Retirement Benefit Fund Act

Retirement Benefit Fund Act - Declares the findings and policies of this Act. Sets forth the definitions of terms used in this Act.

Title I: Retirement Benefit Funds - Directs the Securities and Exchange Commission to prescribe rules necessary to carry out the provisions of this Act, including rules for the operation of Retirement Benefit Funds.

Establishes a Retirement Fund Division within the Securities and Exchange Commission. Authorizes the Commission to appoint and fix the compensation of such attorneys, actuarial consultants, and other employees as may be necessary for carrying out the functions of the Retirement Fund Division under this Act, without regard to specified provisions governing appointments and pay rates.

Authorizes to be appropriated such sums as may be necessary to enable the Retirement Fund Division to carry out its functions and duties. Directs the Commission to submit annually a report to the Congress covering its activities under this Act during the preceding fiscal year.

Provides that applications to be authorized to operate as a fund shall be filed with the Commission, in such form and containing such information and documents as the Commission shall prescribe. Prescribes the procedure for examination of applications, issuance of licenses and renewal.

Directs the Commission to establish procedures for the receipt and investigation of all complaints by any member of the public concerning the operations of an existing fund.

Provides that no fund shall have a board of directors more than 40 percent of whose members are persons who are investment advisors of, affiliated persons of an investment advisor of, consultants to, or officers of employees of, such fund. Sets forth additional restrictions applicable to persons serving as officers, consultants and employees of the fund.

Specifies that the board of directors of a fund shall consist of not less than 15 nor more than 20 members elected for terms of five years.

Provides that not less than one-half of the seats on the board of directors shall be reserved for individuals who anticipate that the fund will represent the major non-governmental portion of their future retirement income. Prescribes the procedures for nominations, campaigning and election of candidates.

States that no fund shall issue or underwrite any kind of securities, whether in the form of stocks or bonds and funds shall not issue any debt securities. Provides that the assets (or any portion thereof) of the fund may not be loaned to a company which is the employer of any of the participants or other specified organizations.

Provides that no licensee shall, unless authorized by a vote of a majority of the participants voting, deviate from its policy in respect to investments. States that every fund shall be deemed to be a trust and shall be held for the exclusive purpose of providing benefits to participants and beneficiaries.

Enumerates the obligations of a fiduciary in discharging his or her duties with respect to the fund. Describes the liabilities of fiduciaries for breach of such responsibilities.

Title II: Disclosure - Requires the chief executive officer of each fund to publish: (1) a description of the fund, and (2) an annual report. Describes the content matter of the description of the fund and the annual report.

Directs the Commission to prepare forms for the fund descriptions, annual reports, annual statements, and investment and voter preference questionnaires required by this Act and to make such forms available to the directors and officers of such funds on request. States that, upon conviction of a willful violation of the provisions of this title, the chief executive officer of any fund shall be punishable by a fine of not more than $1,000, imprisonment for not more than 6 months, or both.

Title III: Contributions; Benefits; Insurance - Provides that all pension contributions shall be made to funds selected by participants. Requires each fund to provide each participant with a passbook, indicating the amount of pension contributions paid to the fund on his or her behalf at the time of issue, and containing space for the inclusion of the annual year-end statements.

States that no person shall have pension monies deposited with more than one fund at a time. Permits a participant or beneficiary to transfer all amounts accumulated in his or her account in one fund to another fund by filing a written transfer request with his or her fund.

Provides that, with specified exceptions, no fund shall accept pension contributions from any participant without first furnishing such participant with a copy of its most recent solicitation prospectus and without receiving written notice from said participant that he or she has received and inspected the solicitation prospectus.

Makes it unlawful for any fund or any representative to make any materially false or misleading statement with the intent to persuade a prospective participant to designate said fund as the depository of his or her pension contributions.

Outlines the order in determining a beneficiary's lifetime pension benefits.

Establishes a corporation to be known as the Federal Pension Insurance Corporation, under the direction of the Federal Deposit Insurance Corporation. Provides that the Corporation shall insure rights of participants and beneficiaries to specified extents. Directs each fund to pay an annual premium for insurance under the program to be established by the Corporation.

Title IV: Transition Period - Provides that contributions to retirement benefit funds may be made by: (1) self-employed persons now making pension contributions pursuant to provisions of the Internal Revenue Code of 1954; (2) employed persons not covered by a pre-existing plan; (3) employed persons covered by a pre-existing pension plan; (4) employers, some or all of whose employees are not covered by a pre-existing pension plan; (5) employers whose employees are covered by a pre-existing pension plan; and (6) married persons on behalf of spouses.

Prescribes transitional programs to be adopted by employers with pre-existing pension plans. States that no pension funds operated by any governmental agency shall be subject to any provisions of this Act unless an election is made to establish a pension plan in accord with the provisions of this Act.

Establishes a Retired Workers Income Security Commission to study the economic problems of presently and soon-to-be retired workers whose retirement needs will not be met by this legislation.

Authorizes to be appropriated $100,000 for fiscal year 1974, for the purposes of carrying out the provisions of this section.

Title V: Penalties, Enforcement - Provides that any person who violates any section of this Act, whether willfully or negligently, shall be civilly liable for damages. Imposes criminal liability for fraud and conversion.

Empowers the Commission to make such investigations as it deems necessary to determine whether any person has violated or is about to violate any provision of this Act. Prescribes the procedures for any such investigation.

Grants the Commissioner the power to order "unannounced audits" of any fund when he deems it proper.

Provides for class actions, notice provisions for such actions, appointment of attorneys, attorney's fees, and bonding under the provisions of this Act.

Title VI: Effective Date - States that the effective date of this Act shall be one year after enactment of this Act.

Title VII: Amendments to the Internal Revenue Code - Makes technical and conforming amendments to the Internal Revenue Code relating to: (1) deferred compensation; (2) the taxability of the beneficiary of exempt trusts; (3) exclusions from gross income of employer contributions to retirement benefit fund employee accounts; and (4) retirement savings for itemized deductions for individuals.