =I,, 4M4Z 45M, 4M 4OK-W Oiwjoyx and oftetting amoumta lo be amorU=3d----- -- 23M
; il M 3UPA, lii6F 4877-M
295845% 3206-M.
4M
%JUcqxdmwy funding -------- ---- 596, 2MA
growe Of COrpOrRHOUR, HPCCW rnlP----- 244849,
2M M7-M 28ft 2978779* 29M 3209-10, SM 4112 A 4116,
4M
to anpkM- I= 2U% 28a-ft 314rk 3M 3MM-N, 33M SM
ons (See IM7exgersand distributionF6 special requirement&)
18% 2W40, 330, 5W OK On 7W-4M% M-T3, 1074, 1139,
1BU-4M IOA IMI, 16K IM 1809-11, 2349-20, 2M 2466--ft 204-M 2617. 2889-ft 2096-ft M25-K BM 3148, =2t 33M SM 34M 3428-29, MR-SPI1, SM 4008-106 4130-SZ 4GOD-OL 4677.
47A 4740-41, 4"2, 47M 4810,4%L 49DOL-U
gains/lonew:
fionperlod516-16, 1074. 108% 1129-ft IGM IOM 1650, 172L 25K AM31A 3M, MM M7, =4
14, 26M 2M& 2WT-7% -W. 3337lk
=8L 3W, 3425 3157-58 45M 4W7, 4740, 4757, 478D, 4902
Determination of---- 8W IM, 13A 2667. 3NO-M, 36M, 4OW-K 4552,4878
.at,
lam
100t LMX 16A 16M 1721, 24K 25K 2614t4 20M 2W 29K MM, MA UK 3204* =79 33M 3W, 34260 3457-GK 4004, 40M 4550,
455&4t48M4W
T*abmmt of cerbiln. dut"gelt- 80,
24M 2
480 OW MOMMO =M WM MM3, 40M 401-IM 45M MM

Combining and offmtUm amounts to be amortIsed
Vabumon Of-saw*L
fundium spmdal rule 125,
QT-18o 8W 1133-K 1312-13, 24M 267S-76v 2991, UK-4K 3342,
3W 3W 40K 4W5j 455% 4M-796 4923-M V*kUM nwtboft dmum In
11W-3% 1313-14, 24M SM, WO-M 2W MM XU4%.36A 40M
40M 450-40 4WK 4M
,VOWIlng
Aftoniatt ubmdard for vested IfebUitleaL - - --- - -------------- 2MrN
2M 20K 2M% 2M 28M. 2N& 2968-ft WON 3144, 3146, WK =01, 3WOo 3XV., 3316, 3M. 33M3-ft 094 307-8% 3424. 3426-W,
3M8, 4U9-6l, 46M 46M-V, 47517









.. ...... .. . ................................................ ..Il
i'iiiiiiiiiiiiiiiiFU N D IN G -Continuediiiiiiiiiiiiiii~ Funingrireet-otiudPai ini m um standard : Legiiiiiiiiiiiiiiiiiiiiii iiiiii
Acc ue lia iliie baii- -- - - -- - -- - - --if
23-0,5415 25-2, 5-4,&i5 ,173 09,127 Wi50
156, 17172,161, 626 1'2l 186, "5 231, 12, 344
iiiiiii3194-98,ii302,i3316i17,i3334--35,ii3381,i3407,i=6i27,i3579,i4549i50,
iii4676, 4688, 4696, 4712,ii4440, 4d57, 4180i, 4801, 494-71$ii:i:,,i1i4.i..
Ge e al s at m nt- -- -- ---iT- --i-- -- -- -_iiW -2

514 62,4i5,17,190i14 22 37-f 62 66 69
50,i2313-4,i2361,2424,i261,i2662102955, 3 4" 3195,......33.
331 31-1,38,39,32,34 4,35-8 43 53 67
4595146,42,45,48-88 87- 82 82,47,4
Veste iiitebai--------------596v3-2,74W




Levl pamn ehd ffnig
M on eyiiii p u c h s .................................
M ultiemployer ..............
............................... staii d ard a ccou n t:..
Alentefin stanardaccunt.---.--...456-7,.880-1...44
Establishment/purposei -- --- --- - -- -- --- - --. 1 4
116 13,10,ii2ii2.-5i26,2617,295 16@'it


iiiiiii3335,3339,3638,3998,4089,4551,4iiiiiiiliiiii76,4921ii
F undingimitioii-i------------------------------i2i2iii0iiii5ii4i0;,iiiiiii
Is re pln - - - - - - -- - --I6 -2 1 3 0 54
O p r t o s - - - - - - -- - - - - - - 8 7
1126, 1131,i1308-11,i1722,i2425-2,i2664, iiiiiiiiiiiii6ii8 3196,
3204, 3302, 3335, 3339, 3638-41, 3909-"2, 4089-92, 4551, 876 48,
iiiliii4921iiii22i
R i ew of-- -- -- -- -- -- -- -- -- -- -- -- -- -- --
i==% 1131-32, 2664,i26i2-7 ii3196-97,i32i4, 3339-41,i45i51,i48iii7
Se aso
Combinin ............. ofs ttn amount ...................d.
Fulfing pcaue







XXU

FUNDING-Continued
Pages In
Multiemployer plans---Continued Legislative History
Withdrawab from --------------------------------------- 132-M, 525, 627
,,,,see also Variances-multlemployer plan. N"d for regulation --------------------------------------------------- 591
59" 6W, 1071, 1082-M, 112A-25, 1221, 1599-1601, 1610, 1625, 16M 1720, 182D, 1871, 2352, 23M, 2361, 2592-93p MlA29 ^1, 3123-24, 3132-33, 3194, 3296-97, 3370-71, 3373, 3380-81, 33953", M3, W7,3497,4660-61,47-17,4801,4811 PUM admin strator:
Reports (see Funding status reports.)
Bmquired action when funding is below requirements -------------- 755-57,
23,16--18,4005--06
Plan effect of ------ ----------------------------------- 61-62,
-23, 515, 626, 88"7, 1073, 109% 1M 1222, 1309, 1311, 1612,
16,26, 1650, 1721, 2425,27, 2594, 2613,2663, 2666-67, 2956-M, 3125, 3144, 3196, 3198-99, 3316-17, M7, 3381, 3407, 3424-25, 3&&-41,
4090-92, 467% 4877
See al8o.Retroactive plan amendment&
Variances-maver-amendments to plan.
Plan year, clubigeg in -------------------- - ------------------------ 859,
1137-38, 1314, 2430--31, 2671, W8445, 2961, 3203, 32161) 3643, 400203, 4095, 455Z-53, 4878,4923
See atio, Collective-bargaining plans-plan year. Planm covered:
0118 ------------- --------------------------------------- 58--591 H
112-13, 242, 504-W, 518, 547-48, 604, 616, 624, 752-53, 863, 1074, 11351.1317-18, 2312-134 =W,;2371, 2389-90, 2437-38, 2612-13, 2663, =8-ft 2967--680 3M 3195, 3210-41, 3302, 3316, M5, 3344-45,
3424, WA7-4E 3996-498, 4101-02, 45M, 455"9, 4676, 4780, 4875
Geueral rule ----------------- 58,
111-12v 121-22, 239, 504, 514, &;i 624, 751-52, 853, 1307, 2332, 2371,
----- -- -------------------------W, 3195t 3302, 3881, 3637, 3995-96, 4OW 2M 26 2W4 -891
4549-W, 4558--59, 4676, 4780, 4875, 4921
'Voluntary eoverilge ----------------- 2408-01, 2933, 4067, 4528, 4558, 4908 H
Previous law ------ -------------------- 590-911
5951 1071, 1OW-83, 1123-24, IM, 160"5, 1622, 1735, 1738, 2595,
- --------------------------2604, 2627, 2698-W, 2726-27, 3122--23, 3132, 3143-44, 3193, 3220-21 3296-K, 3316, 3334, 3336-87, 3377-78 338"1, 33K 3413, 3424
$447-48, 4559-W, 4801
Purpose of funding requirements -------------------------------------- 5W
607, 1090, 1127, 1601, 1611, 162D, 1649-W, 1692, 172OL-21, 1730, 2349, 2361, 2387, 2591, 2597, M2, 31=, 3128, 3143, 3316, 3373, 3375, 3378.
3424, 3465, 3493, 3583, 45M, 4657, 4663, 4668, 4676, 4700-01, 4734,
4740, 4780, 4790, 4794, 4823, 4825 Hwulations/rules, general authority:
&cretary of Labor ----------------------------------------------- 108,
500, 7 -74, 1856, 2339, 2374, 3304, 3741-42, 405"1, 4901 Secretary of the Treasury -------------------------------------- 863,3648
Itetroactive plan amendments ------------ ----------------------------- 1663,
2-432-M, 2664--67, 2686-87, 2962-64, 3197, 3199, 3218, 3335, 3337P
&343, 3443, 4W%-%, 4M3--54, 47A 4879, 4924
Re-v#zue effect ------- 1149, 2628, 2631, 2700, 3160, 3162,63, 3222, 4440-41
Secretary of Labor:
Exemptions --------------------------------------------------- 1-26,518
Variances ---------------------------------------------------- 129-133,
608, 626 27, 764-M, 860-01. 1332, 1603, 1626-27, 1650, 23W, 2&4-M, 237.1, 2594, 2614-45, 2662, 2670-71, 2966-67, 2984-M, 3125 j
3146, 3195--96, 320&4K 3408, 3426, 3457--58, 3644-45, M"I, 454961, 4554-W, 4677, 4880
Secretary of the Treasury:
Exemptions ----------------------------------- ------------- 242
A'







XXX

FTINDING-Continued
Secretary of the Treasury-C0ontinued Leglalaiv
Variances -- ----------------------------------------------w1074, 1003, 112&-26, 1120-31,,1314-15, 1618, 2483&-8K
2662-63, 2669-70, 2905-46, 3125, 8145-46, 819&-96,
3408, 3644, 409501100, 4549-_0, 4554 4877, 4808
4924-25
SoMaI Security and related benefits, changes in (8ee Experiee gains100 I
treatment of certain changes as.) Tax deductibility of contributions:
Alternate minimum funding standard-Carryover -- -- - - - -- - -- -
1126, 1321-22, 234-45, 237, 2m7, 2973-75, 820, 806148
4929
G egneral rule -- -- -- -- -- -- -- -- -- -- -- -- -- ---- ----865-66, 1320--21, 1721, 1872,2441-43, 2664, 2687-88, 2071-7, 8
3220, 3650-M5, 4105-M7, -4929, 4982
Malimum deduction _10,
244, 2- 8,2973, 3220-21, 33, 4107, 45-0, 4 Multiple trusts/plans --------- ------------- ---- 8389-84
626, 86"-7, 1321, 1663, 2443-45, 2689, 2974-75, 3214, 65148, 430600, 4930
Tine when contributions deemed made- 383, 2443, 2073, 4107,,455T, d4In, dMBf
Se also Collective-bargaining plans-tax deduction limitations.
Tax disqualification, effect of ------------- 2068 81M, 3=w5 dBO
Valuation of assets: ..1 A:I-1
Actuarial assumptions/methods ---------------------- t*$$
2615, 2684--85, 2959-W0, 3147, 3216-17, 3300,3, 3 2, 40 00
94, 4878, 4923
Bonds and other debt paper ---------------------2615, 2685, 2959-60, 3147, 3217, 334, 3427, 4002, 489-94 487%, 4M$
See also Riftos~ime AND) DiscLosu ,Actuarial report, filing req ui
agents.
Varianes:
Alternate funding methods --------- - ------- ,.. 32T,
764-W5, 2329-31, 2671, 2984-6 15 39,44-2 5, 49-7'
Disclosure --------------- 166-67, 301, 562 682 148 4 46
Multiemployer plans -- ----- ---- ----- ---- --524, 008, 627, 860-61, 1074, 1008, 113-81, 1314-15 1018, 18302100
2436, 2454-M5, 25H4, 2614-15, 2663 2671-72,, 206-7, J94-AUgg
3146 3195, 320, 3408, N42, 364445, 4100-41, 4118-20,k4
4879-80, 4924-25
Waiver:
Amendments to plan- ------------------524, 627, 1131, 1130, 1315-16, 13M. 2371, 2486"-7,,2670, 290, SA$$,
3302, 3645, 3662,,4101, 4555-56, 4880 4925
General rule ---------12---------243-14, 522-23, 588, 626- 27, 860, 104, 1008, 1125-26, 112064 15, 1332-33, 1603, 1613, 1626-27, 1721-22, 2371, 2486-3,042
2662--4, 2604-71, 2965-66, 312, 3146--46, 819&-98, 320;1-4M, Sno,
3408, 3426, 3458, 3643, 3660-41, 4009-400 4549-l,51 -5 07
A7,4M A M, Ad Adt do*Me 4924-m
Resnbecniin o-- ------ 6%2 O& 2















FIDUCIARY RESPON SIBILIT Y
<96e MIStmzffANove--Bonding.) LegislativeHitr
Delegation of authority by fiduciary.... ----------------------.- 178,
563-64 1054-55, 1449-0, 2289, 3948-49, 4561, 4564-M5, 4568-69,
4743, 488

189, 321, 377, 586, 62, 684, 743, 980, 1033, 1174, 1454, 1472, 1790 2301, 2369, 3801, 3380, 3784, 3970, 4592-93, 4697, 4762-63, 4885-86,
4895-or
e# acm Prohibited transaction rules--efrective dates/transition rules.
60yee stock ownership plan (See Individual Amcount Plan-special.
JWWy contributions, return -of ---------- -------------.----- 41f
725, 1441-42, 1466, 2284, 3949-50,A4570, 48838-84 ptlyr securties and real property : Divestment schedule-------- -- - ---- ------ 19,
1076, 1101, 1446-8, 1727, 184 -,185, 37, 4585-7, 4593,- 4748,
4759, 4763, 4887-88
Ex yib s --- ------- --- --- -..-------- -------.------ 174-75,
Oil 310-11, 570-71, 619, 1076, 1101, 1168, 1446,' 1615, 1727, 1848-50,
1856-7, 1879, 330, 3774-75, 4583-85, 4884, 4887
OgniWrule --------------------- --------------- ---- 178--74,
3(0-11, 569-70, 619, 727--30, 967, 1076, 1100-1, 1168, 1445-47, 1815, 165, 1727, 1848--0, 1856-57, 1872, 3774-75, 4576, 4585, 4677-78,
474K,.4759, 4780-81, 4788, 4886-88
dai of ownership outside the United States (See Standards for fideairy conduct-indicia of ownership outside the United States.)
Ldalaccount plans, special rule.,- 2285-6, 2358, 3951-52, 4572-73, 4884-85
e ato Prohibited transaction rules--exemptions from-loans to employee stock owpership plans,
tyInsurance (See ability of fiduciary--exculpatory/insurance
t of iduciary :
che before and after holding position --------------------- 45-40,
178, 314-15, 574, 738, 955, 1174, 1450, 2289-90, 3780, 3955-56, 4587,
4893
On'-flduciary ------------------------------------------.. 45,
Ph.177, 313, 573, 619-20, 632-33, 732, 95354, 1165, 1173, 1449, 8779t
3786-87, 4566--67, 4885
Ifeegated. responsibility ---------------- ----- 3949, 4561, 4568-69, 4885-86
Excalpatory/insurance provisions-_ ---. 45,
177-78, 314, 573,-74, 620, W, 733, 954-5, 1449-50, 2289, 3780, 3955,
4587-88, 4743, 4771, 4893
General rule -- -- -- -- -- -- -- -- -- -- -- -- -- -- - - 44,
177, 313, 572--73, 019, 682 953, 731, 1076, 1100, 1163-65, 1173-74, 1449, 1604, 1614-15, 1727, 2288, 3300, -330M, 3779, 3953-54, 4562,
4573&-74, 4587, 4803
Trustees, special rule.. ---- i6------ 2280, 8954-55, 4562, 4567-88, 4885-6
ENFORCEMENT-Fiduciary standards--civil enforcement.
ENFORGEENT--tatute of lilmita.ions.
ty of party in. Interest ---------------------------------------- 369,






X=I
FIDUCIARY RESPONSIBILITY-Continued
...... ................................................................................................r e m aiiinii[ iiiiiiii
..............................................................................................................................................- - - 5 0 79iiiii~ iii~ iiiiiiiiiiii = i



iiiiiii4 5 6 1 ,~ 4 5 6 4-....... 4 7 x ... ......... ..... ... ................



iiiT rust re u re e t .~iii .....................
Pla s c ver d --- --- --- --- --- --- --- --- --- --- --11-3,12-,28-7,W-M 474, 0, f945-6, 9A 100, 1i2,141,i141, 454-.i14i=Wi23K2ii 3298i3ii3378i338,i379ii373ii78i,37i2ii91i19,40ii4574
.......................4........... ..................................1 ..,, i
P e ius la -- -- --- -- --- -- --i --- -- --- -- --- -- --- -- .if
i597 ..........................................................
3134, 395-K 305,i344, 457
P rohiibiiiiioiiiiiriiiiiiiii planiiiiii i c (S e iiiiimiiiiiiiiiiihiiiiiiiiiiiiiiitii i

Averseiii~ itrsiiai g -- - -- - -- 24
17,38 6,76 4,17,10910,17,15 87 M=
2368, 330, 3379, 776 395", 4561--2, 4576 743, 488 Effective dates/transition rules ------------------------ ---------- INH H
32tl 377 576,i 63,7i 90& 1t 16 1-0 4 : 17-4
179 2304)2 374 8",37,492M45,46 ,47
iii~iiiiiiiii~~i4 9 8 5 -Miiiiii~iii
iiiiiiiiiiiiiiS eeiiiiii ...................................................... ie d
!!!!!!!!!!,u te.!! i
Exemptions from:ii~
.....................................................- - - - 4 7 2
309,iiiiiiii 5W ....... 1 43,.72., 185...7 6--7,..8........78
iiiiiiii4743-", 4759,4765-M 4796,4890,4978-79ii i~~i~ ~ Ancillary bank services -------------- 3310, 4Niiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii-W.iiii 475% 4 M -6204OWiiii~ii~i
B ank deposits -----------------------------------............4W..4..
C onversioniiofisecuritiesi -----------------------------i 9i
iiiiiiiliiiiiiiiiiiiiiiii62ii172i7iiiiiiiiiiM 4i
Dealiiiii ing with trust inoeo..st.. atnineet-- --1

iiiDiiiiiiiiiiiiiiiiii i ti buiiiiii s e s - -- - - -- - 5 8 2 9
llI iiiiii~iiililL easeiiiii=i= i arrangementsiii==i ==L~ between... pln a d em lye s- -- --- -.1 0
165 i2730f iiiListed securities -------------- 175, 309, 31-1-12, 561-4A 969-70, IL447-48iii
Loas garn b prtyinintret ------i96,166,IM457-4
Loansi~ ====@ to. emlyesociwesippai------i57-,iE4
......s tio p a t ci a t a n ............................................
ii~ ii312iiii2,i680, 967iii8iiiiKii4i3-44,i1461ii62iii17ii3777,i78ii457iN N 79, 4890, 4979










1PtbWOIAR RICSPONGIATYL-Cntinued
InsulatiesrIn

nm interest dealing:
aragtiin of goods or services ----- -. ----- 42--1
80808 00,I27 986, 116, 1442, 1460 227, 8776-77, 305l, 4575 478,4790 4886 497
-'AOOMUNU 11F------- 8003 851m 456-42, 4741% 475D, 4765-41
4po'lwmor credit --- ------- -- ------------------------ 171
507, U66 110,142 1400, 3776 878, 4575, 4788, 47M 4888
.f *eliof consideratlan for:persoa con -- 43
't171, 180, 308, 557, 5K6 O00, 632-83 964-8, 1167, 1443, 1461, 1728 2288 2868 3800, 3870, 3776, 8788 305041 4502 4576, 4743, 4886
4978
Joexchangeor lease of property--- -- ------------ -- 424
171, 30O, 567, 900-67, 1148, 1165-46, 1450 1400-61, 1728, 2286-7, 28W9 8879. 8775-76, 3780-81 8 787, 378P, 395"41, 4574-75, 4788
l -dealilng - ---- ----------------------- 42,
171, 308, 567, 0, 1076 1107, 1443, 1461, 1728, 2286 2368, 330,
387, 3478% 377M t787, 8950 461-2, 4743, 4886 4978
etor use of trust income, or assets. 171- ------- ~ -72,
80-0M, 568, 90M 1167 1442, 14M0 3776 378, 4f576, 48,476


Employer secrities and real propertY-divestment
Pa t Prohibited trnatinrles-exeumptions from.


Marsonanxtwr--idaciary standarda-civil enforcement.
IablUy of Ofdlqdary- eral rule.
( slt enera authority:
at labor - ----- --- - - -- --- - - -- 108,
172, -800 318, 500 WiK8 957, 1448, 1558, 1726-29, 1856,2291, 2205, 2801, 2889, 2374, 880, 8741-4 3776, 3785 3788 396243, 3070,
4006"1, 4572-78, 4502, 4750, 4842, 4887-80, 4001
#* tnYofthe Trasr ---------- 372,
O7M 1727-29, 1856 1858, 3978, 4750 "Aftrdsfor Educiary conduct:
eatot plan documenteL --- 42,-- ----- --- --170, 176, 307-M8 312-18, 5W6 572, 909 1172, 1L441-42, 1448-49, 1456,
1484, 2288 2800, 8808-M0, 8773 3778 -70, 3791, 3950, 4884
I galliantilon return .. 42,
820, OSM 1849 1872 ,%f 225W8 33080-10, 3879, 8474, 3495-K6
SI9Ma, 45i81, 4571-72, 4677-78,4780-41, 4788 4884
BAlusive beneAt requirement --- ------- ---- 41-42,
F 170, 807, 313-14 60 682., 94-7, 1076, 100 1100UO, 11M2 1455, 1720
2284-85 3300, 3370, 38797, 8474, 3495-.K, 3772-78, 394 3950
1 WAN 4561-62, 415M-70, 4710, 4808 488&-84
Ralding other positions.. ----43-44,
pass 178, 309-10, 500, 971 1100, 144 1729, 2284, 2288 379-02 3052-48,
I 4579, 4802 4981
Illa at owneaip outside the United Statesm__ _. 171,
WK8 W17 967, 1067-68, 1727, 1857, 4573, 4796, 4884 Poedent man rule- 42,
1704 307-08, 5i06, 617, 632 949, 006, 1100, 1172--78, 1441, 1450, 1004 17A*-27, 22815, 2360, 28W8, 300, 3307, 3309-10, 3870 3878-79, 3778, 80050 4ti1-482, 4568-71, 4574, 4W7-78, 4743, 4759, 4780-81, 4788
48l, 4ee4
618 01&-16 682 2M58 2$0k 3297,3375 330, 3464, 340, 3498, 3582,
800 4000-61, 4868 4784 4752, 478D-81, 4795, 4800 482









X
FIUIR EPNIBLT -otne
Leiatv

TermiiiiiiiiaionoiPai(eiiiiiiii~~xAqE -Aloato

ruemn euain.
T rust require ment ----------------- ----------------------------307, 566, W 1441, 1455, 22889 3772-73, 954 t i, 4565-66, 4743,,
488

Se a lnsrcue
















Pages In
agy; egislative History 7 ------------------------- 1724t-26, 352"N0
instiuins------- ----- ------ -------- __ 1150, 1724
Mitns--------,---------------------- ____40
10-f2,720, 1004, 1148, 115-57 11628,. 1650, 1724-26, 2362-63,
:-872-73% 3W4, 8382, 3 9 4 530,.4741
tion onben~ta oveed-11 -- ----1148, 1150-1, 1724

pture rationale for."
ted ,funding deficiency, allocation of--- 913-14, 1152, 1376, 1726, 3705

tguaranteed-maximum limitation-ownership restrictions.
oxs--Accumulated funding deficienicy.,
DEFINON--PrD rata share.
Igagency:
ator., ---------81, 137.52, 629, 758, 1628, 1723, 2320, 2371
t o...... 81 13, 51,587--629, 758, 1628, 1723, 2320, 2371-72
Aawhmm 10r. advisory committee (See Corporation-advisfory Committee.)
triniation --------------------- -- -- ----- 127-28,
244-45, 50, 2292-96, 265&, 3185, 330M, 3957-63, 4744 for, axoai",.... .. - - -. 44,
$2048,244-45, 244-, 31&-4, 509-10, M08 626, -734-7, 927-29,
,954, 1152-08 18 92, 1411-12, 1614, 2291-02, 229, 2M6-73, 330, 8849, 372&-21, 3741, 3957-58, 3961, 4040, 457-0 4592, 4651, 4744,
t----n--/---le-- ------ -- -- - -- -- 245,
50#,142 22 229-97, 2373, 3962-63, 4-2, 4570, 4744,
test sual assets,. ..... 170,
1, 82 5647 78,97,115,19,14-2 1466, 220 07, 2359-0 230 8300 38721, 8778 379, 396" 1-, 5034
apprdsthes to. .terminAtion- Insurance -------------- 596, 2363
of oterprovisions. ---------- 2387-88, 3389-91
liability insurance-'------*----- 3349-50, 3392-93, 3531
General _'.----- 1863 1876, 33198-99, 3402-03 3463-64, 3476-77
et W9eraton of. the insrance program- 3350, 3383-85, 3390, 4691 Ifnidation o- plan-assets--- 335, 3527-28 with employers liability. -------------- 2387-88,
3349, 3389, 3398-90, 3586 4705
A ct- --- --- --- --- --- --- --- --- --- --. 143,
58,742, 823-24, 1100, 1886, 282, 3525-26, 3716, 4038, 4640, 5030

tpl- -,_. -.. -_._ .--. 137,
267 582, 5815, 768, 009", 1149, 1473, 1725-26, 2872, 3347-48, 3702,
4024-25, 4635, 4637, *757-58, 4776, 5023

d9tfnts to---------------- 1150, 4687, 4741, 5024
e~ librokke under plan amendments -------------. 83,
10, 208--19, 58$-84, 4M9 TSW 909-11, 1373, 1014, 22287,388
8768, 802, 405--80, 478, 4741, 4781, 5023, 5025'













iii iiii
TERINAION-NURAW-Cntiue B ei tsiiiiiiiiiiiiiiiiidiiiiiiiiiiiiiiiiiiiii1A
Maxiiii~iii i mu iiain-otne &A M fso
G e e a u e - - - - -- - - - - - -
137-A267-68,i5&-i3 629 911-i10K114&0, 1= 2i7i A l 3529,'i 3730,42-2,4i,44,i72i75-5,V 81488 41,5032 Mutil pla siuains-----......15t...5 70,4p 0k
iiiiiiiiiiiiiiiiiiiN ewiiiiiii piiiiiiiii ii l a n s - - - - - - - - - - - --iiii- -
138-39,iii~iiiiii iiii 26 ,5 3,69i59ii,11 05ii64 0, 7 3
2312,27,34, 59 720,426-8 66 7 &
R a i n l o - - - -- - - - - 0 40i
Substa ntilo nrrsrctos---S 139, 26,54 2,79 1,135-6 32-27rW
3705, 4027-29,.4......5.24..


Su vv rb n ft - - - - -- - 2,3i53 p7 0, n j,4
Seei alo cumlte fnin efcinyaloato o. Optona gurateif ter---3 0 - ,. ,
Ta is u lfia io s- -- - -m -- - -- -- - ---91 5
ii52, 376-7, 3348ii70507,i40 "1,i4i 4iiiW2&-2
Boardiiiii ofiiiiiiii~i~i diirecor (SeC roain bor fdrco&

iiii~.. ........ .ii.
Pr muia ere ii n ,a pr v lo --- - - -- - -
14-1i3-3,60i606,90i020,19, 33682
175 22, 32,34, 32,3919, 0122 63,417iiiiiiiiiiiiiiiiiiiii ........ .... .... .2iii
R epiii~iiiiiiiiii= o r ......... ..... thio p r toi- -- - - - - ---i3 8 0 74
ReportiofitheiFunditoi---------------------- 145,i540,i899, 1364.:.... .











nued Le~Igislativeistr
jj~~po~~b .. ..jj a ------s- s", 1401-Wo, a7a4, 5ose

Idutoriy fr intia p*iod.. --------..-- 4080, 4690, 5015-16




oN onat........ Actea,---- 2 895, 4011, 5


Benfisgurate of-------------------------------------- 91-15
109445 1151 U61,110 141, 24 81, 8740-8, 4041, 4648,
.48o 4678, 411 879-4, 4M8-402
toosingnt Iabiityinsuan--- -------- ..-------------- 115P 6874 08
77GMOW 104, 8849, 8i884 t, 47, 40 404


47-41, 47ss 4766, soo1, 5o0,450 11
IA9Mtyof empoyer ------.--------.-- 944, 1411, 8740-41, 44749

1161s16208-2 149888, 115 64, 4827, 5275
6ft76"t 901p 8LM, 02M, 4868, 4M010,01
PTIV~~~~legred 1155 -----28,--- as-----------,-- 40 44,14ea,70


-- ~ ~ ~ ~ .. ---------------------- 1 ,seag,80 888 s o
144. ~ ~ ~ ,. 2K M, aO M88N 144, 519800-14, 2828, 8705

W M M 449,3701, 4=06,370335-,
45, 4741-4277-878,







144, 2 09,-60, 48, 1158-, 140-4, 233840173-4, 467, 5038-1



268, W4)7,940, 32-3, 10-74, 155, 10, 161, 172&402,
52-6,32940309,4424
f~abni of coporatin (SeeLiab atel :isrne rga.
ZAIMiiti ofiemployer:






















612 63, 72, 155 118, 614 169,1390-14006, 8Mj 525-26, 39,3
725-% 431%4643 468, 74142, 75748,432, 34-3, 1839, 532

Gmend ~~ 12 1004------- 474 115, 1284,3716-4,4418,36

142-% 52, 00, 30,762, 939, 101 5, 1399, 1645, 172-5,
MO 3526, 372697 3, 40340, 464 3-45,
It -'Netw~timloyer pans trated searatel
-------- -------- ----------------- --------i3725,50 i
Partial terminations -------------------- 1399-1400,8525-26,3729,5037
A *v in business -- ---------------------- 932,984-35, IBM, 3728
ft tleba,07for -- -------- ------- -------- -------- -------- ---i6i0
6129I 10....11........1.....649.-.8M,.2..


...................... a n diiiidisp ositionii o fiiiiiiiil--- -iiiiiiii8iii
14-" 388982193,11&5,175



:4 !:;I:M W79,WK iTiiW, 3TM ii[11ii
508iiiiiii









TERKMNA WIFTION IUANCMtWW dfune
liability of employer-Continued.
Substantial employer, withdrawal of. --------------115K 1400-0, 1629, 17425 78-8, 410 46 4ftE7 3
Successor liability------------------------ ------080,9&3-85, 1158, 1808 1724, 1726, 282, 28%6
See also Contingent liablty insurance.
ability of insurance program ------- -------85, 137-42, 267, 582, 58637, 588, 62,NIA, 29209:144 2825, 2861, 2872-78, 8808, 884 3848-49, 8884 4848 o-9 7
05,5036
Maximum limitation (See Benefits guaranteed-anaa m Insatatif). beJA
Mergers, consolidations and transfers of assets (See Reportable event*- n mergers or consolidations of assets.) Multiemployer fund, multiemployer trest fund (See Fumd(a), guaranty. Need tor insurane program -----------596, 1093-94, 1146-48, 1609-10, 1685-M, 14803, 3dBUMI16S123 1830-31, 1863, 1865-71, 2387, 2891, 2002, 2618: 3AGB,2M K
8371, 3878, 8881, 8800, 8894, 8400, 8414, 3431, 81841a.39 A
3500, 4600, 4707, 4811
Noalty~ proramsneae thntingent liahilitw insurawe.) litnmaltiempanyer pians, special runle ---. --------- W
Office at Pension and Welfare Plan Admtinistration (See Administerln e ne) IPa rtnership, spec n iae ---------------*--- 85 ia, mk5I
Pension Benefit Guaranty Corporation, Pension Benefit Insurance Coroa
tion, Pension Guaranty Corporation (See Corporation.) N
Pension Benefit Guaranty Fund, Pension Benefit Insurtanee Fud(e,
Fund (s) guaranty.)
Plan adnistrator :
Notice to substantial employers ---------------- 900, 1158),145 7; M
Report to Corporation ---- .-------.---- 0883-M, 1404-45, 374 50
Plan Termination Insurance Fund (See Fund.) PlaRs covered :
504-06, 907-08, 1094, 1106, 1149, 1371-72, 8700-02, 40 4M
5022--23
General rule ---------------- e..------ -- ------.--187, 208, 504, 532, 629, 758, 906-07, 114&-49, 16-5 30t w 1726, 2320, 3347, 3375, 3382, 3520, 3700, 3702,4023,6H 75
4781, 4802, 5021-22
Successor plans --------T- 907XI1 WW7h AOLA t7- ilR 284M*
Voluntary coverage --- -------- ---------- --------- --600, 610-11, 620, 007-08, 1149, 1872, 28M, 2802; 3172 370L
4023-24, 4687, 5022
Premiums :
Assessments-administrative ------88,139, 270, 584, 620, TSO,2= I
See also Privilege tax. 14815-5,7
As taxes:__.. -- ---- ----- - --- - 100 P 1 8 18 -5 4 4W
Collection ----------------- 182, 58,8 11418 ,4'40fAAM e*
TDual rsw rationale for ----------- -II 0,6-,]11 7-45 8 =Q R I
laitial rates :
Abilities base ,.---..-------- ----- --- --- -- ..
139-40, 270, 5U4, 611, 020, 760, 160M, 2822-24 2 ..M
3847, 3882, 4016-21, 4681-82, 4758
Limits on-- 83-84 139-d0, 270-71, 584"-5, 2323-24 283 7S2,,3 88479W
Per capita hb ae- - - - - - - - - - -
1154,55, 1365--66, 1614, 1628-29, 1724, 3694-95, 4631-82, 4741, 4758,
4803 4808, 4813, 4819, 5017-18
Subsequent rates --------------------------140--41, 271, 525- 26, 535-6, 600, 630, 760-1, 90w-05 1095, 1148 1158, 1366, 1614, 1628-29, 1L725, 2324, 2372, 330, 3347,, 3382 300^95, 4021-22, 4632, 4741, 4758, 4808, 4819, 501841:
See also Congress--premium rate revisions.
T ax status of ___- __ ___-- _-_-____-___------------115












gr~ -or-ratin-- 5020-21 lit abilittsrneprmu .
Oh lantemhinatdion iuance Program .(Jew Administering
tion insurance ... .. ...10,68,52
tx ...-- -- --- 941-42, 1408-11, 8737-4


Isarhee --588,
198,101, 1I20, 1880, 1873, 2349,2361,2 232 243W56 3375, 3378,
as d49os 4819, 48=5
of certain pre-termination distributions:
0294)0, 1158 1892-S, 3722 500-3 adr M sablM ty distrimis- -- SO, 1158 1304 3723, 4645, 50B4 921MIO -948* 1iB%4 1308, 1725, 3722 -28, 4645, 50W4, 504
4000 M~ a partion .1394 8725 4645,50M
geea authority:
8S, 1881, 8M0, 4011-12 5011
at labor 1850 2M%0 2374, 3W04 4050--1
lthe Treasurt -- ..- ....2

Be&wi Safte0a=eIase 925, 1100, 138, 3848 3719, 4031, 404, 5081
Ta- Ialatyto ay9M8 Isao, asa 371, 4081, 4041, 5WI1
AAB Algmuseatof plan or trust.95 a 11so,1s3s-m assa 3717-18,40M1 4640, 5as1
90mlat tdda dioations.. 1160
Wa$1nig stfadards, faiue to meet 926,
1100, 180 3848 8719 40n2 4641, 50U
Alistributions._- 1380-00 OAK8 871, 4082-33, 4641, 50W consolidations of assets ------4641 5031
Je t decrease ina,, 9254-28t lie,8as, 378 4081, 4640, 5Mes WO- umder Internal. Revenue Coe______926,
IM 1100,IlSs, arMs 4082, 4M,9,=0
termination by ourporatinoce ee of reportable events.
tserton of termae plans .. ._ 46446, 503
ot Comwme, member of board of dfirectors ----- --- 807,
1894 1148 M3, 1M28 1848 1724A 35M0 300, 460, 4741L 4757-58,
4781 481 501
Amnsrtrof Insurfance program --------------- 81,
187 fi2,69, 758 1M28 172 2320 2M71 80B, 3346 4757-58
Approval of teirminations-_ 85k 141, 76-62, 353
Chairman at board o&f director. ___ 1-3-----2,1A2M 380M 852, 8534, 858, 8081 4010 460, 4741, 475-58 4781,
4819 5W1
t to eatron premim rates -----1-85, 151 53k, 630, 7M1 2324, 2372
if- id...o.t1f prmu rates_. 83-M,
1=0, 584-85 629IMO, 760,2=-24,2M72 352 or crpoatio...4037

MW ,O 100A 114, 82, 104M 1728, 3382 3800 4878 4712 4741, 47157-W B 47981 4M 81
Prescriptio of Hiquidation prcdue 142, 537, 630, 225-26, 23M2 2373
-Irustee of Blund (s) . 144, 589, 1646, 238
Variances ..750, 40f1-12
notacalanby Secretary of labor.










TERMINATION INBURANGE-Continues
Sretary of the Treasury-Continued leFa i pans to corporation -----------iii-..--------.......
Member of board of directors -------.-- 204, 1862, 1649, 8589, 800:4,
Iliiliiiiiiiiiiiiiiiiii
Obligations of the Corporation- 768, 00-0, 16-0006-700, 4
Trustee of Fund (s) .--------------------------------- 8
See also Termination by Corporation-occurrence of. rerta
evente--notification by -Seeretary of the Treasury.
Snle employer fund, single employer optional trust fund, single emligr
primary trust fund (See Funds (s), guaranty.) .,a
Substantial employer :
Notification of status --------------------------. =BI 11M0, 140474,
Withdrawal notifioation------------------------ .L 3 729, d655,54
Babstantial owner (See Benefits guaranteed--maximumliittion-subatantial owner restrictions.)
Termination by Corporation:
Appropriate court ----- 924, 1159-60, 1887-48, 8717, 4689-40, 6015,1
Decree to terminlate. ---------- 919-20 1160, 1888 3712-*18,40
Determination -------------.... 918-19, 1159, 1881-82, 8711 40^,
Effect of other pending actions --- -.---- 923, 1100, 186-7, 3716,4400f0 Exclusive jurisdiction of court..----..----------- .92&-249 1887, 8L.73%ril4d$08
Notice to plan. ---------------------- 919, 1159, 1882, 8718-1414630w(t A"A
Occurrence of reportable events: .. 1. .* #
H ear in gs ----- ---- ---- ---- ---- ---- ---- ---- ---- ............A..I..
Notifleation by plan administrator..... 924, 1888, 3717, 400148N4
Notification by Secretary of Labor.. ---------------- ......0
Notification by Secretary of the, Treasury ------- -----------.0--7
1160, 1890, 8.7194 40M8, 461
Other procedures (non-jndicial) ----------------- 26,4084-7
Simplified procedure -------------------------------------- 48A M018
See also:
Reportable events.
Restoration of plan..
Trustee.
Termination by plan administrator:.-. :
Amendments to plan ---------------------------.. 918 1881, 8'flJgdib2
Approval by -Secretary of labor. -_-, ----------------- -..... ft 141
General rule ---------------------- 260, 5K6 611, 680, 910, 1879* $740
Insufficiency of assets, procedures ------------------.......91618
1150, 1380"1, 3709-10, 4084, WNA
See also Termination by Corporation. ..*.<.
Notice of intent to terminate. __ ----- --.-----....a.. 85
600, 611, 080, 91L6, 1150 189432-2, 82 27,8780,
5027
Buffleiency of assets, procedurese---- 916, 1159, 1379-80, 8700, 4088-80t, MWtr
See also:
Allocation of assets.
Trustee... Trustee:
Appointment of :
General ----------------------- ----------------------- 4689-40,4741
Notice to interested parties. ---------------- 922-23, 1161, 189,15
Termina ti on bv Cornora tion-. 920.,1160,1382-88, 3711712, 408-9-4% WMIS Termination by plan adinistrator -----O-------;-495028Corporation as_ _-- -- -- -- -- --- -- -- -- -- -- 4W4 088
Powers and duties_---- 920-23, 116("l, 1383-86, 371.3-16,.4640-41, 52Report by Corporation to --- -------- 981, 1161, 184-95 3 724, 5
Vested benefits coverage:
see: .. .
Benefits guaranteed..... .....
Liability of insurance program. ........
Voluntary employee contributions (See Allocation of assets-priorites for
allocation.)















valbe at EFOBOEMEN

agl44anarsfor (See 30scELMANWUov Ac-tuaries-stndards and reaction for.)
ganitrtve interpretations (See Reliance on regulations and
rttions)
ve'Procedure Ajct applicabflity--- -. ---------- 4507
and cout cosa. ---- -- ---- ------------ 85,
i8, 305, 581, 771 951, 1174, 2336, 236, 3299, 4049, 4594, 4800
General:
sby-Atorney General,
tation of Secretary of Labor in litigation.
AlCHELANEOUsSecretary of Liabor-relations with other governmentaigencies.
mania procedur- ----- -- ------ ---------- 1 4
54-0 76-77, 62-21, 63W 988-90 1070, 1-102, 1175, 1184-80, 14808,1488-M0, 161t5, 1632, 1729, 1775, 183&7, 1858, 2278, 239, M8 0,
314$5, 4505 4745, 475&, 47(0, 481, 4823, 4000

01, 580-81, 770, 950,.1174p 1491 1615, 2335, 2368, 3299, 3817, 4048
arit othe Governnt agencies (See M1 cuNOU-hce
a--re with other Governent $agees)

ft 17%, 502, M22 634, 764M,10 i85, 1497, 1600, 281-32, 2831-42,
2M4, 2373, 3204 320, 3570-80, 3M2, 4044-4, 4054 4M9, 4597--98,

IISc=LLANous-Boding.
IIIBEMANOtrs-Prohibition from holding plan office.
Juenierelating to qualification..'.. --- ---.-------.- 9S81)s%
1078, 1181-85, 147wi. 1816203-A 1729, 260841, 2505, 2000,

a t er law s -- -- -- -- --- -- -- -- -- -- -- -- -- q
186-48, 318-20, 582--85,621, IM 140-9, 284--7, 2859, 2864 2875,
380, 304,38222, 405-40, 800, 4T0-1 4726, 4745-46, 47705,65, 189, 248-4%, 26, 321, 0, 8,77, 887. 586, 622, 084, 743 71000, 1021, 1056, 1061, UI% 1288, 148S, 1488, 1489, 2801, 2300f
250M. 2510, 2558, 2007,750, 3086, 3041, 820, 828, 3801, 3807, 8818,
..805M870 4175, 418,400 4602, 4725, 4745-40, 4762-64, 4859,
epbnetplan:.4a!a eparate legal entity.. --------------- .....8-85,
709-70, 234-35, 4047, 45K6 488
by;:
geea ---------------------------- 308-07, 772, 952-54
tarplan amnistrator, or employer -------------------- 33,
18M1, 319-20, 582 700, 984-85, 1476-77, 1498, 2334, 3803, 3813,

180,401,4625 4632, 4644-5, 500, 5011 5014, 5021, 5040 Yatcipant or benefciary -------------------- -----33,
85, 18W-85, 80W, 547-48, 579Mil, 588, 618, OS3, 700, M05, 985 1076, 110 11M, 1171-74, 1188 1477-718, 1488 -S0, 1604, 1,641-42, 1726-27, 18"fI, 2M34 2349.2804 2867-68, 3294, 329% 3304 3370, 3806 381517, 404, 4008-9, 4624-25 4745, 4758, 4797, 4814, 48M
(zza)










ENFOBOE3DONT-Continued
Enforcement by-Continued MlE
Secretary of Abor. --------.------------------ ---85, 105-07, 1$1-83, 30, 49&-90, 577-79, 592, M, ,751 %
000-5, 94 9, 1074, 1100, 1168, 1171-274, 1409-70, 1004 W 87
1848, 2274-75, 2884, 284, 2806, 2867-68, 2878,231 2 SM 8804, 8879, 3815-16, 8987, 4047, 4524, 4594, 4745, 48W,58
Secretary pf the Treasury/Internal Revenue Service ---------.-106
1101, 1219, 1886-37, 2851, 2619-20, 2682-88 2691-9731, 45p
31223-30, 3484, 3066, 4W92
See elet Declaratory judgments relating to qualifications. Fiduclary standards:
Civil enforcement - - - - - - - - - - ---- 4
182-83, 303, 578-79, 688, 781, 950-M8, 979, 1076, 1101t64 19k 1490-91, 1727-28, 2288, 2200, 2807, 820, 881517,L 19b
.4857, 4745, 4898-400
908-65, 1057-59, 1071-72, 1076, 1081, 1100-01, 1400,iiiiiliiii 1651i
1670, 1727-28, 1848, 8786-87, 4562, d5TO, d58B 90 454-, 6
4877-78, 4780-81, 4808; 4978
See eldo:
Criminal penalties.
I'itatstry RESPONEDHLY--Liability of -fduciary.
FaitARY RESPONSIMIRT r-Liability of party in interest.
MIf80W.LANEOUB--Bding.
3facarIAshove--Prohibition from holding plan ofile. Funding requirement :
1074, 1092-08, 1101, 1118, 1125, 1184-85, 1Z W884101,3
1627, 1642, 1722, 1727-28, 243W41, 2447, 2616-17, 2614a
28676, 26 1 8, 268 86, 2909-71, 2077, 8148, 8151, 8190, 39 07y 8217-20, 3224 334, 8428, 3431,, 3648-50, 4103-0M, 132,4 ,
4557, 4559, 462, 4677, 4780, 4802, 4808, 4888, 40M-28, 401=
Other measures -- - - - - - --- - - - - - s W
181-82, 245-46, 528--24, 577-78, 590, 502, 688, 755"7, 2
4005-07, 4808
See also:
Fowaxwo--Tax deductibility of contributions.
INTER1NAL REVENUE CODE-Lilnitations on benefits and contr6 6
qoalified plans.
General enforcement provisions --------------- ------ W ....
621, 766-78, 775, 1174-75, 1843, 2W4, W 349 07, 4734, 474-, Individual retirement accounts, penalties involving:
Excess contributions, premature distributions,, and excess accumula858-54, 1011-12, 1201-02, 1505, 1513-15, 1615, 2539, 2543-01,256
262L 22, 2714 2718-22,. 2724-27, 3070, 3074-77, =12, 3S- 84,
825"-1, 3256-M0, 3409, 3434-835, 3454, 3458-59, =87-40, 42044M
11, 4602-08, 4006--0, 4971, 4978-74
R p rting anid disclosure -.-------------------...------.--.-..-...-- 244 ,T
2407, 27 21, 2749-50, 3077, 3255, 8288b84, 4211, 4W05, SH -7 Prohibited transactions ------------------ .. .7 8
2723-25, 3068, 3255--57, 4202-)107, 40y 49M-, Interference wihrights protected under the Act.-------'IW
58, 600, 621-22, 344, 1496-197, 1640-41, 1775, 1811, 1W5 2314, 2364, 2374, 3304, 3822-23, 4053-54 4597-98, 4745, 4753, 470&9,
4832, 4902
Intervention, right of _--_- -_--_-_-- _-- _- --- 35,
305, 585, 771, 951-52, 985, 1183, 1476-,1-492, 1496,, 1720 286, 2%0495, 3226-27, 3290, 3803-04, 4049-50, 4594, 4624, 42,4745,
4899, 500
Investigation and investigative authority ------------32-88,
106-0)7, 302-03, 498, 562, 500, 602, 614, 619, 628, 6,95-7 1434 35, 1456--58, 1856, 233-34, 2350, 2367, 2373, 2609, 3134, 3290, 3379,
3765-66,4 6, A59., A 6O6 _4.O 0-01











Testakelettyg y


-GI Sm e 8 d l 1729, 1885 2873
Alp&pr -m
Mistting to qualtfiaatlan
maseaemam na emmessm-- m ----- ----- -IM3-W 3198-2% 581 584 5eM asM aS, 770-71,
95011 74, -.S MTr MKlag, sageM, seW4, 0ea81 U28Wse,
,U-9 se*-* Mostwah d4 4984 4M, 5014-15
(Rj 11 k"pew--~ VOVt- ----in - - ------- Sm,
SM 101 s 18v2-S$, M 708-418 8008-44 8156-5, 8288-8,
disr~u~ns pnatis involving (Bee ITMaAr, BEvzwIE
plwpe-='k invellg -------- 119S-KA 1817, 2S77, 3208 COU4R SectrT of labor -------- --- -- ------..--- 85
S4 5aM, TM, sag-ar, 45e4,48M tim ad vefdM stndars.-......-.---- 57, 1822-24, 1641, 8652-64, 4808
of fatelaw am ff t 4ther laws)
1A IW20age Me WMt 2M, a2on K8 8=7,828
...(Sms Iu a Asars.)
00 MW, hldin pla Ree (See Mansawanve-Prohibition


Ma ~~ as 5Ms4age461K W, 2a74 soon 3741-42, 4W"-5, 4ool
o- teTefy---------------- ag5,1ass8ages
-n rgltosand t3m................ 7-38K8
r.*= ML8 SAS4 3M4 as9s-44, 4M2 4W5

.K- 71fi5 76-88, 884 eattenI-Moue 1148, 11M,
1800..414 SHAM 188@-85 16K4 288-W8, 2422-28
2M2497-e, 2dM 2eW 26M, 274, 27M1, on-sa, ages-a, 3M ??,W9 40M 888-.4Mse-, aat 4Ua8, 481-M ase4M
4878,M 4^~ 400 4M#
-11" M, 1^- =W, M%8 26K 2952-L8% &lMs 82M0 8881 8MO,
48784M
.f 10 561 age. age&-Ke 2747, Sea-28, 8280 3W07
3 ,4058-M7, 4I(-4 4952-8
ofScet-ry -Abr in litigation -- W.. 0,
.400 001 613, 1491, 1843, 4049 4596-97, 400 or.----- ---- 776, 2841, 2374 2916, 3304 405, 4902
..- ------- ---------- 3,
14, 8-IMS 770, 951-52, 1174, 1496, 2364 388 4049-5,
af-Labo- tiof a the Secretary of Labor by (See Repreof & ~at of in litgation.)
18k =4-A:M 955W, 9K8 1174, 1184 1878 1493 2200, 2508
3W3, 8%9-2% 3955-M6 4173, 4645, 4806 4957






















































I's
































.. .. .... .













firm 11!111 t t






Venue -----------25M, 30,







Vmting standards (See Participation and .,e























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34






































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.. .. ..... .. .... ....... .... ..








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...... .... ..

AL 11XV1441311 CODE, poem In
LqOWLILtkv* EMFtWY
5%
377-780 SOD-K 83&,'K 84EN 917, 873-44 1079, IL107, IIWIO, 1112, 12%4Z9 IWAM 1095-07, 1714-17, 23M 2&M 207-A 371. 2ftlfl2KW4A 29M)-81, M 4M 20M *WlCts 2K9-M 2Mo.
3W4. 3M 314k W51. 31W-70v 317* 318&-K 3=-25,
_3W-2$r 3W4j 3613--14. =7 3M, -"W 3M, 4ON-6k 4082-Sk
v 01, 10 47 47M 48% 4907, 4KS-19,

bargilmm9 Plan&
a49-PpaUdpation, bade W

PAXZKaVA,2TW A= wo-PartWpatton, spedW rdes-itir

w f ; il Mine I t a ... . .
AND 0 WoL-VeBtft sLad tw9meft itm-cud, ormW of Pbffkfi
WTO-TK 180-ft 9000-M 40M 50OD-M e hoeml, immd for
MTW l'on-Mlow n. nlg-W, 1643-444 16#7,170t-M 1859,
W4k 2600-M 28tO, =W-2M. $713-14, W2 -K 3M 323243.
-4W -K 4ML
3M 34K 3M 34V 3451, MM 4604 N..46M 4785
49K 4910', MM, 4M
J bkir' pay requiteoL
27n 3016-11 329t-8k 414"T, 4949-M plam ate ------ 2582-M
A treatzkgnt of certain ip
275&4K 3MA4,3288-ft 4248-M 46A 5000-M ageount ---- --- 249-ft
49 1077,
-IML 1005-M 1203-A -IW
IMS-It, W4, 16M !WK 16", Mt-42, 16W-W, 1MO, 1704m-M MT-St 1850-M, 185940, 1863-4K 2528- 2510 25K 201-22, 3W7-ft 39n-74 3WM-ft'3M, 3M-W, 3M&4n. 3400. ''.4"CM-34, 3445, 3448, 340- K 3458-0, 34(K 355&-W 3579-77,
.... ...... .. W2449 WW-W 4143-4K 4155-4K 4191--42M 423%
45M 4M -lk 4663-ft 4W9, 46894D% 47M 47K 470840, 471t 0A 475% 4M 4780-7% 4777, 478% 478"A 4797-4K 4M.
4%&,AfM 40"'4KS

aeeimmbi.- es in-4M dWtsd rules--owneriftMft 8W*L* W. IVr -UM&W m W, m A o w par
I Revenue Servke:
time &qthorbied-..,::
U"P1% ILOM. ..'lK 21M 2Wk SM SM 3226,3431-M MS-W.
.. ... .. ...
of Rmployee Pinno and Etemptorganlottiew ----------825-27. ISM 1101-4M 12K 1175-RI, 1M 1623--24, 17M IM7, 2MO-11v 2W, 2020, 2QK--W 3041-4% =21k n5l, 32M-25, 34n-32,
MM Al 3M. 41WL* 00-MO, 4M
ax 10) ph=
ffl -4 tM'mtaFeh4M eMPIOYM
MN -IOU-M 1004% 1077-789 1ORT4& 1187..........
.. .... ....
.. ...... ..
..........
.. ...... .. .... ..









INTERNAL REVENUE COns--contmnues
Keogh (H.R. 10) Plans--continued
Owner, proprietary, ete.-continued
1203, 1523-837, 1548-46, 1550, 156, 1508, 161% 1847, 15-M1W
60, 1694, 1707-48, 1780-49, 1755--56, 1778-88, 1786-90,1887
2478-75, 2490, 251-21, 252.5--26, 2M2, 2609-=215,277-8 0
3021-22, 3044-51, 8054-5M, 3164 8282-48 3281-82, 41.k4M
847, 3471-72, 3561-70, 8686, 3850-55, 3857-08, 3868-72, M2 4189-48, 4178-85, 4100, 4532, 4566, 4570, 4588, 40M, 4f 6
4600, 4760, 4703-64, 4946, 4950, 4959-65
Self-employed plans---..---- .--------- -------- ---- ------- 240....
860-42, 378-70,. 38, 1078, 1094, 1184, 1187, 1102-98M 15424, 156566, 1568, 1616, 1644-45, 1652, 1658-57, 1608, 1818-15>, 18M541,
1877, 1879, 2478-754 2490, 2$12- 2595-06, 262828, 2M8,262712, 3005-06, 8022-23, 83043-51,.8056, 3126-27, 31M-55, 3187, 8230, 8233-45, 3409, W42, 3483-86, 3448, 842-58, 340-59, 8461, 846,
8471, 3473, 3514-15, 3550-70, 85716-77, M58, 3584 ,5-#
3882-83, 3885 4189-43, 4155-W5, 4170,. 4175-77, ,3746 50
4600-02, 4610-14, 4679-80, 4684 00, 47TOO, 475j 4ES473 4760, 4763--64, 4777, 4788, 4786, 4809, 4813, 4828 4M 9 4964
See also:
ENFORCEmErr--Keogh (H.R. 10) plans, penalties Uo"pg.FIDUCIARY RESPONSI[BITATY-PrOhibited transaction rule*oaemployee, individual retirement, accounts, subject to,.:
Trustee and custodial requirements.
limitations on benefits and contributions for qualtfled PlansIM ato sheltered annuities ------- ----------------1023-28, 103-35, 1050-52, 1054-50 1001, 1I87 124","
1661-63, 1696--97, 1708-14,.1732-54, 1778-88, 17-0,1878-70, 2453, 2553-68, 2506, 2623-6, 207-49, 2706-18, 277, 2083, 3084-90, 81=7 $ 155-57, 32831, 3248-63, &40-10, 3=3--8, 8451--82, &84W0, 3478,
3549, 356, 3576-77, 3588, 3585, 3635-36, 3850-57,,386Q 3$ 4218-34, 4559, 461041 4672, 4681--2, 4688, 4709 10, 4M,4M
4782, 4808, 4813, 4986--94
TLamp-mum distrihutions -- --- --- -------------1078, 1102-08, 1195, 1205-14 1587-42, 1617, 1653, 168-8, 1111
1715, 1877-78, 2508-80,12596, 2826-27 2783-45 a 09S
3157-M8, 8266-78, 8438-49, 3549, 3 ,4284-47, 4615--2 482,
4689, 4761, 4783, 400000
Nandyselidiarl plans, restrictions reardielitain-11-t-.JF 1886-8, 82-83, 87681M
Puerto Rican pension plns48. .. .4.....W
2750,: 30.12, 3288 4146, 4651, 4048 Retroactive changes in plans --.-..-- -.-..- ... .. ... 1-56
1056, 1215, 1558-5, 1663, 2489-90, 27470 -2158,. 3021-22, 8179 3285-6, 3326, 344344, 3885-86, 4155-M5, 4553-54, 465 -r, .igiO Rollover tranafes u-------- ---------- -- ---- & -.
3062-A 8 8 8-9 3, :10 10-1 075,1097, 1142-4 4,- 1201, 15 b,i115--17, 1628. 2585-6, 2548-52, 2618, 2726-28,. 8085-00 W84 3825960, 8817, 3430, 8682-87, 4190--4200,: 4219-15, 4098-4)0, 46, 467tV, 4600, 4752, 4759, 4780, 4788, 4797--08, 4808 4812 488 08, 4988
4970, 4975-76 1a
Salary rednetion pans ------.---------.---112,4 2MB&-097, 2027*28 2724-82, 3111-14,78262--64, 3439, 4247-48, 4622-28, 4682, 4885-80 40,% 4761, 478%8,
4804-0)5, 499%-5000
Tax deductibility of contributions (See FuDeN--Tax. ducibility of contributions.)
Termination insurance requirement (Bee TEmINATION INjuANWCD--ternal Revenue Code, amendments to.) ..4
Trustee and custodial requirements. --- ----.---- _--- -35-8
379-0, 387, 940, 1002, 1021-28, 1034-85, 1045-47,: 161, 1196 1503-05, 1524-25, 1536, 155"-1, 1568 2475-78, 2490, 253, 2540, 2797, 2747--40, 3007--09, 3021-22, 3060, 3071, 325&-54, 3280--8, 373-86, 3828-30, 3849-50 3862-63, 3876--78, 4140-43, 4155-56 4194-95, 4205,
4214.,4565--66. 4608. 494--7. 4950 4M,6 4M71 497












atandard nd analtaestions for.-- ------------ 18
1 ~ : ,t T) 19, 704-05 23248505-0M, 8938 4524-25, 4989
ISamm a.1 D!aa1a-Fnaea IFtatpbements, annual
Maot Ot.
Asuriml advisory board. ---------------------------..----------- 0A2
585) ....O. 055, 1-1, 2614, 200, 268,3814$, 325, 322, 8884-85 s~teS adquRetin or 28,
1Tr-ceas.d-e e9kM eGs Tea, somes 1002. 112M, 118-38, 148788, 1812-18. 1827, 1722, 226,. 2508-05, 2616, 2W0, 2680-82, 8084-84 go. .. .... 847-48, 8195 821-14, M428, 8510, 3812, 3024-26 4108-70, 428Me es se24, 4677', w7Mas se-lo


pg 187-4W 818,'508, 614, 8OW 741-4-143&-40, 1851-52, 2200-2 1, a makeve-'zz, soosalB, da 49W--08 ea uesion.... .. -- ... __.. --1175-W6,
44 .yA ... 1218-14, 100 -084, 1848 160 i727--28, 2584485, 3121-2,
1, .: 3298, 8205-06 8852-00, 3M70 3386 8405p-40 3443-44, 8485-00, 3585
8@0 4008, 4071, 4680-87,4W02, 4744-45, 4770, 4784

')T68 .uPf* ..8- M, 721--24, 2281-88, 2888 880, 8044-7, 4591, 477, 4885i---1-1-22 --------------1684-86 1008-88, 1787-4*, 1880-31, 1866-71, 3508-00, 4658,
,46W 4@A, 4710-18,4717, 4748-50, 4700, 4792, 4795-06 4790
btenDepartmnpnts at Labor and the Treasury. ------381, =4-88 W57, 9, 1448, 1456 1458, 1718-20, 1727-28, 1858, 240"-1,
2418-14, 2482-88,2748,: 20M,8148, 3187v48, 8212-13, 3279. 3290,..
S18-48, 8845 837M 500, 3=2-28, 87741 3784-85, 304-42, 4051,
ty ~~. Ie 411 48, WBIS 4582 4882-36, 4079, 4086-87, 4744-5, 4700, 4770, 87 ft .AS 40K4080-90, 4879,5002-06
atlan based on age sex%, ete -------------- ------- 1641,
.,,.. -177978,182-2 .1882-88,1 w475 8U06-97, 3510-11, 3518-19, 4578 Xbro~e.petuary (Aee Actuarice--atandards and qualifications for.)
ImpoymntOpportunity Act (See Discrimination based on age, amr, ete.).
V4#m eqntracts~and grants, protection of pensions. -- -----.---- 526-27,
.a. 58K 000 000. 623, 1840-41, 1620-21. 1673, 1720. 1794-M6, 2483-8, 14 'Af -.. 2505,2WKYIs 2W0 =91, 4041-21, 3126 3133, 3137, 3180 3422, 3669-4
4148-55 4549, 428 4737--88 5007-400
addeclarations of policy
a~~~~~~~~. ..dsata ..r. ... ......... .58
g,...w M, W8-97, 2M1, 28, 325, 488 &0M-601, 688-8M, 1078-79, 1086-87,
If"& ,'... $@8-1W004 2245-48, 2348-49, 2852-54 2861-652, 2590-01, 2603-04,
BT? .9347--7R .94AR 320M 4057, 467TR 46MS 46K 47t01, 47t0L07, 4th0
M U~~~eg~ al-for-eg---la-on--....-.-..----------------.. .3-5,
Ak0 185-4ML 1988-88 1750-6 1829-81 1L800 2248-45, 2349-M5, 2387,
2W2508-2004 3=23, 3128-34, 824-07, 3305 386-8, 34214, 1
844-450 84 .4 48, 8400--0,8002 39 074)6, 1M- 4748-Mi, 480IsrNMMNA Bavaxw Cons--Need for equalising tax treatment
P~masmaromAN Vzrw---Need for.:
mT~awArms Iwouassew--Need for insurance program.
pilma neewd for protectio 875-76,1
115,185 1339, 1L613, 2331, 2356 2389--9, 2482-83, 2490, 2594
21106-M7. 261M 2635. 2679-80. 2752. 2008 3013-14. 3125. 3137-38.
















Need for ----71,S47,8- 1 46, 1878-7 1.s,9 M1(11TLtn
a418, as5t2-da0e, ages 34 3 74,34-%=1,44418887 4W1 40,- ~2--0 88%4I 6 M,4 74 4
&e ea 488-42, 4881,4 40, 4, 05-_M&E trnsio R EVENU- D-- --- O- -- -- -- 7
Ine beiffn Dectosnssoe-----------t 23,

broibti from hldainghpaoie -----------.--178-7, 81-1, 54--7, 818M, 6 K1972
1721-23, 1737, 217-3 80-47 18AMM-2,38-f 0


4803-04

Tectary of siLabor :-------------

1006- 5'60, 5648, 7 O,l P. 8- N
34i2, 4903-4 5,466 01 Apoaion








Delegaition of ahoitypln offStae agen-------------108-10, 306-, 5,4(-O5, 61,6,6 3-1 NM O
2389-40, 127, 294%1, 3580 M.3 4 0444?,



-Sere yofHeal Edaonrct and grlaidtergainvsedpTereanry of futonsr esnn r
Adiitti uhrt ------------- 0-,M
iiii0*
iiiiii i = u a iiiiiiiiiiiiiiiiiiliisiiiiliiiiiiiiiiiiliiiliiiiii iiiiiiiiiiiiiii 16 -49 5 Miii5Kii77iii23iii2Mii21Miiiiiiiiiiiiiiiiiiiiiii4i

iiiiiiiiiiiiiiii iiiiiiii4 59 7,490ii i3i4iiiiiiiii i i i ii )4ii
Appropr............iatin au h rz d- - - --- - -- -7MiMii4-41i274,2i6iiKiM 4048M49
Dee atoioiiho iyiiSttigeci- -- --ii- 1iiiiiiiiiiiiii~~~~772 7. 2 M.......... 4052,iiii 40M.==iiiii 477.1i==
D u ties................e..et...........................M iii12Mliil3 f-.0.
Emlyesofte earmntiiiii o ntrsL---.T
2M2342K#33:MjA


Relatioii~i nsH wihohrsvrmn gnis--------- 5iiiiiiiii'% ........................................................ ... .. ............. ..
,,,,,339-40 2,,,74,,, 2914-1.. 33K==iili ....................= -M. 4M%

466M 7844-W4 -M4L5
iiiiiiiiiiiiiiinationibitieiniDipartmentsioiiiiiiiiaid.t.e iiiiiiii~ iiTiiiiiiiiiiiiiiiii
,Studies

|L&49 0-O M n65 M.M134%M,2M20iiiiiii0402-3,4% 107493-


















MISCELIANEOTJS--Continued

Kiittion (See Discrimination based on age, sex, etc.)
Sedrty Administration (See REPORTING AND DI80%OtfZW-State*
at ested rigts.)
Alatted Mine Workers plan (See INTERNAL REVENuE CODE-GOVernment aggeotiated plans, tax treatment of certain participants.) elWate and. Pension Plans Disclosure Act : eeveness of --.-..-.---------- 580-90, 1600, 2851,329,805, 8807, 4811
4r wiart8Aton -------------- 592, 1085, 2608, 8134, 320, 335 7, 888N, 8414
'84pea Of --------------------- 51, 748, 2301, 2369, 301 3M 72-48, 4858








e*TTY














A













j


. .. ......... .



. .. ... ... .


























4A wtv nN ink













[rm the CogadnlRecora-Houe, Feb. 28, 974 re wENrr SEOU~rr r ctor 1973
Mr. Speke,I move that the House resolve itself into
tteof the Whole House on the State of the Union for the
A-ddiaton of thsbill (HJ.2) to revise the, Welfare. and
as islosfure AXt
nWas are o
ad rw !McnrrE OFTH WOL
gy the Hous resolved itself into the Committee of the
othe State of the Union for the further consideration aA ITI.R 2, and the Chair requested that the gentleman from
Sa ias e s temporarily assume the Chair.: Hf MWterk read the title o~f the- bill, se4MtAdm~xr pro tempore' (Mr. Fulton). When the Committee
y'~ heewas pending in lies of the, committee amendp rintedith bill H.R 2, as one amendmnt in the nature of
orthetbill H.1K 2 the teto Mh ill H.R. 12906 as title I
teaatiutead the text of the bill -H.R. 1285 as title IEI of said
liart 1 of. title. I1 of .the said substitute, ending on page 73,
1,had been considered as read.
ap' eghameL-, Aire ther further ame-ndments topar 1 of title


Mr. Chairman, I offer an amendmentread: as follows:
offered by Mr.:Dent-:Page 54 at line 18, strike "or" anid add =w plan". "or money purchase plans designed to invest primarily
dedibed in subparagraph (B) of this paragraph,".
Mr. Chailrman, I urge the adoption of the amendment.
E.Mr. Chairman, I have been advised bythe chairI~uast hi mndetIhave seen the amendment and. ...
piQjn in urging its adoption,:
netAMMx The question is on the amendment offered by the
from Pennsylvani (Mdr. Dent.
endment.wa i*Agreed to.
A-EDMN OFFRE BY MR. ASHBROOK
A 88008. Mr. Chairman Ofe ri&m RE~me
read as -folows:
offered by Mr. Ashihrook: On: page 28k line- 9, sake thefollowing
We a24 Ines11 ana4 12, stiie the Meowing: "with respect to auits
beforeJanuary 1197&"





iiiiiiiiiiiiiii~iiS I3 50i6i
(M r.iiiiiiiiiiiiiiiiiiiiiiiiiiimissoniiireviiiand xten hisii remrk.). MriiiBiiiiM.iharaniiaiffrnganaenmntt HR 2i chwlieiiatinarirrylmtainonteilgbliyo ui torioiaeienioipan. heinluioioitisaritar iiiiiiii N
ii tainiiiebl ai eiv, cietl Th wocaneirencesrybcusihepovsos nSeto 10 a 3 C ii niii ono dqaeyad arytk g
iiiii aniiiii oftelcnigpoeue f ulcacutnsi 2 Sttesii ncuigiho

I ni6SttsaiteprsnttmeiheSatiegsatrs ai6P1Qiiii th mesrs.fcmptny.nldigeucto,..eiec a
e i natiilIIIi i on, to...........det.....t nt..r.p blc...c ic i
aitiontiP '.Iunesadtaismi0 esnsaya r

!!A! ....4'
regulatiiooftepoesoofpbiaconigecptorsm
th!il ftecriidpbi coutn.I uhJrsitos ~i
compreensiviregultory iceisng stadardsareienctediyiiii
sciiiiiilgiltrsiteewl b omas o tewio:mA ii ndpneniulciionanstipromauisfrirft nionpasune h uretlngaeo .Ri.Te tt:i
isiropireasfolos:Arana, elwaeDitrctofCotii iiIdaho,~ii KasiiiiiiiliiiJrsyiNrh akt, ensi~i!,
iiiiiiiiiming.
Theii nee fo...biiyi..r itn qaiid esneli'hs
Statesiiiiii i s reonzdi ..2 bti s edesyliie.I i stu aprpraetoganihiScetr fiaorteauhriyt pou gateiii an dad fcmetneutl176 tsolib prp~t ithout aicutoff date.
I niakniih sech ngsioiiiiiiaiitiim'dul tat I stn aditiee plydiiroiigelgbltifriipe,-..
auiosms o edmnse ripie.A motn Innl
inti ilms etepoeto ftepbi n h salsmm
o fiiiiii-iiiiiiiiiiiistiin d ariii.
Pubiici iii~i i ntrstrqursihtiesosenaedtipror l & so
these programs. beidpnet n oss sfiin ecncl nw edeticryouihieggmntinaiaifatr mne.
Siiiiiiii iii nc relanc ha benplcdiniiestnars etbySats an









atd this importantnoiie of the Department of the Treasqualifedacounta t astose licensed by the State, regarditeof license
Professional accountants, whenever licensed, should have the opporad participate in this imotant progam.
'Zna ltionhasmadeinay srid es in te private pension refr
4 ub otwant.: tosee' t weakened by a technical oversight Ieat recognize: the: realities of. the accounting profession
today.
.DaxT. Mr. Chairman, as far as this side is concerned, I agree
I~gs daenment, Andacp it, and I am sure the rankn mrt
diseberwill, also.
tg Aw The question is on the amendment offered by the
.geshintra from Ohio (Mr. Ashbrook). at arendme~nt was agreed to. .,.OIW OkinmAsr. Are there ay further amendments to part I? If not,
,willresd.
rd HIp"Mrk had as :follows:

xof part 2: of H. R._12906. appears on pp. 2833--2858.]
iis4 (during the reading). Mr.- Chairman, I ask unanimous ,"i part 2 considered as read, printed in the Record, and
amendment at any point..
ta (ItifAX'pro- tempore. Is there objection to the request of the
an from~ Pennsylvanial?

AMENDMENT OFFERED BY. MS. ABZUG
kne. M. C~iranI offer amendments, and ask unanimous
that they may be considered en bloc.
CAtiwfAN pro'epoe Is there objection .to the request of the
man f rom New York .

Clerk read as follows:
ets offered by Ms. Abzug:
rwe line 17, strike out "'the later"' and insert in lieu thereof "any".
Vp75, strike out line 19 through line 22, and insert in lieu thereof the followq) 19o the case of an employee who begins his period of service on or after the
*ettains the age0 of 24, tile date on which he completes 1 year of services; or
in te -case of an employee who begins his period of service before he the ajge( of 24, the date on which he completes 3 years of service or the
*hi& he6 attains 25 years of age, whichever date is earlier."'
1%, strike, out line 9.
74 Ine 10, strike ot "(B) "and insert "'(A) "
79, line 13 strike out "(C)" and insert "(1B)".
79,ine 15: strike out "(D) and insert "(C) "
atge 79, line 17, strike out "(E)" and insert "(D)"
Page'o,1, line 21, strike out "(F) and insert "(E)".%
sAbszg isked and w~as given permission to revise-and, extend her remarks.)










member= oftecmite n hv oojcint h
ani w ccptteimedens
Mriiii w r hirawl tegnlwoa im
Msiiui Iyedt hegnlmn rmPni
Mr !EoN r himn hnkta twud egb o~i
reodi w ol hv nexlntonoih aedi si& eievihtatrsc n xlnto ol b rprd o them
Msiiu. hn tegnlma rmIliosind1 -Ib ga t i veaiilnto fth mnmns .
Mr himn ne h eiltinwihi eoeui- t

foi pricpainio meceiftrihiaeof25iluiIyaro iiliiheii amnmns hc mpopmgwudalw-oe# t bginitaiaelweihni5i te'liiyi a ore or3$i
Thiatiaetaacodnitiii9i ess oe 0prei fi Americans bewen...aesof1.ad....e....elbo frmO
68pecetofal A eicnsbewenth ge o 2 nd24._r, _nh
laorfrc..h.a edmn..re.f.prtcua.itret.. w w
whs ok atr i owrkfranubro yas e iii bten1in 2,te ev o ufl hi olsa. iep



coveri~i'i blecla okr nti ontywod o aiutlt
ag f2 ostr okn, u h omecwriirgtoto
ighsholinihaiiarelt o mrca ie
Thimndetexad hergtso vrywriigWO
iiiii reev pnin
Ii bleei ol etril nfi o h okn ot*fn
woeinthscutr h akiiinfiatcntiuin o$6t
iiiin ottobecosierdisieonmiieuas.Itisiortht eaontbt
ureteaoto|fthsaedet
Fo h upsso lrfcto ol iea hstm ooe
.s o m eiiiiiii e x a mpiiiii l e o f..h....th.................................................

!A
iiXMPE


Assiiiiuiie that= a 0ya=l trt okn o lreCm ayt i ntai i ns th.inmm...drs.euie.b.hi.il.Th..







3509
(f*rtd be noted that the employee weald have a nonforfeitable
ightt to the share he or she contributes.


#atT toeployee at the age of 18 joins a company that requires the mininatut,atanidards. of this bill and follows the sliding scale of vesting
*Alternative B. This employee then leaves the company after at age 26. Under the current bill, the employee will get nothing.
the amendment this same employee would get 5 years of beneM,.vad at 40 percent. This would not be possible until age 30 under 4.al errant hill and at age 30 the employee would be entitled to only $yJear of benefits, vest ed at 2 5 p e rent.
EXA tfPT. 3
1 s Amvrployee: at the age of 18 joins a company that follows the 10ear, 100 percent vesting alternative--Alternative A. Under the curf i'lbtat employee would get 100 percent of 10 years of benefits aage 85. This 10 years of benefits would come after working for the
Y17 years. .
drthle, amendment, given the same set of circumstances, that byewould have 10 years of benefits, vested at 100 percent at

6 EXAMPLE 4
Af n employee Joins a company at age 18 which follows the sliding
schedule, and leaves, at age 25, under the current bill that emwould have no benefits vested.
ethe amendment that employee would have 4 years of benefits
at 35percent..
towendthe gentleman from Pennsylvania for his work on this
1 onnd I tan him for accepting this amendment. I would
kalike to thank and commend the gentleman from Illinois (Mr.
adoptionn of this amendment will be an important advance for
Aica' working youth and for America's working women.
-1 ht3:9wn of California. Mr. Chairman, will the gentlewoman
M-AssuG. Yield to the gentleman from California.
air. 1ROWN Of Caiona. M.Cairman, I would like to commend tegentlewoman from Newvk York (Ms. Abzug) in offering these
anynd ens. s hegenl wo a p its out, they do attempt to
iify provisions in the bill which, in my opinion, are obviously
rumnatory. They discriminate against the young due to the age tlm of 25;. against women because many women must leave the
bothfore bfor rechig age 25 due to childbirth, and are, thereity, able to receive any vesting or pension benefits; and against







31510
adnucatonthey do net begin participating in a pension Pr0rani
Th ere is an additional aspect of the bill which bothered Me, fit of the illogical provision that young people below the age of 25 could be covred under this bill if they were part of a private pe .nsion Plan w hthh allowed complete vesting after 3 years. In effect, that nmatthat a certain very small proportion of the workr force under 2W who were participants in such a plan could be permitted to acquimv*w mig, but the vast majority could not.
Cogresswoman Absug's amendments tend to rectify not only? tbo discriminatory provisions of this act, but the illogical proviqiowhi would have slowed a certain very small proportion of the wori" force to be covered at the age of 22, but not the far larger prF rh I want to compliment the gentlewoman from New York for her gwisdonm in bringing these amendments to the floor, and hope they will be
(Md Brown of California asked and was given permission t eh and extend his remarks.)
(Ms. Absig asked and was given permission to revim a d ted her renmarlks.)
Mr. Pirorm. Mr. Chairman, the amendment by my. coll:eague i Newr York (Ms. Abittg) is a worthy amendment, and I rise in wepW
It recognizes that men and women under 25 years of age ests:h i II be a simefiant and vital part of our work force. Since the qualifies,tions for thi amendment stipulate that an employee. must work, for thsefirnm f8 years before becoming- eligible, I1 do not think it woul inflict inv undue hiariship on our busine-smen, but it would Aled discriminate against legitimate members of the work force just d the- were young..
I think this amendment help to strengthen this bill and to
it a better* guide for uesions for all our citizens working in the~gri,
This amedmrini not only will have a special meaning to.te
and women who enter the work force at an early age and stay t re but also to those women who enter the work force and then choo'o a,. leave for svieral -years because they have small children at homie $ow those early years can count in an overall lifespan of contributiq I the Amerienn work force.
I think this is right, and that this, amendment should receir ythe strong suppot offlhis Con gress.
Mr. ERLENBORN. Mr. Chairman, I move to strike the last word
(Mr. Erlenborn asked and was given permission to revise an X1tend his remarks.)
Mr. ERIENBORN. Mr. Chairman, I have examined the amendet
offered by the gentlewoman, and they have this effect. Und er the il
I ti



















presently there are two criteria for participation-and remember these are minimum standards; this iLs riot a proscription as to what the plan administrators or those who are drafting the plan may do..They could make unmediate vesting, immediate participation, if they so dsrd
Thsiaejutiiiinad w retlkn aot






8511

the: billB the mnumstandard for participating is age 25
1 year of ,service. The gentlewoman's amendments would keep t*which would have 3 years of service for one who had not yet at*&W age 25. This will allow some to participate as members of the r~~ W1Vfund at an earlier age than the bill originally would have. T herm is a coot- for earlier participation. I do not think the costwill be Bomeme I think that we ought to understand the effect ofthis,
mesample, if a person is 18 when he be 'gins his employment,
roile at. age 21 when he has completed 3 years of service mn hewill be eligible to participate. Under the most the. esting standar s-most liberal by most interpretagrade 5 to 15 year vesting, that person at age 21 will
bgnto,participate, and 5 years later at age 26 will first become
.nerthe graded vesting at age 26 when that person first becomes
prson is vested at 25 percent, not of his final pension,
Z lmta 25 percent of the years of service that he has as a particabrutIf the years of service were 5, 25 percent of that is 1%/ years. So,'1hdivatand, the person afteet years will get credit for 11/4 years
uta ta*ke thie fairly typical plan that would give benefits in the tof, ay, $10 per month of benefits for each year of service.
W, ersn after 8 years would have 11/ years of service to lise or biw q and would be entitled at that pomnt and would have a vested Ad a $12.50-per-month pension. I want people to understand this m=e f think there is a vast misconception about what vesting is.
,* many l"e hear of 50 percent vesting, they think that is 50
*tof the fnlpension. It is not that at all. The percent of vesting te pecnof years of service credited to the person at that
o gh that using this example, the Members might underpxratly teeffect of thesmenmns It will allow people at
yopgr ages to get very anml rights and it will not be any great t in t may, because more people will be getting the small rights who ae very likely to leave service and not draw those rights for another 30.-os let us ay, when inflation will have chipped away at that WOto the point where it means very liteto them, have no very sotefeet toward helping these people, but it will cost the plant and Qw~orewill cost the other participants in the plan, because whatever we take out of that plan for these individuals will not be available for tboee with long service to draw maningful nsions, but with that
und~aningand explanation I have no o 'ection to the gentleW~.Darr. Mr. Chairman,' will the gentleman yield 1
Mr. EELNrmum. I yield to the gentleman from Pennsylvania.
W r Dmer. Mr. Chairman, I agree with the recommendation of the eman fr-om Bllinois. There are other matters that deal with that





















The problen o survior' beFlton.TeqeCf!i vivoedbenefts uder prithe ensica fo ewYik The anmosttsressinggneed the over

fbr olrwome. WMen ove I5 whe n nm m nent offre Lpoulaio. Soutzm ae8,ln 1 tieots whtreent sate'd inseArt tie theefteflaig tes~et4a t e such benefit-"ank eut in auc h:uebyn hee ltW mh aridpennt on hisc po esin asxm enft"ad unaero thelowig ake aeute prvisioant beodteer1s~g should hey porfeae h ". Is belve tha mayil o y coltleu fosIlnos thae pndin bill, ouncsed a woker'hs nmnt sa.cp povw ih hvoeided, for inteeets hat will auomacll go to heiry wiospl h etlmnwt Such isY~x no th a.Bn the twmn provisio hi peninrits pensurion sp ue.TeCM~tArceiv n survivor's benefits nes herhubndisefreteieit
Ig-vni i eso ihsweeflyvse.Ayaenm

w ouiiii ldr c t i r b l m
Th rolm fsuvvos bnfisiscuca. eiohi.

peso eomaemr edu fato.Poi dqalfvio eeisudrpiat eso ln ol 6
thi otpesn ed fteoer6 ouainAeIe fhmk
foriiiol deo e.W mnoe 5wolveaoecmrs h ky i
semn forpplto.Sxot feey1 aeicms!l*

th oetylvl
Inde' vnteEuainadLbrCmitercgie hs whni ttdi t eotta hepeetlwwihhist iiiiieciiii suc iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii hardship where an individHuaii~ ii~iii~i miiiiiiii dependen oni hiiesinai suc o eiemn io l w
unable tomakeiadeqateiproviioniforihsispousesretiremen Itsiiii shouldiiiiiiiiii~iiiiiiiiiiiiiiiiiiiii~iii he p ed c a e e Ii bei eviht ayofmiolegeshviteiprsiniht ui.












age...-~~~ his~ma det a h. hs isrkeunconsacioni T ne h: rache. th.pose t5o0 expain bter bil.mIamn ,dor ter 20 or 2. yea ply eens whos willfe touleediintoea
ose~~~~~a oncbts f ede evnwthinin rgonhs are
ofdls ofuse whatie hapen tovi them
rious, ~ ~ Rn gambl on survivn il. tallw and a 0t5yar un~~~~~wn oprotectein the rights of thedah.Ti sunosin
#w*.arly beause 4. s hould bpae adopte. lagag.o
Sill orterepot wichillupo thexntleoan thyild Ia
d 04 it will: I thankdin thmpy e g iletleomant fo
of ecuit n te: ele s he nows thif aenyione appetsare
e'irwif...il b iiurerera':les of exathpense heng
penson lan~~ar to.be orethen abl oany suchva amnd-a

ouse thn amin that this matpterabe zx~~~se I cannod tel the gentleman.rm lios
=x~~onNo fr hima,1talngi the binll;owhether
4*6,askthegentewoan heterathe intnon if onot know.re
,committee, ~.bl tourceiv their svrlyasoexnivestedabenethis~ ~ ~~A dito-mndet ote nimelrifay decats.
wil th geteoa yield
ofsseddin the committeecoImamtnot
OLTMAN Itis y udertadoubt that ti wouldr ha eaen d4 Howfullyimine, beendsusdIcauset wtel this oesemit
tover~ght,:or materof opli eraiapvate peeton ononw
want to as lread ploperatiyng o plans ol Oteve, o esecialyif heys.l We wuldtpobly ankrup
I-Xi"NUO]WI hr.Car avwUe pentlc eon i.lI
_AMEiOR..It hiswee dscusn inurane sysmite. If am coitj Kit wa brouht ,u that i fine, which mano WQ( ilme 'o~~~~f theymitet etnie'es do hat this aos com
4 th pesio sytem in omoisuanye andteby that emolve








This arnimidmovV*644'Wilm, TOO" ,
OAOL
Pletely Umm-r
MS.
hits not don# any 'Istudy 01hol4WM41 committee biR WAIlt& i1*dtedMAh6 AkhwWoiO i""* committee acknovWges iA Ap('1iOa*,tJftt,*4Wft pr tect the right, of the, J*%rS"W*he problem heke'isthat e* fully *Osted rights that his -wife *ill be *16 tcr*ceiv i-my bd*kkit reco tdzibdthe p oblb 6ftfit(13
g ,
in thisspecific ifisfant t0.
appT66ate the MombeTIA r,6$eiri, f 4
Mr. OINFaLL. MrXhairn T I
Mr. DFNT. I yield to fhe7dist11Apd* 4,14 MY. 011NEILt. Mt. ChsibAW9 r w while it is very
we haVe neglected thle,61iffim afioj dfj mv*
In October 196% baso 'Cl, 1"910,'69,000-logt::theirjo]3g.
In April 1973, over 42j()00 wemthrown out, of wo
werefrom- my are" ue to thr ,el6g*g %JFB4W ''I ............
.In February 1974, another base d *Ah- 4100
Now a-trcmend6us.nmnb oroftil&40
lation'was pending, have come into '*ffikwthaQ4 In 41
ey Co i I 08M Mlla d bly J*eovered 'in the
Vnderour peftickx plans, unless'a work k, h*, 29
years old he is irtot eligible'for o, peftsi6m,!M *W*, working, in t-be Bostoiy'N 23-years of
rights 'ast like
ther wf(y thi could & -r
tb alqw" r tha
'Mr. Dinfte Mr. ChaityA*, Ae
contract, empl er, they cannot under the act;,but fior An ligmicy of Goi*rnmeiA Y att 11A6W6V
-.Mri OWraim.J am not talkitig gb6at i n, g- a bouC G o v ern m e 4it, eni pt i iye le s. Thoy 4* A* edw lems aik a p6irsoff workiug-in PrivAt, edh 0
AM agree.-,
Ir., DAr
Te, ig4metbi" ft-PP, M
havevt)rked- 17 Years in, $h
to--4nnp11qyee.s-of, the Hood R-,dbbt#* C '' *fi 'hwi who had 17 years ser -vice.
Mr ; Dm I un&Pat tnd1Wif the jte#dWWf,5*kY
.0 ..
covering ,eople
Vate pension nplkn.z,.J. ,
IT "Va ;f*4









*'W.40'Nass. At the present time they belong to Federal pension ust, like the gentleman and I, and there is no protection.
The Post Office: and Civil Service Committee may have .a6 We do not cover all the Federal pension plans in this
-Mr. Chairman, we are doing the right thing in taking
tf'hese we can in this legislation. I should hope, however, that
Committee on Post Ofice and Civil Service or the Armed Committee would take cognizance of the fact that there are
Kployees. in pension plans which fall under their jurisdiction Wd.to be covered by legislation along the same lines as the Com9a Educaion. and Labor bill provides for private pension

Pl$wr. .Mr. Chairman, I agree,, and I appreciate the concern of
emnfrom Massachusetts. That is a ioneern we have already
4d a base for study upon, and our task force will study the problems of public pension plans, so that whatever informatoawe get from our task force will be shared with all committees of
it rr -htwe might draft appropriate legislation.
airman, in joining with my colleague from Illinois in op*
:he. amendment bfre-us, there was some discussion, but
bagon resolved around setting some kind of assurance that
W be payment of survival benefits. We established a base w date "for survival before being made available at the earlia wationreent age. Anything -but that would give such an enormous wet'O could'in many cases completely destroy the pension fund,
,t "if one is to be given survivor benefits at any part of his vestOil.which is wh at the amendment does, there is no way that easidan accumulate funds in a retirement pension fund without hav4a~t 40finite number of years to be completed.
lien we compute the survivor benefits at the earliest retirement
Po*we know the: actuarians have something to work with. I do not beiev" it is, possible to even consider this amendment at this time.
**ME h.LMAt. Mr. Chairman, I move to strike the requisite number

.,M.Chairman, the purposes of the amendment are admirable, but vr we have to do is put it in the proper context. Thesnx-e are- private and voluntary 'pension programs. If we impose 16ndof equremntall we are going to do is put a lot of private
'e prgrmsou o business. This would cost more than they What we have tried to do is establish a balance, bring up the miniae-pension: requirements to the full extent possible without jeop*gisin the existence of the private pension program and without
diteourging the establishment of additional pension programs. If we
........h kind of high costs involved in this amendment on theiiiiiiiiii Pensinisiteiwiiwilioiyidicourgeithideilopmntio








W16

further private pension: progras and pat a lot of ez==1 'nA
of business.
Mr. Chairman,. I commend the gentlewvoman: for her t
this amendment cannot be accepted on this bill, iL Eq without doing great disturbance to the Act.77lh
Mr. Chairman, let me turn briefly to a point raisald in t the debate 2 days ago. Mr. Youn of Illinois inquira o
tionship between the antidiscrimination provisions of pree the minimum vesting provisions under the bill. It is -~ these minimum vesting standards significantly r for the Internal Revenue Service to require faster vt9 i
meet the antidiscrimination requirements: of the law. where the antidiscrimination provisions require it, fastr continue to be required. In order to clarify the legislitiv-e9 this matter, I would like at this point to read -the pru pages 64 and 65 of the Ways and -Means Committee repon 93-807) that describe the effect of the bill: 1
Discrimination.-Under present law, rapid vesting requirements imposed on a plan in order to prevent disedmination. Your commith that the higher vesting standards provided In the bill will sedue t
require faster vesting in order to achieve this purpose. On the, other undoubtedly still will be cases where Ait will be necessary to require provide vesting over and above that required under the bil to pre-"ination under a plan in favor of officers, shareholders, and highly "M- A employees. Under the committee bill, the Internal Revenue Service, i- i& more rapid vesting (such as by requiring a greater portion of the aceo~~f to become vested or by requiring the benef it to accrne f atar in orer.WipI-F the possible discriminatory effects of "back loading") if it appears thtthit been, or is likely to be forfeitures under the plan which have the* criminating in favor of the officers, etc. For example, in a profit-aai such forfeitures could directly benefit the Proseribed elass of ivi':-M defined benefit plan there could also be diserim Inato by reducdag employer of providing a disproportionate amount of bmeeita fgg other words, it most highly paid employees remain (or are likely t the job, while other employees tend to leave, the Internal: Revenue Se"~ vm04 find a pattern of discrimination (whether or not it was the remit of adYii policy of dismissing employees -in order to prevent vesting) and g w[le more rapid vesting (for ample, by adjusting the vesting schedule, rate, or both).
Also, present law is designed to ensure that In the event of ewfrly e +4nn the 1henefits undrin thus rao arn not pa tnomaee 1who Ar Milw Ai6 holders, or highly compensated employees in a dteerianimtory aw'I committee bill contains a provision to make it clear that the vestmng a-q under the bill are 'not intended to operate to overturn themses k -n example, in the event of an early plan termination, a highly com -e0* ployee might receive less than his otherwise vested benefit under & A were necessary to prevent discrimination.
Finally, the bill includes a provision that allows Prsons 1
banks to be trustees of Keogh plans. This would allow coqptfa therefore, allow lower costs for these pnion plans. Hoevr i portant to ensure that the persons wo become trustees ofsca~ will act responsibly and in accord with the rules goverigfddr responsibility. Tt is also important that a nerron who nets a rse
haeihiidl n eprtseneddfoihiieriiprtn pstin







8517

eto, read at this point from pages 133 to 134 of the comTport on H.R. 128,55. While this explanation describes the
4- T; r nonank trustees under individual retirement accounts, it
thg the same. criteria apply with respect to Keogh plans:
tegoverping instrument, the trustee of an Individual retirement ne* raly is to. be a bank (described. in sec. 401 (d) (1) ). In addition, a person
soa bank may be a trustee if he demonstrates to the satisfaction of the of the Treasury that the way in which he will administer the trust will 6at with the requirements of the rules governing individual retirement
S-01ts. t is contemplated that under this provision the Secretary of the !Mrerally will require evidence from applicants of their ability to act
eed rules of fiduciary conduct with respect to the handling of other
m0s;oney;. evidence of experience and competence with respect to accounttfeinterests of a large number of participants, including calculating and -ifcome earned and paying out distributions to participants and bene.ts and evidene of other ativities normnlly aseoiatedl with the handling of
f unds. Additionally, your committee expects that the Secretary gen1give weight to evidence that an applicant is subject to Federal or
fniaition with respect. to Its activities, where this regulation includes, e.g.,
rles of fidaciary conduct.
f#,twicipated that the Secretary probably will allow individuals to act as
,"tes fr individual retirement accounts.
-dt pu the bill generally requires that a trustee administer an individual
taccount trust, the bill also provides that a custodial account may be aa trust,. and that a custodiAn may hold the account assets and admin4xtf thenist. Under the bill, a custodial account may be treated as a trust if the f is a bank (described In sec. 401(d) (1) ) or other person, if he demontthe satisfaction of the Secretary of the Treasury that the manner in 'Will hold the assets will be consistent with the requirements governing iilretirement accounts. Again, it Is contemplated that the Secretary will
r .sbstatntial evidence (as, described above) to determine if a person -other
&1tami ajmay act as custodian.
*4,j EmNBRa ons. Mr. Chairman, I rise in opposition to the amendA W. Erlenborn asked and was given permission to revise and extend

uraNBON.Mr. Chairman, just very quickly, I am surprised
Ua. bill as complicated as this, as technical as this, where one
eprv~dn: interacts with another, that an amendment of this nature !;wWA.be, suggested without any prior warning, without any attempt 4*,o- it in-.committee, without even a copy of the amendment being
madeavailable, at least on this side of the aisle.
Chaimanthis is very close to writing atxlawveycm
#pjete.,It took the: Committee on Ways and Means and the Commit4ewon'ducation: anad Labor a number of years and months; years of
hearm~, months of: markup.
andments of this nature were to be adopted on the floor with"C'ayprior warning, if any other amendments of this nature are
a~redwithout the two ,committees having an opportunity to see them
Obdof time and examine them, examine them in committee when we
-tk the time to do so, we are going to destroy a very good effort
*4trt rtcmh okn enadwmni hscutyb h

li!iiiiiiiodienioiegsltin









MS, HOLTZMAN. Mr. OChairman, will the genlean y1O M at
Mr. ERLENBORN.. I yield to the gnlwomn fot14" Ms. HOLTZMxAN. Mr.: Chairmian, I thank ,the gentleinati
The reason the gentleman did, not reeive miuch: prief Wit 4
cerning this amendment is. that the, finalvers-ion of the biM t i made available until a few days ago, and it took me until vi-morning to understand the deficiencies in the bill.
If it took me that long, what concerns me is that it, is;
the workers of this country even longer to discover the leac be -I04 age in this bill, and that is one of the reasons that my, N
important.IN
This is an extremely technical bill. The defieien17cies iu
really clear to the Members, and I am afraid they will notstood by the public.
Mr. ERLENBOIRN. Mrs. Chairman, I understAnd the god concern, but what she really ialtalking about is turn-ia g' pension system into an inurance system., We cannot. afford, to d td. We cannot afford to jeopardize the pensions the people at mng on. t
Let us not destroy this system in the* name of tryin to
(Ms. Holtzman asked and was: given permission to revise her remarks.) *A
The CHAIMmAN pro tempore., The qtiestion is on, di t
offered by the gentlewoman from New York (ms. Holtzan )7
The amendment was rejected.
Ms. Anzus. Mr. Chairman. I move to strike the last word. p
Mr. Chairman, for some months I have been deeply concefA the need to insure that pension benefits. are made availfht 4 discriminatory basis to all those who have earned them regarditalif race. color. national origin, religion',or sex.9R
The chance to achieve economic security-based on.m r4
heart of the American dream; ,and where, pension. bene~t
fairly reduced or denied, the results,. are: traifoths earned a dignified retirement. IL 4
I had intended at this time to raise an amendment ineo
nondiscrimination based on race, color, nationaslorigin, reli (6r sex into the basic requirements of :the pending bill.
However, I understand that the distinguished Representgai em Pennsylvania (Mr. Dent) is concerned that -this approach tnk 'M to our actions last yainfrhrconsoliatn equal*1 Or, t
jurisdiction in the E qual Employment Opportunity Commissa A
Mr. DENT. The Representative is correct, AlthuhIuly r
your concern: for full enforcement of nondis8crimnnationa requg affecting pension and profitsharing plans, I believe ta toward centralized administration of no-ndiscrimination .ie# Ament must be maintained. And I believe this: can be 'done bY, th I Employment Opportunity Commission: under terms of ...ti









'-r rfit-shrn Iplans, isf presently prohibited under see.) at ther Ejqul Employment Opportunity Act ? Thiat section

or refuse to hire or to discharge any individual\ or otherwise to
against any individual with respect to his compensation, terms, oprivileges of employment, because of such individuals race, color,
gaor national originPMr. I agre with the Representative's reading of the statute understand that the courts are following this view. The leading ad:*.'Bosen v. Pwhlio ervice Commission, 477 F. 2d 90 (3 Cir. ) (Rdrmes v. Drewrys#, 444 F. 2d 1186 (7th Cir. 1971) Cert. De'UA.S. 939; Fillinger v.: East Ohio Gas, 4 FEP 73 (E.D. Ohio
Share the concerns of the distinguished Representative 'ork that the EEOC must discrimination in pension
isng the most serious -forms of employment discrimination.
Atoo Mr.Charman,. in light of the Representative's views,
rihthe understanding that nondiscrimination in pension and m~tshring plans is fully required under the Equal EmpDloyment
Act and of the pending bill, I1 deeply appreciates' jug
assstace
-AW. Mr. Chairman, I move to strike the requisite number

I would like to direct an inquiry to the gentleman
Ivaia Mr. Dent), the manager of this bill.
contains Standards for fiduciary responsibility and, for
precludes transfer of a plan's property to "a party in interfor adequate consideration. In the case of collectively barestablished in an industry for the employees covered or*
in that induszt from time to time it is desirable for the overofthe beneficiaries to transfer assets or funds from one plan
becuseof existing circumstances. For example, a health fund or a supplemental unemployment benefit fund may I 1o tanfer assets to a retirement fund to enhance the actuarial Attl meof the retirement fund. I1 want to be reassured that the proW f the- bill would not in any way preclude these collectively
plan from making such transfers. .Daner. Will the gentleman yield 9 Garas. I1 am happy to yield. A .a The bill in no way intended to apply to or restrict sueh i.Thius, the test of "adequate consideration" would not be ap
to suc a transfer.
Azoe. Mr. Chairman,: I include the following accurate record pension agreements as computed by the United Steelworkoft4ence covering 1 year--(191A); 71 agreements were termi'&rltkthis 1-year per ze:












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The CrAmew proMx tmom Ifar n fur-therS a
part 2,,theCler will ia.
The Clerk read as foa s ;At"

[The text of part 3 of i.. 120 appears opp. 2858-' Mr. DFNr (during th readin-. Mr. Cha-man, I ask consent that part 3 be conidere aread, prntd in the
0on to amendment at an point. pThe CAIRANx pro tempo--- Ithere objecio to theren gentleman from Penn~ys nia 2 There was no objecting


Mr. DErr Mr. Cha~ir I :an amenden.
The Clerk read ash folo:
Amendment offered by Mr DENT Pge 75 at ln2,strike "at with the following : "or 1gg DE r
"(7) such plan is estalised an ..nintainedb a labor orgaistl
scribed in section 501(c) (5 of the Inernal Reveu Code and seekh pla does not at any time after the dae or enatment of thsAct provide for contributions." a
The CHAIRMAN pro tempore. Te questioni on the -j&
fered by the gentleman frmn sylvania (M.Dent) The amendment was :gredto Mr. EnranwsoRN. Mr. Chirm, I move. tsrike the requst bar of words.
(Mr. Erlenborn asked ad was gven pe -nto revise i
his remarks.)
Mr. ERLENBORN. Mr. Charma ^ re no ong into.0Ow
section; we have complete the sing secton Because the tions have similar if not identia languagn- tile II, which consider later, but which will ntbe subjett .~mendmentL, like to ask the gentleman from. .ensylvani (M. Dent)'"w understanding is correct that inte agreemn betweenn the
foPenylvana (Mr Dent an the actn chairman ot mittee on Ways and Meas, th entlemnfo Oregon
man), that joint regnlatios hil~ e adope -y the Dep Labor and the Treasury De~ -nt for th ad intratiiin pation in vesting and -fing, n that athog the two d Will be administerin is aratey will theuiigden
lations for suc administan is that corrct Mr. DEWT. The grnean iscrrc. Mr. ERLENBORN. Mr. Car alt me Rls as, 'ail
the bill provides that th reuaims by the -ereay of i are effective after Decebr 3,175, only are Ipo~
tary of Labor.. the acto othSertary ofwLao igsuch regulations t tu "aeny acton -w in thi) the administrative procedue provsions ofttl ied
and would thus be. subjet to. te lemain -eentso
553 of that title.









itsoni, the. Secretary would be required to publish notice of his
'Aptinin the Federal RegisterI and to afordl interested perrunity to cm eton the Treasury regulations which he
approve.
,it is my understanding that it is the intention of our tthe Secretr of Labor not approve any Treasury reguis inconsistent with the regulations of the Department of
anter the bill, or with the Labor Department's administrative
*earrying out its functions under the bill.
.Yes; .I agree that that is correct, and it is the underbetween. thel gentleman: from Oregon (Mr. Ullman) and myour staff memrs that that is exactly correct.
i. M. Chairman, J thank the gentleman from

,pro teampore. Are there further amendments to

SE te Clerk will read.
Arest as follows:

ek of pA 4 of II.R,. 12906 appears on pp. 2873-2904.]
(drig the reading). Mr. Chairman, I ask unanimous
thtpart 4 be considered as read, printed in the Record, and
inenlfdment at any point.
47-nAmm~ -pro tempore. Is there objection to the request of the
from Pennsylvamia?
was-no objection.
AMENDRENT OFFERED BY IM ERLENBORN
5WnoMns.: Mr. Chairman, I offer an amendment.
Clerk read as follows:
Opt offered by Mr. Erlenborn: Page 113, strike out line 6 and all that
though line 22 on such page and insert in lien thereof the follow(4 STABMMENEIT.-There is hereby established a government cortbe known as the Pension Benefit insurance Corporation (hereinafter
0i referred to as the "Corporation").
,kwoff DmECTOs. -(1) The Corporation shaHl have a board of directors
Jetto the provisions of this part, shall determine the policies which
'the operations of the Corporation. The board shall consist of nine
who are citizens of the United States. one director shall be appointed
lecetryfrom among officers and. employees of the Department of Labor,
adrVe at the pleasure of the Secretary, and shall serve as chairman of theA
The remaining directors shall be appointed by the President of the United
by and with the advice and consent of the Senate, and shall have the
igqualifieations: :
)Three shall have had experience serving with employers in the adminisaor Maineac of private pension plans, one of whom shall be from the
kmplenesion plan field.,
1.Three shall have had experience serving with labor organizations In the
onor maintenance of private pension plans, one of whom shall be
mtaltlemployer pension plan field.-













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3526

lasurea under this part -and
glVfe ride to (1) an asupto of the assets of such plan by the
tidrsection 411 (e) (1), or (Hf) the appointment of a receiver under
(Sor' (il1), an alternative method of compliance under section
shall not apply IIn the ease oftWfrination, if all nonforfeltable benefits of participants and
hihthe parti termination applies: continue as obligations of

of comDIbte plan termnination to the extent of any liability arising
enyof ean insurance company which Was' licensed under the laws
d Ininese with the plan.
yer shall 'not be required to make any payment with respect to owr this section at any- timesat, which he ts insolvent (determined
1)of the Banrpe Act but without regard to liability under
aB prvided in subsectifh (d):, in the case of a plan termination to
sbetion applies, if on the, date of terinion of the plan all nonforof all participants under the plan were accrued by reason of
r the enhployer, such employer shall be liable to the Corporation only
) amounts:
,he Corporation assumes the assets of the plan under secton 411(c)
At, the employer shall be liable for An amount equal to the lesser ofof the net worth of the employer, or
t by which'the Present value of insured benefits required to be *section 409 to part-cipdnts and beneficiaries exceeds that part
value of the assets of the, plan allocable to such insured benefits

Apoer net worth, plan liabilities and plan assets shall be made
hit termination of the plan or as of such other date as may be Ithe *Mretar& urun to section 411(c):(4). Net worth shanl be
accounting principles).
ovrmay elct to pay his liability under this paragraph in anequal in each year to the amount determined under subparaA te present value of an. annuity certain, using a fifteen-yearad theinterest rate used to compute present value of benefits
ph A) (it). The Corporation may permit the employer to
ber arrangements for deferred payment on-such terms and for such
th@ Corporation deems equitable and appropriate.
$the, Secretary appoints a receiver ..nvder section 411-(c) (2), the em**iglie Iiable to pay:in each year beginning after termination of the pupuntegnal to the lesser ofthieamtnt f the mnm contribmuon the employer would have been WI tobake-under seton 302 with respect to nonforfeitable benefits for hehad the plan not been temntd(assuming no increase in nonts after termination of the plan) or
9 amount which would have been required to be charged
W0(i (2) (B) (less any amount credited under section 302(b)
Tor kiryeaif with respect to nonforfeitable benefits (assuming that the
*We of such benefts is fixed as of the date of termination).
shal beliabe fr amuntwhih is specified under an alterof complituce approved according to a proceeding under section
if-Iffeimployer agrees to. pay such amount, or the rest value of such amount does not exceed the amount determined
(1) ( A) .
Al o strike out "(2) and insert. in lieu thereof "c"
after line 6 the following:
'a ou therwise provided 'in paragraph (2), In the caeof a tera 1 willthis09 dietlen applies Of a plan. which has elected-coverag
Mil~gl EmOyer Optional Treot Fund, an employer who employed a
agele, alh plan shall be liable to the corporation. under subseediiAn of emnfo of such plan only If the termination did not










occur because of substantial $0" of Umtend to lead to 11100lVeRa PT AkX%*' Corporation and approved by Itho' OetrOAKT).
(2) If during the, two-Y "to
employer (A) maintains a WenSion pl= coven any
covered by the ttrminated plan, (B) 4 covers any participant who Is co ried h benefits by reason ..of a pla.A covers any partielpant who is covered by the terminated Kan,' shall be liable for the remainder of such fte :0 ffitk-TW pmOod
6 the amiount which he would, have bem, bo'4#4$0440
(1) of this subsection) during such perfod subsection (b) (1) applies as if, the employerlmd, M*de ow in subseWon (b) (1) (B)), fa Mceeding forAwrpom' q chapter 10 or 11 of the Bankruptcy -Act ulth-rqspeet, SO ployer shall not be subject to any flablUty under-Aimp'"WVh
Page 143, line 7,. strike out (f and insert,14 Ue4 tbOpeO
Page 143, insert after line 16 the following
(f) CoRpoiaATioN To HAvE 8,TAT,,us oF Gxw=AL
shall have the status of a general &editor with rvopRet ta employer under this section except that other geneto,, accrued prior to: the date of tervaination of, the plao sW, any claims madepursuant.to the terms of t1hia part"
Mr. ERLF.NBoRN (during the reading)'! W. mous, consent that further reading of the Vrith, and that it be printed in th6Reeord.
The CuAiRmAiv pro tempore. Is there, objection t-'6 gentleman from Elinois.
There was no objeaiom'
Mr. Awbmsoiv of Ulinois., Mr. Chairman, I rdakp that a quorum is not present.
The CHAMMAW pro tempore, The Chair will quorum is, -not -present. The call will b taken by
The call was taken by electronicdeviee, and th l failed to res'pond:
LRoll No- 52]
Baker FreUnghuysen
glatnik Gettys
Boggs Cray
Boland. Green, Oreg.
brasco:
Brown, 30ch. .11Abert
Broyhill, N.C. Ichord Rob"t
Burton J ones, Tenn.
Camp: Kurth *IPLJ W.
Oarey,,:X.
Carney, 111AI..
Crane,
Davis, Ila. Afartin, N .
Davis, Wis. Michel
Dingell mills
M#eh ll,
Foley Moorhead, Pa.
Accordi np-rly the Committee xw." And 11W
the chair, Mr. Fulton, Chairman Pip tm!P* 34
Whole House-on. the Statoof lh ,Vuu)lps tee, having had under cow4dofttio the bUkHX" withouta qu he had dir died the 1$"




J.









A, k (hroie~device,. where upon 380 Members recorded their pres2TrU.., -and he submitted herewith the'names of the absentees
apn the Journal.
tee resumed its sitting.
x r tmpore. When the point of order was made,
t O te en eman from Illinois (Mr. Erlenborn) had
eedas read and printed in the Record.
'ebrn asked and was given permission to revise and exB aranons. Mr. Chairman, the amendment that I have just of**hih has been considered as read was submitted to Chairparand Chairman Dent a few days ago, so that I know they sim poruity to sethe amendment. I think there has also
deal of discussion among Members generally, because I
@edtht an lbbiss n ot 'sdes of the question have
tatin thm.n obitso ohs
'hhrma, te aendmn I have offered does several things,
imo portant of which is to change the character of the board
operate the. term ination insurance corporation. In the bill DeOre boucmmitte the corporation is established a partment of Labor. The Secretary of Labor and two of feswould constitute the board to operate the pension insurMaion.
arma'n, the amendment I have offered I think is quite reasonit ig In line with decisions the Congress has made in the
%h6 governing bdes ofsimia intttos. My amendment
revide for a nine-member board; three representing employrepresenting employers, the Secretary of Labor, who would siftnan of the board. The other two would be representatives
nteral public.
giVes us a nine-member board, of which the Secretary of Labor
dbe chairman of the board. I think it is important that there be 11Mt tletween the corporation and the Department of Labor. Decilens made by either the insurance corporation or by the Department 4*W66r under funding- standards, and so forth, would have an interdxr one on the other.
1" want to maintain that close relationship between the corporaUhand the Department of Labor but I think it is totally unwise t ,*Aheentire decisionmaking in the hands of a political appointee;
-ly te Secretary of Labor.
"Chairman, at a time in history when so many have argued that
A* Veadqncy has gotten too much power, that the President has
wto himself too much power, I think it would be totally unJ l-or us to create a corporation such as this and give to an eeof: the P~resident -the sole power of deciding what to do with
Insurance corporation.
r the concept of the committee bill, it is my understanding
assets acquired by the insurance corporation would most likely be &dted; hiquidated immediately or soon after their acquisition.








bonds investmnts in thle private security market wich in the ownerslup of thle inasurancecroain
it is not unreasonable to anticipate that aftr a few tion, a few of those large pension plans might sets be taken over by the insurace corporation. Th( Labor, if he were maaigthe corporation, would have dollars of asset in that corporatties. Now, if, he were date those assets upon acq m ~ hm t would probal@, when the market was depiese, that is, when the Oma would be defunct and the pension plan wouldteine
If he Was forced to liquidate at that time, he would& no* those assets what he should realize. So forcing thie tion to liquidate assets.-would be a very bW thing frola Point ofmaaen.
If the Secretary were to manage them, invest, reinvest things that would be equivalentC to wise mng etWOe political appointee making decisions as to thesle or assets in the private market.
It could have a great impact on that private market.
Mr. Chairman, my amendment woul establish the the assets 'should be managed firee from the political of the Secretary of Labor. It would be done under the of this board, which has on it representatives of labor, Government, and the general public.
I think that this is a reasonable approach to see that Sion insuraice corporation is establsed it is mngdi fashion. I see no reason for this Congress, pariculry in history, to invest in the Secretary of Labor and, gentially in the. President the right to make these that could drastically affect the p rivate securitiesmak.
Mr. Chairman, I hope that my amendment will beadt I think the bil will be vastly improved.
The CHnMHAw pro tempore The time of the nois (Mr. Erlenborn) has expired.
(On request of Mr. Anderson of Illinois and by UOn Mr. Erlenborn was allowed to proceed for 2 additional Mr. ANDERSON Of Illinois. Mr. Chairman, will tegetpq Mr. ERLENBORN. 11yield to the gentlemaR from 1 y
(Mr. Anderson of Illinois asked and was given permmiggs and extend his remarks.) ..-,0
Mr. ANDERSON of 11118018 Mr. Chairman, I jut WEB$$@o opportunity to commend the distinguished gentleman and point out the fact that I think he has undertaken to aaA of knowledge that is unsurpassed by any Member in this ,what is in all probability one of the most oMplex subjech* before this body. .. .. rs
I1 think the gentleman has demonstrated in tbo de&
in his explanation of this a ndetthat he is posseuild of expertise that is needed to advise and conal -with
boyon this legislation. -.
Support the gentleman in the amndet he hobut a seems to me that, as he has said, to restructure this board alon









R n thever import- min.! uhess of administering this pn
rnce fund'is not a .-dca proposal. It is one that is, rather,
dLo equity to all. of thvarties involved and the general
r~an, I applaud the getleman for making what I think nsructive amendmen ao the bill, and one which I cerr il be adopted.
'Aan, I rise mn support of. the amendment offered by my Illeague from Ilni Mr. Erlenborn.). Under the subnw beoeusei A 4 of H.R. 12906, a pension
raty corporation is esalished administered by the Sec,with a board of eor consisting of the Secretary
rcers or employees ofhi department. The purpose of the
iis to insure participate 'and beneficiaries of covered plans
losss resulting from paria or complete plan termination.
40pe through the create of two insurance funds, one for
1er plans. and the oterfor multiemployer plans. At the
Secetaya third fun nay be established for those plans
pay a, higher pemiumi return for no employer liability
fits due to plani term >tin.
provision, all plans wit 26 or. more participants would
af join the corporate 11l vested benefits of participants
4psmued at up to $20 a onth times the years of service,
payment of the mae m mis not guaranteed if the plan
(q hlieof-terminatio 'n has ben a member of the corporation forel"g 5-years. The premium panents would be set by the Secredaryha;2odot exceed 0.1 pe-cn of the amount by which the pres40*0!A of the-plan's vested be a exceed the value of the plan's 1enate In the event of termninati, the total amount of insurance to 4 ~would be -the difference been. the plan's assets and its unYested liabilities. owed at th ime of terminto.I mlyr
rp insolvent: at the..time. the pln is termina ted, they may be regga o reimburse the fund fo 10 percent of the insurance paytjo 50 percent of their n orth. There would, of course, be
ity if the employer a chosen to pay a higher premium
optionAl insurance fund.
*,nmendment offered by my legue from Illinois is aimed at soeof tedefieie in. the structure of the proposed
and at establishing. cetin Safeguards against potential
a the termination insurance program; in short, a more workAW ,Which will not discourage the creation of new pension plans Amprovement of existing plns For one thing, the Erlenborn al. ewouldreture the r of directors of the corporation.
Aan consisting of three Laor Department representatives,
.woldconistof nine uabers, three representing labor,
yggementin maaeet 'epresenting the general publicwpwtedby the Priesident~wt the advice and. consent o h
q.The Rnith nersher, whowpl serve as chairman, would be the
of 1Labor. The reason fotis restructuring is most sound nae in lay opinion. Th ixng bill, in: my opinion, would otoo~much power in tehnds of political -appointees who
not in a position to responsible ve the best interests of partici









pants. In addition, this three-man labor, board to make investment decisions involving billiow of sector. The Erlenbom alteroative, on the other representative of the interests of the par ficip sh6tild be the primary interest 4suth a board.
The Erleuborn amendment Would also Drotect
optional account in the present bill which illows, an all liability in the event of a plan termination. As# pointed out, employers will be tempted by this p ihe-r premium, terminate, the plan, even tboixi#k-not, thus dump 01 liability on the corporation. T he Xrle-ni proposes a modified employer li-ability provision to abuses. Underthis amendment an mpl yer P .Ying mium could not escape all liability for termitiation business. and has -no valid rmsQn,, such as substantial for terminating his plan.
In addition, the Erlenborn alternative would allow to having the corporation liquWat the, assets Of 4 te, the SecretaTy does not invest In the'private sect6jr. Vn tive a receiver or trustee could be Appointed to I adifi or, the corporation could assume the assets And HA and manw these as part of the total assets of 'the 0-6
Mr. Chairman, I urge adoption of 'the Erlen
think. it offers a more reasonable, representative, And,*'V proach to t1W, complex issue, of ternuination insurah66.
Mr. BRLE"OP.N. Mr, Chairman 11 thank the geu4ij fiiar
Mr. CHAIMERLAW. Mr. Chairman, iffill the, Loentleml- a
Mr. ERLENB01W. I yield to the gentleman f o'm 10
(Mr. Chamberlam* asked and was given pe W
extend his remarks.)
Mr. CHAINMERLAIN.Mr. Chairman, I would also like' wm "Imendingthe zentleman from Illinois for offering this think it make good sense, and T urge its adoption..
Mr. Chairman, I wish to associate'myself with those V1W we can provide a stronger and more eftecti*e P"on adopting the great majority'' of -the provisions in MUM J[
ura ing to realize that the years of work and off" Education and Labor Committee and the'Ways and s cleaky the, ffiA
tee are about to receive approval. Thi is most comprehensive proposal the C ress has' ever
ar4a of pension plan legislation. 7
While 11I.R. 12906 adheres to tho, primary, 0bi'04i*i 16f private Pension ]plan operation to insure their o4 00 tirement security and proWetion. 4 promised bdn- ft area7,--p an termination insurance--where ft1+hef- needed. In"recognition of thi real need, I suppbA tion of the Eilen'born amend aent Which prd0dea i in the termination insurance, program oldtin e ihlrt
ne Erlen6orn amendment caltWf or a balahcel bboiiLif .the nonprofit insurance coro6ratio] _, with al ] Pl e aTneii -A
employers and union gToups; plus, th' X;
ment:of Labor.'It Web 'zes the fa -Cthkf ii 40 "
Ax-gk



... .. ....... ............ ......... .






3581

informed and professional board members who have been *intelved with:an understand the problems of the private
*the :Erlenborn amendment: would tend to avoid the kind of
lation that would jeopardize the growth and contribu' an plans. A balanced board with the power to promulgate
t g all plans will in sure that there will be a continuing
fedsr t th ed for additional regulation with full and com0an of, the impact on private plans.
-reasons I urge the adoption of the Erlenborn amendMMS assurnon. Mr.. Chairman, I thank the gentleman for his retime remaining to me, let she make, one additional point.
M anothr partof this amendment, one that would change the Ofi_"Wliability. and the optional account that is provided mn theh
tiill.
aenittee. bill would allow the insurance corporation to set up aedund optional account, with a higher premium, that would allow "4R*Iqer tOovidempl~o-y liability completely. 6Mei Gasm xw -pro temipore.* The time of the gentleman from 0igi (Mr Erlenborn) has expired. th 5 Ananimous consent, Mr. Erlenborn was allowed to proceed for
min '' ute.)liammaznexx.-Mr. hairman, as much as I abhor employer liabilIdo-realize that if we allow the employer to make a decision which imiglake based on economic necessity to terminate his pension plan
*4tow *allof the obligations on the insurance trust, we are just indth easlayer to dump their liabilities onto the insurance corpotalk&4f my aendment provides a modified employer liability-at
Oene safeguard that the employer would not do this. It would eqietwo things; namely, that there be an economic reason for his
stig hs pnsion plan and, second, if he did, then he could astan &run the next day and start a new one. In other words, he OAd tbt, get rid of his old liabilities and turn around and start a
h4pdbink ita 'is terribly important so that we will avoid employers datiping their liabilities on this corporation which would then cause etitfteeployers: and, more importantly, employees to pay what an Skdasuionable employe'rshould have paid to his employees.
olikChairman, I1 hope my amendment will be supported.
*M IDaNrr.NMr% Chairman, I rise in opposition to the amendment. r+ (Min Dent asked and was given per mission to revise and extend his
M~r. DzNTr. Mr. Chairman, I think it ought to be made clear at this
**that we are-not dealing with anythmg' in this amendment except knWiskeup ofthe governing board. Actually we do have the optional Ofgplan in our- bill as it stands now. Employers do have all of
lithilty unless: the board itself establishes that they may, because






3582
would shift to the new agency or: corporation. The only d~g is whether or not this House wants: to ceate, in. an area wkOM, deal more must be learned, especially in the field of the insavi4A' of this legislation-a peranen expanding type of ,buet. E
is just that sunple. ;Vk9
Mr. Chairman, the experience I have had personally withthq created on the black lung situation was this: This was sup a limited time agency. The Federal G-overnment .after January no more responsibility mnsofar as pyg out or seeing to an benefits under black lung. Only the residual applications we processed.
When I tried to strike that out with an amendment and had t,4 1
up before us-and the whole department itself was involye#*2* represented there by their top men-I showed them that wiAs months, they were removing the Federal Government from_ &4
sponsibility or any activity in jhe field of black lung, bedaus M e verted back to the State on January 1. Why, they got permission to say that they did not want that amendment which sedis this agency out of existence.: -t0.a
I do not know-and I am sure my colleagues understam-this, lbitcause we have talked about it in our committee. The subconunitej the full committee rejected this amendment strictly on the grtmU4*W we do not know for sure where we are going and to what, extemtt i agency is gomng to participate in deliberations of any kind that require an independent, as he calls it, public corporation mA- n of nmne men. IThe arguinent is made that it is political for the Secretary of Lak14M The President picked him, and I think you will notice he dlid not p"l him politically. If the President picks eight of these men who ae opt firmed by the Senate, it does not give the House any handle on tis situation. I am not about to say this House believes that the oter body will not be looking into these qualifications to find: out just ha type of men we are putting on the board. s,p
This i's not a board but is really a permanent bureaucracy.; Thm, 9 men will stretch to 99 and then to 900 men, and if it workadlike # the rest of them, it will mushroom itself to way over that numben They started with 18 men in the one that I was just talking aboph, ad', it ended up with over 300-and-some scattered all over-. the UiteW States. a'p
I believe we have to have experience. I have agreed with the geMWj* man and I have agreed with the ranking member on part, of their Mapl which we are going to continue with their cooperation,: and Withige hard-working task force we have. saved over $113,000 out lof ite $210,000 appropriation we received for a study. tf i '
And we are going to continue to work and study. Particularly, A*" we going to watch the operation of the insuring plan. .1
Every insurance company official. who came to me h4ad a diffep4 way for doing this. But we all understand that they all want to 44Ak the way they do it. And that is the way it is with most of the fedwee of this bill, everybody who manages a pension plan comes in' and say.... that the perfect plan is the one that he has.








915 *world in sitWIg andl Picking out the proposals that has oeI believe, in the legislative field, in my experience Of
w pro temoe The time 'of the gentleman has
dsconsent, Mr. Dent was allowed to proceed for 2 addi1do not intend to take too much of the time of the House
elr amendment because it has been hashed out. It is only
Wf a opinion, an opinion on the part of the ranking Mem*he follow the gentleman,: that an independent sort of
il o be created to manage a field'about which there is
owledge.
-that the only way we Are going to set up a -permanent
t*'crpoation, or whatever it takes as far as the insurance
elsbill is concerned, will be after we have had sufficient ex' to just what the dues entail, and how much time has to be
nirbmst of the Members know, most of these are negotidthe greater number of them will be negotiated plans,
negpi tions they willpretty well write the prescription as
intends to do.
ates Nbof the insuringboard will be to see to it that te
t rquirements of-this legislation on founding, and in
"theyeOstirig prvisions if they are changed, find out what
it~tthefun itelfand whether or not. the board feels that
Jm o make that change--without adding more to the funding
,That is really all: it does;- to make sure that whatever is
Wlcontract is sound enough financially so that the fund
init osition and be able to meet the entitlement payliertierpanta. That is all there is to it.
1 believe that -this can very well; be done under the
of LAbor 'andl two iiials or, employees of the Sereary
the getea1rom Illinois knows that I am
and Iagreed-tat we ought, to look into it. And in our AFmations ifefdd 3. months from now or 6 months from it* rah ob ne tthi tyebf a board, then I for one teyPropose such legis lation.'
Aen pro temporel. The time of the gentleman has again
Qtria Mr. Chairmra n ove to strike the last word.
andwas given permission to revise and extend his
Mr Chairman, I support the -amendment offered by my
Ithe -gentleman from Blinois (Mr. Erlenborn) ]If I had m
t4 hink, its the -gentlemani from Illinois had his way, we dor anbr, ef, 4Study 'of' termination insurance before w m on termination insurance. But the decision was made in the
that wie ought to begin with termination insurance now.










~iiii~iH iliiH iiiH~iiiiiH~iHiiii~~~iiiiii~ii3 5 34i~i .....
Th! himno h ucmite h etea
va~ia M. et) nictd ht agea ea us elerei"

it stu htagetda utb ere-ow r on olat
hoiooeaetriainisrneatri a enaotd
Le us..oo....te...y.hese.....rst.funs.a.ea.minite.edby.t.
coprto-no ore hr s hr rs ud u eiul







,MAY Occur 4. that some employers will terminate their pension ,and that would be to the disadvantage of the employees of the
-who need it.
Otese six people,: three from the employers and three from the
a on the Im.ard, this will mean that they will administer
way that will keep the pension plans going and have the rates ,lowest level possible in order that we will not put them out of
T*"=. Mr. Chairman, I move to strike the1ast wordL
Peyser asked and was given permission to revise and extend
rim
rTysm Mz. Otsirman, 1, first of all, would like to thank the A jumn of the subcommittee, the gentleman from Pennsylvania (Mr. P04), and the minority leader onour subcommittee, the gentleman 06 1-j-Dinois (Mr. Erlenbo.m), for' allowing me as a nonmember of
I In
V*W subcommittee to sit with them for the past year and to work and Aeti"ly take part in some way in trying -to help with this legislation. I would like to ask a few questions just to clarify some points for ibo--,rouwd at this time dealing with this question of termination in6okom The -nal.concern that exists is that some people may try to
*W4MM legislation and take a4vantage of it7 if they can, in effect by
out of a: pension plan and dumping it into the insurance corand letting us foot the bill.
hke to ask the chairman the gentleman from Pennsylvania
J *at) I this question: is it his understanding, that on the question
ith the termination ran before the Secretary allows a
or a trustee simply tosay, are giving up this plan,
riot want it any more and lets the termination insurance take tmm the See himself then can make the determination as to
*,*"iker that V117be.. allowed?
DEWT. If the gentleman will: yield, when it is in the best interest
Me participants, the Secretary of Labor will be the sole voice, in 'OW*ihfter, and this idea that any plan willy-nilly can decide because 4,pioinditions are bad to drop its obligations onto the Irnsurance. Corpo*N04 and: then after the Inmrance Corporation has taken over the bad marbles, the corporation or trustee can then start another planftitwt does not work that way. That is a figment of the imagination.
AW. IPXYMX I think the, amwer to this question is of the, utmost importance.
I thank the chairman.
is our concern that the so-calledsharp-shooters can take us over
understand* based on what the chairman has said Und lookin.9 at the legislation that this cannot happen and that there site Jxiilt-in safeguards to handle this situation.
As to the makeup of the committee which has been developed here as an argument it would seem to me, and 11 was actually going to offer
*namendment:atone Point, the committee has to have a rep'ort from the &I-ReretarV4 Labor no later than 2 years from the date of the Pass*W Of this bill in order that we can look at this again and-Audy it
0
40a, at that tixrw if it, would make seam we can have, an indepen ami &wPoration take, over. Is it the *intention of the chairman under the OVersight involved th&t we should look: at this question in the future


25-M 0 W 6 (VQL no






3W6

whether it is 1 or 2 years down the road, and really exatdtno Us@FM see what will happen ? aq
Mr. DENT. Mr. Chairman, if the gentleman will yield it isriaYg Il tion and I think it ought to be the position of this. House thdt create this bureaucracy we will never be able to unload it.;H never been done.ti
But since we have control and it is under a department of tho4el8 ernment there is nothing to stop us joining hands to create wis necessary if the, Secretary of Labor is- unable to handle it atd ing to what will develop. Certainly we are going to review it antlder, tainly we are gong to have to do something probably in ordedk' strengthen the Secretary of Labor if it becomes an onerous jotiffe him or take it away and give-it to the type of organization thegti mnan wants, but I would appreciate it if we would, give- this a fm~b and let it work. I do not want to be responsible for somethid tthit turns out to be unworkable. It may even do that. I do not know. BtI

Mr. PEYSER. I thank the chairman...
In closing on my own time I want to say this bill is of the utmott importance to the American people, to the millions and: millimonsrs men and women who are waiting for this kind of guarantee. and 'peas tection that the total bill is going to- represent to all of them. -, n,0
Mr. DENT. Mir. Chairman, if the gentleman will yield further@%4 want to take this time to say the gentleman in the well has beet a great help to this committee. He has the expertise and he viewed 4his subject strictly on the basis of the job to be done. There was n'eve 4o question of partisanship during the entire discussions,:. He: attended all of the hearings and meetings. and his input into this .has, ees: tremendous. ,
I am sure the ranking minority member joins me in thanakiwg the gentleman for his participation in this.
Mr. PEYSER. I thank the gentleman for lus comments. 1
The CnHAr-mx pro tempore. The question is on the amend n att offered by the gentleman from Illinois (Mir. Erlenborn).:.:.
The question was taken; and on a division-demanded:. by Mr Erlenborn-there were-ayes 60, noes, 45.

RECORDED VOTE
Mr. DENT. Mr. Chairman, I demand a recorded vote. ...
A recorded vote was ordered.
The vote was taken by electronic device, and there were-7ayes noes 217, not voting 35, as follows:
[RoLL No. 53]
AYES-179
Abdnor Bafalis Brown, Ohio
Alexander Bauman Broyhilfl, Vg. .0
Anderson, Ill. Beard Buchanana
Andrews, N.C. Bell Ilurgener
Andrews, N. Dak. Blackburn Burke, Fla
Archer Breaux Burleson, Tex.
Arends Brinkley: Butler
Armstrong Broomfield B3yron
A chhronk Brotzman Carter







3537

Eg Holt Rousselot
rlinHosmer Runnels
Huber Ruppe
Hudnut Ruth
tyeDon. H. Hunt Satterfield
104Del. Hutcinson Scherle
Jarman Schneebeli
WJohnson, Colo. Sebelius
s, Tex. Jones, N.C. Shriver
O~bbleKetchum Shuster
CothsKing Sikes
Cronin Kuykendall Skubitz
Daniel, Dan. Landgrebe Smith, N.Y.
Danmiel, Robert W., Jr. Latta Snyder
Demots Lent Spence
Det-winsi Lott Stanton, J. William
DevneLujan Steelman
DiednonMalory Steiger, Ariz.
wnngMcCloskey Steiger, Wis.
canMcCollister Stuckey
#wrdAla. McEwen Symms
Orlenborn MeSpadden Talcott
Eselh Mahon Taylor, Mo.
E9shleman Mallary Taylor, N.C.
EvineTen Martin, Nebr. Thomas, Wis.
Findley Martin, N.C. Thone
j qsh Mathias, Calif. Thornton
FiderMayne Towell, Nev.
Mi'ystMiller Treen
Potarthe, Minshall, Ohio Van Deerlin
Fpantain Mitchell, N.Y. Vander Jagt
tyensel Mizell Veysey
Prey IMontgomery Waggonner
PFroeblich Moorbead, Calif. Wampler
SGettys Nelsen Ware
Goldwater O'Brien White
Goodling Parris Whitehurst
Griffiths Passman Whitten
Gross Pettis Wiggins
Grover Poage Wilson, Bob
Gabser. Preyer Winn
Guyer Price, Tex. Wyatt
IHaley Quie Wydler
Hammerschmidt Quillen Wylie
Hansen, Idaho Rarick Wyman
Hastings Rhodes Young, Fla.
114bert Robinson, Va. Young, Ill.
Henderson" Robison, N.Y. Young, S.C.
Hinshaw Rogers Zion
HoanRoncallo, N.Y. Zwach
RoldieldRose
NOEB3---217
Absug Bingham Burlison, Mo.
Addabbo Blatnik Casey, Tex.
Anderson, Calif. Boland Chisholm
Annunzio Bolling Clark
Ashley Bowen Clay
Aspin Brademas Cleveland
Badillo Bray Cohen
Aarrett Breekinridge Collins, Ill.
Bikinett Brooks Conte
Bergland Brown, Calif. Conyers
Bevill ......Brown, Mich. Corman









Culver Jones Okla.Ralbc
Daniels, Dominick V. Jordan Randall
Danielson Karth Rangel
Davis, S.C. Kastenmeier Regula
de la Garza Kazen Reid
Delaney Kemp Reus
Dellums Koch Riegle
Denholm Kyros Rinaldo.V
Dent Landrum Rodino
Diggs Leggett Roe
Dingell Lehman Roncalio, Wyo,
Donohue Litton Rosenthal
Dorn Long, IL Roush
Drinan Long, Md. ROY4#
Dulski McCormack Roybal
du Pont McDade Ryan
Eckhardt McFall At Germiain
Edwards, Calif. McKay S~da
Eilberg McKinney Sarasin
Evans, Colo. Maedonald -Sarbanes
Fascell Madden Schroeder
Flood Madigan Beiberling
Flowers Mann Shipley
Ford Maraziti Shoup
Fraser Mathis, Gxa. slack'
Fulton Matsunaga Smith,ITowa
Fuqua Mazzoli Staggers
Gaydos Meeds Stanton; Jamea V,
Giaimo Melcher StarkAv
Gibbons Metcalf e Steed Atof
Gilman Mezvinsky .Steele #
Ginn Milford Stephens
Gonzalez Minish Stratton
Grasso Mink Stubblefilk
Green, Pa. Mitchell, Md. Studds
Gude Moakley Symington
Gunter Mollohan Teague:
Hamilton Moorbead, Pa. Thompson, N.J.
Hanley Morgan Tiernan
Hanna Mosher Udall
Hanrahan Murphy, 11L. Ullman
Hansen, Wash. Murphy, N.Y. Vander Veen
Harrington Murtha Vanik
Harsha Myers Vigorito
Hawkins Natcher Waldie* 4A
Hays Nedzi Walsh r 4t
Hechler, W. Va. Nix Whalen
Heckler, Mass. Obey Widnaill
Heinz O'Hara Williams
Helstoski O'Neill Wilson, Charles II.
Hicks Owens Wilson, Charles,
Hillis Patman Wolff
Holtzman Patten Wright
Horton Pepper Yates
Howard Perkins Yatron
Hungate Peyser Young11, Alasa
Ichord Pickle Young, Tex.
Johnison, Calif. Pike Za1blocki
Johnson, Pa. Price, I1l
Jones, Ala. Prithx

NfOT VOTING--35
Adams Broyhill, N.C. Carney, Ohio
Baker Burton cram .s








MichelRooney, N.Y.
MillsRooney, Pa.
Moss Rostenkowski
Nichols Sisk
Podell Stokes
gapp.Powell Ohio Bullvan
Rees Young, Ga.
Roberts
amendment was rejected.
gptof teVote. was. announced as above recorded.
AwaxxxwrOFFERED BY 3M. BrBEGER OFWICNK
er 1A rama Of. Wisconsin. Mr. Chairman, I1 offer an amndment. oThe Clerk read as follows:
i4btoffered by Mr. Stle fWisconsin: ,On page 113, lines 16, 17.,18,
I 6phrase "and two o~esor employees of the Department of-Labor
4 allell serve as directrs at -the pleasure of the Secretary." and insert
am tePhrase ",Beerery of the Treasury, and the Secretary at

Stegerof Wisconsin asked and was given pemisin o evise
his r emarks.)0
momn of 'Wisconsin.3(r. Chairman, the amendment that I
th etered restructures the board of the corporation which is
toadiise pension Plan termination inuane
th uaknow, under the bil as it comes before us the make-up of Mwboml is such that, at least in my judgment, it is not one that will airtetivlyas I think 'this board ought to be able to work So
gamenmentI have offered would provide that the board of the



in that operation.
are, I think, two substantive reasons why this concept ought
A*cnidrdb the House. First, by including the three SecreMinr a th bordjursditioalconflicts between the three Departagesa can be best resolved. Second, all three Departments, Com*Aktes, labor, and.Treasury, are involved. with the various comporthed pab t ofLabor obviously is concerned about the em48teesofthose pension plans; the Department of Commerce with
Ik4 emloyrs;and the Department of the Treasury with the ]Internal ascu Servie, and Federal: revenues. It stands to reason, then, that A~oveDepartments should all be represented on the board of the
*JOBaaIon The current stuture, whereby the Secretary of Labor,
then by his appointment, two assistants, mak up that board,
A basthat the board is not foconed as broadly as it ought to be.
*Seaste recognized this problem,: and adopted a structure for
t "Onexactly similar to the one I have proposed. It seems
.that the, concept of bringing in the three dprmnsand try04at rolve indesdictional conficts in an-appropriate fashion, reethtthe Senate has already adopted this sNAOmdment, me. ans




@ @

MrD-T r hara ietoops h ndetffo
by thegenlemn. fom......M...eigr)
Mr.ii Chairman,........w...........tha..th.................
stutr fbt il lkadeiiaetedfeecs Jti
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emlyes
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itsee om scarmno h ao ucmmte htte&4*

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Mr.1U~m. il te enleanyild

Mr..T~omsoN f Ne Jerey.I yild t thegentemanfro
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guae hathereerstoonpag 4 1thik igt bstbe iiiiiiiiiiiii
Ytec~rd. i says









NoMr. Chairman, -aside fo sklsasthe v'Wa@ Comite point out in its report, one ait of worker place more of its collective bargaining' emphasis'eper another unit. Indeed, in many cases it has been impossible employee units to forgo present compensation for, UI" protection.
Mr. Chairman, am I correct in assuming that it is not. of the committee in specifically alleviating the active lem of the airline pilots, and foreclose other highly A other craft bargaining, situations, such ais maritime and from negotiating with their employers for a higher pni than other employees of such employers.
Mr. ULLMANv. If the gentleman will yield further. r
Mr. Chairman, the airline pilots provision is a relief
is -not intended to tighten the coverage requirementsund law. If the plans such as you describe meet the coverage under present law, I am sure they will continue to do6s bill is enacted.
Mr. THrOMPBON of New Jer sey. I thank the gettleman. Mr. Chairman, I yield back the balance of my time.&
The CHAOMA wpro tempore. Are there -further amendantejtl
4 ? If not, the Clerk will read.
The Clerk read as follows:-0

[The text of. part 5 of ILR. 12906 appears on pp.20-0
Mr. DENT (during the reading) Mr. Chairman, I ask consent that part 5 he considered as rea~d, printed int the open to amendment any. point
Th CAHORAN pro tempore. Ithei objeto to the, e gentleman from Pennsylvania?
There was no objection.
Mr. MOALEY.m Mr. ChirTIan, I movO to Shrike the lIs Mr. Chairman, I have a question to ask the gentleman fo vania, the chairman of the committee (Mr. Dent) conein 506 of H.R. 12906, titled "Other Ageies and Departments~s like to know whether it is the intent of this section, particalad tion b, that the Secretary shall utilize: State ageneies and 01:il employees where competence and experience is already I
For example, in the State of Massachusetts, the health, e
retirement board has been in existence since: 1959. It has, in that .J been performing many: of the functions now given to the '"O this bill. The health, welfare, -and retirement board is Steukl? service employees who qualified for: their positions by paeding inations on both State and Federal law.
In Massachusetts, this board has been responsible h~erad Plans register, file annual reports,,and summaries of te file plan descriptions and provide benefit descriptions lAn& statements to members. *e
I would like the record to establis as te legislative histoty 00aR bill whether it: is, the -intent, of Congress that uan e nhig41 Massachusetts hoard hall: he uilint ndw that eirH aneman anheatdL






35a

of whom have, spent their careers gaining experience in this
"8* be utilized by the Secretary.
I e gentleman will yieldges, we expect the Secretary
the facilities of the States to e extent possible to impleoverall policy of this bill with respect to plans exempted
disclosure and reporting requirements under section 105 of

AICK"=WT OFIP2M= BY 3M BADILLO

AO&ORADmo. Mr. Chairmanj I offer an amendment.
*4% Clitrk read as follows:
offered by Mr. BadiUo: Page 162, Insert after Une 11 the following:
*'I% cl i Subtitle CVol Y Portability Program for Vested Pensions
PBDGBAM EST"LISH"
(OL (a) There is hereby established a program to be known as the VolunOrtAtbility Program for Vested Pensions (hereinafter referred to as the bUty Program"'), which shall be administered by and under the direction Secretary. The Portability Program shall facilitate the voluntary transfer 47 lKWdtorfeitable, benefits between registered pension plans. Nothing in this subthe regulations issued by the Secretary hereunder shall be construed .,,jq*p#p Wdelpation in such:.P ty Program by a plan as a condition of
0* ,w under section 512.
p) 4r, t to regulations issued by the Secretary, plans registered under
b way apply for- m the Portability Program, and, upon
Lof Ruch application by the Secretary, shall be issued a certificate of
in the-Portability Program (plans so accepted shall be hereinafter pOwred 0 as "member plam").
AAME"ANCE or DEPosrrs

member plan Man, pursuant to regulations prescribed by the Secpay, upon request Qf e participant, to the fund established by section
mom of money- equal to the present value of the participant's nonforfeltable t6der the plan, which sball be in settlement of such nonforfeitable rights, aueh -participant is separated from employment covered by the plan before Up"Ve -prescribed for payments to be made to him or to his beneficiaries under
The fund is authorized to receive such payments, on such terms as the
may -prescribe.
HP MY All. FUND

JMT& (a) There is hereby created a, fund t9 be known as the Voluntary
W#yProgram Fund (hereinafter refe"ed to as the "Fund"). The Secrebe' the trustee of the Fund. Payments made into the Pund in accord11 Ofth regulations presm'bed by the Secretary under section 602 shall be
*M 4nd administered inaccor4ance with this subtitle.
W10 respect to such Fund, it. shall be the duty of- the Secretary to(1),adminjister the Fund
report to the Congress n6t later than the first day of April. of each year iW% Operation and the status of the Fund durin the preceding fiscal year and Wift V*pected operation od statm during the current fiscal year and the next 4W* ftal years and: review the general policies followed in managing the Fund
* '=end changes in such policies, including the necessary changes in the
Jji6iwons of law which govern the way in which the Fund is to be managed; and
01)'after amounts needed to meet current and anticipated withdrawals are set
*Ulk depodtthe surplus in Interest-bearing accounts iA.: any bank the deposits PC WhIeb are bwured by the. Federal Deposit Insurance Corporation- or savings
asociation in which the amounts. are insured by the Federal Savings rumur 'hall such deposits exceed 10 per
ance Corporation. In no case
the total of such surplus, In any one bank, or savings and loan









INDIVIDUAL ACOOUNTB 107 "
SEO. 604. The Secretary shall establish and maintain an a
for each participant for whom the Secretary receives payient'a The amount credited to each account shall be adjusted pbrtedfeatly by the Secretary pursuant to regulations to reflect c-hanges In Mhe f" tion of the Fund.. p
PAYMENTS FROM INDIVIDUAL ACCOUNTS
SEC. 605. Amounts credited. to the account ofRaprtcanune title shall be paid by the Secretary to(1) a member plan, for the purchase Of benefit rights havihzg at
alent actuarial value under such plan, on -the request of, such partici becomes a participant in such member plans;
(2) a qualified insurance carrier. seletted by,& participant who has mmA
age of sixty-five, for the purchase of at single premium life annuity in an atd5t having a present value equivalent to the amount. credited to, seeh oits account, or in the event the participant selects an annuity with survi, tions, an amount determined by the Siecretary to be fair and reasonable the amount in such participant's Recount;- or,
(3) to the designated beneficiary of a: participant in: accordank w) tions promulgated by the -Secretary..
TECHNICAL ASSISTANCE
SEC. 606. The Secretary shall: provide technical Assigsdhee t4 emo1feW ployee organizations, trustees, and administrators of pension Aa iV0 retirement plans in their efforts to provide greater retirement ltik individuals who are separated from emnployment covered under stick'Jj assistance may include, but is not limited to (1) the development 6fdt arrangements between plans in the same industry or area, and (2) Che ment of special arrangements for portability of credits within a adeOF dustry or area.:-1 oe
Amend the table of contents of the bill accordingly. eu
Mr. BADILLO (during the reading). Mr airman, I ask u tat
consent that the amendment be considered as read and piti Record.
The CHAIRMAN pro tempore. Is there objection to the. we
gentleman from:New York? At PAr
There was no objectIon.ab t
(Mr. Badillo asked and was given per miissin to revite id his remarks.)a
Mr. BADILLO. Mr. Chairman, although this measure on the 'Whetgh sound, it contains a glaring defect-the failure to Make p portability. Even though the measure calls for the estabfi three vesting rules aimed at increasing a. worker'speso accrued pension rights in one plani without any Provisionfrtea ferrmng to another job can become -nothing more than a ball atldlili by which older workers are'tied to inadequate and insecurefdh n
not mean to minimize the importance of vesting yet a vet belongs to the employee and. he. must have the right to move, other type of employment in some other area i-f he so chooses, patle larly if he is required to do so, by economic necessity. As SenstlI. Bayh so aptly noted in A recent article: 'For a country that prides: itself on a mobile population, that thobiltgab4 not be at -the expense of the individual worker's retirement -secatity; .
Portability enables a worker to transfer his pensiont L$t
he decide to change jobs or be forced to do so, X _i-Aq







barrier to labor mobility b tie' workers to a particular
During his appearance. be7ore the House General Labor
last year Mr..Ralph Nader very perceptively observed

whme sort of mechanism to make pension credits portable, the more
vu4"yee will almost Invariably end up with a lower pension at retirement.
ftftkularly light of past failings in the private pension sector, a W thould have the ri ht to amemble all of the vested pension condtions he had madi uring his working years into one sufficient
based on contributions which have earnings and growth to
aJ day-Of his active: employment.
rl% It' love that a meaningful vesting arrangement will furnish workbAr With muoh. needed protection for their accrued pension rights.
= R t& same token I feel that additio'nal security is required and I am
f6re offering an amendment which seeks to establish a voluntary
Mility program for vested pensions.
laxiguage I am proposing is identical to that contained in the 61M Williams-Javits bill and included in the bill passed by the
8ftoW. While it does not require the establishment of portability pro16 97 it does encourage their formation in an attempt to provide the
16ptu'numprotection to workers. Such a voluntary portability sysow6uld permit companies to allow their employees to carry their
r*hts from one company to another when changing jobs.
c 17bb, weakest possible portability provision is what is contained in W6 Senate bill. -Fr ankly, I would have preferred to support the much more substantive proposal which was offered by the senior Senator fM Indiana (M.r. Hartke) under which a mandatory portability proFTx"_4d be established, including the creation of a national pension C ng-house or regional ones to coordinate portability activities. Unfortunately, the parliamentary situation is such that I would probfibly not be:able to propose this more comprehensive plan and must theirefore offer the voluntarv system. While some may believe that it is foolish to propose a voluntary system which many jpension plans will itdt choose to join, I feel very strongly that the principles of portability jhttst be established and that we must have a foundation upon which to Wild for future and hopefully more concrete--legislation.
_Jluere are those who contend that a fully vested pension will preelude the -fiecessity for portability. It must be realized, however, that iu&tion will seriously erode the value of vested credits and that a ben fit which is vested but not portable is not available in the event 0 disablement. Further, as Senator Hartke stated during Senate &bate on the pension legislation "Vesting without portability will 6ftn prove inadequate because employees will not feel the vested b ,* alone is dependable and so may withdraw from the plan, therey losmg valuable credits." Thus, vesting and portability cannot be b6hifidered to provide the same, protections. ,
We mustalso consider the fact, Mr. Chairman, that workers in
Ooxmtry d1onot typically remain with one employer during a lifetime. A lAbor Department job tenure study shows that the median employ3in Ue AIIA for. men at ages 45 through 49 was 10.2 years, for men 40 through 44 it was 8.4 years on their current job and only 5.8 years for men aged 35 to 39. The figum for women were significantly lower--aa low as 2.6 Years for women at ages 35 through 39. This studi








also revealed that,' inth hlesale si reab' tradesq Ye median years df i ployment fort"btwaWea as compared with 1.51fer womneft inthib4Wna age male workers over the age of 45 it was 8.8 years and fof same category, 4.0 years., Thus% iW w society la whi*CAh corporate mobihity isimeemge ,themr in *e-elfear And for Pension credit acciimilation for mple, #e hYl Wm job to another, often in different locations, qghout t
Opponents of portability argue thtteretqm y
involved with implementing such a system andma ability would cause more rigidities which would pogibly ther pension growth. The contention that it would be t establish and carry out a portability system is ya ploy to avoid doing it and I believe that the fearsbo tarding Pension growth are unfounded, Others maiti ability system should not be implemented at this ite _44 further study-another typical delaying tactic. Wliv these reasons. that I. have choose a voluntary systm., a would a mechanism exist under which workers' .pen4IPng44 be further protected 7and: liberalized but there would a whereby some practical. experience could be gained i"e determining the efficacy of requiring the unplemetai ability programs. I1 urge, therefore, the adoption offsa and hope that employers will see fit to, undertake the et meaningful portability programs so that Americanwok greater mobility in the labor market.P
(Mr. Erlenborn asked and was given permission tovrse, tend his remarks.)
Mr. EIRLENBORN. Mr.. .Chairman, I rise in opposition to, ment. *
Mr. Chairman, I understand that the provision binga
gentleman from New York (Mr. Badillo) Is the same prou Senate-passed bill relative to portability.
I1 would point, out, because I do not think it has been.te&44 the only thing that -is portable-the only thing that, isepol that provision. is a vested right. A lot of people, have the ide ability means that a worker can work a *couple of years how ple of years there and total them all up and them get avaioe[ This portability is notta oto provision.Awre vested right before it even becomes portable mode1r a Tor*
Even the AFI-CIO, in their commentary on this bill, that cashing out a vested right 'and moving it to another mean the employee ultimately w-4ll wind up with less of- a, than if he draws his pensions from those several emphyeRpv has vested right. ., .p
There is no strong push behind-this porta~blity peiNj g.
not gomng to do what many employees would like to have dq.,
Mr. Nader in talking about polta~bility did Pot have thwo all. I was there and I know what he was tapg lq ,Q' us to Drohibit defined benefit pensign plans fTo avnbe Mr. Nader wanted us, to move to a mey purchase pl.4 :,-0 Tn effect, mony nurchase is a and' so AnA~tAn hA artmn






3547

he further retirement security, so that Mr. Nader's suggesyfell on deaf ears on both sides of the Aisle.
idiiairan, I would just say that any attempt to add portability blldoes no0 good for the working, men and women of this
.it i's not supported by the AFL-CIO to my knowledge, beth had nothing good. to say about it.
rman, I would hope that the amendment would be defeated.
r. Chairman will the gentleman yield ?
Aftuxow. Mr. Chairman, I yield to the gentleman from New
0noo. Mrt.Chairmani I agree with the gentleman that the riny the Senate bill is a weak. provision. I said that I would like th vo at the same time: a stronger provision, as Mr. Nader and other
Sbuld want.
110 pontingr out that because we::have a weak provision in the
brlis no reason to have-no provision at all. Let us have at least
a, in that will give rights where there is total vesting. My
It would gret the principle of portability put into the bill,
at a later timne we, can get the strong kind of provision I feel
EstasomeMr. Chairman, I appreciate what the gentleman
ado, but I would say that this is not just a weak provision. It Vision if it werelutilize0d, which would reduce the benefits that ees can expect to get when they retire. This is worse than no
on at allk.
EFNr. Mr. Chairman, will the gentleman yield ?
JEaNORN. Mr. Chairman,- I yield to the gentleman from
PLC.J~f.aMr.- Chairman, I join with the gentleman from Illinois in Positin The siple factor that under present law everything
'Particular. amendent purports to do can and is being done.
question of voluntary acceptance of one plan by another. There
alg that. can add anything to that.
,phairman, I pointed out to the Senators that they had just put A of-wordage into the bill that did not do any more than they could
Ow~except give a promise that -could not be kept,).because at this
t. as the gentleman knows, we have worked 7 years on this.
,of that time ha s been on the question of portability, and no
-y has been able to give us-including Organized labor, the managrof many: plans in, the country, insurance companies, bankers,
ftm~ al experts-no one has been -able to, give )is any kind of an
te, any kind. of A proposition that would be workable among
= 144,00 plans plus about 200,000 individual plans.
Chairman, I1 agree with the gentleman from Illinois that this
dment, ought to be defeated..
Unant.Mrt. Chairman, Trise in oppositionto the amendment.
M 'hdmn wn osythat this provision on portabil ity is
from the old Senate bill, which the Senate:?itself did not see fit ao dopt -This provision in any case is defective because if--funds are from a privt pnsion program in to the portability fund,









Therefore, I hop w vote the smendatent down., unid the subject. of porablity in a responsible way simnetim'f
The Ca mmAN ar tempo. The question is co hat offered by the grenan from New York (Mr. Badilop
The amendment -as rejected.
Mr. DEFNT. Chra, we h1ave n1o ffiller amendBA .
The CHAAIjRM. (M. .DOland). If there are no farther
to title I, unde. h rUle the bill H.R. 12865 as title IIR stitute is consider as having been read for amendmn6
No amendment a in order to title II except am
by the Commnittee onWays,:and Means which are ndt subject ment, and germn amendments to subsections-, 2001(i 2001 (a) (2), 200(b) and 2001 (e) (3) of title-II. *
Are there any amendments .from the Committee: dett
Means to title II ofth substitute? ath
[The text of H&12855 and the report thereon appear i

AX3fEN'TS OFFERED BY-NM ULMAN
M r. U-LLMAN Chairman I offer a series of both r;iliconforming amendmnts. I ask unanimous consent tha4 sidered'en bloc.
The CHAIrnAWI there objection to the -request of tbo from Oregon ?
There was no -bje.ion.
The Clerk read allows:
Amendments offere by Mr. ULLMAN ::
Page 163, beginning line 17, strike out "the later" and insert lia:f "iany".
Page 164, strike otlne 1 through lin!g 4, an netin lieuth lowing :
(A) in the case ofa employee who- begins his period of serflkoi the date he attainhe age of 24, the: date. on which he completwft service; or
"(B) in the case oan employee who begins 'his peri!'od Of a
attains the age of 24 h date on -which he comp;letes 3 years of kn date on which he attan 25 years of -age, whichever date s earlier., Page 164, line 9, stieout "'subparagraph (B) and insert in liqu itWWWO paragraph". J o
Page 164, strike otlne 1Q and insert in lieu thereof the following by substituting for.s aragraphs (A), and (B) "the date on Ih pletes 3 years, of iseri
Page 224, line 7 srk out "and (1)"and ineert in lift thereof
Page 293. line 17, stik out ",and (19) "
Page 315, line 20 trike out "'preferences": and, insert int b i "preferences) "
Page 323, line 7,af the period insert: "In the as of a.ih akni
scribed in section 40(b, the preeding sentence shall apply only tt of the annuity co-tac which exceeds the limitation ofsa*set limitation of sutseeo (c), whicheixer l.1 approprlits ge t contribution for su. otin aal reduce the exclidon allwan section 403 (b).'(2)"
Page 332, line 12,fe "alloYwance" Insert ''1@?'
Page 335, line 9.srie -^t () 9 b
Page 327, after lin2, insert the tpilowing new p&arr "V:
"(4) BrMAurLE FO SEorow ^41038) ()q"rqApy paca
TroN*AL INSTrrunzo aplyn prgaphi '(1 (t,) thn b
contributed for an anuty contract described in setion 4(18(9?? l






3549
T11
'-OW4W, ppmgraph (1) (B) shall be not less than the amount of the exclusion allow*ch would be determined under section 403(b) (2) (without regard to this
6 'for the participant's taxable year in which such subsection occurs IfA(A) the participant's years of service were computed only by taking into ,45 his service -for the employer during the 4-year period- ending on the date 'tat separation, and
B) the participant's includible compensation were an amount equal to onefou -year period which is
.44 of the aggregate amount of compensation for such
I**k*ed from. the educational Institution and which is includible in gross income ,ottvwputed without regard to sections 105 (d) and 911 and computed by excluding any amount contributed by the employer for any annuity contract to which see*W (b) applies).
ItIS Paragraph shall apply only if the taxpayer elects its application at the
ttme and In the manner provided under regulations prescribed by the Secretary 00 his delegate. Not more than one election may be made under this paragraph
with respect to any individual."
Page 33% strike out lines 15 and 16 and insert: "by, the sum of (A) the amount
4 t1ke'tax Imposed by paragraph (1) (A) paid with respect to such other disftibutionk plus (A) that portion of the tax on the aggregated total taxable
to which to attributable to annuity contracts.",
Page W, strike out line 14 and all that follows down through line 19 and insert
in lieu thereof the following:
(H) MiNimum PERroD oF SERvicE.-No amount distributed to an employee from
or under a plan may be treated as a lump sum distributed under subparagraph (A) unless he has been a participant in the plan for 5 or more taxable years before the taxable year in which such'amounts. are distributed.
Mr. TJLLHAN (during the reading). Mr. Chairman, I ask unanimous consent that the amendments be considered as read and printed in the Record.
The Ciarmptxkiv. Is there objection to the request of the gentleman 'from Oregon?
There was no objection.
Mr. IULLMAW. Mr. Chairman, on behalf of the Ways and Means Committee 11 offer the following technical amendments to sections 2003 and 2001- of the substitute. The amendments to section 2004 clarify two items with regard to the tax treatment of lump-sum distribution. The first of these two, on page 33-8 of the substitute, makes it clear that a tax is not to be imposed on an annuity contract distributed as part of a lump-sum distribution. The second of these amendments, to page 3,43 of the substitute amendment, makes it clear that there is irio change in the present provision of the tax laws that exclude from current ta-zation the, unrealized appreciation in employer securities attributable to the Amount contributed by the employee. Any such appreciation will, of course, be taxed when it is realized.
130th of these amendments, I emphasize, are designed to make it Clear that present law is unchanged by the bill.
The Other two amendments, to section 2003, deal with so-called taxsheltered annuities. The amendment to page 327 of the substitute li 6ndment permits employers of people such as school teachers to make "catch-up" purchases of tax-sheltered annuities for the school teacher in an amount no greater than that permitted by current law, iwtn though this "catch-up" payment would otherwise violate certain Of the limitations on contributions imposed by the bill. Such a "catch'aP" contribution. could be made, first, only once in the teacher's lifetimle; secondl could "catch-up" only for contributions not made during the prior 3 years; third, could be made only for the year in which the tea&er leaves the job; and fourth, could in no event exceed the $25,000 annual limit on coritributions.







3550

The other amendment to this sonm to 828 of amendment, provides that,. if the employer mas a tax-sheltered annuity plan in excess of. the mxms amounts. therthee mploye is going to: have to. takeminto amount of this excess. There wastnmeerrthat-thelpillwuld read to require the entire payment to be taken into the e come if there was even 1 penny of excess contribution and we want to leave room for the bill to be interpreted to. reah severe result. 1 seFinally we have offered an amendment to conform to tho -Ai
made by the Abzug amendment. to title I.
Mr. SCHNEEEELL Mr. ChalirmaD, I move to strike the rq~~t=' ber of words.
Mr. Chairman, I rise in support of the amendments, aso- 0 the gentleman from Oregon (Mr. Ullman),: -the chairman committee.
The CHrAIRMAN. The question is on the amendments oileted 0
gentleman from Oregon (Mr. Ullman).7,w,-j
T1he amendments were agreed to.

AMENDMENTS OFFERED BY 3M REUBS
Mr. REFUSs. Mr. Chairman, I offer several amendments, and unanimous consent that they be considered en bloc.
The Dr A Tax AN Is there objection to the request of. the genitif firoth Wisconsin ?
There was no objection.
The Clerk read as follows:
Amendments offered by Mr. RIgas: Section 2001 is amend(1) at page 280, lines 9 through 17, paragraph (1) of Subsection (a), t red a" follows :
"(1) Paragraph (1) of section 404 (e) is amended by striking out provisions of paragraph (2) and inserting in lien thereof 'subject to
(2) and (4) '."
(2) at page 280, lines 18 through 21, paragraph (2) Of -subsN-et 41)t striking out the paragraph and renumbering subsequent Paragraphs aw
(3) at Page 281, lines 8 through 15, subsection (b), by striking out tit tion and renumbering subsequent subsections accordingly.
(4) at page 288, line 4, paragraph (3) of subsection (e), by strik 8*4 "$7,500" and inserting in lieu thereof "$2,500"
(Mr. Reuss asked and was given permission to revise adextea is remarks.)
Mr. REuss. Mr. Chairman, the Committee on Ways and would extend the so-called Keogh plan deduction for profess~i a ple, self-employed people, from $,00, where it has been for anpo years, to $7,500. My amendment would keep it where it now is& .
There are two reasons for my amendment.
In the first place, the $7,500 deduction which would be allowed If
amendment is not adopted would give a doctor or a dentist or an-sy countant making $50,000 a year the equivalent of a check for $8,'$(i I say that. because he would be in the 50-percent bracket, and alllowi ing him a tax-free deduction of $7,500 would have that effect.








i3i. Pay"UtAxasoftbal year or two, and
ffeied 1. in food and fuel
4OW9 d I xy anm'flaUon.-.
Apm with a particular burden..For us to give a very
aArmctin to pk in the qVer S-percsn of the income A abcat the lower inmw two-thirds of the seems to me to be a b"Y skewed senise of priorities. limzp IF M bew# gmatod. hem would coa ta xpayers $175
ftowwho do n(* get it.,of course, wW have to pay for
Y71and the,
),=have to do som"ing f or.te $90,000-a-year P eWonal pers 9,4 bemuse if he belonged to a corW Olan and ww'sa, jwloyve:or.: 09wer (if a. corpo idica3 he
to deduct, a very.:. larW amn.,.up to alpofit $3j57OW a
4kmil is truje bR* OIWWdw is Mc to. P* 1000tole. upon

10"r the preference to corporate pension-holdem
the, rule wbich'confronts us, me that does not allow CXMIA in the me MauaN.Prevents .. our attack.. ; namedy, the practically rftll-v ought to be attacked i
4 very yFoslthy people uncfercorporatepenUislrwthattl4o bill does: s4. a limit ofab(mit $75,000 a
whi& could be drawn.an, a level Corre g to about a but tWK is wboRy out 4f Imic in the'sirWe.equity. Cominittee wicsidd. ld U57 OU9U to ieduce the

lor not, going Wong with the conmitteein this $7,5W
is that it WOUld lftve a terrible hodge-podge in our SysOe bendj iary of.a qualified corporate pension, you
*"Ye or, APProxifflutelv tax free. If you am: a self -employed lified Keogh plan, youffet $7," a. Vear. But gweer or aAsh6ry workWor one of the 40
10,06s. country who am work:ing for a cor-poration
"PaIN51 M PJ* then your mfLxjmiim is $1,50D a year.
iuWim is this 1
t W-04,000 or N $7,W or.$1,W reprewnts the approxi polifiW weights of these various groups rather than
to do equiti. .. ... .. .. .. .
Conanittee on d Means tbxt we in the House
OT'JOWY C*Pabk Qf 6sie tax ju ents ourselves,
W Aiv";M favor of t I offer, we will get our taxwiittem W introduce some equity mito the disparate differOf tax grmpEL
VATIOUS 14come
a I urge Members to vote in favor of the
o1r, was to kave the situation where it now is.
TA A
Now I move, to strike out the last word.
Grim was oven permission to revhige and extend
ell
*4i.*,Ch -man oppose the amendment offered
-4 Wwwmin (Mr. Fyuss). I would like-to point o* three eltorts to try to bring closer rmd t savirgs ol different gro one
A,, W per year, or,25 percent of the in... .......
Aehrr d contri-buUm pension Via L







355
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