Public Service Employment Retirement Income Security Act

Public Service Employee Retirement Income Security Act - Title I: Protection of Public Service Employee Benefit Rights - Establishes a system of regulation for State and local government employee welfare and pension benefit plans. Requires every employee benefit plan to be established and maintained pursuant to a written instrument. Specifies that such instrument shall 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 a fiduciary shall discharge his duties with respect to a plan solely in the interest of the participants and beneficiaries. Directs every employee benefit plan to: (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 title; (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 made to and from the plan.

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

Prohibits a plan from engaging in a transaction which constitutes a direct or indirect: (1) sale or exchange, or leasing, of any property between the plan and a party in interest; (2) lending of money or other extension of credit between the plan and a party in interest; (3) furnishing of goods, services, or facilities between the plan and a party in interest; and (4) transfer to, or use by or for the benefit of, a party in interest, of any assets of the plan.

Prohibits a plan from acquiring : (1) any employer security which is not a qualifying employer security, or (2) any employer real property which is not qualifying employer real property. Permits the Secretary of Labor to allow exemptions from prohibited transactions in specified situations.

Provides for the mandatory bonding of all individuals who handle moneys or properties of an employee benefit plan. Makes any fiduciary who engages in a prohibited transaction liable for any losses resulting from such breach of his duties.

Provides that a civil action may be brought by a participant or beneficiary of an employee benefit plan to recover benefits due to him under the terms of his plan, to enforce his rights under the terms of the plan, or to clarify his rights to future benefits under the terms of the plan.

Specifies reporting and disclosure requirements to be followed by the Administrator of an employee benefit plan. Provides criminal penalties for violation of such requirements.

Establishes minimum participation standards for employee benefit pension plans. Prohibits any pension plan from requiring, as a condition of participation in the plan, that an employee complete a period of service with the employer or employers maintaining the plan extending beyond the later of the following dates: (1) the date on which the employee attains the age of 25; or (2) the date on which he completes 1 year of service.

Establishes minimum vesting standards for employee benefit pension plans. Requires an employee's rights in a pension plan to be nonforfeitable with regard to his own contributions. Requires specified percentages of the employer's contributions to be nonforfeitable depending upon the employee's years of service.

Specifies benefit accrual requirements for employee benefit pension plans. Stipulates that if a pension plan provides for the payment of benefits in the form of an annuity, such plan shall provide for the payment of annuity benefits in a form having the effect of a qualified joint and survivor annuity.

Requires each pension plan to provide that unless the participant otherwise elects, the payment of benefits under the plan to the participant shall begin not later than the 60th day after the latest of the close of the plan year in which: (1) the date on which the participant attains the earlier of age 65 or the normal retirement age specified under the plan; (2) occurs the 10th anniversary of the year in which the participant commenced participation in the plan; or (3) the participant terminates his service with the employer.

Prohibits a pension plan from merging or consolidating with, transfering its assets or liabilities to, any other plan after the date of the enactment of this Act, unless each participant in the plan would (if the plan then terminated) receive a benefit immediately after the merger, consolidation, or transfer which is equal to or greater than the benefit he would have been entitled to receive immediately before the merger, consolidation, or transfer (if the plan had then terminated).

Establishes minimum funding standards for employee benefit pension plans. Provides that if an employer is unable to satisfy the minimum funding standard for a plan year without substantial economic hardship and if application of the standard would be adverse to the interests of plan participants in the aggregate, the Secretary may waive such requirement for not more than 5 of any 15 consecutive plan years.

Authorizes to be appropriated such sums as may be necessary for the Secretary to carry out his functions under this Act.

Title II: Insurance - Includes State and local government employee benefit pension plans within the insurance coverage of the Pension Benefit Guaranty Corporation established by the Employee Retirement Income Security Act of 1974.