ERISA Improvements Act

ERISA Improvements Act - Directs the Secretary of the Treasury and the Secretary of Labor to submit to Congress within 90 days of the passage of this Act any changes in the Internal Revenue Code and the Employee Retirement Income Security Act of 1974 (ERISA) which are necessitated by the provisions of this Act.

Title I: Consolidation of Federal Agency Responsibilities for Employee Benefit Plans - Creates two new positions, one within the Department of the Treasury and the other within the Department of Labor, entitled special liaison officer to the Employee Benefits Commission. Establishes the Employee Benefits Commission within the Executive branch to formulate policy with regard to Federal laws affecting employee benefit plans, to administer and enforce titles I and IV of (ERISA), and to administer and seek compliance with specified provisions of the Internal Revenue Code relating to qualification of employee benefit plans. Grants to the Commission specified powers to enable it to carry out its assigned duties, including the power toinitiate court actions to enforce titles I and IV of ERISA and to certify to the Secretary of the Treasury that an employee benefit plan does or does not satisfy the requirements of the Internal Revenue Code for qualified plans. Transfers all functions of the Secretary of Labor with regard to ERISA, most functions of the Secretary of the Treasury, and all functions of the Pension Benefit Guaranty Corporation to the Commission.

Title II: Amendments to the Employee Retirement Income Security Act of 1974 - Amends ERISA to provide that it shall be an additional purpose of such Act to foster the establishment and maintenance of employee benefit plans. Redefines the term "employees' beneficiary association" in order to clarify whether multiple employer interests are employee benefit plans subject to ERISA. Narrows the definition of the term "party in interest." Redefines "multiemployer plan" to mean a plan which is maintained pursuant to one or more collective bargaining agreements between an employee organization and more than one employer and to which ten or more employers contribute, or to which more than one and fewer than ten employers contribute if the Commission finds that treating such a plan as a multiemployer plan is appropriate.

Amends the reporting and recordkeeping requirements imposed on employers maintaining plans. Authorizes the Secretary of Labor to exempt any plan from any of the reporting or disclosure requirements of ERISA upon making certain findings.

Makes substantive changes in the minimum requirements for a qualified plan with regard to participation, accrual of benefits in a multiemployer plan, suspension of benefits because of reemployment, reduction in retirement or disability benefits, and joint and survivor annuities. Allows the funding method of a plan to take account of all plan provisions, including future benefit reductions.

Redefines the contents of a general asset account in the case of plans which have guaranteed benefit policies with an insurer. Imposes a legal obligation to make contributions to a plan upon an employer who has an obligation under a collective bargaining agreement to make contributions to the plan.

Permits a multiemployer plan to return an employer contribution within one year after the plan administrator knows that the contribution was made as a result of a mistake of fact.

Defines "knowledge" of a fiduciary (who is not a person) for purposes of awareness of a fellow fiduciary's breach of duty. Limits the responsibility of any co-fiduciary with respect to the failure of an employer who is a fiduciary to make contributions to a collectively bargained plan.

Subjects every uninsured welfare plan which is a multiple employer trust to such solvency and reserve standards as the Secretary of Labor may require by regulation.

Provides that where a judgment has been awarded in an action to collect contributions owed to an employee benefit plan, the court shall allow a reasonable attorney's fee and costs of the action, to be paid by the defendant.

Stipulates that with regard to any employee benefit plan other than an eligible individual account plan in which participation is voluntary, no person or employee benefit plan shall be liable in a cause of action alleging explicitly or implicitly that the interest of an employee in such a plan is a security under Federal or State securities laws.

Requires that one of the members of the Advisory Council on Employee Welfare and Pension Benefit Plans shall be a representative of employers maintaining small plans.

Directs the Secretary to conduct a study of the feasibility of requiring pension plans to provide cost of living adjustments to benefits payable under such plans.

Title III: Amendments to the Internal Revenue Code of 1954 - Provides that in the case of a multiemployer plan, defined benefit plans shall be considered separately from defined contribution plans for purposes of lump sum distributions. Permits a multiemployer plan to deem an employee who has not worked in service covered under the plan for six months as having separated from the service for purposes of lump sum distributions.

Allows an income tax deduction for contributions made by employees to qualified retirement plans. Limits the deduction to the lesser of 10 percent of compensation or $1,000, but reduces the allowable deduction by 20 percent of the amount by which the employee's adjusted gross income exceeds $30,000. Requires plans to accept these contributions and sets forth the administrative framework for treatment of the contributions by the plan.

Allows an income tax credit for small employers who establish retirement plans that meet ERISA's requirements. Allows such credit in addition to the allowable deduction for employer contributions to a qualified plan. Limits the amount of the credit and phases it down and out over the first five years of each new plan.

Allows an income tax credit of five percent of an employer's allowable deductions for contributions to a qualified plan for any year in which the Employee Benefits Commission determines that the plan is an improved plan. Defines an "improved plan" as one which has standards on specified matters which exceed the minimum standards of ERISA and the standards of the plan in the prior year.

Prohibits sole proprietors and partners or shareholders with a more than ten percent interest in a business from establishing individual retirement accounts for themselves.

Title IV: Special Master or Prototype Plans - Amends ERISA to create a new type of individual account employee pension benefit plan, all the assets of which are controlled by one or more investment managers. Relieves an employer who establishes such a plan of many of the administrative requirements of ERISA.