Title I: Public Employee Retirement Income Security - Public Employee Retirement Income Security Act of 1981 - Establishes Federal reporting and 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; (5) certain individual retirement accounts or annuities, annuity plans, State deferred compensation plans, and other plans under specified provisions of the Internal Revenue Code; and (6) plans maintained solely to comply with applicable workers' compensation or disability insurance laws.
Subtitle A: Reporting and Disclosure - Requires that plan administrators submit, within a specified period, registration statements to the Board of Directors of the Employee Benefit Administration (established under title II), unless registration statements filed for a plan under Internal Revenue Code provisions still accurately reflect the status of the plan.
Exempts a plan from the requirements of this Act if the Board determines that such plan is subject to State law imposing substantially equivalent requirements, with adequate provision for State administration and for collection of annual reports to be provided to the Board.
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. Requires that each annual report include specified general information and a financial statement. Requires that annual reports for specified types of plans include actuarial statements and/or reports of insurance organizations.
Requires actuarial valuations of plans at least once every three plan years, and more often if necessary.
Directs plan administrators 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) updated summary plan descriptions (for those whose future benefits may be affected by plan amendments).
Directs plan administrators to furnish to any participant or beneficiary, upon written request, a statement indicating: (1) total accumulated plan benefits; (2) the extent to which, and the expected earliest date on which, such benefits are or will become vested pension benefits; and (3) the total accumulated contributions made by the participant.
Directs plan 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 plan administrators to file with the Board: (1) the annual report, within a specified period; and (2) upon request, any other plan-related document.
Sets forth: (1) conditions under which such filings may be provided to the public; and (2) penalties for violations of such conditions.
Authorizes the Board to: (1) reject such filings, under specified conditions; and (2) take specified appropriate actions if a revised and satisfactory filing is not submitted within 45 days.
Sets forth requirements for retention of plan records.
Requires plans covered by this Act to establish claims procedures that provide participants with adequate written notice and explanation of benefit denials and reasonable opportunity for full and fair review.
Authorizes the Board to: (1) prescribe alternative methods of plan compliance with any requirement of this title; and (2) exempt any plan or class of plans from any such requirement (if necessary, in the public interest and consistent with the purposes of this Act). Directs the Board to consider recommendations of the Advisory Council on Governmental Plans, established under this Act, before issuing such exemptions or prescribing such alternative compliance methods.
Subtitle B: Fiduciary Responsibility - 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, other employer obligations, and employer real property to ten percent of the fair market value of the assets of the plan. Provides for exemptions from prohibited transactions.
Makes a fiduciary personally liable for the breach of any of the responsibilities, obligations, or duties imposed upon fiduciaries by this Act.
Prohibits relieving fiduciaries of responsibilities under this Act, but permits purchases of fiduciary insurance.
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 for a limitation on actions against fiduciaries.
Provides that no legislator or government official shall be a fiduciary or co-fiduciary with respect to actions taken in an official capacity.
Subtitle C: Administration and Enforcement - 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 personnally 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 Board power to investigate violations of this title and of any regulations the Board may prescribe to carry out this title.
Directs the Board to cooperate with State and local governments in exchanging information on plans.
Provides that specified Federal laws relating to administrative procedure shall be applicable to this title.
Prohibits any employee of the Board from administering or enforcing this title with respect to: (1) any plan under which the employee is a participant or beneficiary; or (2) any employee organization of which the employee is a member.
Prohibits persons from taking retaliatory action against either a plan participant or a beneficiary for exercising any right under this Act, or from interfering with or preventing the exercise of such rights.
Directs the Board to transmit specified information to the Secretary of Health and Human Services.
Amends the Social Security Act to require the Secretary of Health and Human Services to transmit to an individual, upon request, specified information obtained under the Internal Revenue Code or under this Act (relating to deferred vested pension benefits).
Establishes an 11-member Advisory Council on Governmental Plans, to be appointed by the President, to advise and make recommendations to the Board with respect to its functions under this Act.
Authorizes the Board to undertake research and compile information relating to pension plans. Directs the Board 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.
Sets forth other provisions relating to the effect of specified provisions of this Act on State and local laws.
Authorizes appropriations to enable the Board to carry out its functions and duties under this title.
Amends the Internal Revenue Code to provide that any pension plan or trust forming part of a plan subject to this title shall be deemed to have met the requirements for a tax qualified plan or trust.
Amends the Internal Revenue Code to add provisions for tax exemptions with respect to public employee pension benefit plans as defined under this title.
Sets forth severability provisions and effective dates.
Title II: Employee Benefit Administration - Employee Benefit Administration Act of 1981 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) to direct the President to establish, by the beginning of the second calendar year after enactment of this title, the Employee Benefit Administration (EBA) as an independent agency within the executive branch, to be headed by a three member Board of Directors. Creates two new positions, entitled special liaison officer to the EBA, one within the Department of Labor and one within the Department of the Treasury, to serve as directors. Provides for an Executive Director to serve as chairperson of the Board. Provides, in addition to the Executive Director, for four officers in the EBA, including one or more officers of the Pension Benefit Guaranty Corporation.
Sets forth administrative provisions for the Board.
Sets forth the functions of the Board, including transfers of specified functions (relating to employee benefit plans) of the Secretaries of Labor and the Treasury under ERISA, the Internal Revenue Code and the Welfare and Pension Plan Disclosure Act. Directs the President to transfer to the Board 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.
Sets forth provisions for coordination between agencies.
Authorizes appropriations (under ERISA) to the EBA to enable the Board to carry out its functions and duties.
Sets forth transfers to the Board of specified administrative and enforcement functions and duties of the Secretaries of Labor and the Treasury under ERISA and the Internal Revenue Code.
Redesignates the Joint Board for the Enrollment of Actuaries as the "Actuary Enrollment Board," and transfers it, as a distinct entity, to the EBA.
Provides for effective dates of transfers of functions. Provides for transfers of officers and employees to the EBA.
Sets forth transitional and savings provisions.
Sets forth miscellaneous and conforming amendments.
Executive Comment Requested from Pension Benefit Guaranty Corporation, IRS.
Introduced in Senate
Read twice and referred jointly to the Committees on Finance; Labor and Human Resources by unanimous consent.
Committee on Finance requested executive comment from OMB; Treasury Department; Health and Human Services Department; Labor Department.
Committee on Labor and Human Resources, referred to Subcommittee on Labor.
Committee on Labor and Human Resources requested executive comment from Labor Department; Treasury Department; Health and Human Services Department; GAO; OMB.
Subcommittee on Savings, Pensions, and Investment. Hearings held.
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