Title I: Public Employee Retirement Income Security - Public Employee Retirement Income Security Act of 1980 - Establishes Federal disclosure requirements and fiduciary standards for certain State and local government retirement plans.
Extends the requirements of this Act to all public employee pension plans except: (1) those covered and not exempted under the Employee Retirement Income Security Act (ERISA); (2) unfunded plans maintained by the employer primarily to provide deferred compensation for select management or highly compensated employees; (3) severance pay plans; (4) certain coverage agreements entered into under the Social Security Act; and (5) certain individual retirement accounts or annuities, annuity plans, State deferred compensation plans, and other plans under specified provisions of the Internal Revenue Code.
Exempts a plan from the requirements of this Act if the Employee Benefit Administration (established under title II) determines that such plan is subject to State law which imposes substantially equivalent requirements.
Requires that a summary plan description apprising participants and their beneficiaries of their rights and obligations be published with respect to each plan. Specifies the content of such description. Requires that a summary plan description be updated at least once every ten years.
Requires that an annual report be published with respect to each plan, which includes an actuarial statement, a financial statement, and information on terminated vested participants. Directs the Employee Benefit Administration (EBA) to prescribe simplified annual reports for any plan covering less than 100 participants. Requires a plan to engage: (1) an independent qualified public accountant to audit the plan and offer an opinion as to whether the financial statements are presented fairly and in accordance with generally accepted accounting principles; and (2) an enrolled actuary to perform an actuarial valuation at least once every three years.
Directs administrators of pension plans to provide the following information to participants and beneficiaries: (1) the summary plan description; (2) a summary description of any material modification in the terms of the plan; and (3) upon written request, a statement which indicates the total accumulated contributions, benefits, and vesting status of the participant. Directs such administrators to provide to any participant or beneficiary who requests withdrawal of contributions, payment of benefits, or a benefit election, a written explanation of the effects of such action on remaining plan benefits.
Requires administrators to file the annual report and a copy of the summary plan description with the EBA. Authorizes the EBA to reject any filings and to take appropriate action if a satisfactory revised filing is not submitted within 45 days.
Requires plans covered by this Act to establish a claims procedure which provides participants with a written explanation of benefit denials and a reasonable opportunity for full and fair review.
Allows the EBA, in certain circumstances, to prescribe alternative methods of compliance and to exempt any plan or person from the requirements of this Act.
Requires plans covered by this Act to provide for one or more fiduciaries and to include: (1) any funding policy which has been established; (2) procedures for amendment and for the allocation of responsibility for the plan's operation and administration; and (3) specification of the benefit provisions. States that all assets shall be held in trust by one or more trustees, with certain exceptions.
Requires a fiduciary to discharge his or her duties for the exclusive purpose of providing benefits to participants and their beneficiaries and defraying reasonable expenses of administering the plan, with the care, skill, prudence, and diligence that a prudent man would exercise in like circumstances. Directs a fiduciary to diversify the investments of the plan so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so.
Sets forth the circumstances under which a fiduciary is liable for the breach of a co-fiduciary with respect to the same plan. Requires trustees holding assets of a plan to use reasonable care to prevent a co-trustee from committing a breach and to manage and control jointly the assets, unless allocation of responsibility is authorized by the trust agreement.
Prohibits specified types of transactions between a plan and parties-in-interest.
Limits acquisition by a plan of qualifying employer securities, loans, or real property to ten percent of the fair market value of the assets of the plan.
Makes a fiduciary personally liable for the breach of any of the responsibilities, obligations, or duties imposed upon fiduciaries or co-fiduciaries by this Act.
Prohibits persons who have been convicted of specified crimes from serving in certain capacities, including fiduciary and trustee, for specified periods.
Sets forth bonding requirements for every fiduciary of a plan, with specified exceptions.
Provides that no legislator or government official shall be a fiduciary or co-fiduciary with respect to actions taken in an official capacity.
Establishes criminal penalties for willful violation of the reporting, disclosure, and bonding requirements. Includes violations of this Act within existing criminal statutes involving theft, false statements, and racketeering with respect to ERISA.
Authorizes civil actions to be brought by specified persons to enjoin or redress violations, or otherwise enforce provisions of this Act. Provides that a plan administrator may be held personally liable for failure to comply with a request for information required under the Act. Grants to the Federal district courts exclusive jurisdiction of civil actions brought under this Act, but provides for concurrent jurisdiction of Federal and State courts with respect to certain actions.
Permits attorney's fees to be awarded to a prevailing plaintiff or defendant under specified circumstances.
Grants the EBA power to investigate violations of this Act.
Prohibits persons from taking retaliatory action against any plan participant or beneficiary for exercising any right under this Act, or from interfering with or preventing the exercise of such rights.
Amends the Social Security Act to require the Secretary of Health and Human Services to transmit to an individual, upon request, information which the EBA holds relating to his or her terminated vested benefits.
Establishes an eleven-member Advisory Council on Governmental Plans, to be appointed by the President, to advise and make recommendations to the EBA with respect to its functions under this Act.
Authorizes the EBA to undertake research and compile information relating to pension plans. Directs the EBA to: (1) report annually to Congress on the administration of this Act; and (2) publish at least annually specified information relating to pension plans.
Provides that the fiduciary provisions of this Act preempt all State laws relating to the same subject matter.
Provides that any pension plan or trust forming part of a plan which is subject to this Act shall be deemed to have met the requirements for a tax qualified plan or trust under the Internal Revenue Code.
Title II: Employee Benefit Administration - Employee Benefit Administration Act of 1980 - Amends the Employee Retirement Income Security Act (ERISA) to direct the President to establish by the beginning of the third calendar year after enactment the Employee Benefit Administration as an independent agency within the executive branch, to be headed by a five member Board of Directors. Creates two new positions, entitled "special liaison officer to the Administration," one within the Department of Labor and one within the Department of the Treasury, to serve as directors. Provides that the remaining three directors shall be an Executive Director and two additional members appointed by the President.
Transfers to the Administration the authority of the Secretary of Labor granted under ERISA, and functions of the Secretary of the Treasury relating to employee benefit plans. Directs the President to transfer to the Administration additional functions of any Federal agency which is necessary to effectuate the maximum feasible consolidation of administrative and related functions of the Government relating to employee benefit plans. Retains the Pension Benefit Guaranty Corporation within the Administration.
Directs the EBA to: (1) promulgate regulations providing for the maximum consolidation of all reports respecting employee benefit plans and governmental plans required under ERISA and the Internal Revenue Code; and (2) develop recommendations for a uniform system of terminology relating to employee benefits.
Introduced in House
Introduced in House
Referred to House Committee on Education and Labor.
Referred to House Committee on Ways and Means.
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