Retirement Savings and Security Act

TABLE OF CONTENTS:

Title I: Short Titles; Table of Contents

Title II: ERISA Provisions

Subtitle A: Expanded Pension Coverage and

Simplification

Subtitle B: Portability

Subtitle C: Enhanced Security

Title I: Short Title; Table of Contents - Retirement Savings and Security Act - Sets forth the table of contents.

Title II: ERISA Provisions - Subtitle A: Expanded Pension Coverage and Simplification - Amends the Employee Retirement Income Security Act of 1974 (ERISA) to establish reporting and fiduciary requirements relating to NESTs (National Employee Savings Trusts, under the Internal Revenue Code (IRC), which are 401(k)-type plans for small business, designed to ensure participation by low- and moderate-wage workers, who will be able to save up to $5,000 per year tax-deferred, plus receive employer contributions toward retirement).

(Sec. 2002) Eliminates specified ERISA requirements relating to employee benefit plan descriptions and filing of summary plan descriptions and descriptions of material modifications to a plan. Requires filing of annual plan reports by plan administrators. Authorizes the Secretary of Labor to request any documents relating to such plans.

(Sec. 2003) Includes under ERISA purchases of qualified State prepaid tuition program instruments to which specified IRC provisions apply.

Subtitle B: Portability - Directs the Pension Benefit Guaranty Corporation (PBGC) to prescribe specified types of payment rules relating to missing participants for terminated multiemployer plans.

(Sec. 2011) Allows the administrator of a plan not otherwise subject to ERISA plan termination insurance provisions to elect to transfer a missing participant's benefits to the PBGC upon plan termination. Requires such administrator to provide the PBGC with specified information. Directs the PBGC, if such a missing participant's benefits are transferred to it, to pay the appropriate amount to the participant or beneficiary.

(Sec. 2012) Eliminates a special vesting rule for multiemployer plans.

(Sec. 2013) Provides for treatment of certain loans during military service.

Subtitle C: Enhanced Security - Increases the amounts of guarantees for multiemployer plan benefits.

(Sec. 2022) Directs the Secretary of Labor, as chairman of the PBGC board, to transmit to the President and the Congress an annual reversion report providing information on plans from which residual assets were distributed to employers.

(Sec. 2023) Sets forth a full funding limitation for multiemployer plans. Requires a valuation every three years in the case of multiemployer plans.

(Sec. 2024) Increases the maximum civil penalty for certain prohibited transactions.

(Sec. 2025) Revises provisions relating to substantial owner benefits to modify: (1) a phase-in of guarantee; and (2) allocation of assets.

Pension Audit Improvement Act of 1996 - Amends ERISA to repeal certain provisions for limited scope audits.

(Sec. 2033) Requires certain notifications by plan administrators and accountants regarding: (1) irregularities that may have occurred with respect to plans; and (2) termination of an accountant's engagement for auditing services. Sets forth civil penalties for failures to provide the Secretary of Labor with such notifications.

(Sec. 2034) Prescribes additional requirements for qualified public accountants.

(Sec. 2035) Revises certain fiduciary penalties. Modifies a prohibition of assignment or alienation. Changes from mandatory to discretionary: (1) the imposition and the amount of civil penalties for breach of fiduciary responsibility; and (2) certain provisions relating to an applicable recovery amount.