,,ib ,union ,calendar ,no4 #ahj #aagth ,,congress #b;d ,session ,h4 ,r4 #ehia ,report ,no4 #aag-bej1 ,part ,i ,,in ,,the ,,house ,,of ,,representatives ,november #e1 #bjba,mr4 ,scott of ,virginia 7for himself1 ,ms4 ,foxx1 ,mr4 ,de,saulnier1 and ,mr4 ,allen7 introduced the following bill2 which was referred to the ,committee on ,education and ,labor1 and in addition to the ,committee on ,ways and ,means1 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 ,february #be1 #bjbb,reported from the ,committee on ,education and ,labor with an amendment,strike out all after the enacting clause and insert the part printed in italic ,february #be1 #bjbb;,committee on ,ways and ,means discharged2 committed to the ,committee of the ,whole ,house on the ,state of the ,union and ordered to be printed,for text of introduced bill1 see copy of bill as introduced on ,november #e1 #bjba ,a ,,bill ,to improve and enhance retirement savings1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,retirement ,improvement and ,savings ,enhancement ,act of #bjba or the ,,rise ,act4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,retirement savings lost and found4,sec4 #c4 ,retirement plan modernization act4,sec4 #d4 ,multiple employer #djc7;b7 plans4,sec4 #e4 ,small immediate financial incentives for contributing to a plan4,sec4 #f4 ,performance benchmarks for asset allocation funds4,sec4 #g4 ,pooled employer plans modification4,sec4 #h4 ,review of pension risk transfer interpretive bulletin4,sec4 #i4 ,review and report to congress relating to reporting and disclosure requirements4,sec4 #aj4 ,eliminating unnecessary plan requirements related to unenrolled participants4,sec4 #aa4 ,recovery of retirement plan overpayments4,sec4 #ab4 ,improving coverage for part-time workers4 #b4 ,retirement savings lost and found 7a7 ,establishment of retirement savings lost and found ,part #e of title ,i of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acda et seq47 is amended by adding at the end the following3 #ebc4 ,retirement ,savings ,lost and ,found 7a7 ,establishment 7#a7 ,in general ,not later than #b years after the date of the enactment of this section1 the ,secretary of ,labor1 in consultation with the ,secretary of the ,treasury1 shall establish an online searchable database 7to be managed by the ,department of ,labor in accordance with this section7 to be known as the ,retirement ,savings ,lost and ,found4 ,the ,retirement ,savings ,lost and ,found shall-- 7,a7 allow an individual to search for information that enables the individual to locate the administrator of any plan described in paragraph 7#b7 with respect to which the individual is or was a participant or beneficiary1 and provide contact information for the administrator of any such plan2 7,b7 allow the ,department of ,labor to assist such an individual in locating any such plan of the individual2 and 7,c7 allow the ,department of ,labor to make any necessary changes to contact information on record for the administrator based on any changes to the plan due to merger or consolidation of the plan with any other plan1 division of the plan into two or more plans1 bankruptcy1 termination1 change in name of the plan1 change in name or address of the administrator1 or other causes4 ,the ,retirement ,savings ,lost and ,found established under this paragraph shall include information reported under this section and other relevant information obtained by the ,department of ,labor4 7#b7 ,plans described ,a plan described in this paragraph is a plan to which the vesting standards of section #bjc apply4 7b7 ,administration ,the ,retirement ,savings ,lost and ,found established under subsection 7a7 shall provide individuals described in subsection 7a77#a7 only with the ability to search for information that enables the individual to locate the administrator and contact information for the administrator of any plan with respect to which the individual is or was a participant or beneficiary1 sufficient to allow the individual to locate the individual's plan in order to recover any benefit owing to the individual under the plan4 7c7 ,safeguarding participant privacy and security ,in establishing the ,retirement ,savings ,lost and ,found under subsection 7a71 the ,department of ,labor shall take all necessary and proper precautions to ensure that individuals' plan information maintained by the ,retirement ,savings ,lost and ,found is protected4 7d7 ,definition of administrator ,for purposes of this section and section #ebc1 the term administrator has the meaning given such term in section #c7af77;,a74 7e7 ,information collection from plans ,effective with respect to plan years beginning after the second ,december #ca occurring after the date of the enactment of this subsection1 the administrator of a plan to which the vesting standards of section #bjc apply shall submit to the ,department of ,labor1 at such time and in such form and manner as is prescribed in regulations-- 7#a7 the information described in paragraphs 7#a7 through 7#d7 of section #fjeg7;b7 of the ,internal ,revenue ,code of #aihf2 7#b7 the information described in subparagraphs 7,a71 7,b71 7,e71 and 7,f7 of section #fjeg7;a77#b7 of the ,internal ,revenue ,code of #aihf2 and 7#c7 such other information as the ,secretary of ,labor may require4 7f7 ,information collection from federal agencies ,the ,secretary of ,labor is authorized to access and receive information collected by other ,federal agencies that may be necessary to perform work related to the ,retirement ,savings ,lost and ,found4 ,such necessary and appropriate information1 which shall be furnished to the ,secretary of ,labor on request1 includes information covered by section #fajc of the ,internal ,revenue ,code of #aihf and section #bje7r7 of the ,social ,security ,act4 7g7 ,program integrity audit ,on an annual basis for each of the first #e years beginning one year after the establishment of the database in subsection 7a77#a7 and every #e years thereafter1 the ,inspector ,general of the ,department of ,labor shall conduct an audit of the administration of the ,retirement ,savings ,lost and ,found4 4 7b7 ,conforming amendment ,the table of contents for the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajja et seq47 is amended by inserting after the matter relating to section #eba the following3 ,sec4 #ebc4,retirement ,savings ,lost and ,found4 4 #c4 ,retirement plan modernization act ,section #bjc7;e77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd and sections #dja7;a77#ca77;,b77ii7 and #daa7;a77#aa77;,a7 of the ,internal ,revenue ,code of #aihf and are each amended by striking #e1jjj and inserting #g1jjj4 #d4 ,multiple employer #djc7;b7 plans 7a7 ,in general ,section #djc7;b7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#ae7 ,multiple employer plans 7,a7 ,in general ,except in the case of a church plan1 this subsection shall not be treated as failing to apply to an annuity contract solely by reason of such contract being purchased under a plan maintained by more than #a employer4 7,b7 ,treatment of employers failing to meet requirements of plan 7i7 ,in general ,in the case of a plan maintained by more than #a employer1 this subsection shall not be treated as failing to apply to an annuity contract held under such plan merely because of one or more employers failing to meet the requirements of this subsection if such plan satisfies rules similar to the rules of section #dac7;e77#b7 with respect to any such employer failure4 7ii7 ,additional requirements in case of non-governmental plans ,a plan shall not be treated as meeting the requirements of this subparagraph unless the plan meets the requirements of subparagraph 7,a7 or 7,b7 of section #dac7;e77#a71 except in the case of a multiple employer plan maintained solely by any of the following3 ,a ,state1 a political subdivision of a ,state1 or an agency or instrumentality of any one or more of the foregoing4 4 7b7 ,annual registration for #djc7;b7 multiple employer plan ,section #fjeg of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7g7 as subsection 7h7 and by inserting after subsection 7f7 the following new subsection3 7g7 #djc7;b7 multiple employer plans treated as one plan ,in the case of annuity contracts to which this section applies and to which section #djc7;b7 applies by reason of the plan under which such contracts are purchased meeting the requirements of paragraph 7#ae7 thereof1 such plan shall be treated as a single plan for purposes of this section4 4 7c7 ,annual information returns for #djc7;b7 multiple employer plan ,section #fjeh of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7f7 as subsection 7g7 and by inserting after subsection 7e7 the following new subsection3 7f7 #djc7;b7 multiple employer plans treated as one plan ,in the case of annuity contracts to which this section applies and to which section #djc7;b7 applies by reason of the plan under which such contracts are purchased meeting the requirements of paragraph 7#ae7 thereof1 such plan shall be treated as a single plan for purposes of this section4 4 7d7 ,amendments to ,employee ,retirement ,income ,security ,act of #aigd 7#a7 ,in general ,section #c7dc77;,a7 of the ,employee ,retirement ,income ,security ,act of #aigd is amended-- 7,a7 in clause 7ii71 by striking section #eja7;a7 of such ,code or and inserting section #eja7;a7 of such ,code1 a plan that consists of contracts described in section #djc7;b7 of such ,code1 or2 and 7,b7 in the flush text at the end1 by striking the plan4 and inserting the plan1 but such term shall include any program 7other than a governmental plan7 maintained for the benefit of the employees of more than #a employer that consists of contracts described in section #djc7;b7 of such ,code and that meets the requirements of subparagraph 7,a7 or 7,b7 of section #dac7;e77#a7 of such ,code44 7#b7 ,conforming amendments ,sections #c7dc77;,b77v77,,ii7 and #c7dd77;,a77i77,i7 of the ,employee ,retirement ,income ,security ,act of #aigd are each amended by striking section #dja7;a7 of such ,code or and inserting section #dja7;a7 of such ,code1 a plan that consists of contracts described in section #djc7;b7 of such ,code1 or4 7e7 ,regulations relating to plan termination ,the ,secretary of the ,treasury 7or the ,secretary's designee7 shall prescribe such regulations as may be necessary to clarify the treatment of a plan termination by an employer in the case of plans to which section #djc7;b77#ae7 of the ,internal ,revenue ,code of #aihf applies4 7f7 ,modification of model plan language1 etc 7#a7 ,plan notifications ,the ,secretary of the ,treasury 7or the ,secretary's designee7 shall modify the model plan language published under section #dac7;e77#e7 of the ,internal ,revenue ,code of #aihf to include language that notifies participating employers described in section #eja7;c77#c71 and which are exempt from tax under section #eja7;a71 that the plan is subject to the ,employee ,retirement ,income ,security ,act of #aigd and that such employer is a plan sponsor with respect to its employees participating in the multiple employer plan and1 as such1 has certain fiduciary duties with respect to the plan and to its employees4 7#b7 ,model plans for multiple employer #djc7;b7 non-governmental plans ,for plans to which section #djc7;b77#ae77;,a7 of the ,internal ,revenue ,code of #aihf applies 7other than a plan maintained for its employees by a ,state1 a political subdivision of a ,state1 or an agency or instrumentality of any one or more of the foregoing71 the ,secretary of the ,treasury shall publish model plan language similar to model plan language published under section #dac7;e77#e7 of such ,code4 7#c7 ,educational outreach to employers exempt from tax ,the ,secretary of the ,treasury shall provide education and outreach to increase awareness to employers described in section #eja7;c77#c7 of the ,internal ,revenue ,code of #aihf1 and which are exempt from tax under section #eja7;a7 of such ,code1 that multiple employer plans are subject to the ,employee ,retirement ,income ,security ,act of #aigd and that such employer is a plan sponsor with respect to its employees participating in the multiple employer plan and1 as such1 has certain fiduciary duties with respect to the plan and to its employees4 7g7 ,no inference with respect to church plans ,regarding any application of section #djc7;b7 of the ,internal ,revenue ,code of #aihf to an annuity contract purchased under a church plan 7as defined in section #dad7;e7 of such ,code7 maintained by more than #a employer1 or to any application of rules similar to section #dac7;e7 of such ,code to such a plan1 no inference shall be made from section #djc7;b77#ae77;,a7 of such ,code 7as added by this ,act7 not applying to such plans4 7h7 ,effective date 7#a7 ,in general ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjba4 7#b7 ,rule of construction ,nothing in the amendments made by subsection 7a7 shall be construed as limiting the authority of the ,secretary of the ,treasury or the ,secretary's delegate 7determined without regard to such amendment7 to provide for the proper treatment of a failure to meet any requirement applicable under the ,internal ,revenue ,code of #aihf with respect to one employer 7and its employees7 in the case of a plan to which section #djc7;b77#ae7 of the ,internal ,revenue ,code of #aihf applies4 #e4 ,small immediate financial incentives for contributing to a plan 7a7 ,in general ,subparagraph 7,a7 of section #dja7k77#d7 of the ,internal ,revenue ,code of #aihf is amended by inserting 7other than a de minimis financial incentive7 after any other benefit4 7b7 ,section #djc7;b7 plans ,subparagraph 7,a7 of section #djc7;b77#ab7 of the ,internal ,revenue ,code of #aihf1 is further amended by adding at the end the following3 ,a plan shall not fail to satisfy clause 7ii7 solely by reason of offering a de minimis financial incentive to employees to elect to have the employer make contributions pursuant to a salary reduction agreement44 7c7 ,exemption from prohibited transaction rules ,subsection 7d7 of section #dige 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 adding at the end the following new paragraph3 7#bd7 the provision of a de minimis financial incentive described in section #dja7k77#d77;,a7 or #djc7;b77#ab77;,a74 4 7d7 ,amendment of ,employee ,retirement ,income ,security ,act of #aigd ,subsection 7b7 of section #djh of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajh7;b77 is amended by adding at the end the following new paragraph3 7#ba7 ,the provision of a de minimis financial incentive described in section #dja7k77#d77;,a7 or section #djc7;b77#ab77;,a7 of the ,internal ,revenue ,code of #aihf4 4 7e7 ,effective date ,the amendments made by this section shall apply with respect to plan years beginning after the date of enactment of this ,act4 #f4 ,performance benchmarks for asset allocation funds 7a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,secretary of ,labor shall provide that1 in the case of a designated investment alternative that contains a mix of asset classes1 the administrator of a plan may1 but is not required to1 use a benchmark that is a blend of different broad-based securities market indices if-- 7#a7 the blend is reasonably representative of the asset class holdings of the designated investment alternative2 7#b7 for purposes of determining the blend's returns for #a-1 #e-1 and #aj-;calendar-year periods 7or for the life of the alternative1 if shorter71 the blend is modified at least once per year to reflect changes in the asset class holdings of the designated investment alternative2 7#c7 the blend is furnished to participants and beneficiaries in a manner that is reasonably designed to be understandable2 and 7#d7 each securities market index that is used for an associated asset class would separately satisfy the requirements of such regulation for such asset class4 7b7 ,study ,not later than #c years after the date of enactment of this ,act1 the ,secretary of ,labor shall deliver a report to the ,committees on ,finance and ,health1 ,education1 ,labor1 and ,pensions of the ,senate and the ,committees on ,ways and ,means and ,education and ,labor of the ,house of ,representatives regarding the utilization1 effectiveness1 and participants' understanding of the benchmarking requirements under this section4 #g4 ,pooled employer plans modification ,section #c7dc77;,b77ii7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7dc77;,b77ii77 is amended to read as follows3 7ii7 designate a named fiduciary 7other than an employer in the plan7 to be responsible for collecting contributions to the plan and require such fiduciary to implement written contribution collection procedures that are reasonable1 diligent1 and systematic2 4 #h4 ,review of pension risk transfer interpretive bulletin ,not later than #a year after the date of enactment of this ,act1 the ,secretary of ,labor shall-- 7#a7 review section #beji4ie-a of title #bi1 ,code of ,federal ,regulations 7relating to the fiduciary standards under the ,employee ,retirement ,income ,security ,act of #aigd when selecting an annuity provider for a defined benefit pension plan7 to determine whether amendments to such section are warranted2 and 7#b7 report to ,congress on the findings of such review1 including an assessment of any risk to participants4 #i4 ,review and report to congress relating to reporting and disclosure requirements 7a7 ,study ,as soon as practicable after the date of enactment of this ,act1 the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,director of the ,pension ,benefit ,guaranty ,corporation shall review the reporting and disclosure requirements as applicable to each such agency head1 of-- 7#a7 the ,employee ,retirement ,income ,security ,act of #aigd applicable to pension plans 7as defined in section #c7b7 of such ,act 7#bi ,u4,s4,c4 #ajjb7b772 and 7#b7 the ,internal ,revenue ,code of #aihf applicable to qualified retirement plans 7as defined in section #digd7;c7 of such ,code1 without regard to paragraphs 7#d7 and 7#e7 of such section74 7b7 ,report 7#a7 ,in general ,not later than #b years after the date of enactment of this ,act1 the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,director of the ,pension ,benefit ,guaranty ,corporation1 jointly1 and after consultation with a balanced group of participant and employer representatives1 shall with respect to plans referenced in subsection 7a7 report on the effectiveness of the applicable reporting and disclosure requirements and make such recommendations as may be appropriate to the ,committee on ,education and ,labor and the ,committee on ,ways and ,means of the ,house of ,representatives and the ,committee on ,health1 ,education1 ,labor1 and ,pensions and the ,committee on ,finance of the ,senate to consolidate1 simplify1 standardize1 and improve such requirements so as to simplify reporting for such plans and ensure that plans can furnish and participants and beneficiaries timely receive and better understand the information they need to monitor their plans1 plan for retirement1 and obtain the benefits they have earned4 7#b7 ,analysis of effectiveness ,to assess the effectiveness of the applicable reporting and disclosure requirements1 the report shall include an analysis1 based on plan data1 of how participants and beneficiaries are providing preferred contact information1 the methods by which plan sponsors and plans are furnishing disclosures1 and the rate at which participants and beneficiaries 7grouped by key demographics7 are receiving1 accessing1 understanding1 and retaining disclosures4 7#c7 ,collection of information ,the agencies shall conduct appropriate surveys and data collection to obtain any needed information4 #aj4 ,eliminating unnecessary plan requirements related to unenrolled participants 7a7 ,amendment of ,employee ,retirement ,income ,security ,act of #aigd 7#a7 ,in general ,part #a of subtitle ,b of subchapter ,i of the ,employee ,retirement ,income ,security ,act of #aigd is amended by redesignating section #aaa as section #aab and by inserting after section #aaj the following new section3 #aaa4 ,eliminating unnecessary plan requirements related to unenrolled participants 7a7 ,in general ,notwithstanding any other provision of this title1 with respect to any individual account plan1 no disclosure1 notice1 or other plan document 7other than the notices and documents described in paragraphs 7#a7 and 7#b77 shall be required to be furnished under this title to any unenrolled participant if the unenrolled participant receives-- 7#a7 an annual reminder notice of such participant's eligibility to participate in such plan and any applicable election deadlines under the plan2 and 7#b7 any document requested by such participant that the participant would be entitled to receive notwithstanding this section4 7b7 ,unenrolled participant ,for purposes of this section1 the term unenrolled participant means an employee who-- 7#a7 is eligible to participate in an individual account plan2 7#b7 has received the summary plan description pursuant to section #ajd7;b7 and any other eligibility notices required to be furnished under this title in connection with such participant's initial eligibility to participate in such plan2 7#c7 is not participating in such plan2 7#d7 does not have a balance in the plan2 and 7#e7 satisfies such other criteria as the ,secretary of ,labor may determine appropriate1 as prescribed in guidance issued in consultation with the ,secretary of ,treasury4 ,for purposes of this section1 any eligibility to participate in the plan following any period for which such employee was not eligible to participate shall be treated as initial eligibility4 7c7 ,annual reminder notice ,for purposes of this section1 the term annual reminder notice means a notice provided in accordance with section #bebj4ajd;b-#a of title #bi1 ,code of ,federal ,regulations 7or any successor regulation71 which-- 7#a7 is furnished in connection with the annual open season election period with respect to the plan or1 if there is no such period1 is furnished within a reasonable period prior to the beginning of each plan year2 7#b7 notifies the unenrolled participant of-- 7,a7 the unenrolled participant's eligibility to participate in the plan2 and 7,b7 the key benefits and rights under the plan1 with a focus on employer contributions and vesting provisions2 and 7#c7 provides such information in a prominent manner calculated to be understood by the average participant4 4 7#b7 ,clerical amendment ,the table of contents in section #a of the ,employee ,retirement ,income ,security ,act of #aigd is amended by striking the item relating to section #aaa and by inserting after the item relating to section #aaj the following new items3 ,sec4 #aaa4 ,eliminating unnecessary plan requirements related to unenrolled participants4 ,sec4 #aab4 ,repeal and effective date4 4 7b7 ,amendment of ,internal ,revenue ,code of #aihf ,section #dad of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7aa7 ,eliminating unnecessary plan requirements related to unenrolled participants 7#a7 ,in general ,notwithstanding any other provision of this title1 with respect to any defined contribution plan1 no disclosure1 notice1 or other plan document 7other than the notices and documents described in subparagraphs 7,a7 and 7,b77 shall be required to be furnished under this title to any unenrolled participant if the unenrolled participant receives-- 7,a7 an annual reminder notice of such participant's eligibility to participate in such plan and any applicable election deadlines under the plan1 and 7,b7 any document requested by such participant that the participant would be entitled to receive notwithstanding this subsection4 7#b7 ,unenrolled participant ,for purposes of this subsection1 the term unenrolled participant means an employee who-- 7,a7 is eligible to participate in a defined contribution plan1 7,b7 has received the summary plan description pursuant to section #ajd7;b7 of the ,employee ,retirement ,income ,security ,act of #aigd and any other eligibility notices in connection with such participant's initial eligibility to participate in such plan1 7,c7 is not participating in such plan1 7,d7 does not have a balance in the plan1 and 7,e7 satisfies such other criteria as the ,secretary of the ,treasury may determine appropriate1 as prescribed in guidance issued in consultation with the ,secretary of ,labor4 ,for purposes of this subsection1 any eligibility to participate in the plan following any period for which such employee was not eligible to participate shall be treated as initial eligibility4 7#c7 ,annual reminder notice ,for purposes of this subsection1 the term annual reminder notice means the notice described in section #aaa7;c7 of the ,employee ,retirement ,income ,security ,act of #aigd4 4 7c7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjba4 #aa4 ,recovery of retirement plan overpayments 7a7 ,overpayments under ,,erisa ,section #bjf of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajef7 is amended by adding at the end the following new subsection3 7h7 ,special rules applicable to benefit overpayments 7#a7 ,general rule ,in the case of an inadvertent benefit overpayment by any pension plan1 the responsible plan fiduciary shall not be considered to have failed to comply with the requirements of this title merely because such fiduciary determines1 in the exercise of its fiduciary discretion1 not to seek recovery of all or part of such overpayment from-- 7,a7 any participant or beneficiary1 7,b7 any plan sponsor of1 or contributing employer to-- 7i7 an individual account plan1 provided that the amount needed to prevent or restore any impermissible forfeiture from any participant's or beneficiary's account arising in connection with the overpayment is1 separately from and independently of the overpayment1 allocated to such account pursuant to the nonforfeitability requirements of section #bjc 7for example1 out of the plan's forfeiture account1 additional employer contributions1 or recoveries from those responsible for the overpayment71 or 7ii7 a defined benefit pension plan subject to the funding rules in part #c of this subtitle ,b1 unless the responsible plan fiduciary determines1 in the exercise of its fiduciary discretion1 that failure to recover all or part of the overpayment faster than required under such funding rules would materially affect the plan's ability to pay benefits due to other participants and beneficiaries1 or 7,c7 any fiduciary of the plan1 other than a fiduciary 7including a plan sponsor or contributing employer acting in a fiduciary capacity7 whose breach of its fiduciary duties resulted in such overpayment1 provided that if the plan has established prudent procedures to prevent and minimize overpayment of benefits and the relevant plan fiduciaries have followed such procedures1 an inadvertent benefit overpayment will not give rise to a breach of fiduciary duty4 7#b7 ,reduction in future benefit payments and recovery from responsible party ,paragraph 7#a7 shall not fail to apply with respect to any inadvertent benefit overpayment merely because1 after discovering such overpayment1 the responsible plan fiduciary-- 7,a7 reduces future benefit payments to the correct amount provided for under the terms of the plan1 or 7,b7 seeks recovery from the person or persons responsible for the overpayment4 7#c7 ,employer funding obligations ,nothing in this subsection shall relieve an employer of any obligation imposed on it to make contributions to a plan to meet the minimum funding standards under part #c of this subtitle ,b or to prevent or restore an impermissible forfeiture in accordance with section #bjc4 7#d7 ,recoupment from participants and beneficiaries ,if the responsible plan fiduciary1 in the exercise of its fiduciary discretion1 decides to seek recoupment from a participant or beneficiary of all or part of an inadvertent benefit overpayment made by the plan to such participant or beneficiary1 it may do so1 subject to the following conditions3 7,a7 ,no interest or other additional amounts 7such as collection costs or fees7 are sought on overpaid amounts for any period before or after the date of correction of such overpayment4 7,b7 ,if the plan seeks to recoup past overpayments of a non-decreasing periodic benefit by reducing future benefit payments-- 7i7 the reduction ceases after the plan has recovered the full dollar amount of the overpayment1 7ii7 the amount recouped each calendar year does not exceed #aj percent of the full dollar amount of the overpayment1 and 7iii7 future benefit payments are not reduced to below #ij percent of the periodic amount otherwise payable under the terms of the plan4 ,alternatively1 if the plan seeks to recoup past overpayments of a non-decreasing periodic benefit through one or more installment payments1 the sum of such installment payments in any calendar year does not exceed the sum of the reductions that would be permitted in such year under the preceding sentence4 7,c7 ,if the plan seeks to recoup past overpayments of a benefit other than a non-decreasing periodic benefit1 the plan satisfies requirements developed by the ,secretary for purposes of this subparagraph4 7,d7 ,efforts to recoup overpayments are-- 7i7 not accompanied by threats of litigation1 unless the responsible plan fiduciary reasonably believes it could prevail in a civil action brought in ,federal or ,state court to recoup the overpayments1 and 7ii7 not made through a collection agency or similar third party1 unless the participant or beneficiary ignores or rejects efforts to recoup the overpayment following either a final judgment in ,federal or ,state court or a settlement between the participant or beneficiary and the plan1 in either case authorizing such recoupment4 7,e7 ,recoupment of past overpayments to a participant is not sought from any beneficiary of the participant1 including a spouse1 surviving spouse1 former spouse1 or other beneficiary4 7,f7 ,recoupment may not be sought if the first overpayment occurred more than #c years before the participant or beneficiary is first notified in writing of the error4 7,g7 ,a participant or beneficiary from whom recoupment is sought is entitled to contest all or part of the recoupment pursuant to the plan's claims procedures4 7,h7 ,in determining the amount of recoupment to seek1 the responsible plan fiduciary may take into account the hardship that recoupment likely would impose on the participant or beneficiary4 7#e7 ,effect of culpability ,subparagraphs 7,a7 through 7,f7 of paragraph 7#d7 shall not apply to protect a participant or beneficiary who is culpable4 ,for purposes of this paragraph1 a participant or beneficiary is culpable if the individual bears responsibility for the overpayment 7such as through misrepresentations or omissions that led to the overpayment71 or if the individual knew1 or had good reason to know under the circumstances1 that the benefit payment or payments were materially in excess of the correct amount4 ,notwithstanding the preceding sentence1 an individual is not culpable merely because the individual believed the benefit payment or payments were or might be in excess of the correct amount1 if the individual raised that question with an authorized plan representative and was told the payment or payments were not in excess of the correct amount4 ,with respect to a culpable participant or beneficiary1 efforts to recoup overpayments shall not be made through threats of litigation1 unless a lawyer for the plan could make the representations required under ,rule #aa of the ,federal ,rules of ,civil ,procedure if the litigation were brought in ,federal court4 4 7b7 ,overpayments under ,internal ,revenue ,code of #aihf 7#a7 ,qualification requirements ,section #dad of the ,internal ,revenue ,code of #aihf1 is further amended by adding at the end the following new subsection3 7bb7 ,special rules applicable to benefit overpayments 7#a7 ,in general ,a plan shall not fail to be treated as described in clause 7i71 7ii71 7iii71 or 7iv7 of section #bai7;g77#e77;,a7 7and shall not fail to be treated as satisfying the requirements of section #dja7;a7 or #djc7 merely because-- 7,a7 the plan fails to obtain payment from any participant1 beneficiary1 employer1 plan sponsor1 fiduciary1 or other party on account of any inadvertent benefit overpayment made by the plan1 or 7,b7 the plan sponsor amends the plan to reduce past or future benefit payments to affected participants and beneficiaries in order to adjust for prior inadvertent benefit overpayments4 7#b7 ,reduction in future benefit payments and recovery from responsible party ,paragraph 7#a7 shall not fail to apply to a plan merely because1 after discovering a benefit overpayment1 such plan-- 7,a7 reduces future benefit payments to the correct amount provided for under the terms of the plan1 or 7,b7 seeks recovery from the person or persons responsible for such overpayment4 7#c7 ,employer funding obligations ,nothing in this subsection shall relieve an employer of any obligation imposed on it to make contributions to a plan to meet the minimum funding standards under sections #dab and #dcj or to prevent or restore an impermissible forfeiture in accordance with section #daa4 7#d7 ,observance of benefit limitations ,notwithstanding paragraph 7#a71 a plan to which paragraph 7#a7 applies shall observe any limitations imposed on it by section #dja7;a77#ag7 or #dae4 ,the plan may enforce such limitations using any method approved by the ,secretary of the ,treasury for recouping benefits previously paid or allocations previously made in excess of such limitations4 7#e7 ,coordination with other qualification requirements ,the ,secretary of the ,treasury may issue regulations or other guidance of general applicability specifying how benefit overpayments and their recoupment or non-recoupment from a participant or beneficiary shall be taken into account for purposes of satisfying any requirement applicable to a plan to which paragraph 7#a7 applies4 4 7#b7 ,rollovers ,section #djb7;c7 of such ,code is amended by adding at the end the following new paragraph3 7#ab7 ,in the case of an inadvertent benefit overpayment from a plan to which section #dad7;bb77#a7 applies that is transferred to an eligible retirement plan by or on behalf of a participant or beneficiary-- 7,a7 the portion of such overpayment with respect to which recoupment is not sought on behalf of the plan shall be treated as having been paid in an eligible rollover distribution if the payment would have been an eligible rollover distribution but for being an overpayment1 and 7,b7 the portion of such overpayment with respect to which recoupment is sought on behalf of the plan shall be permitted to be returned to such plan and in such case shall be treated as an eligible rollover distribution transferred to such plan by the participant or beneficiary who received such overpayment 7and the plans making and receiving such transfer shall be treated as permitting such transfer74 ,in any case in which recoupment is sought on behalf of the plan but is disputed by the participant or beneficiary who received such overpayment1 such dispute shall be subject to the claims procedures of the plan that made such overpayment1 such plan shall notify the plan receiving the rollover of such dispute1 and the plan receiving the rollover shall retain such overpayment on behalf of the participant or beneficiary 7and shall be entitled to treat such overpayment as plan assets7 pending the outcome of such procedures4 4 7c7 ,effective date ,the amendments made by this section shall apply as of the date of the enactment of this ,act4 7d7 ,certain actions before date of enactment ,plans1 fiduciaries1 employers1 and plan sponsors are entitled to rely on-- 7#a7 a good faith interpretation of then existing administrative guidance for inadvertent benefit overpayment recoupments and recoveries that commenced before the date of enactment of this ,act1 and 7#b7 determinations made before the date of enactment of this ,act by the responsible plan fiduciary1 in the exercise of its fiduciary discretion1 not to seek recoupment or recovery of all or part of an inadvertent benefit overpayment4 ,in the case of a benefit overpayment that occurred prior to the date of enactment of this ,act1 any installment payments by the participant or beneficiary to the plan or any reduction in periodic benefit payments to the participant or beneficiary1 which were made in recoupment of such overpayment and which commenced prior to such date1 may continue after such date4 ,nothing in this subsection shall relieve a fiduciary from responsibility for an overpayment that resulted from a breach of its fiduciary duties4 #ab4 ,improving coverage for part-time workers 7a7 ,amendment of ,employee ,retirement ,income ,security ,act of #aigd 7#a7 ,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 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 any employee described in section #daj7;b77#c7 of the ,internal ,revenue ,code of #aihf4 7#c7 ,coordination with other rules 7,a7 ,in general ,in the case of employees who are eligible to participate in the arrangement or agreement solely by reason of paragraph 7#a77;,b73 7i7 ,exclusions ,an employer may elect to exclude such employees from the application of subsections 7a77#d71 7k77#c71 7k77#ab71 7k77#ac71 7k77#ae77;,b77i77,i71 and 7m77#b7 of section #dja of the ,internal ,revenue ,code of #aihf and section #daj7;b7 of such ,code4 7ii7 ,time of participation ,the rules of subsection 7a77#d7 shall apply to such employees4 7,b7 ,top-heavy rules ,an employer may elect to exclude all employees who are eligible to participate in a plan maintained by the employer solely by reason of paragraph 7#a77;,b7 from the application of the vesting and benefit requirements under subsections 7b7 and 7c7 of section #daf of the ,internal ,revenue ,code of #aihf4 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 #bjba1 shall not be taken into account4 7#b7 ,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 7,b7 paragraph 7#c7 shall be applied by substituting at least #ejj hours of service for more than #ejj hours of service in subparagraph 7,a7 thereof2 and 7,c7 #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 #bjba1 shall not be taken into account4 4 7#c7 ,pre-#bjba service ,section #aab7;b7 of the ,setting ,every ,community ,up for ,retirement ,enhancement ,act of #bjai 7#bf ,u4,s4,c4 #dja note7 is amended by striking section #dja7k77#b77;,d77ii7 and inserting paragraphs 7#b77;,d77ii7 and 7#ae77;,b77iii7 of section #dja7k74 7b7 ,conforming amendments to ,internal ,revenue ,code of #aihf 7#a7 ,in general ,section #daj7;a7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#f7 ,special rule for certain part-time employees 7,a7 ,in general ,in the case of a plan that includes either a qualified cash or deferred arrangement 7as defined in section #dja7k771 a trust of which such plan is a part shall not constitute a qualified trust under section #dja7;a7 if the plan requires1 as a condition of participation in the plan or arrangement1 that an employee complete a period of service with the employer 7or employers7 maintaining the plan extending beyond the close of the earlier of-- 7i7 the period permitted under paragraph 7#a7 7determined without regard to subparagraph 7,b77i7 thereof71 or 7ii7 the first #bd-month period-- 7,i7 consisting of #b consecutive #ab-month periods during each of which the employee has at least #ejj hours of service1 and 7,,ii7 by the close of which the employee has attained the age of #ba4 7,b7 ,exception ,subparagraph 7,a77ii7 shall not apply to any employee described in section #daj7;b77#c74 7,c7 ,coordination with other rules 7i7 ,in general ,in the case of employees who are eligible to participate in the arrangement or agreement solely by reason of subparagraph 7,a77ii7-- 7,i7 ,exclusions ,an employer may elect to exclude such employees from the application of subsection 7b7 and of subsections 7a77#d71 7k77#c71 7k77#ab71 7k77#ac71 7k77#ae77;,b77i77,i71 and 7m77#b7 of section #dja4 7,,ii7 ,time of participation ,the rules of paragraph 7#d7 shall apply to such employees4 7ii7 ,top-heavy rules ,an employer may elect to exclude all employees who are eligible to participate in a plan maintained by the employer solely by reason of subparagraph 7,a77ii7 from the application of the vesting and benefit requirements under subsections 7b7 and 7c7 of section #daf4 7,d7 #ab-month period ,for purposes of this paragraph1 #ab-month periods shall be determined in the same manner as under the last sentence of paragraph 7#c77;,a71 except that #ab-month periods beginning before ,january #a1 #bjba1 shall not be taken into account4 4 7#b7 ,vesting ,section #daj7;a7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7#g7 ,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 paragraph 7#f77;,a77ii7 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 service1 7,b7 section #daa7;a77#f7 shall be applied by substituting at least #ejj hours of service for more than #ejj hours of service in subparagraph 7,a7 thereof1 and 7,c7 #ab-month periods occurring before the #bd-month period described in paragraph 7#f77;,a77ii7 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 paragraph 7#f77;,d74 4 ,february #be1 #bjbb,reported from the ,committee on ,education and ,labor with an amendment,february #be1 #bjbb;,committee on ,ways and ,means discharged2 committed to the ,committee of the ,whole ,house on the ,state of the ,union and ordered to be printed