,,ii #aafth ,,congress #ast ,session ,s4 #ige ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #a1 #bjai,mrs4 ,murray 7for herself1 ,ms4 ,warren1 ,ms4 ,smith1 ,ms4 ,baldwin1 ,ms4 ,stabenow1 ,mrs4 ,shaheen1 ,ms4 ,klobuchar1 ,mr4 ,sanders1 ,mrs4 ,gillibrand1 ,mr4 ,kaine1 ,mrs4 ,feinstein1 ,ms4 ,cantwell1 ,ms4 ,cortez ,masto1 ,ms4 ,hirono1 ,ms4 ,duckworth1 ,ms4 ,hassan1 ,ms4 ,harris1 ,mr4 ,merkley1 ,mr4 ,menendez1 ,mr4 ,bennet1 ,ms4 ,rosen1 ,mr4 ,blumenthal1 and ,mr4 ,wyden7 introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to amend the ,employee ,retirement ,income ,security ,act of #aigd to provide for greater spousal protection under defined contribution plans1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,women's ,retirement ,protection ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,approximately #bi percent of households headed by individuals aged #ee through #gd have no defined benefit plan or retirement savings1 according to #bjaf data from the ,survey of ,consumer ,finances4 7#b7 ,just over one-third of the private sector workforce does not have access to a retirement plan at the workplace1 and only half of the workforce actually participates in a retirement plan4 7#c7 ,women's retirement preparedness often lags significantly behind their male counterparts'1 resulting in the median retirement income for women in #bjaf being just #eh percent of men's retirement income4 7#d7 ,women are #a4e times as likely as men to live in poverty after age #fe4 7#e7 ,women make up #b_/c of low-wage workers1 even though they comprise less than half of all workers1 and low-wage workers are less likely than other workers to participate in a retirement plan at work4 7#f7 ,because of the pay gap1 women working full-time1 year-round typically lose #djc1ddj over a #dj-year career thereby requiring the average woman to work almost a decade longer than her male counterpart to make up that career wage gap4 7#g7 ,due to the lower lifetime wages stemming from unequal pay and caregiving duties1 the average ,social ,security benefit for a woman age #fe or older is #ad1jdd a year1 while men of the same age receive #ah1agc a year1 on average4 7#h7 ,just #a in #e part-time workers who work a full year are eligible for a retirement plan1 and women are almost twice as likely to work part-time as men4 7#i7 ,while traditional defined benefit retirement plans have spousal protections1 defined contribution retirement plans1 which have become increasingly common1 currently provide no similar spousal protections4 7#aj7 ,every year1 more than #a1bjj1jjj couples get divorced in the ,united ,states4 ,after the family home1 retirement savings tends to be the largest asset to be divided in a divorce4 7#aa7 ,while fees and expenses associated with retirement plans have been in decline1 participants have seen direct charges for processing qualified domestic relations orders increase significantly4 #c4 ,increasing spousal protection under defined contribution plans 7a7 ,in general ,part #b of subtitle ,b of title ,i of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajea et seq47 is amended by inserting after section #bje the following new section3 #bje;,a4 ,additional spousal consent requirements 7a7 ,in general ,each individual account plan to which section #bje does not apply shall provide that1 except as provided in subsections 7c7 and 7d71 no distribution may be made under the plan unless the spousal consent requirements of subsection 7e7 are met4 7b7 ,coordination with section #bje ,nothing in this section shall be construed to exempt an individual account plan from the requirements of paragraph 7#a77;,c7 or 7#b7 of section #bje7;b7 with respect to any participant4 7c7 ,exceptions for certain distributions ,subsection 7a7 shall not apply to-- 7#a7 any distribution that is-- 7,a7 a minimum required distribution described in section #digd7;b7 of the ,internal ,revenue ,code of #aihf2 7,b7 a result of the use of the participant's accrued benefit as security for a loan1 including any distribution required by reason of a failure to comply with the terms of such loan2 7,c7 made upon hardship of the participant2 or 7,d7 permitted under section #bjc7;e77#a7 to be made without the consent of the participant2 7#b7 any distribution in the form of a qualified joint and survivor annuity 7as defined in section #bje7;d77#a771 a qualified optional survivor annuity 7as defined in section #bje7;d77#b771 a qualified preretirement survivor annuity 7as defined in section #bje7;e771 or a series of substantially equal periodic payments 7not less frequently than annually7 made for the joint lives 7or life expectancies7 of the participant and the participant's spouse2 or 7#c7 in the case of a participant who does not elect a form of benefit described in paragraph 7#b7 under the plan or who is participating in a plan that does not provide such a form of benefit1 any distribution of the participant's entire nonforfeitable accrued benefit if #ej percent of such accrued benefit is transferred to an individual retirement plan 7as defined in section #ggja7;a77#cg7 of the ,internal ,revenue ,code of #aihf7 of the spouse of the participant4 ,a transfer described in paragraph 7#c7 to an individual retirement plan shall be treated in the same manner as a transfer under section #djh7;d77#f7 of the ,internal ,revenue ,code of #aihf4 7d7 ,exceptions for certain rollover contributions ,subsection 7a7 shall not apply to any distribution that is an eligible rollover distribution 7as defined in section #djb7;f77#b77;,a7 of the ,internal ,revenue ,code of #aihf7 made in the form of a direct trustee-to-trustee transfer within the meaning of section #dja7;a77#ca7 of the ,internal ,revenue ,code of #aihf-- 7#a7 to a plan to which this section or section #bje applies2 or 7#b7 to an individual retirement plan 7as defined in section #ggja7;a77#cg7 of the ,internal ,revenue ,code of #aihf7 if-- 7,a7 the beneficiary of such plan is the spouse of the participant1 or the spousal consent requirements of subsection 7e7 are met with respect to any designation of #a or more other beneficiaries2 and 7,b7 the beneficiary of such plan 7whether the spouse or other beneficiary designated under paragraph 7#a77 may not be changed unless-- 7i7 the spousal consent requirements of subsection 7e7 are met with respect to any such change1 or 7ii7 the spousal consent under subparagraph 7,a7 to the designation of a beneficiary other than the spouse expressly permits such designation to be changed without the further consent of the spouse4 7e7 ,spousal consent requirements 7#a7 ,in general ,for purposes of this section1 except as provided in paragraph 7#b71 the spousal consent requirements of this subsection are met with respect to any distribution or any designation or change of beneficiary if-- 7,a7 the plan provides to each participant1 within a reasonable period of time before such distribution or designation or change of beneficiary is made and consistent with such regulations as the ,secretary of the ,treasury may prescribe1 a written explanation of the rights of the participant and the participant's spouse under this section2 7,b7 the spouse of the participant consents in writing to the distribution or designation or change of beneficiary2 7,c7 in the case of a distribution1 the written consent under subparagraph 7,b7 is made during the consent period2 and 7,d7 the written consent under subparagraph 7,b7-- 7i7 acknowledges the effect of such distribution or designation or change of beneficiary2 and 7ii7 is witnessed by a plan representative or a notary public4 7#b7 ,exceptions under section #bje7;c77#b77;,b7 to apply ,the requirements of paragraph 7#a7 7other than subparagraph 7,a7 thereof7 shall not apply with respect to any distribution or designation or change of beneficiary if a participant establishes to the satisfaction of the plan administrator that-- 7,a7 there is no spouse2 7,b7 the participant and the participant's spouse have not been married throughout the #a-year period ending on the date of the distribution or designation or change of beneficiary2 or 7,c7 such consent cannot be obtained because-- 7i7 the spouse cannot be located2 7ii7 due to exceptional circumstances1 requiring the participant to seek the spouse's consent would be inappropriate2 or 7iii7 of such other circumstances as the ,secretary of the ,treasury may by regulations prescribe4 7#c7 ,consent limited to spouse and event ,any written consent by a spouse under paragraph 7#a71 or the establishment by a participant that an exception under paragraph 7#b7 applies with respect to a spouse1 shall be effective only with respect to that spouse and to the distribution or designation or change of beneficiary to which it relates4 7#d7 ,consent period ,for purposes of this subsection1 the term consent period means1 with respect to any distribution-- 7,a7 the #ij-;day period immediately preceding the date of such distribution2 or 7,b7 such other period as the ,secretary of the ,treasury may provide4 7f7 ,discharge of plan from liability ,rules similar to the rules of section #bje7;c77#f7 shall apply for purposes of this section4 4 7b7 ,clerical amendment ,the table of sections of part #b of subtitle ,b of title ,i of the ,employee ,retirement ,income ,security ,act of #aigd is amended by inserting after the item relating to section #bje the following new item3 ,sec4 #bje;,a4 ,additional spousal consent requirements4 4 7c7 ,right of action ,section #ejb7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aacb7 is amended by striking or at the end of paragraph 7#aj71 by striking the period at the end of paragraph 7#aa7 and inserting 2 or1 and by adding at the end the following new paragraph3 7#ab7 by an individual for appropriate relief in the case of a violation of the individual's rights under section #bje;,a4 4 7d7 ,parallel amendment to section #bje ,section #bje7;c77#b77;,b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajee7;c77#b77;,b77 is amended by inserting 1 because due to exceptional circumstances requiring the participant to seek the spouse's consent would be inappropriate after located4 #d4 ,improving coverage for long-term part-time workers 7a7 ,in general ,section #bjb of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajeb7 is amended by adding at the end the following new subsection3 7c7 ,special rule for certain part-,time employees 7#a7 ,in general ,a pension plan that includes either a qualified cash or deferred arrangement 7as defined in section #dja7k7 of the ,internal ,revenue ,code of #aihf7 or a salary reduction agreement 7as described in section #djc7;b7 of such ,code7 shall not require1 as a condition of participation in the arrangement or agreement1 that an employee complete a period of service with the employer 7or employers7 maintaining the plan extending beyond the close of the earlier of-- 7,a7 the period permitted under subsection 7a77#a7 7determined without regard to subparagraph 7,b77i7 thereof7 and section #daj7;a77#a7 of such ,code 7determined without regard to subparagraph 7,b77i7 thereof72 or 7,b7 the first #bd-month period-- 7i7 consisting of #b consecutive #ab-month periods during each of which the employee has at least #ejj hours of service2 and 7ii7 by the close of which the employee has attained the age of #ba4 7#b7 ,exception ,paragraph 7#a77;,b7 shall not apply to employees who are included in a unit of employees covered by an agreement which the ,secretary finds to be a collective bargaining agreement between employee representatives and #a or more employers1 if there is evidence that retirement benefits were the subject of good faith bargaining between such employee representatives and such employer or employers4 7#c7 ,coordination with other rules ,in the case of employees who are not highly compensated employees 7within the meaning of section #dad7q7 of the ,internal ,revenue ,code of #aihf7 and who are eligible to participate in the arrangement or agreement solely by reason of paragraph 7#a77;,b73 7,a7 ,exclusions ,an employer may elect to exclude such employees from the determination of whether the plan that includes the arrangement or agreement satisfies the requirements of subsections 7a77#d71 7k77#c71 7k77#ab71 7k77#ac71 7m77#b71 7m77#aa71 and 7m77#ab7 of section #dja of such ,code1 section #daj7;b7 of such ,code1 and section #daf of such ,code4 ,if the employer so excludes such employees with respect to the requirements of any such provision1 such employees shall be excluded with respect to the requirements of all such provisions4 ,this subparagraph shall cease to apply to any employee as of the first plan year beginning after the plan year in which the employee completes #a year of service 7without regard to paragraph 7#a77;,b7 of this subsection74 7,b7 ,time of participation ,the rules of subsection 7a77#d7 and section #daj7;a77#d7 of the ,internal ,revenue ,code of #aihf shall apply to such employees4 7#d7 #ab-month period ,for purposes of this subsection1 #ab-month periods shall be determined in the same manner as under the last sentence of subsection 7a77#c77;,a71 except that #ab-month periods beginning before ,january #a1 #bjai1 shall not be taken into account4 4 7b7 ,vesting ,section #bjc7;b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajec7;a77 is amended by redesignating paragraph 7#d7 as paragraph 7#e7 and by inserting after paragraph 7#c7 the following new paragraph3 7#d7 ,part-,time employees ,for purposes of determining whether an employee who is eligible to participate in a qualified cash or deferred arrangement or a salary reduction agreement under a plan solely by reason of section #bjb7;c77#a77;,b7 has a nonforfeitable right to employer contributions-- 7,a7 except as provided in subparagraph 7,b71 each #ab-month period for which the employee has at least #ejj hours of service shall be treated as a year of service2 and 7,b7 #ab-month periods occurring before the #bd-month period described in section #bjb7;c77#a77;,b7 shall not be treated as years of service4 ,for purposes of this paragraph1 #ab-month periods shall be determined in the same manner as under the last sentence of section #bjb7;a77#c77;,a71 except that #ab-month periods beginning before ,january #a1 #bjai1 shall not be taken into account4 4 7c7 ,penalty ,section #ejb of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aacb7 is amended by adding at the end the following new subsection3 7n7 ,requirements relating to part-,time employees ,in the case of a plan that fails to permit participation as required by section #bjb7;c71 the ,secretary may assess a civil penalty against the plan sponsor in an amount equal to #aj1jjj per year per employee to whom such failure relates4 ,the ,secretary may1 in the ,secretary's sole discretion1 waive or reduce the penalty under this subsection if the ,secretary determines that the plan sponsor acted reasonably and in good faith4 4 #e4 ,effective dates 7a7 ,increasing spousal protection under defined contribution plans ,except as provided in subsections 7c7 and 7d71 the amendments made by section #b shall apply to distributions and rollover contributions made in plan years beginning after the date that is #f months after the date of the enactment of this ,act4 7b7 ,ensuring coverage for long-,term part-,time workers ,except as provided in subsections 7c7 and 7d71 the amendments made by section #c shall apply to plan years beginning after ,december #ca1 #bjai4 7c7 ,collective bargaining agreements ,in the case of a plan maintained pursuant to one or more collective bargaining agreements between employee representatives and one or more employers ratified before the date of the enactment of this ,act1 the amendments made by sections #b and #c shall not apply to distributions or rollover contributions on behalf of employees covered by any such agreement for plan years beginning before the earlier of-- 7#a7 the later of-- 7,a7 the date on which the last of such collective bargaining agreements terminates 7determined without regard to any extension thereof on or after such date of the enactment72 or 7,b7 the day after the date specified in subsection 7a7 or 7b71 whichever is applicable2 or 7#b7 the date that is #c years after the applicable day described in paragraph 7#a77;,b74 7d7 ,provisions relating ,to plan amendments 7#a7 ,in general ,if this paragraph applies to any plan or contract amendment1 such plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in paragraph 7#b77;,c74 7#b7 ,amendments to which paragraph 7#a7 applies 7,a7 ,in general ,paragraph 7#a7 shall apply to any amendment to any plan or annuity contract which is made-- 7i7 pursuant to the amendments made by section #b or #c or pursuant to any regulation issued under either such section2 and 7ii7 on or before the last day of the first plan year beginning on or after the date that is #c years after the applicable day described in subsection 7c77#a77;,b74 ,in the case of a governmental plan 7as defined in section #dad7;d7 of the ,internal ,revenue ,code of #aihf71 this subparagraph shall be applied by substituting #e years for #c years in clause 7ii74 7,b7 ,conditions ,subparagraph 7,a7 shall not apply to any amendment unless-- 7i7 the plan or contract is operated as if such plan or contract amendment were in effect for the period described in subparagraph 7,c72 and 7ii7 such plan or contract amendment applies retroactively for such period4 7,c7 ,period described ,the period described in this subparagraph is the period-- 7i7 beginning on the effective date specified by the plan2 and 7ii7 ending on the date described in subparagraph 7,a77ii7 7or1 if earlier1 the date the plan or contract amendment is adopted74 #f4 ,access to independent consumer information and understanding 7a7 ,definitions ,as used in this section-- 7#a7 the term consumer means any person who purchases or acquires any goods1 products1 services1 or credit related to the retirement or later life economic security of the consumer2 and 7#b7 the term financial product or service provider means any person who engages in the business of providing any retirement financial product or service to any consumer4 7b7 ,required link to consumer awareness information ,in any offer for the sale1 exchange1 or other transfer of a retirement financial product or service to a consumer carried out by a financial product or service provider1 such provider shall provide1 in a manner consistent with subsection 7c71 an easily accessible link to the website of the ,bureau of ,consumer ,financial ,protection 7,,cfpb7 at which the consumer may access information1 literature1 guides1 programs1 tools1 strategies1 or any other resource produced by the ,,cfpb or other ,federal agency relating to retirement planning or later life economic security4 7c7 ,determination ,in order to ensure that the requirement under subsection 7b7 is effectively carried out1 the ,financial ,literacy and ,education ,commission 7,,flec7 shall determine and publish on its website the appropriate link to the ,,cfpb's website for access to the ,,cfpb's and other ,federal agencies' consumer education materials1 the preferred format of such link1 and any accompanying description of the ,,cfpb and the consumer education materials associated with such link4 #g4 ,grants to promote financial literacy for women 7a7 ,authorization of grant awards ,the ,secretary of ,labor1 acting through the ,director of the ,women's ,bureau1 shall award grants on a competitive basis to eligible entities to enable such entities to improve the financial literacy of women who are working age or in retirement1 to increase the likelihood of the women realizing a secure and stable retirement4 7b7 ,definition of eligible entity ,in this section1 the term eligible entity means a community-based organization with proven experience and expertise in serving working-age or retired women4 7c7 ,application ,an eligible entity that desires to receive a grant under this section shall submit an application to the ,secretary of ,labor at such time1 in such manner1 and accompanied by such information as such ,secretary may require4 7d7 ,minimum grant amount ,the ,secretary of ,labor shall award grants under this section in amounts of not less than #bej1jjj4 7e7 ,use of funds ,an eligible entity that receives a grant under this section shall use the grant funds to develop and implement financial literacy education1 and related activities including outreach1 awareness building1 and counseling to increase women's knowledge of retirement planning and consumer1 economic1 and personal financial concepts4 7f7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this section #ajj1jjj1jjj for fiscal year #bjbj and each succeeding fiscal year4 #h4 ,grants to assist low-income women and survivors of domestic violence in obtaining qualified domestic relations orders 7a7 ,authorization of grant awards ,the ,secretary of ,labor1 acting through the ,director of the ,women's ,bureau in conjunction with the ,assistant ,secretary of the ,employee ,benefits ,security ,administration1 shall award grants1 on a competitive basis1 to eligible entities to enable such entities to assist low-income women and survivors of domestic violence in obtaining qualified domestic relations orders and ensuring that those women actually obtain the benefits to which they are entitled through those orders4 7b7 ,definition of eligible entity ,in this section1 the term 8eligible entity0 means a community-based organization with proven experience and expertise in serving women and the financial and retirement needs of women4 7c7 ,application ,an eligible entity that desires to receive a grant under this section shall submit an application to the ,secretary of ,labor at such time1 in such manner1 and accompanied by such information as the ,secretary of ,labor may require4 7d7 ,minimum grant amount ,the ,secretary of ,labor shall award grants under this section in amounts of not less than #bej1jjj4 7e7 ,use of funds ,an eligible entity that receives a grant under this section shall use the grant funds to develop programs to offer help to low-income women or survivors of domestic violence who need assistance in preparing1 obtaining1 and effectuating a qualified domestic relations order4 7f7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this section #ajj1jjj1jjj for fiscal year #bjbj and each succeeding fiscal year4