Public Service Employees Retirement Income Security Act

Public Service Employees Retirement Income Security Act - Sets forth regulations governing employee welfare or pension benefit plans established or maintained by State or local government entities. Requires that every employee benefit plan be established and maintained pursuant to a written instrument. Requires that such instrument provide for one or more named fiduciaries who jointly or severally shall have authority to control and manage the operation and administration of the plan. Specifies that all such fiduciaries shall discharge their duties with respect to a plan solely in the interest of the participants and beneficiaries. Requires that every benefit plan: (1) provide a procedure for establishing and carrying out a funding policy and method consistent with the objectives of the plan and the requirements of this Act; (2) describe any procedure under the plan for the allocation of responsibilities for the operation and administration of the plan; (3) provide a procedure for amending such plan, and for identifying the persons who have authority to amend the plan; and (4) specify the basis on which payments are to be made to and from the plan.

Requires that all assets of an employee benefit plan be held in trust by one or more trustees. Specifies the method of appointment of the trustees and stipulates that the trustees shall have exclusive authority and discretion to manage and control the assets of the plan, subject to limitations.

Establishes qualifications for, and limitations on, the acquisition and holding of securities and real property by plans subject to this Act.

Prohibits any fiduciary who has the authority or discretion to control or manage the assets of a plan from permitting the plan to hold or acquire any employer security or employer real property if such fiduciary knows or should know that holding such security or real property violates this Act.

Directs the Secretary of Labor to establish an exemption procedure under which an exemption of any fiduciary or transaction, or any class of fiduciaries or transactions, from the securities and real property holding restrictions of this Act may be granted. Prohibits the Secretary from granting any such exemption unless the exemption is: (1) administratively feasible; (2) in the interests of the plan and its participants and beneficiaries; and (3) protective of the rights of participants and beneficiaries of such plan.

Authorizes the following transactions by fiduciaries and plans, with specified limitations: (1) loans made by the plan to parties in interest who are participants or beneficiaries of the plan; (2) contracts or arrangements with a party in interest for office space, or legal, accounting, or other services necessary for the establishment or operation of the plan; (3) provision of any ancillary service by a bank or similar financial institution supervised by the United States or a State, if such bank or other institution is a fiduciary of such plan; (4) exercise of a privilege to convert securities, to the extent provided in regulations of the Secretary of Labor; and (5) distribution of the assets of the plan by a fiduciary in accordance with the terms of the plan if such assets are distributed in the same manner as assets are allocated under specified provisions of the Employee Retirement Income Security Act of 1974.

Specifies reporting and disclosure requirements to be followed by the administrator of an employee benefit plan with respect to the Secretary of Labor and plan participants.

Declares that any person who is a fiduciary with respect to a plan who breaches any of the responsibilities, obligations, or duties imposed upon fiduciaries by this Act shall be personally liable to make good to such plan any losses resulting from such breach. Declares void any agreement or instrument which purports to relieve a fiduciary from such liability.

Prohibits persons who have been convicted of specified crimes from serving as fiduciaries of employee benefit plans during, or for five years after, such conviction, or imprisonment for such conviction.

Imposes criminal penalties for violation of this Act. Specifies the grounds for civil actions which may be brought by the participant, fiduciary, or beneficiary of an employee benefit plan or the Secretary of Labor, to enforce the provisions of this Act with respect to such plan.

Authorizes the Secretary of Labor to investigate fully the operation of any employee benefit plan to determine whether such plan is in compliance with this Act.

Sets forth a procedure for the denial of benefits to any participant or beneficiary by any employee benefit plan.

Authorizes the Secretary of Labor to prescribe such regulations as may be necessary or appropriate to carry out the provisions of this Act. Authorizes the appropriation of such sums as may be necessary to enable the Secretary to carry out the duties and responsibilities imposed by this Act.