Pension Stability Act

Pension Stability Act

This bill requires the Department of Labor to establish user fees for qualified professional asset managers (QPAMs) who have been convicted of a crime and apply for an individual exemption (known as a QPAM waiver) to the prohibited transaction rules under the Employee Retirement Income Security Act of 1974 (ERISA).

The fees:

• apply to large regulated banks, savings and loan associations, insurance companies, and federally registered investment advisors who are QPAMs;
• must be at least $1 million per application for an individual exemption; and
• increase based on the severity of the crime and the number of prior applications for individual exemptions.

Labor must transfer the amounts collected from the user fees to the Pension Benefit Guaranty Corporation to assist in guaranteeing benefits under pension plans.