,,ii #aag? ,,congress #b;d ,session ,s4 #djhg ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,april #bf1 #bjbb,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 ,act or ! ,,in=m ,act4 #b4 ,notice & disclosure requirem5ts ) respect to lump sum w9d[s 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 w9d[s 7a7 ,9 g5]al ,a plan sponsor ( a p5sion plan t am5ds ! plan to provide a p]iod ( "t dur+ :i* a p>ticipant or b5efici>y may elect to receive a lump sum "u clause 7i7 ( section #dja7;a77#i77;,a77i7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 in/ead ( future mon?ly paym5ts "u clause 7ii7 ( su* section1 %all provide notice-- 7#a7 to ea* p>ticipant or b5efici>y (f]$ su* lump sum am\nt1 9 ! mann] 9 :i* ! p>ticipant & b5efici>y receives ! lump sum (f] f ! plan sponsor1 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>y & ! ,p5sion ,b5efit ,gu>anty ,corporation1 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 age1 :e!r !re is a subsidiz$ e>ly retirem5t option or qualifi$ jo9t & survivor annuity t is fully subsidiz$ 79 accordance ) section #dag7;a77#e7 ( ! ,int]nal ,rev5ue ,code ( #aihf71 ! 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 ,9 a mann] consi/5t ) ! mann] 9 :i* a writt5 explanation is requir$ to be giv5 "u #dag7;a77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 ! relative value ( ! lump sum option = a t]m9at$ ve/$ p>ticipant comp>$ to ! value (-- 7i7 ! s+le life annuity1 7or o!r /&>d =m ( b5efit72 & 7ii7 ! qualifi$ jo9t & survivor annuity 7z def9$ 9 section #bje7;d77#a772 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+ 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+ advice1 & 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 & b5efici>ies to get m in=mation or ask que/ions ab\t ! options4 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 7#c7 ,model notice ,! ,secret>y %all issue a model notice = purposes ( ! notice "u subsection 7a77#a71 includ+ = in=mation requir$ "u subp>agraphs 7,c7 ?r\gh 7,f7 ( p>agraph 7#b74 7c7 ,notice to ! ,secret>y & ,p5sion ,b5efit ,gu>anty ,corporation ,! notice requir$ "u subsection 7a77#b7 %all include ! foll[+3 7#a7 ,! total numb] ( p>ticipants & b5efici>ies eligible = su* lump sum option4 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 sample ( ! notice provid$ to p>ticipants & b5efici>ies "u subsection 7b74 7d7 ,po/-,(f] report to ! ,secret>y & ,p5sion ,b5efit ,gu>anty ,corporation ,n lat] ?an #ij 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 & ! ,director ( ! ,p5sion ,b5efit ,gu>anty ,corporation t includes ! numb] ( p>ticipants & b5efici>ies :o accept$ ! lump sum (f] & su* o!r in=mation z ! ,secret>y may require4 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 available 9 a =m t protects ! confid5tiality ( ! in=mation provid$4 7f7 ,guidance & regulations ,! ,secret>y-- 7#a7 n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is section1 %all issue guidance & model notices = plan sponsors to use 9 provid+ ! notice describ$ 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 ( ?is section & e #f mon?s !reaft]1 s long z ! ,secret>y has receiv$ notices & po/-(f] reports "u subsections 7c7 & 7d71 ! ,secret>y %all submit to ,congress a report t summ>izes su* notices & po/-(f] reports 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 lump sum w9d[s4 7c7 ,en=cem5t ,section #ejb ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aacb7 is am5d$-- 7#a7 9 subsection 7c77#a71 by /rik+ or section #aje7;a7 & ins]t+ 1 section #aje7;a71 or section #aab7;a72 & 7#b7 9 subsection 7a77#d71 by /rik+ #aje7;c7 & ins]t+ section #aje7;c7 or #aab7;a74 7d7 ,effective date ,! am5dm5ts made by subsections 7a71 7b71 & 7c7 %all take effect on ! date ( enactm5t ( ?is ,act4 7e7 ,regulatory au?ority ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury & ! ,secret>y ( ,labor %all jo9tly issue regulations to implem5t section #aab ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 z add$ by subsection 7a74 ,su* regulations %all require plan sponsors to comply 9 good fai? ) ! regulations beg9n+ n lat] ?an #a ye> aft] issuance ( a f9al rule ) respect to subsections 7a77#a7 & 7b7 ( su* section #aab1 & beg9n+ n lat] ?an #f mon?s aft] issuance ( a f9al rule ) respect to subsections 7a77#b71 7c71 7d71 & 7e7 ( su* section #aab4