,,ii #aacth ,,congress #b;d ,session ,s4 #aigi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #cj1 #bjad,mr4 ,harkin 7for himself and ,mr4 ,brown7 introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to provide for ,,usa ,retirement ,funds1 to reform the pension system1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,,usa ,retirement ,funds ,act4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,,title ,i--,,usa ,retirement funds,sec4 #aja4 ,automatic ,,usa ,retirement ,fund arrangements4,sec4 #ajb4 ,establishment of ,,usa ,retirement ,funds4,sec4 #ajc4 ,commission on ,,usa ,retirement ,funds4,sec4 #ajd4 ,limitation on employer liability4,sec4 #aje4 ,enforcement and fraud prevention4,,title ,,ii--,defined contribution plan reforms,subtitle ,a--,savings enhancements,sec4 #bja4 ,pooled employer plans4,sec4 #bjb4 ,pooled employer and multiple employer plan reporting4,subtitle ,b--,participant ,protections,sec4 #baa4 ,alternative fiduciary arrangements to protect plan participants4,sec4 #bab4 ,rollover protections4,subtitle ,c--,lifetime income,sec4 #bba4 ,lifetime income disclosure4,sec4 #bbb4 ,lifetime income safe harbor4,sec4 #bbc4 ,default investment safe harbor clarification4,sec4 #bbd4 ,administration of joint and survivor annuity requirements4,,title ,,iii--,defined benefit system reforms,subtitle ,a--,defined benefit pension plan reforms,sec4 #cja4 ,hybrid plans4,sec4 #cjb4 ,clarification of the normal retirement age4,sec4 #cjc4 ,moratorium on imposition of shutdown liability4,sec4 #cjd4 ,alternative funding target attainment percentage determined without regard to reduction for credit balances4,sec4 #cje4 ,method for determining changes for quarterly contributions4,sec4 #cjf4 ,election to discount contributions from final due date4,sec4 #cjg4 ,simplification of elections and notices4,sec4 #cjh4 ,improved multiemployer plan disclosure4,subtitle ,b--,improvements to the pension insurance program,sec4 #caa4 ,modifications of technical changes made by the ,pension ,protection ,act of #bjjf to termination liability4,sec4 #cab4 ,payment of lump sum distributions in bankruptcy4,sec4 #cac4 ,trusteeship clarifications4,sec4 #cad4 ,recordkeeping for terminating plans4,sec4 #cae4 ,termination date in bankruptcy4,,title ,,iv--,other systemic reforms,sec4 #dja4 ,plan audit quality improvement4,sec4 #djb4 ,special rules relating to treatment of qualified domestic relations orders4,sec4 #djc4 ,correction to bonding requirement4,sec4 #djd4 ,retaliation protections4 ,i ,,usa ,retirement funds #aja4 ,automatic ,,usa ,retirement ,fund arrangements 7a7 ,requirement ,to provide access ,each covered employer shall make available to each qualifying employee for the calendar year an automatic ,,usa ,retirement ,fund arrangement4 7b7 ,covered employer ,for purposes of this title-- 7#a7 ,in general ,except as otherwise provided in this subsection and subsection 7c77#b71 the term covered employer means1 with respect to any calendar year1 an employer who does not maintain a qualifying plan or arrangement for any part of such year4 7#b7 ,qualifying plan or arrangement 7,a7 ,in general ,the term qualifying plan or arrangement means a plan or arrangement described in section #bai7;g77#e7 of the ,internal ,revenue ,code of #aihf4 7,b7 ,exceptions ,such term shall not include the following3 7i7 ,frozen defined benefit plan ,a defined benefit plan that had no ongoing accruals as of the first day of the preceding calendar year1 unless the plan failed to have accruals only because of the application of section #bjf of the ,employee ,retirement ,income ,security ,act 7#bi ,u4,s4,c4 #ajef7 and section #dcf of the ,internal ,revenue ,code of #aihf4 7ii7 ,defined contribution plan without lifetime income options ,a defined contribution plan that does not provide participants with a distribution option that provides lifetime income4 7iii7 ,plans not meeting contribution requirements ,a plan-- 7,i7 which consists of a cash or deferred arrangement 7as defined in section #dja7k7 of such ,code7 with respect to which the employer does not automatically enroll all eligible employees at contribution rates at or above those specified in subsection 7d77#d72 or 7,,ii7 for which the only contributions are nonelective employer contributions and with respect to which the employer's annual contribution rate is not at or above the rates specified in subsection 7d77#d74 7#c7 ,exception for certain small and new employers 7,a7 ,in general ,the term covered employer shall not include an employer for a calendar year if the employer-- 7i7 did not employ during the preceding calendar year more than #aj employees who each received at least #e1jjj of compensation 7as defined in section #cdja7;a7 of the ,internal ,revenue ,code of #aihf7 from the employer for such preceding calendar year2 7ii7 did not normally employ more than #aj employees on a typical business day during the preceding calendar year2 or 7iii7 was not in existence at all times during the calendar year and the preceding calendar year4 7,b7 ,operating rules ,in determining the number of employees for purposes of subparagraph 7,a7-- 7i7 rules consistent with any rules applicable in determining the number of employees for purposes of section #djh7p77#b77;,c7 and section #dihj;,b7d7 of the ,internal ,revenue ,code of #aihf shall apply2 7ii7 all members of the same family 7within the meaning of section #cah7;a77#a7 of the ,internal ,revenue ,code of #aihf7 shall be treated as #a individual2 and 7iii7 any reference to an employer shall include a reference to any predecessor employer4 7#d7 ,exception for governments and churches ,the term covered employer shall not include-- 7,a7 a government or entity described in section #dad7;d7 of the ,internal ,revenue ,code of #aihf2 or 7,b7 a church or a convention or association of churches that is exempt from tax under section #eja of such ,code4 7#e7 ,aggregation rule ,a person treated as a single employer under subsection 7a7 or 7b7 of section #eb of the ,internal ,revenue ,code of #aihf or subsection 7m7 or 7o7 of section #dad of such ,code shall be treated as a single employer4 7c7 ,qualifying employee ,for purposes of this title-- 7#a7 ,in general ,the term qualifying employee means any employee who is not an excluded employee4 7#b7 ,plan sponsor's employees ,if-- 7,a7 an employer maintains one or more qualifying plans or arrangements described in section #bai7;g77#e7 of the ,internal ,revenue ,code of #aihf2 and 7,b7 the employees of a subsidiary1 division1 or other business unit are generally not eligible to participate in any such qualifying plan or arrangement1 for purposes of this section1 the employer shall be treated as a covered employer with respect to such employees 7other than excluded employees71 and such employees 7other than excluded employees7 shall be treated as qualifying employees for the calendar year4 7#c7 ,excluded employees 7,a7 ,in general ,the term excluded employee means an employee who is an excludable employee and who is in a class or category that the employer excludes from treatment as qualifying employees4 7,b7 ,excludable employee ,the term excludable employee means-- 7i7 an employee described in section #daj7;b77#c7 of the ,internal ,revenue ,code of #aihf2 7ii7 an employee who has not attained the age of #ba before the beginning of the calendar year2 7iii7 an employee who has not completed at least #c months of service with the employer2 7iv7 in the case of an employer that maintains a qualifying plan or arrangement which excludes employees who have not satisfied the minimum age and service requirements for participation in the plan1 an employee who has not satisfied such requirements2 7v7 in the case of an employer that maintains an annuity contract 7including a custodial account or retirement income account7 under section #djc7;b7 of the ,internal ,revenue ,code of #aihf1 an employee who is permitted to be excluded from any salary reduction arrangement under the contract pursuant to paragraph 7#ab7 of such section #djc7;b72 7vi7 in the case of an employer that maintains an arrangement described in section #djh7p7 of such ,code1 an employee who is not required to be eligible to participate in the arrangement under paragraph 7#d7 of such section #djh7p72 and 7vii7 in the case of an employer that maintains a simplified employee pension described in section #djh7k7 of such ,code1 an employee who is permitted to be excluded from participation under paragraph 7#b7 of such section #djh7k74 7#d7 ,guidance ,the ,secretary of ,labor 7in this title referred to as the ,secretary7 shall issue regulations or other guidance to carry out this subsection1 including-- 7,a7 guidelines for determining the classes or categories of employees to be covered by a ,,usa ,retirement ,fund2 7,b7 guidelines requiring employers to specify the classification or categories of employees 7if any7 who are excluded from the ,,usa ,retirement ,fund2 and 7,c7 rules to prevent avoidance of the requirements of this section4 7d7 ,automatic ,,usa ,retirement ,fund arrangement ,for purposes of this title-- 7#a7 ,in general ,the term automatic ,,usa ,retirement ,fund arrangement means an arrangement of an employer 7determined without regard to whether the employer is required to maintain the arrangement7-- 7,a7 that covers each qualifying employee of the covered employer for the calendar year2 7,b7 under which a qualifying employee-- 7i7 may elect-- 7,i7 to contribute to an automatic ,,usa ,retirement ,fund by having the employer deposit payroll deduction amounts or make other periodic direct deposits 7including electronic payments7 to the ,fund2 or 7,,ii7 to have such payments paid to the employee directly in cash2 7ii7 is treated as having made the election under clause 7i77,i7 in the amount specified in paragraph 7#d7 unless the individual specifically elects not to have such contributions made 7or specifically elects to have such contributions made at a different percentage or in a different amount72 and 7iii7 not more than once per calendar year1 may elect to modify the selection of the ,,usa ,retirement ,fund to which contributions are made for such year2 and 7,c7 that meets the administrative requirements of paragraph 7#c71 including the notice requirement of paragraph 7#c77;,c74 7#b7 ,automatic re-enrollment ,an employee's election not to contribute to a ,,usa ,retirement ,fund 7or to have such contributions made at a different percentage or in a different amount from those specified in paragraph 7#d77 shall expire after #b years4 ,after such #b-year period and absent a new election1 the employee shall be treated as having made the election under paragraph 7#a77;,b77i77,i7 in the amount specified in paragraph 7#d74 7#c7 ,administrative requirements 7,a7 ,payments ,an employer shall make the payments elected or treated as elected under paragraph 7#a77;,b7 on or before-- 7i7 the last day of the month following the month in which the compensation otherwise would have been payable to the employee in cash2 or 7ii7 such later date as the ,secretary may prescribe4 7,b7 ,termination of employee participation ,subject to a requirement for reasonable notice1 an employee may elect to terminate participation in the arrangement at any time during a calendar year4 ,the arrangement may provide that1 if an employee so terminates participation1 the employee may not elect to resume participation until the beginning of the next calendar year4 7,c7 ,notice of election period ,the employer shall notify each employee eligible to participate for a year in a ,,usa ,retirement ,fund arrangement1 within a reasonable period of time before the #cjth day before the beginning of such year 7and1 for the first year the employee is so eligible1 the #cjth day before the first day such employee is so eligible71 of-- 7i7 the payments that may be elected or treated as elected under paragraph 7#a77;,b72 7ii7 the opportunity to make the election to terminate participation in the arrangement under subparagraph 7,b72 7iii7 the opportunity to make the election under paragraph 7#a77;,b77ii7 to have contributions or purchases made at a different percentage or in a different amount2 and 7iv7 the opportunity under paragraph 7#a77;,b77iii7 to modify the manner in which such amounts are invested for such year4 7,d7 ,employees may choose usa retirement fund ,the arrangement shall provide that a qualified employee may elect to have contributions made to any ,,usa ,retirement ,fund available to the employee4 7#d7 ,amount of contributions and payments ,the amount specified in this paragraph is-- 7,a7 #c percent of compensation for the calendar year beginning on ,january #a1 #bjae2 7,b7 #d percent of compensation for the calendar year beginning on ,january #a1 #bjaf2 7,c7 #e percent of compensation for the calendar year beginning on ,january #a1 #bjag2 and 7,d7 #f percent of compensation for calendar years beginning after ,december #ca1 #bjag4 7#e7 ,coordination with withholding ,the ,secretary of the ,treasury shall modify the withholding exemption certificate under section #cdjb7;f7 of the ,internal ,revenue ,code of #aihf so that1 in the case of any qualifying employee covered by a ,,usa ,retirement ,fund arrangement1 any notice and election requirements with respect to the arrangement may be met through the use of an attachment to such certificate or other modifications of the withholding exemption procedures4 7e7 ,deposits to ,,usa ,retirement ,funds 7#a7 ,in general ,except as provided in paragraph 7#b71 an employer shall make all contributions on behalf of employees to the ,,usa ,retirement ,fund specified by the employee4 7#b7 ,,usa retirement funds other than those selected by employee ,in the absence of an affirmative selection of a ,,usa ,retirement ,fund by the employee1 contributions on behalf of the employee shall be made to the ,,usa ,retirement ,fund designated by the employer4 7#c7 ,regulations ,the ,secretary may issue such regulations as are necessary to carry out this subsection4 7f7 ,preemption of conflicting ,state laws ,the requirements under this section preempt any law of a ,state that directly or indirectly prohibits or restricts the establishment or operation of an automatic ,,usa ,retirement ,fund arrangement4 ,nothing in this section shall be construed to impair or preempt any ,state law to the extent such ,state law provides a remedy for the failure to make payroll deposit payments under any such automatic ,,usa ,retirement ,fund arrangement within the period required4 #ajb4 ,establishment of ,,usa ,retirement ,funds 7a7 ,qualification as a ,,usa ,retirement ,fund ,for purposes of this title-- 7#a7 ,in general ,the term ,,usa ,retirement ,fund means a fund for which the ,secretary has determined the requirements under this title are met4 7#b7 ,request for determination ,the board of trustees of a program established for purposes of being treated as a ,,usa ,retirement ,fund under this section shall1 prior to beginning operations1 submit to the ,secretary 7at such time and in such manner as the ,secretary may prescribe7 a request for the ,secretary to make a determination as to whether the plan meets the requirements of this title for such treatment4 ,such request shall include copies of the written documents establishing the plan and such other materials as the ,secretary may request4 ,the ,secretary shall make such determination within #ahj days of receiving such request4 7#c7 ,periodic review ,the ,secretary shall establish a process to periodically review each plan determined to be a ,,usa ,retirement ,fund under paragraph 7#a7 to ensure that the plan continues to meet the requirements of this title4 7#d7 ,public list of plans ,the ,secretary shall maintain a public list of plans determined by the ,secretary to qualify as ,,usa ,retirement ,funds4 ,such list shall be posted to a publicly available ,internet website4 7b7 ,participation 7#a7 ,eligibility ,an individual may participate in any ,,usa ,retirement ,fund for which such individual meets the eligibility requirements1 individually or through an arrangement established by an employer4 7#b7 ,participation in other plans ,an individual who participates in a ,,usa ,retirement ,fund shall not be precluded from participating in a plan or arrangement described in section #bai7;g77#e7 of the ,internal ,revenue ,code of #aihf4 7c7 ,governance 7#a7 ,assets held in trust2 board of trustees ,for purposes of this title-- 7,a7 the assets of each ,,usa ,retirement ,fund shall be held in trust1 and 7,b7 the ,fund shall be governed by a board of trustees which shall consist of at least #c individuals who-- 7i7 are independent of service providers to the ,fund2 7ii7 meet the qualification requirements established under this section2 and 7iii7 are collectively able to adequately represent the interests of active participants1 retirees1 and contributing employers4 7#b7 ,independence requirement ,an individual is not independent of ,fund service providers for purposes of paragraph 7#a77;,b77i7 if such individual-- 7,a7 is an employee of any ,fund service provider2 7,b7 is a current or former officer or director of a significant ,fund service provider1 or is otherwise affiliated with such a provider2 7,c7 is a member of the immediate family of any person who is affiliated with a significant ,fund service provider2 7,d7 derives more than #a percent of the individual's annual income from a significant ,fund service provider2 7,e7 derives more than #e percent of the individual's annual income from any ,fund service provider2 or 7,f7 fails to meet meets such other criteria as are specified by the ,secretary to ensure the independence of the board of directors4 7#c7 ,multiple trusteeships ,no individual may serve on the board of trustees of more than #a ,,usa ,retirement ,fund unless the ,secretary receives attestation from the board of trustees of each applicable ,,usa ,retirement ,fund and the individual that1 at the time of appointment1 there is no reasonably foreseeable conflict between the duties of such individual to the participants in each applicable ,,usa ,retirement ,fund4 ,in no case may an individual serve on the boards of trustees of more than #c ,,usa ,retirement ,funds4 7#d7 ,trustee qualifications ,each trustee of a ,,usa ,retirement ,fund shall attest that the trustee is knowledgeable of the trustee's duties and responsibilities as a fiduciary of a ,,usa ,retirement ,fund4 ,the ,secretary may require by regulation such other qualifications and documentation as may be necessary to ensure that trustees are suitable and qualified4 ,such requirements may include those related to education1 training1 and minimum competency standards4 7#e7 ,trustee selection and removal 7,a7 ,in general ,each board of trustees of a ,,usa ,retirement ,fund shall establish written procedures regarding the appointment1 removal1 and replacement of trustees on the board4 ,such procedures shall-- 7i7 take effect after adoption by the majority of the board of trustees2 7ii7 be readily available to participants2 7iii7 provide participants with a reasonable opportunity to comment on1 or participate in1 the trustee selection process2 and 7iv7 provide for periodic election of trustees4 7,b7 ,removal by the secretary ,the ,secretary may require removal or suspension of a trustee if the conduct of the trustee is fraudulent or is causing1 or can be reasonably expected to cause1 significant1 imminent1 and irreparable harm to the participants or beneficiaries of a ,,usa ,retirement ,fund4 7,c7 ,funds without qualified trustees ,if a board of trustees of a ,,usa ,retirement ,fund has no members meeting the criteria under this subsection1 the ,secretary shall appoint replacement trustees4 7#f7 ,trustee compensation ,trustees of the ,fund may be compensated at reasonable rates from the ,fund1 but only if such compensation is paid in accordance with the written board compensation policy adopted under paragraph 7#g77;,a77iv74 7#g7 ,transparency and participant democracy 7,a7 ,publicly available policies ,the board of trustees of a ,,usa ,retirement ,fund shall adopt and make available to participants and beneficiaries of1 and employers contributing to1 the ,,usa ,retirement ,fund-- 7i7 a written investment policy statement2 7ii7 a written lifetime income policy statement2 7iii7 an annual performance assessment of the board of trustees1 including an evaluation of weaknesses of the board and a plan to address such weaknesses2 7iv7 a written board compensation policy that includes current compensation levels and provides a reasonable opportunity for comment from participants1 beneficiaries1 and employers2 and 7v7 a written policy addressing conflicts of interests with respect to trustees4 7,b7 ,participant input regarding board of trustees 7i7 ,in general ,the board of trustees of a ,,usa ,retirement ,fund shall establish procedures whereby a participant or beneficiary of such ,,usa ,retirement ,fund may-- 7,i7 petition the board of trustees to remove a trustee or service provider2 7,,ii7 comment on the management and administration of the ,,usa ,retirement ,fund2 and 7,,iii7 with respect to a ,,usa ,retirement ,fund with more than #bej1jjj1jjj of assets1 vote to approve or disapprove the compensation of the trustees at least once every #c years4 7ii7 ,effect of vote ,if participants and beneficiaries of a ,,usa ,retirement ,fund vote to disapprove the compensation of trustees under clause 7i77,,iii7-- 7,i7 the results of such vote shall not be binding on the board of trustees2 and 7,,ii7 the board of trustees shall notify the ,secretary of the results of such vote and provide an explanation of why the compensation is reasonable or anticipated changes to the compensation4 7#h7 ,liability insurance for trustees ,the trustees of each ,,usa ,retirement ,fund shall have fiduciary liability insurance with a per-claim limit equal to no less than the greater of-- 7,a7 #e percent of plan assets2 or 7,b7 #a1jjj1jjj4 7#i7 ,trustee duties 7,a7 ,in general ,the trustees of a ,,usa ,retirement ,fund shall manage the ,fund with the intention of providing each participant with a cost-effective stream of income in retirement and reducing benefit level volatility 7particularly for those approaching retirement74 7,b7 ,applicability of other requirements ,each trustee of a ,,usa ,retirement ,fund shall be a fiduciary subject to sections #djd7;a71 #djd7;b71 #dje1 #djf1 and #djh through #dac of the ,employee ,retirement ,income ,security ,act of #aigd with respect to the ,fund and participants and beneficiaries of the ,fund4 ,each such trustee shall be subject to the standards and remedies of such sections and section #ejb of such ,act1 as if the ,fund were an employee benefit plan4 7d7 ,employer contribution limitation 7#a7 ,in general ,subject to paragraph 7#b71 employers may1 in addition to contributions an employee elects 7or is treated as having elected7 to have made1 make a contribution of up to #e1jjj per year to a ,,usa ,retirement ,fund on behalf of each employee eligible to participate in a ,,usa ,retirement ,fund1 provided such contributions are made in a uniform manner 7as the same dollar amount for each such employee or the same percentage of pay for each such employee7 and are not intended to benefit solely highly compensated employees4 7#b7 ,annual indexing of amount ,the dollar amount under paragraph 7#a7 shall be indexed annually for inflation4 7e7 ,benefits in the form of an annuity 7#a7 ,in general ,a ,,usa ,retirement ,fund shall pay benefits in the form of an annuity in accordance with paragraph 7#b74 ,the amount of such benefits shall be dependent on the amount of contributions made by the participant1 the experience of the ,fund1 and the form of distribution elected by the participant4 ,the amount of an annuity may be adjusted to reflect the experience of the ,fund as necessary to protect the financial integrity of the ,fund1 except that annuity payments for those in pay status shall not be reduced more than #e percent per year unless the ,fund is faced with a significant financial hardship and the ,secretary has approved the reduction4 7#b7 ,annuity ,a ,,usa ,retirement ,fund shall pay benefits in accordance with one of the following3 7,a7 ,in the case of a participant who does not die before the annuity starting date1 the benefit payable to such participant shall be provided in the form of a qualified joint and survivor annuity 7as defined in section #bje7;d77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajee7;d77#a7774 7,b7 ,in the case of a participant who dies before the annuity starting date and who has a surviving spouse1 a qualified preretirement survivor annuity 7as defined in section #bje7;d77#b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajee7;d77#b777 shall be provided to the surviving spouse of such participant4 7,c7 ,in lieu of a qualified joint and survivor annuity form of benefit or the qualified preretirement survivor annuity form of benefit 7or both71 a participant may elect to receive a distribution described in subsection 7f77#b7 if one of the following conditions are met3 7i7 7,i7 ,the spouse of the participant consents in writing to the election4 7,,ii7 ,such election designates a beneficiary 7or form of benefits7 which may not be changed without spousal consent 7or the consent of the spouse expressly permits designations by the participant without any requirement of further consent by the spouse74 7,,iii7 ,the spouse's consent acknowledges the effect of such election and is witnessed by a plan representative or a notary public4 7ii7 ,it is established to the satisfaction of a ,fund representative that the consent required under subclause 7,i7 cannot be obtained because there is no spouse1 because the spouse cannot be located1 or because of such other circumstances as the ,secretary may by regulations prescribe4 ,the consent of a spouse 7or establishment that the consent of a spouse cannot be obtained7 under this subparagraph shall be effective only with respect to such spouse4 7#c7 ,commencement of benefit payments ,a participant may elect the time to start receiving benefit payments from the ,,usa ,retirement ,fund1 except that a participant-- 7,a7 except as provided in subsection 7f77#b77;,b71 may not elect to receive benefit payments before reaching the age of #fj2 and 7,b7 must begin receiving benefit payments before the age of #gb4 7#d7 ,notice ,each ,fund shall provide to each participant1 within a reasonable period of time before the annuity starting date1 a written explanation substantially similar to that required by section #bje7;c77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajee7;c77#c774 7#e7 ,assignment or alienation of fund benefits ,benefits under a ,,usa ,retirement ,fund shall be subject to section #bjf7;d7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajef7;d774 7f7 ,limits on withdrawals and transfers 7#a7 ,transfers ,a participant may1 not more frequently than once per year1 transfer such participant's benefit to another ,,usa ,retirement ,fund4 7#b7 ,limits on distributions 7,a7 ,in general ,except as provided in subparagraphs 7,b7 and 7,c71 a participant may not take a distribution other than one described in subsection 7e77#b74 7,b7 ,participants aged #ei and younger ,a participant may before age #fj take a distribution of a portion of the participant's benefit if such distribution does not to exceed #e1ejj and is rolled over to a qualifying plan or arrangement described in section #bai7;g77#e7 of the ,internal ,revenue ,code of #aihf or an individual retirement plan4 7,c7 ,participants aged #fj and older ,a participant who is #fj or older but who has not entered pay status may elect one time to take a distribution of the greater of #aj1jjj or #ej percent of the participant's benefit if the participant demonstrates to the satisfaction of the trustees of the ,fund that the participant has sufficient retirement income apart from the ,fund or is facing a substantial hardship4 7g7 ,methods for providing annuitized benefit payments 7#a7 ,in general ,a ,,usa ,retirement ,fund shall establish and maintain mechanisms for adequately securing the payment of annuity benefits from the ,fund4 ,the ,fund shall include a written description of such mechanisms in the investment and lifetime income policy statements required to be disclosed to participants4 7#b7 ,specific goals ,the mechanisms described in paragraph 7#a7 shall ensure that-- 7,a7 each participant receives a stream of income for life2 7,b7 each participant and beneficiary has an opportunity to be protected against longevity risk2 and 7,c7 volatility in benefit levels is minimized for participants and beneficiaries in pay status and those approaching pay status4 7#c7 ,self-annuitization 7,a7 ,in general ,notwithstanding any other provision of law1 a ,,usa retirement ,fund may self-annuitize if the ,fund meets such requirements as the ,secretary establishes as necessary to protect participants and beneficiaries in consideration of the recommendations of the ,commission under section #ajc4 7,b7 ,duty to address emerging issues ,the ,secretary shall1 periodically and in accordance with established procedures1 update the funding requirements promulgated under this paragraph in response to changing economic and business conditions to the extent necessary to carry out the purposes of this ,act1 taking into consideration the recommendations of the ,commission4 7h7 ,reporting and disclosure 7#a7 ,annual statement ,the trustees of a ,,usa ,retirement ,fund shall provide each participant in the ,fund an annual statement of-- 7,a7 the estimated amount of the monthly benefit which the participant or beneficiary is projected to receive from the ,,usa ,retirement ,fund1 in the form of the default benefit described in the plan in accordance with subsection 7e77#b72 7,b7 an explanation1 written in a manner calculated to be understood by the average plan participant1 that includes interest and mortality assumptions used in calculating the estimate and a statement that actual benefits may be materially different from such estimate2 7,c7 a disclosure of ,fund fees and performance that is substantially similar to the disclosures required of individual account plans under the ,employee ,retirement ,income ,security ,act of #aigd2 7,d7 any other disclosures1 including projected benefit estimates1 that the board of trustees of the ,,usa ,retirement ,fund determines appropriate2 and 7,e7 such other disclosures as may be required by the ,secretary4 7#b7 ,summary plan description ,the trustees of a ,,usa ,retirement ,fund shall provide participants a summary plan description 7as described in section #ajb of the ,employee ,retirement ,income ,security ,act 7#bi ,u4,s4,c4 #ajbb77 as required by section #ajd7;b7 of the ,employee ,retirement ,income ,security ,act 7#bi ,u4,s4,c4 #ajbd7;b774 7#c7 ,annual reports ,the trustees of a ,,usa ,retirement ,fund shall file with the ,secretary of ,labor periodic reports in accordance with regulations promulgated by the ,secretary4 7#d7 ,additional requirements ,each ,,usa ,retirement ,fund shall be subject to sections #ajf and #ajg of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbf1 #ajbg74 #ajc4 ,commission on ,,usa ,retirement ,funds 7a7 ,recognition of private commission ,the ,secretary shall-- 7#a7 recognize an independent1 private commission1 to be known as the ,commission for ,,usa ,retirement ,funds ,funding 7referred to in this title as the ,commission71 and 7#b7 in carrying out the ,secretary's duties under this title1 consider the recommendations of such ,commission4 7b7 ,commission ,the ,commission recognized under subsection 7a7 shall meet the following requirements3 7#a7 ,membership 7,a7 ,composition ,the ,commission shall be composed of #i members selected by the ,secretary1 in consultation with the ,secretary of the ,treasury1 of whom no more than #e may be from one political party4 ,the ,secretary shall designate one member of the ,commission as the ,chairman4 ,no person may be appointed to the ,commission if1 during the #b-year period preceding the date of appointment1 such person was a trustee of a ,,usa ,retirement ,fund4 7,b7 ,date ,the appointments of the members of the ,commission shall be made not later than #ij days after the date of enactment of this ,act4 7,c7 ,period of appointment2 vacancies ,members shall be appointed for terms of #b years and may be appointed for consecutive terms4 ,any vacancy in the ,commission shall not affect its powers1 and shall be filled in the same manner as the original appointment4 7#b7 ,majority vote ,the ,commission may act by majority vote of its members1 provided that at least #g members are present4 7#c7 ,commission personnel matters 7,a7 ,compensation of members ,each member of the ,commission who is not an officer or employee of the ,federal ,government shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level ,,iv of the ,executive ,schedule under section #ecae of title #e1 ,united ,states ,code1 for each day 7including travel time7 during which such member is engaged in the performance of the duties of the ,commission4 ,all members of the ,commission who are officers or employees of the ,united ,states shall serve without compensation in addition to that received for their services as officers or employees of the ,united ,states4 7,b7 ,travel expenses ,the members of the ,commission shall be allowed travel expenses1 including per diem in lieu of subsistence1 at rates authorized for employees of agencies under subchapter ,i of chapter #eg of title #e1 ,united ,states ,code1 while away from their homes or regular places of business in the performance of services for the ,commission4 7,c7 ,staff 7i7 ,in general ,the ,chairman of the ,commission may1 without regard to the civil service laws and regulations1 appoint and terminate an executive director and such other additional personnel as may be necessary to enable the ,commission to perform its duties4 ,the employment of an executive director shall be subject to confirmation by the ,commission4 7ii7 ,compensation ,the ,chairman of the ,commission may fix the compensation of the executive director and other personnel without regard to chapter #ea and subchapter ,,iii of chapter #ec of title #e1 ,united ,states ,code1 relating to classification of positions and ,general ,schedule pay rates1 except that the rate of pay for the executive director and other personnel may not exceed the rate payable for level ,v of the ,executive ,schedule under section #ecaf of such title4 7iii7 ,detail of government employees ,any ,federal ,government employee may be detailed to the ,commission without reimbursement1 and such detail shall be without interruption or loss of civil service status or privilege4 7iv7 ,procurement of temporary and intermittent services ,the ,chairman of the ,commission may procure temporary and intermittent services under section #caji7;b7 of title #e1 ,united ,states ,code1 at rates for individuals which do not exceed the daily equivalent of the annual rate of basic pay prescribed for level ,v of the ,executive ,schedule under section #ecaf of such title4 7#d7 ,recommendations and regulations on funding and distribution requirements 7,a7 ,in general ,after taking into consideration the recommendations of the ,commission and providing the public notice and an opportunity for comment1 the ,secretary shall promulgate regulations with respect to funding and distribution requirements for ,,usa ,retirement ,funds1 as necessary or appropriate in the public interest and for the protection of participants and beneficiaries1 including regulations described in subparagraphs 7,b7 and 7,c74 7,b7 ,requirements relating to annuity payments made directly by a ,fund ,the regulations under subparagraph 7,a7 shall provide that in the case of annuity payments made directly by the ,fund-- 7i7 the maximum annuity payment for a participant or beneficiary shall be determined using the mortality tables and interest rates prescribed by the ,secretary under subparagraph 7,c7 at the time benefits commence2 and 7ii7 the level of benefits paid may be adjusted periodically in order to reflect the mortality experience and the investment experience of the ,fund1 but only after the ,fund has obtained a certification from a member of the ,american ,academy of ,actuaries that the adjustment is sustainable for the remaining lifetime of participants then receiving benefits1 based on the mortality tables and interest rates prescribed under subparagraph 7,c7 by the ,secretary for that time4 7,c7 ,mortality tables and interest rates used requirements ,the regulations promulgated under subparagraph 7,a7 shall include the following3 7i7 ,mortality ,tables 7,i7 ,in general ,the ,secretary shall prescribe mortality tables to be used in determining annuity payments made directly by the ,fund4 ,such tables shall be based on the actual experience of insurance companies that issue group annuities and projected trends in such experience4 ,in prescribing such tables1 the ,secretary shall take into account results of available independent studies of the mortality of individuals receiving annuities under group annuity contracts4 7,,ii7 ,periodic revisions of mortality tables ,the ,secretary shall make revisions1 to become effective as soon as practicable1 in any mortality table in effect to reflect more recent actual experience of insurance companies that issue group annuities and projected trends in such experience4 ,in revising such tables1 the ,secretary shall take into account the results of more recent available independent studies of the mortality and projected trends of individuals receiving annuities under group annuity contracts4 7ii7 ,interest ,rates ,the ,secretary shall prescribe interest rates to be used in determining annuity payments made directly by the ,fund4 ,such rates shall be based on the yields on investment grade corporate bonds with varying maturities and that are in the top #c quality levels available4 ,interest rates shall be prescribed quarterly or more frequently1 as determined by the ,secretary4 7#e7 ,duty to address best practices ,the ,commission shall prepare1 and periodically update1 a report that describes the best practices for the governance of boards of trustees of ,,usa ,retirement ,funds1 including board of trustee composition1 appointment procedures1 term length1 term staggering1 trustee qualifications1 delegation of duties1 and performance assessment procedures4 #ajd4 ,limitation on employer liability ,section #djd of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajba et seq47 is amended by adding at the end the following3 7e7 ,an employer shall not be a fiduciary with respect to the selection1 management or administration of a ,,usa ,retirement ,fund solely because such employer makes available such ,fund through an automatic ,,usa ,retirement ,fund arrangement4 ,notwithstanding the preceding sentence1 employers participating in a ,,usa ,retirement ,fund shall be responsible for meeting the enrollment requirements and transmitting contributions1 as required under the ,,usa ,retirement ,funds ,act4 4 #aje4 ,enforcement and fraud prevention 7a7 ,penalty for failure ,to timely remit contributions to automatic ,,usa ,retirement ,fund arrangements 7#a7 ,in general ,if an employer is required under an automatic ,,usa ,retirement ,fund arrangement to deposit amounts withheld from an employee's compensation into a ,,usa ,retirement ,fund but fails to do so within the time prescribed under section #aja7;d77#c71 such amounts shall be treated as assets of a ,,usa ,retirement ,fund4 7#b7 ,failure to provide access to payroll savings arrangements 7,a7 ,general rule ,a covered employer who fails to meet the requirements of section #aja7;a7 for a calendar year shall be subject to a civil money penalty of #ajj per calendar year for each employee to whom such failure relates4 7,b7 ,exceptions ,no civil money penalty shall be imposed under this paragraph for a failure to meet the requirements under section #aja7;a7-- 7i7 during a period for which the ,secretary determines that the employer subject to liability for the civil money penalty did not know that the failure existed and exercised reasonable diligence to meet the requirements of section #aja7;a72 or 7ii7 7,i7 the employer subject to liability for the civil money penalty exercised reasonable diligence to meet the requirements of section #aja7;a72 and 7,,ii7 the employer provides the automatic ,,usa ,retirement ,fund arrangement described to each employee eligible to participate in the arrangement by the end of the #ij-;day period beginning on the first date the employer knew1 or exercising reasonable diligence should have known1 that such failure existed4 7,c7 ,waiver by the secretary ,in the case of a failure to meet the requirements of section #aja7;a7 that is due to reasonable cause and not to willful neglect1 the ,secretary may1 in the sole discretion of the ,secretary1 waive part or all of the civil money penalty imposed under this paragraph to the extent that the payment of such civil money penalty would be excessive or otherwise inequitable relative to the failure involved4 7,d7 ,procedures for notice ,the ,secretary may prescribe and implement procedures for obtaining confirmation that employers are in compliance with subsection 7a74 ,the ,secretary1 in the discretion of such ,secretary1 may prescribe that the confirmation shall be obtained on an annual or less frequent basis1 and may use for this purpose the annual report or quarterly report for employment taxes1 or such other means as the ,secretary may deem advisable4 7b7 ,civil actions and enforcement 7#a7 ,administration and enforcement ,part #e of title ,i of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aacb et seq47 shall apply to a ,,usa ,retirement ,fund as if a ,,usa ,retirement ,fund were an employee benefit plan4 7#b7 ,amendment ,section #ejb7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aacb et seq47 is amended-- 7,a7 in paragraph 7#i71 by striking 2 or and inserting 22 7,b7 in paragraph 7#aj71 by striking the period at the end and inserting 2 or2 and 7,c7 by adding at the end the following3 7#aa7 in the event that an employer fails to make timely contributions or payments to a ,,usa ,retirement ,fund established under title ,i of the ,,usa ,retirement ,funds ,act1 by the ,secretary1 a participant1 a beneficiary1 or a fiduciary1 to compel an employer to make such contributions or payments as if such contributions or payments were delinquent contributions or payments under section #eae or subsection 7g77#b74 4 7#c7 ,non-preemption of certain ,state law ,nothing in this section shall preempt ,state law insofar as ,state law relates to the enforcement of an obligation to contribute to a ,,usa ,retirement ,fund4 7c7 ,false statements 7#a7 ,in general ,no person1 in connection with a plan or other arrangement that is or purports to be a ,,usa ,retirement ,fund1 shall make a false statement or false representation of fact1 knowing it to be false1 in connection with the marketing or sale of such plan or arrangement1 to any employee1 any member of an employee organization1 any beneficiary1 any employer1 any employee organization1 the ,secretary1 or any ,state1 or the representative or agent of any such person1 ,state1 or the ,secretary1 concerning-- 7,a7 the financial condition or solvency of such fund or arrangement2 7,b7 the benefits provided by such fund or arrangement2 7,c7 the regulatory status of such fund or other arrangement under any ,federal or ,state law governing collective bargaining1 labor management relations1 or intern union affairs2 or 7,d7 the regulatory status of such fund or other arrangement4 7#b7 ,penalty ,any person who violates this subsection shall1 upon conviction1 be imprisoned not more than #aj years or fined under title #ah1 ,united ,states ,code1 or both4 7d7 ,cease and desist orders 7#a7 ,issuance of order ,the ,secretary may issue a cease and desist 7ex parte7 order under this title if the ,secretary determines that the alleged conduct of a fund purporting to be a ,,usa ,retirement ,fund is fraudulent1 or creates an immediate danger to the public safety or welfare1 or is causing or can be reasonably expected to cause significant1 imminent1 and irreparable public injury4 7#b7 ,hearings 7,a7 ,in general ,a person who is adversely affected by the issuance of a cease and desist order under paragraph 7#a7 may request a hearing by the ,secretary regarding such order4 ,the ,secretary may require that a hearing under this paragraph1 including all related information and evidence1 be conducted in a confidential manner4 7,b7 ,burden of proof ,the burden of proof in any hearing conducted under subparagraph 7,a7 shall be on the party requesting the hearing to show cause why the cease and desist order should be set aside4 7,c7 ,determination ,based upon the evidence presented at a hearing under subparagraph 7,a71 the ,secretary may affirm1 modify1 or set aside the cease and desist order at issue1 in whole or in part4 7#c7 ,regulations ,the ,secretary may promulgate such regulations or other guidance as may be necessary or appropriate to carry out this subsection4 ,,ii ,defined contribution plan reforms ,a ,savings enhancements #bja4 ,pooled employer plans 7a7 ,no common interest required for pooled employer plans ,section #c7b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7b77 is amended by adding at the end the following3 7,c7 ,a pooled employer plan shall be treated as a single employee pension benefit plan or single pension plan without regard to whether the participating employers share a common interest other than participation in the plan4 4 7b7 ,pooled employer plan and provider defined ,section #c of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7 is amended by adding at the end the following3 7#dc7 7,a7 ,the term pooled employer plan means a pension plan 7without regard to whether any participating employers share a common interest other than participation in the plan7 that is a single individual account plan established or maintained for the purpose of providing benefits to the employees of #b or more employers but only if-- 7i7 the terms of the plan designate a pooled plan provider1 7ii7 under the plan each participating employer retains fiduciary responsibility for-- 7,i7 the prudent selection and monitoring of the person designated as the pooled employer plan provider and1 if different from the provider1 the person designated as the plan's named fiduciary1 and 7,,ii7 to the extent not otherwise delegated to another fiduciary1 the investment and management of that portion of the plan's assets attributable to the employees of that participating employer1 7iii7 under the plan a participating employer is not subject to unreasonable restrictions1 fees1 or penalties with regard to ceasing participation or otherwise transferring assets of the plan in accordance with section #dad7l7 of the ,internal ,revenue ,code of #aihf1 and 7iv7 the pooled employer plan provider provides to participating employers any disclosures or other information as the ,secretary may require4 7,b7 ,the term pooled employer plan does not include-- 7i7 a multiemployer plan1 or 7ii7 a plan established before ,january #a1 #bjad1 or any successor thereof4 7#dd7 7,a7 ,the term pooled plan provider means a person who-- 7i7 is designated by the terms of a pooled employer plan as a pooled plan provider2 7ii7 registers as a pooled plan provider with the ,secretary and provides such other identifying information to the ,secretary as the ,secretary may require2 and 7iii7 has such educational or professional qualifications as the ,secretary may require4 7,b7 ,the ,secretary may perform examinations and investigations of pooled plan providers as may be necessary to enforce and carry out the purposes of the ,act4 7,c7 ,for purposes of this section1 the following shall be treated as a single pooled plan provider3 7i7 ,all corporations that provide services to a plan and are members of a controlled group of corporations within the meaning of section #aefc7;a7 of the ,internal ,revenue ,code of #aihf 7determined without regard to subsection 7a77#d7 of such section #aefc74 7ii7 ,all persons treated as a single employer under section #baj7;d74 4 7c7 ,technical amendment ,section #c of such ,act is amended by striking the second paragraph 7#da74 #bjb4 ,pooled employer and multiple employer plan reporting 7a7 ,additional information ,section #ajc of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbc7 is amended-- 7#a7 in subsection 7a77#a77;,b71 by striking applicable subsections 7d71 7e71 and 7f7 and inserting applicable subsections 7d71 7e71 7f71 and 7g72 and 7#b7 by adding at the end the following3 7g7 ,additional information with respect to pooled employer and multiple employer plans ,an annual report under this section for a plan year shall include-- 7#a7 with respect to any pooled employer plan or other pension plan maintained by more than one employer 7other than a multiemployer plan71 a list of participating employers and a good faith estimate of the percentage of the total contributions made1 or expected to be made1 by each such participating employer for the plan year1 and 7#b7 with respect to a pooled employer plan1 the identifying information for the person designated under the terms of the plan as the pooled plan provider4 4 7b7 ,simplified annual reports ,section #ajd7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbd7;a77 is amended by striking paragraph 7#b77;,a7 and inserting the following3 7#b7 7,a7 ,with respect to annual reports required to be filed with the ,secretary under this part1 the ,secretary may by regulation prescribe simplified annual reports for any pension plan that-- 7i7 covers fewer than #ajj participants1 or 7ii7 is a pooled employer plan 7as defined in section #c7dc77 that covers fewer than #a1jjj participants but only if no single participating employer has more than #ajj participants covered by the plan4 4 7c7 ,effective date ,the amendments made by this section shall apply to annual reports for plan years beginning after ,december #ca1 #bjad4 ,b ,participant ,protections #baa4 ,alternative fiduciary arrangements to protect plan participants ,section #dje of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aaje7 is amended by adding at the end the following3 7e7 ,small employer plan alternative fiduciary arrangements 7#a7 ,in general ,a small employer that is a plan sponsor of an employee pension benefit plan shall not be liable for a breach of fiduciary responsibility of a small employer plan service provider with respect to the same plan if the requirements of the following subparagraphs are met3 7,a7 ,small employer plan sponsor requirements ,the requirements of this subparagraph are met if the small employer prudently selects and monitors the small employer plan named fiduciary4 7,b7 ,small employer plan named fiduciary requirements ,the requirements of this subparagraph are met if the small employer plan named fiduciary-- 7i7 engages a small employer plan service provider with respect to the employee pension benefit plan2 7ii7 registers as a small employer plan named fiduciary with the ,secretary in accordance with paragraph 7#b77;,a72 7iii7 has such educational or professional qualifications as the ,secretary may require2 7iv7 provides to employers disclosures or other information as may be required by the ,secretary by regulations to facilitate monitoring of the named fiduciary2 7v7 is bonded in accordance with section #dab2 and 7vi7 meets the financial responsibility requirements of paragraph 7#b77;,b74 7#b7 ,rules relating to named fiduciary requirements 7,a7 ,reporting by small employer plan named fiduciary ,for purposes of paragraph 7#a77;,b77ii71 the small employer plan named fiduciary shall file the required registration with the ,secretary-- 7i7 before the date upon which the safe harbor provided in this subsection first applies to a small employer plan sponsor and at such other times as the ,secretary may prescribe by regulations1 and 7ii7 in such form and manner1 and containing such information1 as the ,secretary determines necessary or appropriate to carry out the purposes of this ,act4 7,b7 ,financial responsibility requirements ,for purposes of paragraph 7#a77;,b77vi71 a small employer plan named fiduciary shall meet the requirements of this subparagraph if the fiduciary either-- 7i7 has fiduciary liability insurance with a per-claim limit equal to no less than-- 7,i7 the greater of #e percent of plan assets or #a1jjj1jjj2 or 7,,ii7 such other amount as is determined by the ,secretary by regulation2 or 7ii7 is-- 7,i7 a bank1 as defined in section #bjb7;a77#b7 of the ,investment ,advisers ,act of #aidj1 that has the power to manage1 acquire1 or dispose of assets of a plan1 and that has1 as of the last day of its most recent fiscal year1 equity capital in excess of #a1jjj1jjj2 7,,ii7 a savings and loan association1 the accounts of which are insured by the ,federal ,savings and ,loan ,insurance ,corporation1 that has made application for and been granted trust powers to manage1 acquire1 or dispose of assets of a plan by a ,state or ,federal authority having supervision over savings and loan associations1 and that has1 as of the last day of its most recent fiscal year1 equity capital or net worth in excess of #a1jjj1jjj2 7,,iii7 an insurance company that is subject to supervision and examination by a ,state authority having supervision over insurance companies1 that is qualified under the laws of more than one ,state to manage1 acquire1 or dispose of assets of a plan1 and that has1 as of the last day of its most recent fiscal year1 net worth in excess of #a1jjj1jjj2 or 7,,iv7 an investment adviser registered under the ,investment ,advisers ,act of #aidj that1 as of the last day of its most recent fiscal year1 has total client assets under its management and control in excess of #he1jjj1jjj and shareholders' or partners' equity in excess of #a1jjj1jjj4 7,c7 ,adjustment of amounts ,the ,secretary may by regulation adjust the dollar amounts under subparagraph 7,b77ii74 7#c7 ,administrative summary cease and desist orders and summary seizure orders against small employer plan named fiduciary 7,a7 ,in general ,the ,secretary may issue an ex parte cease and desist order under this title if the ,secretary-- 7i7 determines that a small plan named fiduciary or small employer plan service provider has not met the requirements under paragraph 7#a7 or 7#b72 or 7ii7 has reasonable cause to believe that the named fiduciary or service provider has engaged in or is about to engage in conduct that is a violation of this title or that the ,secretary determines to be contrary to accepted standards of plan operations that might result in abnormal risk to the plan or participants and beneficiaries of the plan4 7,b7 ,hearings 7i7 ,in general ,a person that is adversely affected by the issuance of a cease and desist order under subparagraph 7,a7 may request a hearing by the ,secretary regarding such order4 7ii7 ,confidentiality ,the ,secretary may require that a hearing under this subparagraph1 including all related information and evidence1 be conducted in a confidential manner4 7iii7 ,burden of proof ,the burden of proof in any hearing conducted under this subparagraph shall be on the party requesting the hearing to show cause why the cease and desist order should be set aside4 7iv7 ,determination ,based upon the evidence presented at a hearing under this subparagraph1 the ,secretary may affirm1 modify1 or set aside the cease and desist order1 in whole or in part4 7,c7 ,seizure ,the ,secretary may issue a summary seizure order under this subtitle if the ,secretary determines that a small employer plan named fiduciary or small employer plan service provider is in a financially hazardous condition4 7,d7 ,regulations ,the ,secretary may promulgate such regulations or other guidance as may be necessary or appropriate to carry out this paragraph4 7,e7 ,exception ,this paragraph shall not apply to any named fiduciary that is not a named fiduciary under paragraph 7#a77;,a7 or small employer plan service provider under paragraph 7#a77;,b77i74 7,f7 ,savings clause ,the ,secretary's authority under this paragraph shall not be construed to limit the ,secretary's ability to exercise enforcement or investigatory authority under any other provision of this title4 ,the ,secretary may1 in the sole discretion of the ,secretary1 initiate court proceedings without using the procedures in this paragraph4 7#d7 ,definitions ,for purposes of this subsection-- 7,a7 ,small employer 7i7 ,in general ,the term small employer means1 with respect to any year1 an employer that did not have more than #ej employees on any day during the preceding year4 7ii7 #b-,year grace period ,a small employer that establishes and maintains an employee pension benefit plan for #a or more years and that is not a small employer for any subsequent year shall be treated as a small employer for the #b years following the last year the employer was a small employer4 ,if such employer is not a small employer as described in the preceding sentence on account of an acquisition1 disposition1 or similar transaction involving a small employer1 the preceding sentence shall not apply4 7,b7 ,small employer plan named fiduciary ,the term small employer plan named fiduciary means the fiduciary that is designated as the small employer plan named fiduciary in the instrument under which an employee pension benefit plan is maintained4 7,c7 ,small employer plan service provider ,the term small employer plan service provider means-- 7i7 an administrator 7as defined in section #c7af77;,a772 7ii7 a fiduciary 7as defined in section #c7ba77;,a772 or 7iii7 an investment manager 7as defined in section #c7ch771 that is independent from the small employer plan named fiduciary4 4 #bab4 ,rollover protections 7a7 ,sense of congress ,it is the sense of ,congress that a person may be providing investment advice within the meaning of section #c7ba7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7ba77 when such person advises a plan participant to take a permissible plan distribution and such distribution advice is combined with a recommendation as to how the distribution should be invested4 7b7 ,guidance ,not later than #ij days after the date of enactment of this ,act1 the ,secretary of ,labor shall issue guidance consistent with subsection 7a7 clarifying the applicability of section #c7ba7 of the ,employee ,retirement ,income ,security ,act of #aigd to investment advice provided in connection with distribution recommendations4 7c7 ,fiduciary and prohibited transaction awareness ,the ,comptroller ,general of the ,united ,states shall study the extent to which advisors1 broker-dealers1 and other financial professionals dealing with individual and employer-provided retirement plans are aware of1 and receive ongoing training regarding1 the requirements of part #d of subtitle ,b of title ,i of the ,employee ,retirement ,income ,security ,act 7#bi ,u4,s4,c4 #aaja et seq47 and section #dige of the ,internal ,revenue ,code of #aihf4 ,the ,comptroller ,general shall submit a report to the ,committee on ,health1 ,education1 ,labor1 and ,pensions of the ,senate and the ,committee on ,education and the ,workforce of the ,house of ,representatives summarizing its findings and including recommendations regarding ways to improve awareness of and compliance with the fiduciary and prohibited transaction rules4 ,c ,lifetime income #bba4 ,lifetime income disclosure 7a7 ,requirements ,to provide pension benefit statements ,section #aje7;a77#b77;,b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbe7;a77#b77;,b77 is amended-- 7#a7 in clause 7i71 by striking and at the end2 7#b7 in clause 7ii71 by striking the period at the end and inserting 1 and2 and 7#c7 by adding at the end the following3 7iii7 an illustration of the participant's benefit as an estimated lifetime income stream beginning at retirement determined in accordance with assumptions and requirements established by regulation4 4 7b7 ,limitation on liability ,section #djd of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajd71 as amended by section #aje1 is amended by adding at the end the following3 7f7 ,limitation on liability ,no plan fiduciary1 plan sponsor1 or other person shall have any liability under this title solely by reason of providing an illustration as required under section #aje7;a77#b77;,b77iii74 4 7c7 ,regulations ,not later than #a year after the date of the enactment of this ,act1 the ,secretary of ,labor shall issue regulations implementing the amendments made by subsections 7a7 and 7b74 7d7 ,clarification ,the requirement under section #aje7;a77#b77;,b77iii7 of the ,employee ,retirement ,income ,security ,act of #aigd1 as added by subsection 7a77#c71 shall apply to pension benefit statements furnished more than #a year after the issuance of the final rules implementing section #aje7;a77#b77;,b77iii7 of such ,act4 #bbb4 ,lifetime income safe harbor ,section #djd of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajd71 as amended by sections #aje and #bba7;b71 is amended by adding at the end the following3 7g7 ,safe harbor for annuity selection 7#a7 ,in general ,with respect to the selection of a lifetime retirement income contract as part of an individual account plan1 a fiduciary will be deemed to satisfy the requirements of subsection 7a77#a77;,b7 with respect to the selection of an insurer and lifetime retirement income contract if the fiduciary engages in an objective1 thorough1 and analytical search for the purpose of identifying insurers from which to purchase lifetime retirement income contracts and appropriately concludes that-- 7,a7 at the time of the selection1 the insurer is financially capable of satisfying its obligations under the lifetime income contract2 and 7,b7 the cost 7including fees1 surrender penalties1 and commissions7 of the selected lifetime retirement income contract is reasonable in relation to the benefits and product features of the contract and the administrative services to be provided under such contract4 7#b7 ,fiduciaries ,a fiduciary meets the requirements of paragraph 7#a77;,a7 if the fiduciary meets all of the following conditions3 7,a7 ,the fiduciary obtains written representations from the insurer that-- 7i7 the insurer is licensed to offer lifetime retirement income contracts2 7ii7 the insurer1 at the time of selection and for each of the immediately preceding #aj years-- 7,i7 operates under a certificate of authority from the ,insurance ,commissioner of its domiciliary state that has not been revoked or suspended2 7,,ii7 has filed financial statements in accordance with the laws of its domiciliary state under applicable statutory accounting principles2 7,,iii7 maintains reserves that satisfy all the statutory requirements of all ,states where the insurer does business2 and 7,,iv7 is not operating under an order of supervision1 rehabilitation1 or liquidation2 7iii7 the insurer undergoes1 at least every #e years1 a financial examination 7within the meaning of the law of the ,state in which the insurer is domiciled7 by the insurance commissioner of the domiciliary ,state 7or any representative1 designee1 or other party approved thereby72 7iv7 if1 following the issuance of the representations described in clauses 7i7 through 7iii71 there is any change that would preclude the insurer from making such representations at the time of issuance of the lifetime retirement income contract1 the insurer will inform the fiduciary that the fiduciary can no longer rely on one or more of the representations2 and 7v7 meet such other requirements specified by the ,secretary by regulation4 7,b7 ,the fiduciary has not received the notification described in clause 7iv7 of subparagraph 7,a7 and has no other facts that would cause the fiduciary to question the representations described in clauses 7i7 through 7iii7 of subparagraph 7,a74 7,c7 ,the fiduciary inquires about additional protections that might be available through a ,state guaranty association for the lifetime retirement income contract4 7,d7 ,the fiduciary obtains evidence from the insurer that1 not more than #a year prior to the time of selection1 the insurer has obtained written confirmation from the insurance commissioner of the domiciliary ,state of such insurer that1 at the time the confirmation is issued1 the insurer met the conditions of clauses 7i7 and 7ii7 of subparagraph 7,a74 7#c7 ,time of selection ,for purposes of this subsection1 the time of selection is-- 7,a7 the time that the insurer and contract are selected for distribution of benefits to a specific participant or beneficiary2 or 7,b7 the time that the insurer and contract are selected to provide benefits at future dates to participants or beneficiaries1 but only if the selecting fiduciary periodically reviews the continuing appropriateness of the conclusion described in paragraph 7#a77;,a74 7#d7 ,periodic review ,for purposes of paragraph 7#c77;,b71 a fiduciary is not required to review the appropriateness of the conclusion under paragraph 7#a77;,a7 before or after the purchase of any contract for specific participants or beneficiaries4 ,a fiduciary will be deemed to have conducted a periodic review of the financial capability of the insurer if the fiduciary obtains the written representations described in clauses 7i7 through 7iii7 of paragraph 7#b77;,a7 on an annual basis1 unless1 in the interim1 the fiduciary becomes aware of facts that would cause the fiduciary to question such representations4 7#e7 ,definitions ,for purposes of this subsection-- 7,a7 the term insurer means an insurance company1 insurance service1 or insurance organization qualified to do business in a ,state and includes affiliates of such companies to the extent the affiliate is licensed to offer lifetime retirement income contracts2 and 7,b7 the term lifetime retirement income contract means an annuity contract or a contract 7or provision or feature thereof7 that provides a participant fixed or variable benefits for a fixed term or the remainder of the life of the participant or the joint lives of the participant and the designated beneficiary of the participant4 7#f7 ,savings clause ,nothing in this subsection shall be construed to establish minimum requirements or the exclusive means for a fiduciary to satisfy the fiduciary duties under subsection 7a77#a77;,b74 ,nothing in this subsection shall be construed to require a fiduciary to select the lowest cost contract4 ,a fiduciary may consider the value1 including features and benefits of the contract and attributes of the insurer1 in conjunction with the contract's cost4 ,attributes of the insurer that may be considered may include1 without limitation1 the issuer's financial strength4 4 #bbc4 ,default investment safe harbor clarification 7a7 ,in general ,section #djd7;c77#e7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajd7;c77#e77 is amended by adding at the end the following3 7,c7 ,availability of options ,the availability of annuity purchase rights1 death benefit guarantees1 investment guarantees1 or other features in insurance contracts will not1 in and of themselves1 affect the status of a fund1 product1 or portfolio as a default investment under this paragraph4 4 7b7 ,rules of construction ,the amendment made by subsection 7a7 shall be construed to codify existing law and shall not be construed as modifying the regulations promulgated by the ,secretary of ,labor under section #djd7;c77#e7 of ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajd7;c77#e771 as in effect before the amendment made by this section4 #bbd4 ,administration of joint and survivor annuity requirements 7a7 ,option ,to appoint annuity administrators ,section #djb7;c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajb7;c77 is amended-- 7#a7 in paragraph 7#b71 by striking or at the end1 7#b7 in paragraph 7#c71 by striking the period at the end and inserting 2 or1 and 7#c7 by adding at the end the following new paragraph3 7#d7 that a named fiduciary1 or a fiduciary designated by a named fiduciary pursuant to a plan procedure described in section #dje7;c77#a71 may appoint an annuity administrator or administrators with responsibility for administration of an individual account plan in accordance with the requirements of section #bje and payment of any annuity required thereunder4 4 7b7 ,liability of annuity administrator ,section #dje of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aaje71 as amended by section #baa7;a71 is amended by adding at the end the following3 7f7 ,annuity ,administrator ,if #a or more persons has been appointed under section #djb7;c77#d7 as an annuity administrator or administrators of an individual account plan1 and each such person acknowledges in writing that such person is the annuity administrator and a fiduciary under the plan with respect to appointed duties1 neither the named fiduciary nor any appointing fiduciary shall be liable for any act or omission of the annuity administrator except to the extent that-- 7#a7 the named fiduciary or appointing fiduciary violated section #djd7;a77#a7-- 7,a7 with respect to such appointment2 or 7,b7 in continuing the appointment2 7#b7 the named fiduciary or appointing fiduciary would otherwise be liable in accordance with subsection 7a72 or 7#c7 the entity appointed to be the annuity administrator is not an insurance company or approved to be an annuity administrator by the ,secretary4 4 ,,iii ,defined benefit system reforms ,a ,defined benefit pension plan reforms #cja4 ,hybrid plans 7a7 ,amendments to ,,erisa 7#a7 ,reasonable minimum rates disregarded ,section #bjd7;b77#e77;,b77i7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajed7;b77#e77;,b77i77 is amended-- 7,a7 in subclause 7,i71 by adding at the end the following new sentence3 ,any rate described in subclause 7,,iv7 or 7,v7 shall be disregarded in determining whether a plan is treated as satisfying the requirements of the first sentence of this subclause42 and 7,b7 by adding at the end the following3 7,,iv7 ,reasonable minimum guaranteed rates for investment-based interest credits ,in the case of an interest credit 7or equivalent amount7 that is based on an actual investment 7or on an index that is structured to have effects similar to the effects of an actual investment71 a fixed annual crediting rate equal to #c percent 7or a lower rate not less than zero that is specified in the plan7 with respect to all contribution credits credited to a participant's account balance or similar amount during the guarantee period shall be treated as a reasonable minimum guaranteed rate of return4 ,for purposes of this subclause1 the guarantee period begins on the prospective date that such reasonable minimum guaranteed rate applies to the participant's benefit under the plan and ends on the date that such reasonable minimum guaranteed rate ceases to apply to the participant's benefit4 7,v7 ,reasonable minimum rates for other interest crediting bases ,in the case of an interest credit 7or equivalent amount7 that is not described in subclause 7,,iv71 an annual interest rate equal to the lowest interest rate permitted with respect to any plan under section #dae7;b77#b77;,e77i7 of the ,internal ,revenue ,code of #aihf 7without regard to section #dae7;b77#b77;,e77ii7 of such ,code7 shall be treated as a reasonable minimum guaranteed rate of return described in such subclause4 4 7#b7 ,permitted fixed rates ,section #bjd7;b77#e77;,b77i7 of such ,act 7#bi ,u4,s4,c4 #ajed7;b77#e77;,b77i771 as amended by paragraph 7#a77;,b71 is amended by adding at the end the following3 7,,vi7 ,permitted fixed rate of return ,an annual interest crediting rate that is a fixed annual crediting rate and that does not exceed the rate described in subclause 7,v7 plus one percentage point shall be deemed to satisfy the requirements of subclause 7,i74 4 7#c7 ,protecting plan participants from losing access to market rates 7,a7 ,in general ,section #bjd7;b77#e77;,b7 of such ,act 7#bi ,u4,s4,c4 #ajed7;b77#e77;,b77i77,,iii77 is amended by adding at the end the following new clause3 7iii7 ,special rules relating to market rate of return ,for purposes of clause 7i77,,iii7-- 7,i7 ,in general ,except as provided in this subclause1 any rate of return available in the market1 shall1 under the regulation under clause 7i77,,iii71 be permitted as a market rate of return under clause 7i77,i74 7,,ii7 ,secretarial authority ,except as provided in subclause 7,,iii71 the ,secretary of the ,treasury may prescribe by regulation that a rate of return available in the market is not permitted under clause 7i77,i7 if such rate is designed to evade the purposes of clause 7i77,i7 and is not consistent with the purposes of a defined benefit plan4 ,such authority shall apply only to a rate of return based exclusively or primarily on the returns on employer securities 7as defined in section #djg7;d77#a771 on alternative investments generally not appropriate as an exclusive or primary investment for retirement1 or on other similar investments4 7,,iii7 ,specified safe harbor rates ,the following rates of return and any combination of such rates shall be deemed to be market rates of return that satisfy clause 7i77,i73 7aa7 ,the first1 second1 or third segment rate 7as defined in section #dcj7;h77#b77;,c7 of the ,internal ,revenue ,code of #aihf 7without regard to clause 7iv7 thereof77 or any combination of such rates4 7bb7 ,the discount rate on #c-month1 #f-month1 and #ab-month ,treasury bills with appropriate margins determined under regulations prescribed by the ,secretary of the ,treasury4 7cc7 ,the yield on #a-year1 #b-year1 #c-year1 #e-year1 #g-year1 #aj-year1 and #cj-year ,treasury ,constant ,maturities with appropriate margins determined under regulations prescribed by the ,secretary of the ,treasury4 7dd7 ,the actual return on all or a diversified portion of the assets of the plan4 7ee7 ,any total return index or price index commonly used as an investment benchmark1 as determined under regulations prescribed by the ,secretary of the ,treasury4 7ff7 ,the rate of return on an annuity contract for a participant issued by an insurance company licensed under the laws of a ,state4 7gg7 ,a cost of living index with appropriate margin1 as determined under regulations promulgated by the ,secretary of the ,treasury4 7hh7 ,the rate of return on a broad-based regulated investment company1 as determined under regulations promulgated by the ,secretary of the ,treasury4 7ii7 ,any investment in which participants may elect to invest under a defined contribution plan maintained by the sponsor of the plan other than an investment with a rate of return prohibited under clause 7i71 a stable value fund1 or an investment available only through a brokerage account 7or similar arrangement74 4 7b7 ,amendments to #aihf ,code 7#a7 ,reasonable minimum rates disregarded ,section #daa7;b77#e77;,b77i7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 in subclause 7,i71 by adding at the end the following new sentence3 ,any rate described in subclause 7,,iv7 or 7,v7 shall be disregarded in determining whether a plan is treated as satisfying the requirements of the first sentence of this subclause42 and 7,b7 by adding at the end the following3 7,,iv7 ,reasonable minimum guaranteed rates for investment-based interest credits ,in the case of an interest credit 7or equivalent amount7 that is based on an actual investment 7or on an index that is structured to have effects similar to the effects of an actual investment71 a fixed annual crediting rate equal to #c percent 7or a lower rate not less than zero that is specified in the plan7 with respect to all contribution credits credited to a participant's account balance or similar amount during the guarantee period shall be treated as a reasonable minimum guaranteed rate of return4 ,for purposes of this subclause1 the guarantee period begins on the prospective date that such reasonable minimum guaranteed rate applies to the participant's benefit under the plan and ends on the date that such reasonable minimum guaranteed rate ceases to apply to the participant's benefit4 7,v7 ,reasonable minimum rates for other interest crediting bases ,in the case of an interest credit 7or equivalent amount7 that is not described in subclause 7,,iv71 an annual interest rate equal to the lowest interest rate permitted with respect to any plan under section #dae7;b77#b77;,e77i7 7without regard to section #dae7;b77#b77;,e77ii77 shall be treated as a reasonable minimum guaranteed rate of return described in such subclause4 4 7#b7 ,permitted fixed rates ,section #daa7;b77#e77;,b77i7 of such ,code1 as amended by paragraph 7#a77;,b71 is further amended by adding at the end the following3 7,,vi7 ,permitted fixed rate of return ,an annual interest crediting rate that is a fixed annual crediting rate and that does not exceed the rate described in subclause 7,v7 plus one percentage point shall be deemed to satisfy the requirements of subclause 7,i74 4 7#c7 ,protecting plan participants from losing access to market rates 7,a7 ,in general ,section #daa7;b77#e77;,b7 of such ,code is amended by adding at the end the following3 7iii7 ,special rules relating to market rate of return ,for purposes of clause 7i77,,iii7-- 7,i7 ,in general ,except as provided in this subclause1 any rate of return available in the market1 shall1 under the regulation under clause 7i77,,iii71 be permitted as a market rate of return under clause 7i77,i74 7,,ii7 ,secretarial authority ,except as provided in subclause 7,,iii71 the ,secretary may prescribe by regulation that a rate of return available in the market is not permitted under clause 7i77,i7 if such rate is designed to evade the purposes of clause 7i77,i7 and is not consistent with the purposes of a defined benefit plan4 ,such authority shall apply only to a rate of return based exclusively or primarily on the returns on employer securities 7as defined in section #djg7;d77#a771 on alternative investments generally not appropriate as an exclusive or primary investment for retirement1 or on other similar investments4 7,,iii7 ,specified safe harbor rates ,the following rates of return and any combination of such rates shall be deemed to be market rates of return that satisfy clause 7i77,i73 7aa7 ,the first1 second1 or third segment rate 7as defined in section #dcj7;h77#b77;,c7 7without regard to clause 7iv7 thereof77 or any combination of such rates4 7bb7 ,the discount rate on #c-month1 #f-month1 and #ab-month ,treasury bills with appropriate margins determined under regulations prescribed by the ,secretary4 7cc7 ,the yield on #a-year1 #b-year1 #c-year1 #e-year1 #g-year1 #aj-year1 and #cj-year ,treasury ,constant ,maturities with appropriate margins determined under regulations prescribed by the ,secretary4 7dd7 ,the actual return on all or a diversified portion of the assets of the plan4 7ee7 ,any total return index or price index commonly used as an investment benchmark1 as determined under regulations prescribed by the ,secretary4 7ff7 ,the rate of return on an annuity contract for a participant issued by an insurance company licensed under the laws of a ,state4 7gg7 ,a cost of living index with appropriate margin1 as determined under regulations promulgated by the ,secretary4 7hh7 ,the rate of return on a broad-based regulated investment company1 as determined under regulations promulgated by the ,secretary4 7ii7 ,any investment in which participants may elect to invest under a defined contribution plan maintained by the sponsor of the plan other than an investment with a rate of return prohibited under clause 7i71 a stable value fund1 or an investment available only through a brokerage account 7or similar arrangement74 4 7c7 ,protecting plan participants from retroactive benefit decreases 7#a7 ,in general ,if an interest credit 7or equivalent amount7 under a plan subject to section #daa7;b77#e77;,b77i77,i7 of the ,internal ,revenue ,code of #aihf or section #bjd7;b77#e77;,b77i77,i7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajed7;b77#e77;,b77i77,i77 was reasonable in relation to market rates in existence when such interest credit 7or equivalent amount7 was established 7disregarding any minimum rates of return that were reasonable when established71 such interest credit 7or equivalent amount7 shall be treated as satisfying the requirements of section #daa7;b77#e77;,b77i77,i7 of such ,code and section #bjd7;b77#e77;,b77i77,i7 of such ,act for the transition period4 7#b7 ,transition period ,for purposes of paragraph 7#a71 the transition period1 with respect to any plan1 begins on the date that section #daa7;b77#e77;,b77i77,i7 of such ,code or section #bjd7;b77#e77;,b77i77,i7 of such ,act first applied to such plan and ends on the effective date of comprehensive final regulations under such sections prescribed by the ,secretary of the ,treasury4 7d7 ,ensuring fairness when interest credits are required ,to be decreased 7#a7 ,in general ,in the case of an interest credit 7or equivalent amount7 under a plan subject to section #daa7;b77#e77;,b77i77,i7 of the ,internal ,revenue ,code of #aihf or section #bjd7;b77#e77;,b77i77,i7 of the ,employee ,retirement ,income ,security ,act of #aigd that is in effect for the last plan year prior to the effective date of comprehensive final regulations under such section of such ,code but does not comply with such regulations determined after application of subsection 7c71 the ,secretary of the ,treasury shall provide an exception from the requirements of section #daa7;d77#f7 of such ,code and section #bjd7;g7 of such ,act for a reduction in such interest credit 7or equivalent amendment7 that is made pursuant to such comprehensive final regulations4 7#b7 ,exception ,the exception under paragraph 7#a7 from section #bjd7;g7 of such ,act and section #daa7;d77#f7 of such ,code shall be issued through regulations to ensure the opportunity of interested persons to make comments through a public notice and comment process4 ,such exception shall permit any interest credit 7or equivalent amount7 to which this subsection applies to be modified to be the maximum fixed rate of return permitted under section #bjd7;b77#e77;,b77i77,,vi7 of such ,act or section #daa7;b77#e77;,b77i77,,vi7 of such ,code or to be the maximum rate permitted under any rate of return deemed to be a market rate of return pursuant to section #bjd7;b77#e77;,b77i77,,iii7 of such ,act or section #daa7;b77#e77;,b77i77,,iii7 of such ,code4 ,the ,secretary of the ,treasury shall further structure the exception to ensure that there are clear and simple methods for plans to comply with the requirements of section #bjd7;b77#e77;,b77i77,i7 of such ,act and section #daa7;b77#e77;,b77i77,i7 of such ,code4 7e7 ,protecting participants from plan freezes through appropriate transition rules 7#a7 ,in general ,in the case of any defined benefit plan to which this subsection applies1 comprehensive regulations under sections #bjc7;f77#a7 and #bjd7;b77#e77;,b77i7 of the ,employee ,retirement ,income ,security ,act of #aigd or sections #daa7;a77#ac77;,a7 and #daa7;b77#e77;,b77i7 of the ,internal ,revenue ,code of #aihf shall not take effect before the first plan year beginning at least #a year after the later of-- 7,a7 the date of publication of such regulations2 or 7,b7 the date of publication of the regulations described in subsection 7d74 7#b7 ,pension equity plans ,this subsection applies to any defined benefit plan that-- 7,a7 is subject to section #bjd7;b77#e7 of the ,employee ,retirement ,income ,security ,act of #aigd or section #daa7;b77#e7 of the ,internal ,revenue ,code of #aihf2 7,b7 expresses any portion of any participant's benefit as a current value equal to an accumulated percentage of the employee's final average compensation2 and 7,c7 in the absence of guidance from the ,secretary of the ,treasury or the ,secretary of ,labor1 has been structured in a reasonable1 good faith manner to comply with the requirements of such ,code and such ,act with respect to benefits described in subparagraph 7,b74 7#c7 ,period prior to effective date of regulations ,in the case of a plan to which this subsection applies1 no rule shall be issued and no adverse enforcement action shall be taken by the ,secretary of the ,treasury or the ,secretary of ,labor with respect to a plan described in paragraph 7#b7 regarding the structure of the benefits described in paragraph 7#b77;,b7 for any period prior to the effective date of comprehensive final regulations issued by the ,secretary of the ,treasury with respect to such benefits4 ,such final regulations shall not be effective before the first plan year beginning at least #a year after publication of such regulations4 7f7 ,effective date 7#a7 ,in general ,except as otherwise provided1 the amendments and other provisions of this section shall take effect as if included in section #gja of the ,pension ,protection ,act of #bjjf 7,public ,law #aji-bhj2 #abj ,stat4 #iha74 7#b7 ,hold harmless ,with respect to any period prior to the effective date of the comprehensive regulations described in subsection 7e71 no plan shall fail to comply with any requirement of the ,employee ,retirement ,income ,security ,act of #aigd or of the ,internal ,revenue ,code of #aihf by reason of complying with the law in effect without regard to the amendments made by subsections 7a7 and 7b74 #cjb4 ,clarification of the normal retirement age 7a7 ,amendments to ,,erisa ,section #bjd of the ,employee ,retirement ,income ,security ,act of #aigd is amended by redesignating subsection 7k7 as subsection 7l7 and by inserting after subsection 7j7 the following new subsection3 7k7 ,special rule for determining normal retirement age for certain existing defined benefit plans 7#a7 ,in general ,for purposes of section #c7bd71 an applicable plan shall not be treated as failing to meet any requirement of this title1 or as failing to have a uniform normal retirement age for purposes of this title1 solely because the plan has adopted the normal retirement age described in paragraph 7#b74 7#b7 ,applicable plan ,for purposes of this subsection-- 7,a7 ,in general ,the term applicable plan means a defined benefit plan that1 on the date of the introduction of this subsection1 has adopted a normal retirement age which is the earlier of-- 7i7 an age otherwise permitted under section #b7bd71 or 7ii7 the age at which a participant completes the number of years 7not less than #cj years7 of benefit accrual service specified by the plan4 ,a plan shall not fail to be treated as an applicable plan solely because1 as of such date1 the normal retirement age described in the preceding sentence only applied to certain participants or to certain employers participating in the plan4 7,b7 ,expanded application ,if1 after the date described in subparagraph 7,a71 an applicable plan expands the application of the normal retirement age described in subparagraph 7,a7 to additional participants or participating employers1 such plan shall also be treated as an applicable plan with respect to such participants or participating employers4 4 7b7 ,amendment to #aihf ,code ,section #daa of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7f7 ,special rule for determining normal retirement age for certain existing defined benefit plans 7#a7 ,in general ,for purposes of subsection 7a77#h77;,a71 an applicable plan shall not be treated as failing to meet any requirement of this subchapter1 or as failing to have a uniform normal retirement age for purposes of this subchapter1 solely because the plan has adopted the normal retirement age described in paragraph 7#b74 7#b7 ,applicable plan ,for purposes of this subsection-- 7,a7 ,in general ,the term applicable plan means a defined benefit plan that1 on the date of the introduction of this subsection1 has adopted a normal retirement age which is the earlier of-- 7i7 an age otherwise permitted under subsection 7a77#h77;,a71 or 7ii7 the age at which a participant completes the number of years 7not less than #cj years7 of benefit accrual service specified by the plan4 ,a plan shall not fail to be treated as an applicable plan solely because1 as of such date1 the normal retirement age described in the preceding sentence only applied to certain participants or to certain employers participating in the plan4 7,b7 ,expanded application ,if1 after the date described in subparagraph 7,a71 an applicable plan expands the application of the normal retirement age described in subparagraph 7,a7 to additional participants or participating employers1 such plan shall also be treated as an applicable plan with respect to such participants or participating employers4 4 #cjc4 ,moratorium on imposition of shutdown liability 7a7 ,in general ,the ,pension ,benefit ,guaranty ,corporation shall not bring any new action against a plan sponsor to enforce subsection 7e7 of section #djfb of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acfb7 before ,january #cj1 #bjaf4 7b7 ,study ,the ,comptroller ,general of the ,united ,states shall study the effectiveness1 fairness1 and utility of section #djfb7;e7 of the ,employee ,retirement ,income ,security ,act 7#bi ,u4,s4,c4 #aaja et seq474 ,no later than ,january #cj1 #bjae1 the ,comptroller ,general shall submit a report to the ,committee on ,health1 ,education1 ,labor1 and ,pensions of the ,senate and the ,committee on ,education and the ,workforce of the ,house of ,representatives summarizing its findings and including recommendations for alternative ways to protect retirees and the ,pension ,benefit ,guaranty ,corporation from cessations of operations while encouraging employers to both continue to offer defined benefit pension plans and to restructure as may be necessary to ensure the ongoing viability of the business4 #cjd4 ,alternative funding target attainment percentage determined without regard to reduction for credit balances 7a7 ,amendments to ,,erisa ,section #bjf7;g7 of ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajef7;g77 is amended-- 7#a7 in paragraph 7#e71 by striking subparagraph 7,c72 and 7#b7 in paragraph 7#i7-- 7,a7 in subparagraph 7,b7-- 7i7 by striking the period at the end and inserting 2 and2 7ii7 by striking under subparagraph 7,a7 by increasing and inserting the following3 under subparagraph 7,a7-- 7i7 by increasing 2 and 7iii7 by adding at the end the following3 7ii7 without regard to the reduction under section #cjc7;f77#d77;,b74 2 and 7,b7 by striking subparagraphs 7,c7 and 7,d74 7b7 ,amendments to #aihf ,code ,section #dcf of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 in subsection 7f71 by striking paragraph 7#c72 and 7#b7 in subsection 7j7-- 7,a7 in paragraph 7#b7-- 7i7 by striking the period at the end and inserting 1 and2 and 7ii7 by striking under paragraph 7#a7 by increasing and inserting the following3 under subparagraph 7,a7-- 7,a7 by increasing 2 and 7iii7 by adding at the end the following3 7,b7 without regard to the reduction under section #dcj7;f77#d77;,b74 2 and 7,b7 by striking the first and second paragraph 7#c74 7c7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjad4 #cje4 ,method for determining changes for quarterly contributions 7a7 ,amendment to ,,erisa ,section #cjc7;j77#c77;,a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhc7;j77#c77;,a77 is amended by inserting 7determined without regard to the reduction under subsection 7f77#d77;,b77 after preceding plan year4 7b7 ,amendment to #aihf ,code ,section #dcj7;j77#c7 of the ,internal ,revenue ,code of #aihf is amended by inserting 7determined without regard to the reduction under subsection 7f77#d77;,b77 after preceding plan year4 7c7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjad4 #cjf4 ,election to discount contributions from final due date 7a7 ,amendment to ,,erisa ,section #cjc7;j77#b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhc7;j77#b77 is amended by adding at the end the following3 ,for purposes of this paragraph1 a plan sponsor may elect to treat all payments made after the valuation date as having been made on the last day permissible under paragraph 7#a744 7b7 ,amendment to #aihf ,code ,section #dcj7;j77#b7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 ,for purposes of this paragraph1 a plan sponsor may elect to treat all payments made after the valuation date as having been made on the last day permissible under paragraph 7#a744 7c7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjad4 #cjg4 ,simplification of elections and notices 7a7 ,amendments to ,,erisa 7#a7 ,timeliness of elections ,section #cjc of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhc7 is amended by adding at the end the following3 7m7 ,timeliness of elections ,an election required to be made by the plan sponsor under this section1 including an election made under rules prescribed by the ,secretary of the ,treasury to implement this section1 shall be deemed to have been timely made if the election is made on or before the due date specified in subsection 7j77#a7 or1 if later1 the due date of the actuarial report required under section #ajc7;d74 4 7#b7 ,time for providing notice ,section #aja7;f77#c77;,b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajba7;f77#c77;,b77 is amended-- 7,a7 in the heading1 by striking for small plans2 7,b7 by inserting a plan with an adjusted funding target attainment percentage of more than #hj percent for the prior year or after ,in the case of2 7,c7 by striking 7as such term is used under section #cjc7;g77#b77;,b772 and 7,d7 by striking upon and inserting not later than #b months after4 7b7 ,amendment to #aihf ,code ,section #dcj of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7m7 ,timeliness of elections ,an election required to be made by the plan sponsor under this section1 including an election made under rules prescribed by the ,secretary to implement this section1 shall be deemed to have been timely made if the election is made on or before the due date specified in subsection 7j77#a7 or1 if later1 the due date of the actuarial report required under section #fjei4 4 7c7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjad4 #cjh4 ,improved multiemployer plan disclosure 7a7 ,disclosure and reporting by multiemployer plans 7#a7 ,plan funding notices ,section #aja7;f7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajba7;f77 is amended-- 7,a7 in paragraph 7#b77;,b7-- 7i7 by striking clause 7v72 7ii7 by redesignating clauses 7vi7 through 7x7 as clauses 7v7 through 7ix71 respectively2 7iii7 in clause 7vi71 as so redesignated-- 7,i7 by striking 7,i7 in the case of and inserting in the case of2 7,,ii7 by striking 1 or and inserting a comma2 and 7,,iii7 by striking subclause 7,,ii72 and 7iv7 by amending clause 7vii71 as so redesignated1 to read as follows3 7vii7 7,i7 in the case of a single-employer plan1 a general description of the benefits under the plan which are eligible to be guaranteed by the ,pension ,benefit ,guaranty ,corporation1 and an explanation of the limitations on the guarantee and the circumstances under which such limitations apply1 and 7,,ii7 in the case of a multiemployer plan1 a statement that eligible benefits are guaranteed by the ,pension ,benefit ,guaranty ,corporation1 and a statement of how to obtain both a general description of the benefits under the plan which are eligible to be guaranteed by the ,pension ,benefit ,guaranty ,corporation and an explanation of the limitations on the guarantee and the circumstances under which such limitations apply1 2 and 7,b7 in paragraph 7#d77;,c7-- 7i7 by striking 7,c7 may be provided and inserting 7,c77i7 subject to clause 7ii71 may be provided2 and 7ii7 by striking the period and inserting the following3 7ii7 in the case of such a notice provided to the ,pension ,benefit ,guaranty ,corporation1 shall be in an electronic format in such manner prescribed in regulations of such ,corporation4 4 7#b7 ,disclosures by plans regarding status 7,a7 ,amendments to ,,erisa ,section #cje7;b77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe7;b77#c77 is amended-- 7i7 in the paragraph heading1 by striking by plan actuary and inserting and report2 7ii7 by amending subparagraph 7,a7 to read as follows3 7,a7 ,in general ,not later than the #ijth day of each plan year of a multiemployer plan1 the plan sponsor shall file1 in accordance with regulations prescribed by the ,,erisa agencies1 a report that contains-- 7i7 documentation from the plan actuary certifying to the ,,erisa agencies and to the plan sponsor-- 7,i7 whether or not the plan is in endangered status for such plan year and whether or not the plan is or will be in critical status for such plan year or any of the #e succeeding plan years1 7,,ii7 in the case of a plan which is in a funding improvement or rehabilitation period1 whether or not the plan is making the scheduled progress in meeting the requirements of its funding improvement or rehabilitation plan and1 if not1 a summary of the primary reasons the plan is not making the scheduled progress1 7,,iii7 the funded percentage of the plan determined as of the first day of the current plan year and the value of assets and liabilities used to calculate such funded percentage1 7,,iv7 a projection of the funding standard account on a year-by-year basis for the current plan year and the nine succeeding plan years and a statement of the actuarial assumptions for such projections1 and 7,v7 7aa7 subject to item 7bb71 a projection of the cash flow of the plan and actuarial assumptions for the current plan year and six succeeding plan years1 and 7bb7 in the case in which it is certified that a multiemployer plan is or will be in endangered or critical status for a plan year1 the projection of the cash flow of the plan and actuarial assumptions for the current year and ten succeeding plan years1 7ii7 as of the last day of the prior plan year1 a good faith determination of-- 7,i7 the fair market value of the assets of the plan1 7,,ii7 the number of participants who are-- 7aa7 retired or separated from service and are receiving benefits1 7bb7 retired or separated participants entitled to future benefits1 and 7cc7 active participants under the plan1 7,,iii7 the total value of all benefits paid during the prior plan year1 7,,iv7 the total value of all contributions made to the plan during the prior plan year1 and 7,v7 the total value of all investment gains or losses during the prior plan year1 7iii7 a description of any material changes during the previous plan year to the rates at which participants accrue benefits or the rate at which employers contribute1 7iv7 a copy of any funding improvement plan1 rehabilitation plan1 and any update thereto or modification thereof1 that was adopted under this section prior to the filing of the report for the current plan year in accordance with this subparagraph and1 if applicable1 after the filing of the report required by this subparagraph for the prior plan year1 7v7 in the case of any plan amendment1 scheduled benefit increase or reduction1 or other known event taking effect in the current plan year and having a material effect on plan liabilities or assets for the year 7as defined in regulations by the ,,erisa agencies71 an explanation of the amendment1 scheduled increase or reduction1 or event1 and a projection to the end of such plan year of the effect of the amendment1 scheduled increase or reduction1 or event on plan liabilities1 7vi7 in the case of a multiemployer plan certified to be in critical status for which the plan sponsor has determined that1 based on reasonable actuarial assumptions and upon exhaustion of all reasonable measures1 the plan cannot reasonably be expected to emerge from critical status by the end of the rehabilitation period1 a description of all reasonable measures1 whether or not such measures were implemented1 and a summary of the consideration of such measures1 7vii7 a good faith statement describing-- 7,i7 the withdrawal of any employer during the prior plan year and the percentage of total contributions made by that employer during the prior plan year1 7,,ii7 any material reduction in total contributions or withdrawal liability payments of any employers and the reason for such reduction1 7,,iii7 any significant reduction in the number of active plan participants and the reason for such reduction1 and 7,,iv7 the annual withdrawal liability payment each employer is obligated to pay to the plan for the plan year1 whether that amount was collected by the plan 7and if not1 the amount that was collected71 and the remaining years on the employer's obligation to make withdrawal liability payments1 and 7viii7 such other information as may be required by the ,,erisa agencies by regulation4 2 7iii7 by striking subparagraph 7,c7 and inserting the following3 7,c7 ,form and manner ,the report required by subparagraph 7,a7 shall be filed electronically in accordance with regulations prescribed by the ,,erisa agencies4 2 and 7iv7 in subparagraph 7,d7-- 7,i7 by redesignating clauses 7ii7 and 7iii7 as clauses 7iii7 and 7iv71 respectively2 7,,ii7 by inserting after clause 7i7 the following3 7ii7 ,plans in endangered or critical status ,if it is certified under subparagraph 7,a7 that a multiemployer plan is or will be in endangered or critical status1 the plan sponsor shall include in the notice under clause 7i7-- 7,i7 a statement describing how a person may obtain a copy of the plan's funding improvement or rehabilitation plan1 as appropriate1 adopted under this section and the actuarial and financial data that demonstrate any action taken by the plan toward fiscal improvement1 7,,ii7 a summary of any funding improvement plan1 rehabilitation plan1 and any update thereto or modification thereof1 adopted under this section prior to the furnishing of such notice1 7,,iii7 a summary of the rules governing reorganization or insolvency1 including the limitations on benefit payments1 and 7,,iv7 a general description of the benefits under the plan which are eligible to be guaranteed by the ,pension ,benefit ,guaranty ,corporation and an explanation of the limitations on the guarantee and the circumstances under which such limitations apply4 2 7,,iii7 in clause 7iv71 as so redesignated-- 7aa7 by striking ,the ,secretary of the ,treasury1 in consultation with the ,secretary and inserting ,the ,,erisa agencies2 and 7bb7 by striking clause 7ii7 and inserting clauses 7ii7 and 7iii72 and 7,,iv7 by adding at the end the following3 7,e7 ,designation and coordination ,the ,,erisa agencies shall-- 7i7 designate one ,,erisa agency to receive the report described in subparagraph 7,a7 on behalf of all the ,,erisa agencies1 which shall each have full access to such report2 and 7ii7 consult with each other and develop rules1 regulations1 practices1 and forms1 which to the extent appropriate for the efficient administration of the provisions of this paragraph are designed to replace duplication of effort1 duplication of reporting1 conflicting or overlapping requirements1 and the burden of compliance with such provisions by plan administrators and plan sponsors4 7,f7 ,,erisa agencies ,in this paragraph1 the term ,,erisa agencies means the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,pension ,benefit ,guaranty ,corporation4 4 7,b7 ,amendments to #aihf ,code ,section #dcb7;b77#c7 of the ,internal ,revenue ,code of #aihf is amended-- 7i7 in the paragraph heading1 by striking by plan actuary and inserting and report2 7ii7 by amending subparagraph 7,a7 to read as follows3 7,a7 ,in general ,not later than the #ijth day of each plan year of a multiemployer plan1 the plan sponsor shall file1 in accordance with regulations prescribed by the ,,erisa agencies1 a report that contains-- 7i7 documentation from the plan actuary certifying to the ,,erisa agencies and to the plan sponsor-- 7,i7 whether or not the plan is in endangered status for such plan year and whether or not the plan is or will be in critical status for such plan year or any of the #e succeeding plan years1 7,,ii7 in the case of a plan which is in a funding improvement or rehabilitation period1 whether or not the plan is making the scheduled progress in meeting the requirements of its funding improvement or rehabilitation plan and1 if not1 a summary of the primary reasons the plan is not making the scheduled progress1 7,,iii7 the funded percentage of the plan determined as of the first day of the current plan year and the value of assets and liabilities used to calculate such funded percentage1 7,,iv7 a projection of the funding standard account on a year-by-year basis for the current plan year and the nine succeeding plan years and a statement of the actuarial assumptions for such projections1 and 7,v7 7aa7 subject to item 7bb71 a projection of the cash flow of the plan and actuarial assumptions for the current plan year and six succeeding plan years1 and 7bb7 in the case in which it is certified that a multiemployer plan is or will be in endangered or critical status for a plan year1 the projection of the cash flow of the plan and actuarial assumptions for the current year and ten succeeding plan years1 7ii7 as of the last day of the prior plan year1 a good faith determination of-- 7,i7 the fair market value of the assets of the plan1 7,,ii7 the number of participants who are-- 7aa7 retired or separated from service and are receiving benefits1 7bb7 retired or separated participants entitled to future benefits1 and 7cc7 active participants under the plan1 7,,iii7 the total value of all benefits paid during the prior plan year1 7,,iv7 the total value of all contributions made to the plan during the prior plan year1 and 7,v7 the total value of all investment gains or losses during the prior plan year1 7iii7 a description of any material changes during the previous plan year to the rates at which participants accrue benefits or the rate at which employers contribute1 7iv7 a copy of any funding improvement plan1 rehabilitation plan1 and any update thereto or modification thereof1 that was adopted under this section prior to the filing of the report for the current plan year in accordance with this subparagraph and1 if applicable1 after the filing of the report required by this subparagraph for the prior plan year1 7v7 in the case of any plan amendment1 scheduled benefit increase or reduction1 or other known event taking effect in the current plan year and having a material effect on plan liabilities or assets for the year 7as defined in regulations by the ,,erisa agencies71 an explanation of the amendment1 scheduled increase or reduction1 or event1 and a projection to the end of such plan year of the effect of the amendment1 scheduled increase or reduction1 or event on plan liabilities1 7vi7 in the case of a multiemployer plan certified to be in critical status for which the plan sponsor has determined that1 based on reasonable actuarial assumptions and upon exhaustion of all reasonable measures1 the plan cannot reasonably be expected to emerge from critical status by the end of the rehabilitation period1 a description of all reasonable measures1 whether or not such measures were implemented1 and a summary of the consideration of such measures1 7vii7 a good faith statement describing-- 7,i7 the withdrawal of any employer during the prior plan year and the percentage of total contributions made by that employer during the prior plan year1 7,,ii7 any material reduction in total contributions or withdrawal liability payments of any employers and the reason for such reduction1 7,,iii7 any significant reduction in the number of active plan participants and the reason for such reduction1 and 7,,iv7 the annual withdrawal liability payment each employer is obligated to pay to the plan for the plan year1 whether that amount was collected by the plan 7and if not1 the amount that was collected71 and the remaining years on the employer's obligation to make withdrawal liability payments1 and 7viii7 such other information as may be required by the ,,erisa agencies by regulation4 2 7iii7 by striking subparagraph 7,c7 and inserting the following3 7,c7 ,form and manner ,the report required by subparagraph 7,a7 shall be filed electronically in accordance with regulations prescribed by the ,,erisa agencies4 2 7iv7 in subparagraph 7,d7-- 7,i7 by redesignating clauses 7ii7 and 7iii7 as clauses 7iii7 and 7iv71 respectively2 7,,ii7 by inserting after clause 7i7 the following3 7ii7 ,plans in endangered or critical status ,if it is certified under subparagraph 7,a7 that a multiemployer plan is or will be in endangered or critical status1 the plan sponsor shall include in the notice under clause 7i7-- 7,i7 a statement describing how a person may obtain a copy of the plan's funding improvement or rehabilitation plan1 as appropriate1 adopted under this section and the actuarial and financial data that demonstrate any action taken by the plan toward fiscal improvement1 7,,ii7 a summary of any funding improvement plan1 rehabilitation plan1 and any update thereto or modification thereof1 adopted under this section prior to the furnishing of such notice1 7,,iii7 a summary of the rules governing reorganization or insolvency1 including the limitations on benefit payments1 and 7,,iv7 a general description of the benefits under the plan which are eligible to be guaranteed by the ,pension ,benefit ,guaranty ,corporation and an explanation of the limitations on the guarantee and the circumstances under which such limitations apply4 2 and 7,,iii7 in clause 7iv71 as so redesignated-- 7aa7 by striking ,the ,secretary1 in consultation with the ,secretary of ,labor and inserting ,the ,,erisa agencies2 and 7bb7 by striking clause 7ii7 and inserting clauses 7ii7 and 7iii72 and 7v7 by adding at the end the following3 7,e7 ,designation and coordination ,the ,,erisa agencies shall-- 7i7 designate one ,,erisa agency to receive the report described in subparagraph 7,a7 on behalf of all the ,,erisa agencies1 which shall each have full access to such report2 and 7ii7 consult with each other and develop rules1 regulations1 practices1 and forms1 which to the extent appropriate for the efficient administration of the provisions of this paragraph are designed to replace duplication of effort1 duplication of reporting1 conflicting or overlapping requirements1 and the burden of compliance with such provisions by plan administrators and plan sponsors4 7,f7 ,,erisa agencies ,in this paragraph1 the term ,,erisa agencies means the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,pension ,benefit ,guaranty ,corporation4 4 7,c7 ,disclosures by plans regarding status ,section #djjc of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjc7 is amended-- 7i7 in the section heading1 by inserting 2 ,multiemployer ,plan ,information after ,actions2 and 7ii7 by adding at the end the following3 7g7 ,the corporation is authorized to require such information as it deems necessary to investigate or review any facts1 conditions1 or other matters related to the actuarial certification and report by multiemployer plans under section #cje7;b77#c77;,a71 or to obtain such information as any duly authorized committee or subcommittee of the ,congress may request with respect to such plans4 ,the preceding sentence shall be considered a statute described in section #eeb7;b77#c7 of title #e1 ,united ,states ,code1 and the information received pursuant to such sentence shall be exempt from disclosure under such section #eeb7;b74 4 7#c7 ,civil enforcement 7,a7 ,in general ,section #ejb7;c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aacb7 is amended-- 7i7 in paragraph 7#g7-- 7,i7 by striking 7#g7 ,the ,secretary and inserting 7#g77;,a7 ,the ,secretary2 and 7,,ii7 by adding at the end the following3 7,b7 ,the ,secretary may assess a civil penalty against a plan administrator 7or plan sponsor with respect to the notice of endangered or critical status7 of up to #aaj per day from the date of the plan administrator's or sponsor's failure or refusal to provide the relevant notices under section #aja7;f7 or section #cje7;b77#c77;,d7 to a recipient other than the ,secretary or the ,pension ,benefit ,guaranty ,corporation4 ,for purposes of this paragraph1 each violation with respect to any single recipient shall be treated as a separate violation4 2 7ii7 by redesignating the second paragraph 7#aj7 7regarding coordinating enforcement under section #ejb7;c7 of such ,act with enforcement under section #aadd7;c77#h7 of the ,social ,security ,act7 as paragraph 7#ab72 and 7iii7 by inserting after paragraph 7#aj7 7regarding enforcement authority relating to use of genetic information7 the following3 7#aa7 7,a7 ,the ,secretary may assess a civil penalty against any plan sponsor of up to #a1ajj per day from the date of the plan sponsor's failure to file with the ,secretary the notice required under section #cje7;b77#c77;,d7 or with the ,pension ,benefit ,guaranty ,corporation the notice required under section #aja7;f74 7,b7 ,the ,secretary may assess a civil penalty against any plan sponsor of up to #a1ajj per day from the date of the plan sponsor's failure to file with the ,,erisa agency designated in accordance with subparagraph 7,e7 of section #cje7;b77#c7 the report under subparagraph 7,a7 of such section4 4 7,b7 ,conforming amendment ,section #ejb7;a77#f7 of such ,act is amended by striking or 7#i7 and inserting 7#i71 7#aj71 or 7#aa74 7b7 ,coordination with respect to multiemployer plans 7#a7 ,in general ,subtitle ,a of title ,,iii of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #abja et seq47 is amended by adding at the end the following3 #cjje4 ,database of multiemployer plan information 7a7 ,in general ,the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,pension ,benefit ,guaranty ,corporation shall jointly establish an electronic database that contains the following information3 7#a7 ,each defined benefit plan funding notice submitted to the ,pension ,benefit ,guaranty ,corporation by a multiemployer plan under section #aja7;f74 7#b7 ,each report submitted by a multiemployer plan under section #cje7;b77#c77;,a74 7#c7 ,each notice submitted to the ,secretary of ,labor and the ,pension ,benefit ,guaranty ,corporation by a multiemployer plan under section #cje7;b77#c77;,d74 7b7 ,shared access to database ,subject to the agreement described in subsection 7c71 the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,pension ,benefit ,guaranty ,corporation shall have full access to the data in the database established under subsection 7a74 ,to avoid unnecessary expense and duplication of functions among the agencies1 the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,pension ,benefit ,guaranty ,corporation may make such arrangements and agreements for cooperation or mutual assistance with respect to access to and utilization of the data in the database4 7c7 ,shared cost of database ,the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,pension ,benefit ,guaranty ,corporation shall execute a cost sharing agreement to equitably allocate the design1 implementation1 and maintenance costs of the database established under subsection 7a74 7d7 ,exemption ,the information contained in the report described under subsection 7a77#b7 shall be exempt from disclosure under section #eeb7;b7 of title #e1 ,united ,states ,code4 ,for purposes of such section #eeb of title #e1 ,united ,states ,code1 this subsection shall be considered a statute described in subsection 7b77#c7 of such section #eeb4 4 7#b7 ,clerical amendment ,the table of sections for subtitle ,a of title ,,iii of the ,employee ,retirement ,income ,security ,act of #aigd is amended by adding at the end the following new item3 #cjje4 ,database of multiemployer plan information4 4 7c7 ,applicability ,this section 7and the amendments made by this section7 shall apply to plan years beginning after the date that is #a year after the date of enactment of this ,act4 ,b ,improvements to the pension insurance program #caa4 ,modifications of technical changes made by the ,pension ,protection ,act of #bjjf to termination liability 7a7 ,in general ,section #djfb7;c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acfb7;c77 is amended by striking paragraphs 7#a7 and 7#b7 and inserting the following3 7#a7 the aggregate unpaid minimum required contributions 7within the meaning of section #diga7;c77#d7 of the ,internal ,revenue ,code of #aihf7 of the plan 7if any7 for the plan year in which the termination date occurs and for all preceding plan years1 including1 for purposes of this paragraph1 the amount of any increase in such aggregate unpaid minimum required contributions that would result if-- 7,a7 all pending applications for waivers of the minimum funding standard under section #cjb7;c7 of this ,act and section #dab7;c7 of such ,code with respect to such plan were denied1 and 7,b7 no additional contributions 7other than those already made by the termination date7 were made for the plan year in which the termination date occurs or for any previous plan year1 and 7#b7 the unamortized portion 7if any7 of any amounts waived for the plan under section #cjb7;c7 of this ,act and section #dab7;c7 of such ,code for-- 7,a7 the plan year in which the termination date occurs1 and 7,b7 all preceding plan years1 4 7b7 ,effective date ,the amendments made by this section shall take effect as if included in section #ajg of the ,pension ,protection ,act of #bjjf 7,public ,law #aji-bhj2 #abj ,stat4 #haf74 #cab4 ,payment of lump sum distributions in bankruptcy 7a7 ,amendments to ,,erisa ,the second sentence of section #bjf7;g77#c77;,b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajef7;g77#c77 is amended to read as follows3 ,the preceding sentence shall not apply on or after the date on which the enrolled actuary of the plan certifies that the adjusted funding target attainment percentage of such plan 7determined by not taking into account any adjustment of segment rates under section #cjc7;h77#b77;,c77iv77 is not less than #ajj percent44 7b7 ,amendments to #aihf ,code ,the second sentence of section #dcf7;d77#b7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 ,the preceding sentence shall not apply on or after the date on which the enrolled actuary of the plan certifies that the adjusted funding target attainment percentage of such plan 7determined by not taking into account any adjustment of segment rates under section #dcj7;h77#b77;,c77iv77 is not less than #ajj percent44 7c7 ,effective date ,the amendments made by this section shall take effect as of ,july #f1 #bjab4 #cac4 ,trusteeship clarifications 7a7 ,appointment of trustees in plan termination instituted by ,,pbgc 7#a7 ,in general ,subsections 7a7 and 7b7 of section #djjb 7#bi ,u4,s4,c4 #acdb7 are amended to read as follows3 7a7 ,authority ,to institute proceedings ,to terminate a plan 7#a7 ,in general ,the corporation may institute proceedings under this section to terminate a plan whenever it determines that the plan must be terminated in order to protect the interests of the participants or to avoid any unreasonable deterioration of the financial condition of the plan or any unreasonable increase in the liability of the corporation1 as shown by one or more of the following conditions3 7,a7 ,the plan has not met the minimum funding standard required under section #dab of the ,internal ,revenue ,code of #aihf1 or has been notified by the ,secretary of the ,treasury that a notice of deficiency under section #fbab of such ,code has been mailed with respect to the tax imposed under section #diga7;a7 of such ,code4 7,b7 ,the plan will be unable to pay benefits when due4 7,c7 ,the reportable event described in section #djdc7;c77#g7 has occurred4 7,d7 ,the possible long-run loss of the corporation with respect to the plan may reasonably be expected to increase unreasonably if the plan is not terminated4 7#b7 ,requirement ,the corporation shall1 as soon as practicable1 institute proceedings under this section to terminate a single-employer plan whenever the corporation determines that the plan does not have assets available to pay benefits which are currently due under the terms of the plan4 ,notwithstanding any other provision of this subchapter1 the corporation shall1 to the extent practicable1 pool assets of terminated plans for purposes of administration1 investment1 payment of liabilities of all such terminated plans1 and such other purposes as the corporation determines to be appropriate in the administration of this title4 7b7 ,appointment of the ,corporation ,to ,administer ,plan 7#a7 ,in general ,whenever the corporation makes a determination under subsection 7a7 with respect to a plan or is required under subsection 7a7 to institute proceedings under this section1 the corporation may1 upon notice to the plan1 apply to the appropriate ,united ,states district court to appoint the corporation as the person to administer the plan with respect to which the determination is made pending the issuance of a decree under subsection 7c7 ordering the termination of the plan4 ,if1 within #c business days after the filing of an application under this subsection 7or such other period as the court may order71 the administrator of the plan consents to the appointment of the corporation to administer the plan1 or fails to show why the corporation should not be so appointed1 the court may grant the application and appoint the corporation to administer the plan in accordance with its terms until the corporation determines that the plan should be terminated or that termination is unnecessary4 7#b7 ,appointment ,notwithstanding any other provision of this title-- 7,a7 upon the petition of a plan administrator or the corporation1 the appropriate ,united ,states district court may appoint the corporation to administer the plan in accordance with the provisions of this section if the interests of the plan participants would be better served by such appointment1 and 7,b7 upon the petition of the corporation1 the appropriate ,united ,states district court shall appoint a trustee proposed by the corporation for a multiemployer plan which is in reorganization to which section #djda;,a7d7 applies1 unless such appointment would be adverse to the interests of the plan participants and beneficiaries in the aggregate4 7#c7 ,agreement to appointment ,the corporation and plan administrator may agree to the appointment of the corporation to administer the plan without proceeding in accordance with the requirements of paragraphs 7#a7 and 7#b74 4 7#b7 ,conforming amendments 7,a7 ,subsection 7c7 of such section #djdb is amended-- 7i7 by striking 7c77#a7 and all that follows through the end of paragraph 7#a7 and inserting the following3 7c7 ,decree enforcing determination that plan must be terminated 7#a7 ,court decree 7,a7 ,application ,if the corporation is required under subsection 7a7 to commence proceedings under this section with respect to a plan or1 after issuing a notice under this section to a plan administrator1 has determined that the plan should be terminated1 the corporation may1 upon notice to the plan administrator1 apply to the appropriate ,united ,states district court for a decree enforcing the corporation's determination that the plan be terminated4 7,b7 ,decree 7i7 ,in general ,the district court shall issue the decree under subparagraph 7,a7 unless such court finds1 upon review of the administrative record of the corporation's determination under subsection 7a71 that such determination was arbitrary1 capricious1 an abuse of discretion1 or otherwise not in accordance with law4 7ii7 ,effect of decree ,upon granting a decree for which the corporation has applied under this subsection1 the court shall authorize the corporation if appointed under subsection 7b7 7or appoint the corporation if such corporation has not been appointed under such subsection and authorize the corporation7 to terminate the plan in accordance with the provisions of this subtitle4 7,c7 ,waiver of application ,if the corporation and the plan administrator agree that a plan should be terminated and agree to the appointment of the corporation to carry out the termination of the plan without proceeding in accordance with the requirements of this subsection 7other than this subparagraph71 the corporation shall have the power described in subsection 7d77#a7 and shall be subject to the duties described in subsection 7d77#c7 and any other duties imposed on the corporation under any other provision of law or by agreement between the corporation and the plan administrator4 2 and 7ii7 in paragraph 7#b71 by striking 7#b7 ,in the case of and inserting 7#b7 ,providing of information4--,in the case of 4 7,b7 ,subsection 7d7 of such section #djdb is amended-- 7i7 in paragraph 7#a77;,a7-- 7,i7 by striking ,a trustee appointed under subsection 7b7 and inserting ,if the corporation is appointed to administer a plan under subsection 7b71 the corporation2 7,,ii7 in clause 7ii71 by striking himself as trustee and inserting the corporation2 7,,iii7 in clause 7iii71 by striking he and inserting the corporation2 7,,iv7 in clause 7iv71 by striking his appointment and inserting the appointment of the corporation2 7,v7 in clause 7vi71 by striking he and inserting the corporation2 7,,vi7 in clause 7vii71 by striking trustee and inserting corporation2 and 7,,vii7 by striking the flush language after clause 7vii7 and inserting the following3 ,if the court to which application is made under subsection 7c7 dismisses the application with prejudice1 or if the corporation fails to apply for a decree under subsection 7c71 within #cj days after the date on which the corporation is appointed under subsection 7b71 the corporation shall transfer all assets and records of the plan held by such corporation to the plan administrator not later than #c business days after such dismissal or the expiration of such #cj-;day period1 and shall not be liable to the plan or any other person for the acts of the corporation in administering the plan except for willful misconduct or gross negligence4 ,the #cj-;day period described in the preceding sentence may be extended as provided by agreement between the plan administrator and the corporation or by court order4 2 7ii7 in paragraph 7#a77;,b7-- 7,i7 in the matter preceding clause 7i71 by striking trustee and inserting corporation2 7,,ii7 by striking clauses 7iii7 and 7v72 7,,iii7 by redesignating clause 7iv7 as clause 7iii72 and 7,,iv7 by redesignating clauses 7vi7 through 7viii7 as clauses 7iv7 through 7vi71 respectively2 7iii7 in paragraph 7#b7-- 7,i7 in the matter preceding subparagraph 7,a7 by striking his appointment1 the trustee and inserting the appointment of the corporation to administer the plan1 the corporation2 and 7,,ii7 in subparagraph 7,d7 by striking section2 and 7iv7 by striking paragraph 7#c7 and inserting the following3 7#c7 ,except to the extent inconsistent with the provisions of this ,act1 the corporation1 as appointed under this section1 shall be subject to the same duties as those of a trustee under section #gjd of title #aa1 ,united ,states ,code1 and shall be1 with respect to the plan1 a fiduciary within the meaning of section #c7ba7 7except to the extent that the provisions of this title are inconsistent with the requirements applicable under part #d of subtitle ,b of title ,i74 ,notwithstanding any references in this section to administering a plan1 the corporation shall not be considered a plan administrator within the meaning of section #c and shall not be subject to the duties of a plan administrator under title ,i1 including the duty to file reports on behalf of the plan4 7#d7 ,when appointed under subsection 7b7 to administer a plan or granted a decree to terminate a plan under subsection 7c71 the corporation shall1 within #cj days of the receipt of a written request from any participant or beneficiary of the plan 7or as soon as practicable thereafter71 furnish a copy of the plan document1 summary plan description1 and other instruments under which the plan is established or operated that relate to the participant's or beneficiary's benefit under the plan4 ,the corporation may charge a reasonable fee to cover the cost of furnishing complete copies4 4 7,c7 ,subsection 7f7 of such section #djdb is amended to read as follows3 7f7 ,upon the filing of an application for the appointment of the corporation to administer a plan or the issuance of a decree under this section1 the court to which an application is made shall have exclusive jurisdiction of the plan involved and property of the plan1 wherever located1 with the powers1 to the extent consistent with the purposes of this section1 of a court of the ,united ,states having jurisdiction over cases under chapter #aa of title #aa1 ,united ,states ,code4 ,pending an adjudication under subsection 7c71 such court shall stay1 and upon appointment of the corporation to carry out the termination of the plan under this section1 such court shall continue the stay of any pending mortgage foreclosure1 equity receivership1 or other proceeding to reorganize1 conserve1 or liquidate the plan or the property of the plan and any other suit against any receiver1 conservator1 or trustee of the plan or property of the plan4 ,pending such adjudication and upon the appointment of the corporation to carry out the termination of the plan1 the court may stay any proceeding to enforce a lien against property of the plan or any other suit against the plan4 4 7,d7 ,such section #djdb is amended by striking subsection 7h74 7b7 ,other conforming and technical amendments 7#a7 ,section #djjb7;h77#a7 of such ,act 7#bi ,u4,s4,c4 #acjb7;h77#a77 is amended-- 7,a7 in the first sentence-- 7i7 in subparagraph 7,a71 by striking the appointment of trustees in termination proceedings and inserting the appointment of the corporation to administer or carry out a termination of a plan under section #djdb2 and 7ii7 in subparagraph 7,c71 by striking under a trustee and inserting under the corporation2 and 7,b7 in the second sentence-- 7i7 by striking recommend persons for appointment as trustees in termination proceedings12 7ii7 by striking the comma after funds2 and 7iii7 by striking under a trustee and inserting under the corporation4 7#b7 ,section #djjc of such ,act 7#bi ,u4,s4,c4 #acjc7 is amended-- 7,a7 in subsection 7e77#f77;,b71 by amending clause 7ii7 to read as follows3 7ii7 ,if the corporation brings the action on behalf of a plan that the corporation was appointed to administer or terminate under section #djdb1 the applicable date specified in this subparagraph is the date on which the corporation was so appointed if such date is later than the date described in clause 7i74 2 and 7,b7 in subsection 7f77#d71 by striking the corporation in its capacity as a trustee under section #djdb or #djdi and inserting the corporation in its capacity as a trustee under section #djdi or in its capacity in administering a plan pursuant to its appointment under section #djdb7;b7 or carrying out the termination of a plan pursuant to its appointment under section #djdb7;c74 7#c7 ,section #djjd7;b7 of such ,act 7#bi ,u4,s4,c4 #acjd7;b77 is amended-- 7,a7 in paragraph 7#a71 by striking pension plans trusteed by the corporation and inserting pension plans for which the corporation has been appointed under section #djdb to carry out their termination2 and 7,b7 in paragraph 7#b71 by striking plans trusteed by the corporation and inserting plans for which the corporation has been appointed under section #djdb to carry out their termination4 7#d7 ,section #djje7;b77#a77;,b7 of such ,act 7#bi ,u4,s4,c4 #acje7;b77#a77;,b77 is amended by striking a plan administered under section #djdb by a trustee and inserting a plan that the corporation has been appointed to terminate under section #djdb4 7#e7 ,section #djjg7;a7 of such ,act 7#bi ,u4,s4,c4 #acjg7;a77 is amended by striking a trustee and inserting the corporation4 7#f7 ,section #djdd of such ,act 7#bi ,u4,s4,c4 #acdd7 is amended-- 7,a7 in subsection 7c71 by striking the date a trustee is appointed under section #djdb7;b7 and inserting the date the corporation is appointed under section #djdb7;b7 to administer the plan2 and 7,b7 in subsection 7f7-- 7i7 in paragraph 7#b77;,c77ii71 by striking the trustee appointed under section #djdb7;b7 or 7c7 and inserting the corporation1 for the account of the plan2 and 7ii7 in paragraph 7#c71 by amending subparagraph 7,b7 to read as follows3 7,b7 the amount of any liability to the corporation under section #djfb7;b7 or 7c74 4 7#g7 ,section #djde of such ,act 7#bi ,u4,s4,c4 #acde7 is amended by striking trustee each place such term appears in subsections 7a7 and 7c7 and inserting corporation4 7#h7 7,a7 ,section #djdf of such ,act 7#bi ,u4,s4,c4 #acdf7 is repealed4 7,b7 ,the table of sections for subtitle ,c of title ,,iv of such ,act is amended by striking the item relating to section #djdf4 7#i7 ,section #djdh of such ,act 7#bi ,u4,s4,c4 #acdh7 is amended-- 7,a7 in subsection 7a77#d71 by striking 7or the trustee72 and 7,b7 in subsection 7b77#b71 by striking 7or the trustee appointed under section #djdb7;b77#b71 if any74 7#aj7 ,section #djej7;a77#b7 of such ,act 7#bi ,u4,s4,c4 #acej7;a77#b77 is amended by striking to the corporation as trustee1 and shall be held with assets of terminated plans for which the corporation is trustee under section #djdb and inserting to the corporation1 as appointed under section #djdb to carry out the termination of a plan1 and shall be held with assets of terminated plans that the corporation has been appointed to terminate under section #djdb4 7#aa7 ,section #djfb of such ,act 7#bi ,u4,s4,c4 #acfb71 as amended by sections #cjc and #cba1 is amended-- 7,a7 in subsection 7a71 by striking paragraphs 7#a7 and 7#b7 and inserting the following3 7#a7 liability to the corporation1 for the account of the corporation1 to the extent provided in subsection 7b71 and 7#b7 liability to the corporation1 for the account of the plan1 to the extent provided in subsection 7c74 2 7,b7 in the heading of subsection 7b71 by inserting for its own account after corporation2 and 7,c7 in subsection 7c7-- 7i7 in the heading1 by striking section #djdb trustee and inserting the ,corporation for the ,account of the ,plan2 and 7ii7 in the matter preceding paragraph 7#a71 by striking the trustee appointed under subsection 7b7 or 7c7 of section #djdb and inserting the corporation1 for the account of the plan1 as appointed under section #djdb to carry out the termination of the plan4 #cad4 ,recordkeeping for terminating plans 7a7 ,single-,employer plan benefits guaranteed ,section #djbb of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acbb7 is amended by adding at the end the following3 7i7 ,recordkeeping ,the ,corporation may issue regulations to require plan sponsors or plan administrators to maintain records necessary to enable the to determine benefits as of the termination date4 ,such regulations may require plan sponsors or plan administrators to certify to the corporation that such records are being maintained4 4 7b7 ,allocation of assets ,section #djdd of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acdd7 is amended by adding at the end the following3 7g7 ,recordkeeping ,the ,corporation may issue regulations to require plan sponsors or plan administrators to maintain records necessary to enable the ,corporation to determine benefits as of the termination date4 ,such regulations may require plan sponsors or plan administrators to certify to the corporation that such records are being maintained4 4 #cae4 ,termination date in bankruptcy ,sections #djbb7;g7 and #djdd7;e7 of the ,employee ,retirement ,income ,security ,act of #aigd1 as added by section #djd of the ,pension ,protection ,act of #bjjf 7,public ,law #aji-bhj2 #abj ,stat4 #ibh71 are repealed as of ,december #ca1 #bjad1 and shall not apply with respect to proceedings initiated under title #aa1 ,united ,states ,code1 or under any similar ,federal law or law of a ,state or political subdivision1 on or after such date4 ,,iv ,other systemic reforms #dja4 ,plan audit quality improvement 7a7 ,annual reports ,section #ajc7;a77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbc7;a77#c77 is amended-- 7#a7 in subparagraph 7,a71 by striking in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year4 ,such examination shall be conducted in accordance with generally accepted auditing standards1 and shall involve such tests of the books and records of the plan as are considered necessary by the independent qualified public accountant4 and inserting in conformity with generally accepted accounting principles1 as superseded or modified by the ,secretary in regulations1 applied on a basis consistent with that of the preceding year4 ,such examination shall be conducted in accordance with generally accepted auditing standards1 except as superseded or modified by the ,secretary in regulations1 and shall involve such tests of the books and records of the plan as are considered necessary by the independent qualified public accountant42 and 7#b7 by adding at the end the following3 7,e7 ,persons described in subparagraphs 7i7 through 7iii7 of subparagraph 7,d7 shall be subject to such additional standards regarding conflicts of interest1 qualifications1 and direct reporting of certain events such as fraud and other irregularities as the ,secretary may prescribe in regulations4 4 7b7 ,civil enforcement ,section #ejb7;c77#b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aacb7;c77#b77 is amended by adding at the end the following new sentence3 ,if the ,secretary rejects an annual report in whole or in part due to the failure to comply with a requirement of section #ajc imposed on an accountant1 actuary1 or other person1 the ,secretary may assess all or part of the civil penalty against such person4 ,the ,secretary may require remediation in place of assessing all or part of a penalty44 7c7 ,debarment for deficient audits or for failing ,to meet qualification standards 7#a7 ,in general ,part #e of subtitle ,b of title ,i of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aaca et seq47 is amended by adding at the end the following3 #ebb4 ,debarment for deficient audits or for failing to meet qualification standards 7a7 ,in general ,if the ,secretary finds1 after notice and opportunity for a hearing1 that an accountant or accounting firm has engaged in any act or practice1 or failed to act1 in violation of section #ajc relating to the preparation and issuance of audit reports1 or with professional standards1 the ,secretary may issue an order to bar an accountant or accounting firm 7or division or component of such firm71 on a temporary or permanent basis1 from directly or indirectly engaging in specified activities relating to performing or supervising plan audits required under section #ajc4 7b7 ,hearings ,the subject of a debarment order may request a hearing and file an answer not later than #cj days after the date of service of the notice of the debarment order1 in accordance with regulations prescribed by the ,secretary4 ,failure to request a hearing within such #cj-;day period shall constitute a waiver of the right to appear and contest the facts alleged in the debarment order and an admission of the facts alleged in the order for purposes of any related proceedings under this part4 ,such order shall then become a final agency action under section #gjd of title #e1 ,united ,states ,code4 7c7 ,modification or termination of orders ,the ,secretary may modify or terminate an order issued under this section1 upon the request of the subject of the order and pursuant to procedures established by the ,secretary1 if the ,secretary determines that such modification or termination is in the interest of plan participants and beneficiaries4 7d7 ,publicity of orders ,the ,secretary shall make all final orders under this section 7including modified orders7 public and shall notify applicable ,state regulatory organizations upon the issuance of such final orders 7including modified orders74 7e7 ,jurisdiction ,lawsuits by the subject of an order to review the final order of the ,secretary may be brought only in the district court of the ,united ,states for the district where the subject of the order has its principal office or in the ,united ,states ,district ,court for the ,district of ,columbia4 7f7 ,regulations ,the ,secretary may promulgate such regulations or other guidance as may be necessary or appropriate to carry out this section4 4 7#b7 ,clerical amendment ,the table of sections for part #e of subtitle ,b of title ,i of the ,employee ,retirement ,income ,security ,act of #aigd is amended by adding at the end the following new item3 #ebb4 ,debarment for deficient audits or for failing to meet qualification standards4 4 7d7 ,exception 7#a7 ,in general ,section #ajc7;a77#c77;,c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbc7;a77#c77;,c77 is amended by striking if such statements are certified by the bank1 similar institution1 or insurance carrier as accurate and are made part of the annual report4 and inserting except to the extent required under regulations promulgated by the ,secretary44 7#b7 ,effective date ,the amendment made by paragraph 7#a7 shall not become effective until the ,secretary has promulgated final regulations with respect to such amendment4 #djb4 ,special rules relating to treatment of qualified domestic relations orders 7a7 ,preservation of ,assets 7#a7 ,amendments to ,,erisa ,section #bjf7;d77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajef7;d77#c77 is amended-- 7,a7 by redesignating subparagraph 7,n7 as subparagraph 7,o72 and 7,b7 by inserting after subparagraph 7,m7 the following3 7,n7 ,preservation of assets 7i7 ,in general ,if a spouse or former spouse of a participant-- 7,i7 notifies a plan in writing that-- 7aa7 an action is pending pursuant to a ,state domestic relations law 7including a community property law71 and 7bb7 all or a portion of the benefits payable with respect to the participant under the plan are a subject of such action1 and 7,,ii7 includes with the notice evidence of the pendency of the action1 the plan administrator shall1 during the segregation period1 separately account for #ej percent of such benefits4 ,any amounts so separately accounted for may not be distributed by the plan during the segregation period4 7ii7 ,segregation period 7,i7 ,in general ,for purposes of clause 7i71 the term segregation period means the period-- 7aa7 beginning on the date of receipt by the plan of the notice under clause 7i71 and 7bb7 ending on the earlier of-- 7,,aa7 #ij days after the date of receipt of such notice1 or 7,,bb7 the date of receipt of a domestic relations order with respect to the participant and the prospective alternate payee or the date on which the action is no longer pending4 7,,ii7 ,extension of segregation period ,the segregation period shall be extended for #a or more additional periods described in subclause 7,i7 upon notice by the spouse or former spouse that the action described in clause 7i77,i77aa7 is still pending as of the close of any prior segregation period4 4 7#b7 ,amendments to #aihf code ,section #dad7p7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by redesignating paragraph 7#ac7 as paragraph 7#ad72 and 7,b7 by inserting after paragraph 7#ab7 the following3 7#ac7 ,preservation of assets 7,a7 ,in general ,if a spouse or former spouse of a participant-- 7i7 notifies a plan in writing that-- 7,i7 an action is pending pursuant to a ,state domestic relations law 7including a community property law71 and 7,,ii7 all or a portion of the benefits payable with respect to the participant under the plan are a subject of such action1 and 7ii7 includes with the notice evidence of the pendency of the action1 the plan administrator shall1 during the segregation period1 separately account for #ej percent of such benefits4 ,any amounts so separately accounted for may not be distributed by the plan during the segregation period4 4 7,b7 ,segregation period 7i7 ,in general ,for purposes of subparagraph 7,a71 the term segregation period means the period-- 7,i7 beginning on the date of receipt by the plan of the notice under clause 7i71 and 7,,ii7 ending on the earlier of-- 7aa7 #ij days after the date of receipt of such notice1 or 7bb7 the date of receipt of a domestic relations order with respect to the participant and the prospective alternate payee or the date on which the action is no longer pending4 7ii7 ,extension of segregation period ,the segregation period shall be extended for #a or more additional periods described in clause 7i7 upon notice by the spouse or former spouse that the action described in subparagraph 7,a77i77,i7 is still pending as of the close of any prior segregation period4 4 7b7 ,penalty for failure ,to provide information regarding alternate payees 7#a7 ,in general ,section #ejb7;c71 as amended by section #cab1 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aacb7;c77 is amended-- 7,a7 by redesignating paragraphs 7#h71 7#i71 7#aj71 7#aa71 and 7#ab7 as paragraphs 7#i71 7#aj71 7#aa71 7#ab71 and 7#ac7 respectively2 and 7,b7 by inserting after paragraph 7#g7 the following3 7#h7 ,failure to provide information regarding alternate payees ,the plan administrator shall provide information regarding the benefit to prospective alternative payees under a domestic relations order under section #bjf7;d77#c7 or any representative of a prospective alternative payee in connection with such an order4 ,the ,secretary may assess a civil penalty against any plan administrator of up to #ajj a day from the date of the plan administrator's failure or refusal to provide such information4 4 7#b7 ,conforming amendment ,section #ejb7;a77#f7 of such ,act 7#bi ,u4,s4,c4 #aacb7;a77#f771 as so amended1 is amended by striking or 7#aa7 and inserting 7#aa71 or 7#ab74 7c7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjad4 #djc4 ,correction to bonding requirement ,section #dab7;a77#c77;,d7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aaab7;a77#c77;,d77 is amended by striking ,paragraph 7#b7 and inserting ,this paragraph4 #djd4 ,retaliation protections ,section #eaj of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aadj7 is amended by inserting 1 has filed or made any oral or written complaint 7including to a fiduciary1 an employer1 or the ,secretary71 after given information4