,,ib  ,union ,calendar ,no4 #cib  #aadth
 ,,congress  #b;d ,session  ,h4 ,r4     
#dbid  ,report ,no4 #aad-eab1 ,parts ,i 
and ,,ii  ,,in ,,the ,,house ,,of       
,,representatives  ,december #ah1 #bjae 
,mr4 ,roskam 7for himself1 ,mr4 ,neal1  
,mr4 ,roe of ,tennessee1 ,mr4 ,larson of
 ,connecticut1 ,mr4 ,reed1 and ,ms4     
,michelle ,lujan ,grisham of ,new       
,mexico7 introduced the following bill2 
which was referred to the ,committee on 
,ways and ,means1 and in addition to the
 ,committee on ,education and the       
,workforce1 for a period to be          
subsequently determined by the ,speaker1
 in each case for consideration of such 
provisions as fall within the           
jurisdiction of the committee concerned 
,april #bj1 #bjaf ,additional sponsors3 
,mr4 ,david ,scott of ,georgia1 ,mr4    
,carter of ,georgia1 ,mr4 ,young of     
,indiana1 ,mr4 ,byrne1 ,mr4 ,boustany1  
,mr4 ,wilson of ,south ,carolina1 ,mr4  
,clay1 ,mr4 ,holding1 ,mr4 ,renacci1    
,ms4 ,jenkins of ,kansas1 ,mr4          

,mac,arthur1 ,mrs4 ,walorski1 ,mr4      
,paulsen1 ,mr4 ,ashford1 ,mr4 ,zinke1   
,mr4 ,duncan of ,tennessee1 ,mr4        
,tiberi1 ,mr4 ,meehan1 ,mr4 ,nunes1 ,mr4
 ,reichert1 ,mr4 ,gibbs1 ,mr4 ,guthrie1 
,mr4 ,thompson of ,pennsylvania1 ,mr4   
,bishop of ,michigan1 ,mr4 ,marchant1   
,mr4 ,barletta1 ,mr4 ,allen1 ,mr4       
,cramer1 ,mr4 ,olson1 ,mr4 ,latta1 ,mr4 
,sessions1 ,mr4 ,amodei1 and ,mr4       
,gohmert  ,april #bj1 #bjaf ,reported   
from the ,committee on ,ways and ,means 
with an amendment ,strike out all after 
the enacting clause and insert the part 
printed in italic  ,april #bj1 #bjaf    
,reported from the ,committee on        
,education and the ,workforce with an   
amendment1 committed to the ,committee  
of the ,whole ,house on the ,state of   
the ,union1 and ordered to be printed   
,strike out all after the enacting      
clause and insert the part printed in   
boldface roman ,for text of introduced  
bill1 see copy of bill as introduced on 
,december #ah1 #bjae  ,a ,,bill  ,to    

amend the ,internal ,revenue ,code of   
#aihf to ensure that retirement         
investors receive advice in their best  
interests1 and for other purposes4  #a4 
,short title ,this ,act may be cited as 
the ,strengthening ,access to ,valuable 
,education and ,retirement ,support ,act
 of #bjae or the ,,savers ,act of #bjae4
  #b4 ,purpose ,the purpose of this ,act
 is to provide that advisors who--  7#a7
 provide advice that is impermissible   
under the prohibited transaction        
provisions under section #dige of the   
,internal ,revenue ,code of #aihf1 or   
7#b7 breach the best interest standard  
for the provision of investment advice1 
are subject to liability under the      
,internal ,revenue ,code of #aihf4  #c4 
,rules relating to the provision of     
investment advice  7a7 ,amendments to   
the ,internal ,revenue ,code of #aihf   
7#a7 ,exemption for investment advice   
which is best interest recommendation   
,section #dige7;d7 of the ,internal     
,revenue ,code of #aihf is amended by   

striking or at the end of paragraph     
7#bb71 by striking the period at the end
 of paragraph 7#bc7 and inserting 1 or1 
and by inserting after paragraph 7#bc7  
the following3  7#bd7 provision of      
investment advice by a fiduciary to a   
plan1 plan participant1 or beneficiary  
with respect to the plan1 which is a    
best interest recommendation or a       
transaction connected to such advice4  4
  7#b7 ,investment advice2 best interest
 recommendation ,section #dige7;e7 of   
such ,code is amended by adding at the  
end the following3  7#aj7 ,investment   
advice  7,a7 ,in general ,for purposes  
of this section1 the term investment    
advice means a recommendation that--    
7i7 relates to-- 7,i7 the advisability  
of acquiring1 holding1 disposing1 or    
exchanging any moneys or other property 
of a plan by the plan1 plan             
participants1 or plan beneficiaries1    
including any recommendation whether to 
take a distribution of benefits from    
such plan or any recommendation relating

 to the investment of any moneys or     
other property of such plan to be       
distributed from such plan2  7,,ii7 the 
management of moneys or other property  
of such plan1 including recommendations 
relating to the management of moneys or 
other property to be distributed from   
such plan2 or  7,,iii7 the advisability 
of retaining or ceasing to retain a     
person who would receive a fee or other 
compensation for providing any of the   
types of advice described in this       
subclause2 and  7ii7 is rendered        
pursuant to-- 7,i7 a written            
acknowledgment that the person is a     
fiduciary with respect to the provision 
of such recommendation2 or  7,,ii7 a    
mutual agreement1 arrangement1 or       
understanding which may include         
limitations on scope1 timing1 and       
responsibility to provide ongoing       
monitoring or advice services1 between  
the person making such recommendation   
and the plan1 plan participant1 or      
beneficiary that such recommendation is 

individualized to the plan1 plan        
participant1 or beneficiary and such    
plan1 plan participant1 or beneficiary  
intends to materially rely on such      
recommendation in making investment or  
management decisions with respect to any
 moneys or other property of such plan4 
7,b7 ,disclaimer of a mutual agreement1 
arrangement1 or understanding ,for      
purposes of subparagraph 7,a77ii77,,ii71
 any disclaimer of a mutual agreement1  
arrangement1 or understanding shall only
 state the following3 ,this information 
is not individualized to you1 and you   
are not intended to materially rely on  
this information in making investment or
 management decisions44 ,such disclaimer
 shall not be effective unless such     
disclaimer is in writing and is         
communicated in a clear and prominent   
manner and an objective person would    
reasonably conclude that1 based on all  
the facts and circumstances1 there was  
not a mutual agreement1 arrangement1 or 
understanding4  7,c7 ,when              

recommendation treated as made pursuant 
to a mutual agreement1 arrangement1 or  
understanding ,for purposes of          
subparagraph 7,a77ii77,,ii71 information
 shall not be treated as a              
recommendation made pursuant to a mutual
 agreement1 arrangement1 or             
understanding1 and such information     
shall contain the disclaimer required by
 subparagraph 7,b71 if--  7i7 ,seller's 
exception ,the information is provided  
in conjunction with full and fair       
disclosure in writing to a plan1 plan   
participant1 or beneficiary that the    
person providing the information is     
doing so in its marketing or sales      
capacity1 including any information     
regarding the terms and conditions of   
the engagement of the person providing  
the information1 and that the person is 
not intending to provide investment     
advice within the meaning of this       
subparagraph or to otherwise act as a   
fiduciary to the plan or under the      
obligations of a best interest          

recommendation4  7ii7 ,swap and         
security-based swap transaction ,the    
person providing the information is a   
counterparty or service provider to the 
plan in connection with any transaction 
based on the information 7including a   
service arrangement1 sale1 purchase1    
loan1 bilateral contract1 swap 7as      
defined in section #a;a of the          
,commodity ,exchange ,act 7#g ,u4,s4,c4 
#a;a771 or security-based swap 7as      
defined in section #c7;a7 of the        
,securities ,exchange ,act 7#ae         
,u4,s4,c4 #gh;c7a77771 but only if--    
7,i7 the plan is represented1 in        
connection with such transaction1 by a  
plan fiduciary that is independent of   
the person providing the information1   
and1 except in the case of a swap or    
security-based swap1 independent of the 
plan sponsor2 and  7,,ii7 prior to      
entering into such transaction1 the     
independent plan fiduciary represents in
 writing to the person providing the    
information that it is aware that the   

person has a financial interest in the  
transaction and that it has determined  
that the person is not intending to     
provide investment advice within the    
meaning of this subparagraph or to      
otherwise act as a fiduciary to the     
plan1 plan participants1 or plan        
beneficiaries4  7iii7 ,employees of a   
plan sponsor ,the person providing the  
information is an employee of any       
sponsoring employer or employee         
organization who provides the           
information to the plan for no fee or   
other compensation other than the       
employee's normal compensation4  7iv7   
,platform providers selection and       
monitoring assistance ,the person       
providing the information discloses in  
writing to the plan fiduciary that the  
person is not undertaking to provide    
investment advice as a fiduciary 7within
 the meaning of this paragraph7 or under
 the obligations of a best interest     
recommendation and the information      
consists solely of--  7,i7 making       

available to the plan1 plan             
participants1 or plan beneficiaries1    
without regard to the individualized    
needs of the plan1 plan participants1 or
 plan beneficiaries1 securities or other
 property through a platform or similar 
mechanism from which a plan fiduciary   
may select or monitor investment        
alternatives1 including qualified       
default investment alternatives1 into   
which plan participants or beneficiaries
 may direct the investment of assets    
held in1 or contributed to1 their       
individual accounts1 or  7,,ii7 in      
connection with a platform or similar   
mechanism described in subclause 7,i7-- 
7aa7 identifying investment alternatives
 that meet objective criteria specified 
by the plan1 such as criteria concerning
 expense ratios1 fund sizes1 types of   
asset1 or credit quality1 or  7bb7      
providing objective financial data and  
comparisons with independent benchmarks 
to the plan4  7v7 ,valuation ,the       
information consists solely of valuation

 information4  7vi7 ,financial education
 ,the information consists solely of--  
7,i7 information described in           
,department of ,labor ,interpretive     
,bulletin #if-a 7#bi ,c4,f4,r4          
#beji4if-a1 as in effect on ,january #a1
 #bjae71 regardless of whether such     
education is provided to a plan or plan 
fiduciary or a participant or           
beneficiary1  7,,ii7 information        
provided to participants or             
beneficiaries regarding the factors to  
consider in deciding whether to elect to
 receive a distribution from a plan and 
whether to roll over such distribution  
to a plan1 so long as any examples of   
different distribution alternatives are 
accompanied by all material facts and   
assumptions on which the examples are   
based1 or  7,,iii7 any additional       
information treated as education by the 
,secretary4  7#aa7 ,best interest       
recommendation ,for purposes of this    
subsection--  7,a7 ,in general ,the term
 best interest recommendation means a   

recommendation-- 7i7 for which no more  
than reasonable compensation is paid 7as
 determined under subsection 7d77#b771  
7ii7 provided by a person acting with   
the care1 skill1 prudence1 and diligence
 under the circumstances then prevailing
 that a prudent person would exercise   
based on--  7,i7 the information        
obtained through the reasonable         
diligence of the person regarding       
factors such as the advice recipient's  
age1 and  7,,ii7 any other information  
that the advice recipient discloses to  
the person in connection with receiving 
such recommendation1 and  7iii7 where   
the person places the interests of the  
plan or advice recipient above its own4 
7,b7 ,investment options2 variable      
compensation ,a best interest           
recommendation may include a            
recommendation that--  7i7 is based on a
 limited range of investment options    
7which may consist1 in whole or in part1
 of proprietary products71 but only if  
any such limitations shall be clearly   

disclosed to the advice recipient prior 
to any transaction based on the         
investment advice in the form of a      
notice that only states the following3  
,this recommendation is based on a      
limited range of investment options1 and
 the same or similar investments may be 
available at a different cost 7greater  
or lesser7 from other sources41 or  7ii7
 may result in variable compensation to 
the person providing the recommendation 
7or any affiliate of such person71 but  
only if the receipt of such compensation
 shall be clearly disclosed to the      
advice recipient prior to any           
transaction based on the investment     
advice4  7,c7 ,clear disclosure of      
variable compensation ,for purposes of  
this paragraph1 clear disclosure of     
variable compensation shall include1 in 
a manner calculated to be understood by 
the average individual1 each of the     
following3  7i7 ,a notice that states   
only the following3 ,this recommendation
 may result in varying amounts of fees  

or other compensation to the person     
providing the recommendation 7or its    
affiliate71 and the same or similar     
investments may be available at a       
different cost 7greater or lesser7 from 
other sources44 ,any regulations or     
administrative guidance implementing    
this clause may not require this notice 
to be updated more than annually4  7ii7 
,a description of any fee or other      
compensation that is directly or        
indirectly payable to the person 7or its
 affiliate7 by the advice recipient with
 respect to such transaction 7expressed 
as an amount1 formula1 percentage of    
assets1 per capita charge1 or estimate  
or range of such compensation74  7iii7  
,a description of the types and ranges  
of any compensation that may be directly
 or indirectly payable to the person 7or
 its affiliate7 by any third party in   
connection with such transaction        
7expressed as an amount1 formula1       
percentage of assets1 per capita charge1
 or estimate or range of such           

compensation74  7iv7 ,upon request of   
the advice recipient1 a disclosure of   
the specific amounts of compensation    
described in clause 7iii7 that the      
person will receive in connection with  
the particular transaction 7expressed as
 an amount1 formula1 percentage of      
assets1 per capita charge1 or estimate  
of such compensation74  7,d7 ,definition
 of ,affiliate ,for purposes of this    
paragraph1 the term affiliate has the   
meaning given in subsection             
7f77#h77;,j77ii74  7,e7 ,correction of  
certain errors and omissions ,a         
recommendation shall not fail to be a   
best interest recommendation solely     
because a person who1 acting in good    
faith and with reasonable diligence1    
makes an error or omission in disclosing
 the information specified in           
subparagraph 7,b71 if the person        
discloses the correct information to the
 advice recipient as soon as practicable
 but not later than #cj days from the   
date on which the person knows of such  

error or omission4  7,f7 ,special rule  
,any notice provided pursuant to a      
requirement under subparagraph 7,b77i7  
or subparagraph 7,c77i7 shall have no   
effect on any other notice otherwise    
required without regard to this title1  
and shall be provided in addition to1   
and not in lieu of1 any other such      
notice4  4  7#c7 ,failures relating to  
best interest recommendation  7,a7      
,correction ,section #dige7;f77#e7 of   
such ,code is amended-- 7i7 by striking 
7#e7 ,correction4--,the terms and       
inserting3  7#e7 ,correction  7,a7 ,in  
general ,except as provided in          
subparagraph 7,b71 the terms  1 and     
7ii7 by adding at the end the following3
  7,b7 ,determination of correction and 
correct with respect to best interest   
advice recommendations ,in the case of a
 prohibited transaction arising by the  
failure of investment advice to be a    
best interest recommendation1 the terms 
correction and correct mean the payment 
to1 or reimbursement of1 actual damages 

of the plan1 plan participants1 or plan 
beneficiaries resulting directly from   
the plan's1 plan participant's1 or plan 
beneficiary's reliance on such          
investment advice1 if any1 that have not
 otherwise been paid or reimbursed to   
the plan1 plan participants1 or plan    
beneficiaries1 including payments and   
reimbursements made pursuant to         
subparagraph 7,a7 if such amount is     
greater than the amount determined under
 subparagraph 7,a74  4  7,b7 ,amount    
involved for purposes of excise tax ,the
 first sentence of section #dige7;f77#d7
 of such ,code is amended by striking   
excess compensation4 and inserting      
excess compensation1 and in the case of 
a prohibited transaction arising by the 
failure of investment advice to be a    
best interest recommendation1 the amount
 involved shall be the amount paid to   
the person providing the advice 7or its 
affiliate1 as defined in paragraph      
7#h77;,j77ii77 that has not been paid or
 reimbursed to the plan1 plan           

participants1 or plan beneficiaries1    
including payments and reimbursements   
made pursuant to paragraph 7#e744  7b7  
,effective date  7#a7 ,modification of  
certain rules1 and rules and            
administrative positions promulgated    
before enactment but not effective on   
,january #a1 #bjae1 prohibited ,the     
,department of ,labor is prohibited from
 amending any rules or administrative   
positions promulgated under section     
#c7ba7 of the ,employee ,retirement     
,security ,act of #aigd and section     
#dige7;e77#c7 of the ,internal ,revenue 
,code of #aihf 7including ,department of
 ,labor ,interpretive ,bulletin #if-a   
7#bi ,c4,f4,r4 #beji4if-a7 and          
,department of ,labor ,advisory ,opinion
 #bjje-bc;,a71 and no such rule or      
administrative position promulgated by  
the ,department of ,labor prior to the  
date of the enactment of this ,act but  
not effective on ,january #a1 #bjae1 may
 become effective unless a bill or joint
 resolution referred to in paragraph    

7#c7 is enacted as described in such    
paragraph not later than #fj days after 
the date of the enactment of this ,act4 
7#b7 ,general effective date of         
amendments ,except as provided in       
paragraph 7#c71 the amendments made by  
subsection 7a7 of this section shall    
take effect on the #fast day after the  
date of the enactment of this ,act and  
shall apply with respect to information 
provided or recommendations made on or  
after #b years after the date of the    
enactment of this ,act4  7#c7 ,exception
 ,if a bill or joint resolution is      
enacted prior to the #fast day after the
 date of the enactment of this ,act that
 specifically approves any rules or     
administrative positions promulgated    
under section #c7ba7 of the ,employee   
,retirement ,income ,security ,act of   
#aigd and section #dige7;e77#c7 of the  
,internal ,revenue ,code of #aihf that  
is not in effect on ,january #a1 #bjae1 
the amendments made by subsection 7a7 of
 this section shall not take effect4    

7c7 ,grandfathered transactions and     
services ,the amendments made by        
subsection 7a7 shall not apply to any   
service or transaction rendered1 entered
 into1 or for which a person has been   
compensated prior to the date on which  
the amendments made by subsection 7a7 of
 this ,act become effective under       
subsection 7b77#b74  7d7 ,transition ,if
 the amendments made by subsection 7a7  
of this section take effect1 then       
nothing in this section shall be        
construed to prohibit the issuance of   
guidance to carry out such amendments so
 long as such guidance is necessary to  
implement such amendments4 ,until such  
time as regulations or other guidance is
 issued to carry out such amendments1 a 
plan or a fiduciary shall be treated as 
meeting the requirements of such        
amendments if the plan or fiduciary1 as 
the case may be1 complies with a        
reasonable good faith interpretation of 
such amendments4  #a4 ,short title ,this
 ,act may be cited as the ,strengthening

 ,access to ,valuable ,education and    
,retirement ,support ,act of #bjae or   
the ,,savers ,act of #bjae4  #b4        
,purpose ,the purpose of this ,act is to
 provide that advisors who--  7#a7      
provide advice that is impermissible    
under the prohibited transaction        
provisions under section #dige of the   
,internal ,revenue ,code of #aihf1 or   
7#b7 breach the best interest standard  
for the provision of investment advice1 
are subject to liability under the      
,internal ,revenue ,code of #aihf4  #c4 
,rules relating to the provision of     
investment advice  7a7 ,amendments to   
the ,internal ,revenue ,code of #aihf   
7#a7 ,exemption for investment advice   
which is best interest recommendation   
,section #dige7;d7 of the ,internal     
,revenue ,code of #aihf is amended by   
striking or at the end of paragraph     
7#bb71 by striking the period at the end
 of paragraph 7#bc7 and inserting 1 or1 
and by inserting after paragraph 7#bc7  
the following3  7#bd7 provision of      

investment advice by a fiduciary to a   
plan1 plan participant1 or beneficiary  
with respect to the plan1 which is a    
best interest recommendation4  4  7#b7  
,investment advice2 best interest       
recommendation ,section #dige7;e7 of    
such ,code is amended by adding at the  
end the following3  7#aj7 ,investment   
advice  7,a7 ,in general ,for purposes  
of this section1 the term investment    
advice means a recommendation that--    
7i7 relates to-- 7,i7 the advisability  
of acquiring1 holding1 disposing1 or    
exchanging any moneys or other property 
of a plan by the plan1 plan             
participants1 or plan beneficiaries1    
including any recommendation whether to 
take a distribution of benefits from    
such plan or any recommendation relating
 to the investment of any moneys or     
other property of such plan to be rolled
 over or otherwise distributed from such
 plan2  7,,ii7 the management of moneys 
or other property of such plan1         
including recommendations relating to   

the management of moneys or other       
property to be rolled over or otherwise 
distributed from such plan2 or  7,,iii7 
the advisability of retaining or ceasing
 to retain a person who would receive a 
fee or other compensation for providing 
any of the types of advice described in 
this subclause2 and  7ii7 is rendered   
pursuant to-- 7,i7 a written            
acknowledgment that the person is a     
fiduciary with respect to the provision 
of such recommendation2 or  7,,ii7 a    
mutual agreement1 arrangement1 or       
understanding which may include         
limitations on scope1 timing1 and       
responsibility to provide ongoing       
monitoring or advice services1 between  
the person making such recommendation   
and the plan1 plan participant1 or      
beneficiary that such recommendation is 
individualized to the plan1 plan        
participant1 or beneficiary and such    
plan1 plan participant1 or beneficiary  
intends to materially rely on such      
recommendation in making investment or  

management decisions with respect to any
 moneys or other property of such plan4 
7,b7 ,disclaimer of a mutual agreement1 
arrangement1 or understanding ,for      
purposes of subparagraph 7,a77ii77,,ii71
 any disclaimer of a mutual agreement1  
arrangement1 or understanding shall only
 state the following3 ,this information 
is not individualized to you1 and there 
is no intent for you to materially rely 
on this information in making investment
 or management decisions44 ,such        
disclaimer shall not be effective unless
 such disclaimer is in writing and is   
communicated in a clear and prominent   
manner and an objective person would    
reasonably conclude that1 based on all  
the facts and circumstances1 there was  
not a mutual agreement1 arrangement1 or 
understanding4  7,c7 ,when              
recommendation treated as made pursuant 
to a mutual agreement1 arrangement1 or  
understanding ,for purposes of          
subparagraph 7,a77ii77,,ii71 information
 shall not be treated as a              

recommendation made pursuant to a mutual
 agreement1 arrangement1 or             
understanding1 and such information     
shall contain the disclaimer required by
 subparagraph 7,b71 if--  7i7 ,seller's 
exception ,the information is provided  
in conjunction with full and fair       
disclosure in writing to a plan1 plan   
participant1 or beneficiary that the    
person providing the information is     
doing so in its marketing or sales      
capacity1 including any information     
regarding the terms and conditions of   
the engagement of the person providing  
the information1 and that the person is 
not intending to provide investment     
advice within the meaning of this       
subparagraph or to otherwise act as a   
fiduciary to the plan or under the      
obligations of a best interest          
recommendation4  7ii7 ,swap and         
security-based swap transaction ,the    
person providing the information is a   
counterparty or service provider to the 
plan in connection with any transaction 

based on the information 7including a   
service arrangement1 sale1 purchase1    
loan1 bilateral contract1 swap 7as      
defined in section #a;a of the          
,commodity ,exchange ,act 7#g ,u4,s4,c4 
#a;a771 or security-based swap 7as      
defined in section #c7;a7 of the        
,securities ,exchange ,act 7#ae         
,u4,s4,c4 #gh;c7a77771 but only if--    
7,i7 the plan is represented1 in        
connection with such transaction1 by a  
plan fiduciary who is independent of the
 person providing the information1 and1 
except in the case of a swap or         
security-based swap1 independent of the 
plan sponsor2 and  7,,ii7 prior to      
entering into such transaction1 the     
independent plan fiduciary represents in
 writing to the person providing the    
information that it is aware that the   
person has a financial interest in the  
transaction and that it has determined  
that the person is not intending to     
provide investment advice within the    
meaning of this subparagraph or to      

otherwise act as a fiduciary to the     
plan1 plan participants1 or plan        
beneficiaries4  7iii7 ,employees of a   
plan sponsor ,the person providing the  
information is an employee of any       
sponsoring employer or employee         
organization who provides the           
information to the plan for no fee or   
other compensation other than the       
employee's normal compensation4  7iv7   
,platform providers selection and       
monitoring assistance ,the person       
providing the information discloses in  
writing to the plan fiduciary that the  
person is not undertaking to provide    
investment advice as a fiduciary 7within
 the meaning of this paragraph7 or under
 the obligations of a best interest     
recommendation and the information      
consists solely of--  7,i7 making       
available to the plan1 plan             
participants1 or plan beneficiaries1    
without regard to the individualized    
needs of the plan1 plan participants1 or
 plan beneficiaries1 securities or other

 property through a platform or similar 
mechanism from which a plan fiduciary   
may select or monitor investment        
alternatives1 including qualified       
default investment alternatives1 into   
which plan participants or beneficiaries
 may direct the investment of assets    
held in1 or contributed to1 their       
individual accounts1 or  7,,ii7 in      
connection with a platform or similar   
mechanism described in subclause 7,i7-- 
7aa7 identifying investment alternatives
 that meet objective criteria specified 
by the plan1 such as criteria concerning
 expense ratios1 fund sizes1 types of   
asset1 or credit quality1 or  7bb7      
providing objective financial data and  
comparisons with independent benchmarks 
to the plan4  7v7 ,valuation ,the       
information consists solely of valuation
 information4  7vi7 ,financial education
 ,the information consists solely of--  
7,i7 information described in           
,department of ,labor ,interpretive     
,bulletin #if-a 7#bi ,c4,f4,r4          

#beji4if-a1 as in effect on ,january #a1
 #bjae71 regardless of whether such     
education is provided to a plan or plan 
fiduciary or a participant or           
beneficiary1  7,,ii7 information        
provided to participants or             
beneficiaries regarding the factors to  
consider in deciding whether to elect to
 receive a distribution from a plan and 
whether to roll over such distribution  
to a plan1 so long as any examples of   
different distribution and rollover     
alternatives are accompanied by all     
material facts and assumptions on which 
the examples are based1 or  7,,iii7 any 
additional information treated as       
education by the ,secretary4  7#aa7     
,best interest recommendation ,for      
purposes of this subsection--  7,a7 ,in 
general ,the term best interest         
recommendation means a recommendation-- 
7i7 for which no more than reasonable   
compensation is paid 7as determined     
under subsection 7d77#b771  7ii7        
provided by a person acting with the    

care1 skill1 prudence1 and diligence    
under the circumstances then prevailing 
that a prudent person would exercise    
based on--  7,i7 the information        
obtained through the reasonable         
diligence of the person regarding       
factors such as the advice recipient's  
age1 and  7,,ii7 any other information  
that the advice recipient discloses to  
the person in connection with receiving 
such recommendation1 and  7iii7 where   
the person places the interests of the  
plan or advice recipient above its own4 
7,b7 ,investment options2 variable      
compensation ,a best interest           
recommendation may include a            
recommendation that--  7i7 is based on a
 limited range of investment options    
7which may consist1 in whole or in part1
 of proprietary products71 but only if  
any such limitations1 including a       
clearly-stated notice that the same or  
similar investments may be available at 
a different cost 7greater or lesser7    
from other sources1 are clearly         

disclosed to the advice recipient prior 
to any transaction based on the         
recommendation1 or  7ii7 may result in  
variable compensation to the person     
providing the recommendation 7or any    
affiliate of such person71 but only if  
the receipt of such compensation1       
including a clearly-stated notice that  
the same or similar investments may be  
available at a different cost 7greater  
or lesser7 from other sources1 is       
clearly disclosed to the advice         
recipient prior to any transaction based
 on the recommendation4  ,the notices   
provided pursuant to clauses 7i7 and    
7ii7 shall only state the following3    
,the same or similar investments may be 
available at a different cost 7greater  
or lesser7 from other sources44  7,c7   
,clear disclosure of variable           
compensation ,for purposes of           
subparagraph 7,b77ii71 variable         
compensation is clearly disclosed if    
notification is provided at any time    
prior to a transaction based on the     

person's recommendation1 in a manner    
calculated to be understood by the      
average individual1 of the following3   
7i7 ,a notice in writing1 including a   
clearly-stated notice that the same or  
similar investments may be available at 
a different cost 7greater or lesser7    
from other sources1 that the person     
providing the recommendation 7or its    
affiliate7 may receive varying amounts  
of fees or other compensation with      
respect to such transaction4  7ii7 ,a   
description of any fee or other         
compensation that is directly payable to
 the person 7or its affiliate7 from the 
advice recipient with respect to such   
transaction 7expressed as an amount1    
formula1 percentage of assets1 per      
capita charge1 or estimate or range of  
such compensation74  7iii7 ,a           
description of the types and ranges of  
any indirect compensation that may be   
paid to the person 7or its affiliate7 by
 any third party in connection with such
 transaction 7expressed as an amount1   

formula1 percentage of assets1 per      
capita charge1 or estimate of such      
ranges of compensation74  7iv7 ,upon    
request of the advice recipient1 a      
disclosure of the specific amounts of   
compensation described in clause 7iii7  
that the person will receive in         
connection with the particular          
transaction 7expressed as an amount1    
formula1 percentage of assets1 per      
capita charge1 or estimate of such      
compensation74  7,d7 ,definition of     
,affiliate ,for purposes of this        
paragraph1 the term affiliate has the   
meaning given in subsection             
7f77#h77;,j77ii74  7,e7 ,correction of  
certain errors and omissions ,a         
recommendation shall not fail to be a   
best interest recommendation solely     
because a person who1 acting in good    
faith and with reasonable diligence1    
makes an error or omission in disclosing
 the information specified in           
subparagraph 7,b71 if the person        
discloses the correct information to the

 advice recipient as soon as practicable
 but not later than #cj days from the   
date on which the person knows of such  
error or omission4  4  7#c7 ,failures   
relating to best interest recommendation
  7,a7 ,correction ,section             
#dige7;f77#e7 of such ,code is amended--
 7i7 by striking 7#e7 ,correction4--,the
 terms and inserting3  7#e7 ,correction 
7,a7 ,in general ,except as provided in 
subparagraph 7,b71 the terms  1 and     
7ii7 by adding at the end the following3
  7,b7 ,determination of correction and 
correct with respect to best interest   
advice recommendations ,in the case of a
 prohibited advice transaction arising  
by the failure of investment advice to  
be a best interest recommendation1 the  
terms correction and correct mean the   
payment to1 or reimbursement of1 actual 
damages of the plan1 plan participants1 
or plan beneficiaries resulting directly
 from the plan's1 plan participant's1 or
 plan beneficiary's reliance on such    
investment advice1 if any1 that have not

 otherwise been paid or reimbursed to   
the plan1 plan participants1 or plan    
beneficiaries1 including payments and   
reimbursements made pursuant to         
subparagraph 7,a74  4  7,b7 ,amount     
involved for purposes of excise tax ,the
 first sentence of section #dige7;f77#d7
 of such ,code is amended by striking   
excess compensation4 and inserting      
excess compensation1 and in the case of 
a prohibited transaction arising by the 
failure of investment advice to be a    
best interest recommendation1 the amount
 involved shall be the amount paid to   
the person providing the advice 7or its 
affiliate1 as defined in paragraph      
7#h77;,j77ii77 that has not been paid or
 reimbursed to the plan1 plan           
participants1 or plan beneficiaries1    
including payments and reimbursements   
made pursuant to paragraph 7#e744  7#d7 
,exemption relating to investment advice
 with respect to certain fee            
arrangements ,section #dige7;d7 of such 
,code 7as amended by paragraph 7#a77 is 

amended by striking or at the end of    
paragraph 7#bc71 by striking the period 
at the end of paragraph 7#bd7 and       
inserting 1 or1 and by adding after     
paragraph 7#bd7 the following3  7#be7   
any transaction1 including a contract   
for service1 between a person providing 
investment advice described in          
subsection 7e77#c77;,b7 and the advice  
recipient in connection with such       
investment advice1 if--  7,a7 no more   
than reasonable compensation is paid 7as
 determined under section #dige7;d77#b77
 for such investment advice1  7,b7 in a 
case in which the investment advice is  
based on a limited range of investment  
options 7which may consist1 in whole or 
in part1 of proprietary products71 such 
limitations1 including a clearly-stated 
notice that the same or similar         
investments may be available at a       
different cost 7greater or lesser7 from 
other sources71 shall be clearly        
disclosed to the advice recipient prior 
to any transaction based on the         

investment advice1  7,c7 in a case in   
which the investment advice may result  
in variable compensation to the person  
providing the investment advice 7or any 
affiliate of such person71 the receipt  
of such compensation1 including a       
clearly-stated notice that the same or  
similar investments may be available at 
a different cost 7greater or lesser7    
from other sources1 shall be clearly    
disclosed to the advice recipient       
7within the meaning of subsection       
7e77#aa77;,c771 and  7,d7 in any case in
 which a person who1 acting in good     
faith and with reasonable diligence1    
makes an error or omission in disclosing
 the information specified in           
subparagraphs 7,b7 or 7,c71 the person  
discloses the correct information to the
 advice recipient as soon as practicable
 but not later than #cj days from the   
date on which the person knows of such  
error or omission4  4  7b7 ,effective   
date  7#a7 ,modification of certain     
rules1 and rules and administrative     

positions promulgated before enactment  
but not effective on ,january #a1 #bjae1
 prohibited ,the ,department of ,labor  
is prohibited from amending any rules or
 administrative positions promulgated   
under section #c7ba7 of the ,employee   
,retirement ,income ,security ,act of   
#aigd and section #dige7;e77#c7 of the  
,internal ,revenue ,code of #aihf       
7including ,department of ,labor        
,interpretive ,bulletin #if-a 7#bi      
,c4,f4,r4 #beji4if-a7 and ,department of
 ,labor ,advisory ,opinion #bjje-bc;,a71
 and no such rule or administrative     
position promulgated by the ,department 
of ,labor prior to the date of the      
enactment of this ,act but not effective
 on ,january #a1 #bjae1 may become      
effective unless a bill or joint        
resolution referred to in paragraph 7#c7
 is enacted as described in such        
paragraph not later than #fj days after 
the date of the enactment of this ,act4 
7#b7 ,general effective date of         
amendments ,except as provided in       

paragraph 7#c71 the amendments made by  
subsection 7a7 of this section shall    
take effect on the #fast day after the  
date of the enactment of this ,act and  
shall apply with respect to information 
provided or recommendations made on or  
after #b years after the date of the    
enactment of this ,act4  7#c7 ,exception
 ,if a bill or joint resolution is      
enacted prior to the #fast day after the
 date of the enactment of this ,act that
 specifically approves any rules or     
administrative positions promulgated    
under section #c7ba7 of the ,employee   
,retirement ,security ,act of #aigd and 
section #dige7;e77#c7 of the ,internal  
,revenue ,code of #aihf that is not in  
effect on ,january #a1 #bjae1 the       
amendments made by subsection 7a7 of    
this section shall not take effect4  7c7
 ,grandfathered transactions and        
services ,the amendments made by        
subsection 7a7 shall not apply to any   
service or transaction rendered1 entered
 into1 or for which a person has been   

compensated prior to the date on which  
the amendments made by subsection 7a7 of
 this ,act become effective under       
subsection 7b77#b74  7d7 ,transition ,if
 the amendments made by subsection 7a7  
of this section take effect1 then       
nothing in this section shall be        
construed to prohibit the issuance of   
guidance to carry out such amendments so
 long as such guidance is necessary to  
implement such amendments4 ,until such  
time as regulations or other guidance   
are issued to carry out such amendments1
 a plan and a fiduciary shall be treated
 as meeting the requirements of such    
amendments if the plan or fiduciary1 as 
the case may be1 makes a good faith     
effort to comply with such requirements4
  ,april #bj1 #bjaf ,reported from the  
,committee on ,ways and ,means with an  
amendment,april #bj1 #bjaf ,reported    
from the ,committee on ,education and   
the ,workforce with an amendment1       
committed to the ,committee of the      
,whole ,house on the ,state of the      

,union1 and ordered to be printed