Pension and Employee Benefit Act

Pension and Employee Benefit Act - Establishes in the executive branch of the Government an independent agency to be known as the United States Pension and Employee Benefit Plan Commission.

Provides that it shall be the duty of the Commission: (1) to promote the establishment, extension, and improvement of pension, profit-sharing-retirement and other employee benefit plans; (2) to accept for registration all pension and profit-sharing-retirement plans required and qualified to be registered with the Commission; (3) to cancel certificates of registeration of pension and profit-sharing-retirement plans which cease to be qualified for such registration; (4) to direct and administer the pension reinsurance program established by title II of this Act; (5) to direct and administer the pension portability program established by title III of this Act; (6) to enforce the provisions of title IV of this Act; and (7) to perform such other functions as may be necessary to administer the provisions of this Act.

Sets forth the administrative powers of the Commission.

Authorizes to be appropriated such sums as may be necessary to enable the Commission to carry out its functions and duties. Provides that the functions of the Secretary of Labor and the Department of Labor under the Welfare and Pension Plans Disclosure Act are transferred to and shall be administered by the Commission.

Title I: Benefit Standards - Provides that every administrator of a pension or profit-sharing-retirement plan to which this title applies shall file with the Commission an application for registration of such plan. Specifies the requirements that such plans must meet to qualify for such registration, including a definition of the benefits provided, the method of determination and payment of benefits, conditions for qualification for membership in the plan, and the financial arrangements made to insure provisional or full funding of benefits under the plan. Provides that the Commission shall require each plan to furnish each participant, upon termination of service, with a vested right to a deferred life annuity, pension, or other vested interest.

Provides that a pension or profit-sharing-retirement plan filed for registration under this title shall provide that a member of the plan who has been in the service of the employer, or has been a member of the plan, for a continuous period of six years is entitled, upon termination of his employment or membership in the plan prior to attaining retirement age in the case of a pension plan, to a deferred life annuity commencing at his normal retirement age, and in the case of a profit-sharing-retirement plan to a nonforfeitable right to his interest in such plan, equal to ten percent of full pension benefits as provided by the plan with respect to such service or such interest, respectively. Provides that such plans shall set forth provisons for funding that prescribe the obligation of the employer to contribute both with respect to the current service cost of the plan and the initial unfunded liability and experience deficiency.

Provides that the Administrator of the Commission, in respect to a registered pension plan, shall cause the plan to be reviewed not more than three years after registration and at intervals of not more than three years thereafter. Provides for registration of certain pension plans not meeting the above requirements if such plans meet other minimum requirements.

Provides a formula for the allocation of funds among contributors to a pension plan upon complete or substantial termination thereof. Provides for the enforcement of the payment of death benefits under a pension or profit-sharing-retirement plan covered by this title. Provides that registered plans under this title shall be treated as qualified trusts under the Internal Revenue Code. Provides that contributions by an employer to a registered plan under this title shall not be deemed to be part of or affect the "regular rate" as that term is used in the Fair Labor Standards Act.

Title II: Pension Reinsurance - Establishes a program to be know as the Federal pension reinsurance program to insure beneficiaries of a reinsured pension plan against loss of nonforfeitable benefits to which they are entitled under such pension plan arising from substantial cessation of one or more facilities of such employer before such plan has been fully funded. Provides that each registered pension plan shall pay an annual premium for reinsurance under the program as may be established by the Commission. Provides for a limited reinsurance program of plans for which it is not feasible to give full insurance.

Provides that in carrying out its duties under this title the Commission shall establish a revolving fund into which all amounts paid into the program as premiums shall be deposited and from which all liabilities under the program shall be paid. Authorizes the Commission to borrow from the Treasury such amounts as may be necessary, for deposit into the revolving fund, to meet the liabilities of the program.

Title III: Pension Portability Program - Authorizes the Commission to receive amounts which are transferred to it from a registered plan and which are in settlement of an individual's rights under the plan when such individual is separated from employment covered by the plan before the time prescribed for payments under the plan to such individual or to his beneficiaries.

Title IV: Disclosure and Fiduciary Standards - Provides that the functions and powers of the Secretary of Labor and the Department of Labor under the Welfare and Pension Plans Disclosure Act are transferred to and shall be administered by the Commission. Provides, under such Act, that a description of any employee benefit plan shall be published as required therein within ninety days after the establishment of such plan or when such plan becomes subject to the Act.

Provides that if some or all of the benefits under the plan are provided by an insurance carrier or service or other organization, such carrier or organization shall certify to the administrator of such plan, within one hundred and twenty days, such reasonable information determinated by the Commission to be necessary to enable such administrator to comply with the requirements of the Act.

Provides that an annual report shall be published with respect to any employee benefit plan including: (1) the type and basis of funding; (2) the number of participants; (3) the amount of all reserves or net assets accumulated under the plan; (4) the present value of all liabilities; (5) a copy of the most recent actuarial report; and (6) a statement showing the number of participants who terminated service under the plan during the year.

Provides that every employees' benefit fund established to provide for the payment of benefits under an employees' benefit plan shall be established pursuant to a duly executed trust agreement which shall set forth the purpose or purposes for which such fund is established and the detailed basis on which such fund is established and the detailed basis on which payments are to be made into and out of such fund. Sets forth the responsibilities and obligations of fiduciaries in fulfilling their duties under the Act.

Provides that no fiduciary may be relieved from any responsibility, obligation, or duty under this Act by agreement or otherwise.

Provides that no one who has been convicted of specified crimes shall serve in a fiduciary position of any employee benefit plan, or as a consultant to any employee benefit plan during or for five years after such conviction.

Title V: Enforcement - Authorizes the district courts of the United States to issue orders for the enforcement of the registration requirements and fiduciary requirements of this Act. Authorizes suits by persons entitled to benefits from employees' benefit funds or plans in any court of competent jurisdiction, without respect to the amount in controversy and without regard to the citizenship of the parties.

Provides that suits by an administrator or fiduciary, of a pension plan, a profit-sharing-retirement plan, or an employees' benefit fund, to review any final order of the Commission, to restrain the Commission from taking any action contrary to the provisions of thsis Act, or to compel action under this Act, may be brought in the name of the plan or fund in the district court of the United States. Provides that the provisions of this Act shall supersede any and all laws of the States and of political subdivisions thereof insofar as they may now or hereafter relate to the subject matter regulated by this Act.