Public Employee Retirement Income Security Act of 1981

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.

Title I: Reporting and Disclosure - Requires that plan administrators submit, within a specified period, registration statements to the Secretary of Labor, 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 Secretary 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 Secretary: (1) the annual report, within a specified period; (2) a copy of the summary plan description; and (3) 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 Secretary 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 Secretary 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 Secretary to consider recommendations of the Advisory Council on Governmental Plans, established under this Act, before issuing such exemptions or prescribing such alternative compliance methods.

Title II: Requirements Relating to 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 five 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 from requirements of 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.

Title III: 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 Secretary the power to investigate violations of this Act and of any regulations the Secretary may prescribe to carry out this Act.

Directs the Secretary 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 Act.

Prohibits any employee of the Secretary from administering or enforcing this Act 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.

Establishes an 11-member Advisory Council on Governmental Plans, to be appointed by the President, to advise and make recommendations to the Secretary with respect to its functions under this Act.

Authorizes the Secretary to undertake research and compile information relating to pension plans. Directs the Secretary 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 Secretary to carry out functions and duties under this Act.

Sets forth severability provisions and effective dates.