,,ii #aaf? ,,congress #b;d ,session ,s4 #cdag ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,m>* #i1 #bjbj,mrs4 ,murray 7= h]self1 ,ms4 ,smi?1 & ,ms4 ,baldw97 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,heal?1 ,education1 ,labor1 & ,p5sions ,a ,,bill ,to require p5sion plans t (f] p>ticipants & b5efici>ies ! option ( receiv+ lifetime annuity paym5ts z lump sum paym5ts1 to meet c]ta9 notice & disclosure requirem5ts4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,in=mation ,ne$$ = ,f9ancial ,options ,risk ,mitigation or ! ,,in=m ,act4 #b4 ,notice & disclosure requirem5ts ) respect to c]ta9 lump sum options 7a7 ,9 g5]al ,"p #a ( subtitle ,b ( title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajba et seq47 is am5d$ by add+ at ! end ! foll[+3 #aab4 ,notice & disclosure requirem5ts ) respect to lump sum options 7a7 ,9 g5]al ,a plan sponsor ( a p5sion plan t am5ds ! plan to provide a p]iod ( "t dur+ :i* c]ta9 p>ticipants or b5efici>ies :o are receiv+ or w receive lifetime annuity paym5ts into a lump sum "u section #dja7;a77#i77;,a77i7 ( ! ,int]nal ,rev5ue ,code ( #aihf %all provide notice-- 7#a7 to ea* p>ticipant or b5efici>y (f]$ su* lump sum am\nt1 9 pap] =m & mail$ to ! la/ kn[n address ( ! p>ticipant or b5efici>y1 n lat] ?an #ij days prior to ! fir/ day on :i* ! p>ticipant or b5efici>y may make an election ) respect to su* lump sum2 & 7#b7 to ! ,secret>y1 n lat] ?an #cj days prior to ! fir/ day on :i* p>ticipants & b5efici>ies may make an election ) respect to su* lump sum4 7b7 ,notice to p>ticipants & b5efici>ies 7#a7 ,cont5t ,! notice requir$ "u subsection 7a77#a7 %all include ! foll[+3 7,a7 ,available b5efit options1 includ+ ! e/imat$ mon?ly b5efit t ! p>ticipant or b5efici>y w\ld receive at normal retirem5t age 7if n already 9 pay /atus71 :e!r !re is a subsidiz$ e>ly retirem5t option1 ! mon?ly b5efit am\nt if paym5ts beg9 imm$iately1 & ! lump sum am\nt available if ! p>ticipant or b5efici>y takes ! option4 7,b7 ,an explanation ( h[ ! lump sum 0 calculat$1 includ+ ! int]e/ rate1 mortality assumptions1 & :e!r any additional plan b5efits 7 includ$ 9 ! lump sum1 su* z e>ly retirem5t subsidies4 7,c7 ,! relative value ( ! lump sum option comp>$ to ! plan's lifetime annuity1 9 comp>able t]ms4 7,d7 ,:e!r x w\ld be possible to replicate ! plan's /ream ( paym5ts by pur*as+ a comp>able retail annuity us+ ! lump sum4 7,e7 ,! pot5tial ramifications ( accept+ ! lump sum1 includ+ possible b5efits1 inve/m5t risks1 longevity risks1 loss ( protections gu>ante$ by ! ,p5sion ,b5efit ,gu>anty ,corporation 7) an explanation ( ! mon?ly b5efit am\nt t w\ld be protect$ by ! ,p5sion ,b5efit ,gu>anty ,corporation if ! plan is t]m9at$ ) insuffici5t assets to pay b5efits71 loss ( protection f cr$itors1 loss ( sp\sal protections1 & o!r protections "u ?is ,act t w\ld be lo/4 7,f7 ,g5]al tax rules relat$ to accept+ a lump sum1 includ+ rollov] options & e>ly di/ribution p5alties ) a disclaim] t ! plan does n provide tax1 legal1 or acc\nt+ advice & a sugge/ion t p>ticipants & b5efici>ies consult ) _! own tax1 legal1 & acc\nt+ advisors be=e det]m9+ :e!r to accept ! (f]4 7,g7 ,h[ to accept or reject ! (f]1 ! deadl9e = response1 & :e!r a sp\se is requir$ to cons5t to election4 7,h7 ,contact in=mation = ! po9t ( contact at ! plan sponsor = p>ticipants to get m in=mation or ask que/ions ab\t ! option4 7,i7 ,a /atem5t t-- 7i7 f9ancial advis]s may n be requir$ to act 9 ! be/ int]e/s ( p>ticipants & b5efici>ies ) respect to det]m9+ :e!r to take ! option2 & 7ii7 p>ticipants & b5efici>ies seek+ f9ancial advice %\ld get writt5 confirmation t ! advis] is act+ z a fiduci>y to ! p>ticipant or b5efici>y4 7#b7 ,pla9 language ,! notice "u ?is subsection %all be writt5 9 a mann] calculat$ to be und]/ood by ! av]age plan p>ticipant4 7c7 ,notice to ! ,secret>y ,! notice requir$ "u subsection 7a77#b7 %all include ! foll[+3 7#a7 ,! total numb] ( p>ticipants & b5efici>ies eligible = su* lump sum option & ! numb] ( su* p>ticipants & b5efici>ies :o are 9 pay /atus dur+ ! limit$ p]iod 9 :i* ! lump sum is (f]$4 7#b7 ,! l5g? ( ! limit$ p]iod dur+ :i* ! lump sum is (f]$4 7#c7 ,an explanation ( h[ ! lump sum 0 calculat$1 includ+ ! int]e/ rate1 mortality assumptions1 & :e!r any additional plan b5efits 7 includ$ 9 ! lump sum1 su* z e>ly retirem5t subsidies4 7#d7 ,a copy ( ! notice provid$ to p>ticipants & b5efici>ies "u subsection 7b74 7d7 ,po/-,(f] report to ! ,secret>y 7#a7 ,9 g5]al ,n lat] ?an #fj days aft] ! conclusion ( ! limit$ p]iod dur+ :i* p>ticipants & b5efici>ies 9 a plan may accept a plan's (f] to conv]t _! annuity into a lump sum z g5]ally p]mitt$ "u section #dja7;a77#i7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 a plan sponsor %all submit a report to ! ,secret>y t includes-- 7,a7 ! numb] ( p>ticipants & b5efici>ies :o accept$ ! lump sum (f] & a breakd[n ( ! numb] ( ^? p>ticipants & b5efici>ies :o 7 9 pay /atus2 & 7,b7 ! numb] & nature ( que/ions t ! plan sponsor receiv$ f p>ticipants & b5efici>ies ab\t ! (f]4 7#b7 ,civil p5alties ,! ,secret>y may assess a civil p5alty ( up to #a1jjj a day f ! date ( any plan adm9i/rator's failure or refusal to file a report requir$ "u p>agraph 7#a74 7e7 ,public availability ,! ,secret>y %all make ! in=mation provid$ 9 ! notice to ! ,secret>y requir$ "u subsection 7a77#b7 & 9 ! po/-(f] reports submitt$ "u subsection 7d77#a7 publicly available4 7f7 ,guidance & regulations ,! ,secret>y-- 7#a7 n lat] ?an #ahj days aft] ! date ( enactm5t ( ! ,in=mation ,ne$$ = ,f9ancial ,options ,risk ,mitigation1 %all issue guidance & model notices = plan sponsors to use 9 provid+ ! notice describ$ 9 subsection 7b72 & 7#b7 may promulgate su* o!r regulations z may be necess>y to c>ry out ?is section4 7g7 ,biannual report ,n lat] ?an #f mon?s aft] ! date ( enactm5t ( ! ,in=mation ,ne$$ = ,f9ancial ,options ,risk ,mitigation & e #f mon?s !reaft]1 ! ,secret>y %all submit to ,congress a report t summ>izes ! notices & po/-(f] reports receiv$ by ! ,secret>y "u subsections 7c7 & 7d7 dur+ ! applicable report+ p]iod4 4 7b7 ,cl]ical am5dm5t ,! table ( cont5ts 9 section #a ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd is am5d$ by ins]t+ aft] ! item relat+ to section #aaa ! foll[+ new item3 ,sec4 #aab4 ,notice & disclosure requirem5ts ) respect to c]ta9 lump sum options4 7c7 ,en=cem5t ,section #ejb ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aacb7 is am5d$-- 7#a7 9 subsection 7c77#a71 by /rik+ or section #aje7;a7 & ins]t+ 1 section #aje7;a71 or section #aab7;a72 & 7#b7 9 subsection 7a77#d71 by /rik+ #aje7;c7 & ins]t+ section #aje7;c7 or #aab7;a74 7d7 ,effective date ,! am5dm5ts made by subsections 7a71 7b71 & 7c7 %all take effect on ! date ( enactm5t ( ?is ,act4