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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1979 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 1979

To provide for USA Retirement Funds, to reform the pension system, and 
                          for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            January 30, 2014

 Mr. Harkin (for himself and Mr. Brown) introduced the following bill; 
     which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL

 
To provide for USA Retirement Funds, to reform the pension system, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``USA Retirement 
Funds Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                     TITLE I--USA RETIREMENT FUNDS

Sec. 101. Automatic USA Retirement Fund arrangements.
Sec. 102. Establishment of USA Retirement Funds.
Sec. 103. Commission on USA Retirement Funds.
Sec. 104. Limitation on employer liability.
Sec. 105. Enforcement and fraud prevention.
              TITLE II--DEFINED CONTRIBUTION PLAN REFORMS

                    Subtitle A--Savings Enhancements

Sec. 201. Pooled employer plans.
Sec. 202. Pooled employer and multiple employer plan reporting.
                  Subtitle B--Participant Protections

Sec. 211. Alternative fiduciary arrangements to protect plan 
                            participants.
Sec. 212. Rollover protections.
                      Subtitle C--Lifetime Income

Sec. 221. Lifetime income disclosure.
Sec. 222. Lifetime income safe harbor.
Sec. 223. Default investment safe harbor clarification.
Sec. 224. Administration of joint and survivor annuity requirements.
               TITLE III--DEFINED BENEFIT SYSTEM REFORMS

            Subtitle A--Defined Benefit Pension Plan Reforms

Sec. 301. Hybrid plans.
Sec. 302. Clarification of the normal retirement age.
Sec. 303. Moratorium on imposition of shutdown liability.
Sec. 304. Alternative funding target attainment percentage determined 
                            without regard to reduction for credit 
                            balances.
Sec. 305. Method for determining changes for quarterly contributions.
Sec. 306. Election to discount contributions from final due date.
Sec. 307. Simplification of elections and notices.
Sec. 308. Improved multiemployer plan disclosure.
       Subtitle B--Improvements to the Pension Insurance Program

Sec. 311. Modifications of technical changes made by the Pension 
                            Protection Act of 2006 to termination 
                            liability.
Sec. 312. Payment of lump sum distributions in bankruptcy.
Sec. 313. Trusteeship clarifications.
Sec. 314. Recordkeeping for terminating plans.
Sec. 315. Termination date in bankruptcy.
                    TITLE IV--OTHER SYSTEMIC REFORMS

Sec. 401. Plan audit quality improvement.
Sec. 402. Special rules relating to treatment of qualified domestic 
                            relations orders.
Sec. 403. Correction to bonding requirement.
Sec. 404. Retaliation protections.

                     TITLE I--USA RETIREMENT FUNDS

SEC. 101. AUTOMATIC USA RETIREMENT FUND ARRANGEMENTS.

    (a) Requirement To Provide Access.--Each covered employer shall 
make available to each qualifying employee for the calendar year an 
automatic USA Retirement Fund arrangement.
    (b) Covered Employer.--For purposes of this title--
            (1) In general.--Except as otherwise provided in this 
        subsection and subsection (c)(2), the term ``covered employer'' 
        means, with respect to any calendar year, an employer who does 
        not maintain a qualifying plan or arrangement for any part of 
        such year.
            (2) Qualifying plan or arrangement.--
                    (A) In general.--The term ``qualifying plan or 
                arrangement'' means a plan or arrangement described in 
                section 219(g)(5) of the Internal Revenue Code of 1986.
                    (B) Exceptions.--Such term shall not include the 
                following:
                            (i) Frozen defined benefit plan.--A defined 
                        benefit plan that had no ongoing accruals as of 
                        the first day of the preceding calendar year, 
                        unless the plan failed to have accruals only 
                        because of the application of section 206 of 
                        the Employee Retirement Income Security Act (29 
                        U.S.C. 1056) and section 436 of the Internal 
                        Revenue Code of 1986.
                            (ii) Defined contribution plan without 
                        lifetime income options.--A defined 
                        contribution plan that does not provide 
                        participants with a distribution option that 
                        provides lifetime income.
                            (iii) Plans not meeting contribution 
                        requirements.--A plan--
                                    (I) which consists of a cash or 
                                deferred arrangement (as defined in 
                                section 401(k) of such Code) with 
                                respect to which the employer does not 
                                automatically enroll all eligible 
                                employees at contribution rates at or 
                                above those specified in subsection 
                                (d)(4); or
                                    (II) for which the only 
                                contributions are nonelective employer 
                                contributions and with respect to which 
                                the employer's annual contribution rate 
                                is not at or above the rates specified 
                                in subsection (d)(4).
            (3) Exception for certain small and new employers.--
                    (A) In general.--The term ``covered employer'' 
                shall not include an employer for a calendar year if 
                the employer--
                            (i) did not employ during the preceding 
                        calendar year more than 10 employees who each 
                        received at least $5,000 of compensation (as 
                        defined in section 3401(a) of the Internal 
                        Revenue Code of 1986) from the employer for 
                        such preceding calendar year;
                            (ii) did not normally employ more than 10 
                        employees on a typical business day during the 
                        preceding calendar year; or
                            (iii) was not in existence at all times 
                        during the calendar year and the preceding 
                        calendar year.
                    (B) Operating rules.--In determining the number of 
                employees for purposes of subparagraph (A)--
                            (i) rules consistent with any rules 
                        applicable in determining the number of 
                        employees for purposes of section 408(p)(2)(C) 
                        and section 4980B(d) of the Internal Revenue 
                        Code of 1986 shall apply;
                            (ii) all members of the same family (within 
                        the meaning of section 318(a)(1) of the 
                        Internal Revenue Code of 1986) shall be treated 
                        as 1 individual; and
                            (iii) any reference to an employer shall 
                        include a reference to any predecessor 
                        employer.
            (4) Exception for governments and churches.--The term 
        ``covered employer'' shall not include--
                    (A) a government or entity described in section 
                414(d) of the Internal Revenue Code of 1986; or
                    (B) a church or a convention or association of 
                churches that is exempt from tax under section 501 of 
                such Code.
            (5) Aggregation rule.--A person treated as a single 
        employer under subsection (a) or (b) of section 52 of the 
        Internal Revenue Code of 1986 or subsection (m) or (o) of 
        section 414 of such Code shall be treated as a single employer.
    (c) Qualifying Employee.--For purposes of this title--
            (1) In general.--The term ``qualifying employee'' means any 
        employee who is not an excluded employee.
            (2) Plan sponsor's employees.--If--
                    (A) an employer maintains one or more qualifying 
                plans or arrangements described in section 219(g)(5) of 
                the Internal Revenue Code of 1986; and
                    (B) the employees of a subsidiary, division, or 
                other business unit are generally not eligible to 
                participate in any such qualifying plan or arrangement,
        for purposes of this section, the employer shall be treated as 
        a covered employer with respect to such employees (other than 
        excluded employees), and such employees (other than excluded 
        employees) shall be treated as qualifying employees for the 
        calendar year.
            (3) Excluded employees.--
                    (A) In general.--The term ``excluded employee'' 
                means an employee who is an excludable employee and who 
                is in a class or category that the employer excludes 
                from treatment as qualifying employees.
                    (B) Excludable employee.--The term ``excludable 
                employee'' means--
                            (i) an employee described in section 
                        410(b)(3) of the Internal Revenue Code of 1986;
                            (ii) an employee who has not attained the 
                        age of 21 before the beginning of the calendar 
                        year;
                            (iii) an employee who has not completed at 
                        least 3 months of service with the employer;
                            (iv) in the case of an employer that 
                        maintains a qualifying plan or arrangement 
                        which excludes employees who have not satisfied 
                        the minimum age and service requirements for 
                        participation in the plan, an employee who has 
                        not satisfied such requirements;
                            (v) in the case of an employer that 
                        maintains an annuity contract (including a 
                        custodial account or retirement income account) 
                        under section 403(b) of the Internal Revenue 
                        Code of 1986, an employee who is permitted to 
                        be excluded from any salary reduction 
                        arrangement under the contract pursuant to 
                        paragraph (12) of such section 403(b);
                            (vi) in the case of an employer that 
                        maintains an arrangement described in section 
                        408(p) of such Code, an employee who is not 
                        required to be eligible to participate in the 
                        arrangement under paragraph (4) of such section 
                        408(p); and
                            (vii) in the case of an employer that 
                        maintains a simplified employee pension 
                        described in section 408(k) of such Code, an 
                        employee who is permitted to be excluded from 
                        participation under paragraph (2) of such 
                        section 408(k).
            (4) Guidance.--The Secretary of Labor (in this title 
        referred to as the ``Secretary'') shall issue regulations or 
        other guidance to carry out this subsection, including--
                    (A) guidelines for determining the classes or 
                categories of employees to be covered by a USA 
                Retirement Fund;
                    (B) guidelines requiring employers to specify the 
                classification or categories of employees (if any) who 
                are excluded from the USA Retirement Fund; and
                    (C) rules to prevent avoidance of the requirements 
                of this section.
    (d) Automatic USA Retirement Fund Arrangement.--For purposes of 
this title--
            (1) In general.--The term ``automatic USA Retirement Fund 
        arrangement'' means an arrangement of an employer (determined 
        without regard to whether the employer is required to maintain 
        the arrangement)--
                    (A) that covers each qualifying employee of the 
                covered employer for the calendar year;
                    (B) under which a qualifying employee--
                            (i) may elect--
                                    (I) to contribute to an automatic 
                                USA Retirement Fund by having the 
                                employer deposit payroll deduction 
                                amounts or make other periodic direct 
                                deposits (including electronic 
                                payments) to the Fund; or
                                    (II) to have such payments paid to 
                                the employee directly in cash;
                            (ii) is treated as having made the election 
                        under clause (i)(I) in the amount specified in 
                        paragraph (4) unless the individual 
                        specifically elects not to have such 
                        contributions made (or specifically elects to 
                        have such contributions made at a different 
                        percentage or in a different amount); and
                            (iii) not more than once per calendar year, 
                        may elect to modify the selection of the USA 
                        Retirement Fund to which contributions are made 
                        for such year; and
                    (C) that meets the administrative requirements of 
                paragraph (3), including the notice requirement of 
                paragraph (3)(C).
            (2) Automatic re-enrollment.--An employee's election not to 
        contribute to a USA Retirement Fund (or to have such 
        contributions made at a different percentage or in a different 
        amount from those specified in paragraph (4)) shall expire 
        after 2 years. After such 2-year period and absent a new 
        election, the employee shall be treated as having made the 
        election under paragraph (1)(B)(i)(I) in the amount specified 
        in paragraph (4).
            (3) Administrative requirements.--
                    (A) Payments.--An employer shall make the payments 
                elected or treated as elected under paragraph (1)(B) on 
                or before--
                            (i) the last day of the month following the 
                        month in which the compensation otherwise would 
                        have been payable to the employee in cash; or
                            (ii) such later date as the Secretary may 
                        prescribe.
                    (B) Termination of employee participation.--Subject 
                to a requirement for reasonable notice, an employee may 
                elect to terminate participation in the arrangement at 
                any time during a calendar year. The arrangement may 
                provide that, if an employee so terminates 
                participation, the employee may not elect to resume 
                participation until the beginning of the next calendar 
                year.
                    (C) Notice of election period.--The employer shall 
                notify each employee eligible to participate for a year 
                in a USA Retirement Fund arrangement, within a 
                reasonable period of time before the 30th day before 
                the beginning of such year (and, for the first year the 
                employee is so eligible, the 30th day before the first 
                day such employee is so eligible), of--
                            (i) the payments that may be elected or 
                        treated as elected under paragraph (1)(B);
                            (ii) the opportunity to make the election 
                        to terminate participation in the arrangement 
                        under subparagraph (B);
                            (iii) the opportunity to make the election 
                        under paragraph (1)(B)(ii) to have 
                        contributions or purchases made at a different 
                        percentage or in a different amount; and
                            (iv) the opportunity under paragraph 
                        (1)(B)(iii) to modify the manner in which such 
                        amounts are invested for such year.
                    (D) Employees may choose usa retirement fund.--The 
                arrangement shall provide that a qualified employee may 
                elect to have contributions made to any USA Retirement 
                Fund available to the employee.
            (4) Amount of contributions and payments.--The amount 
        specified in this paragraph is--
                    (A) 3 percent of compensation for the calendar year 
                beginning on January 1, 2015;
                    (B) 4 percent of compensation for the calendar year 
                beginning on January 1, 2016;
                    (C) 5 percent of compensation for the calendar year 
                beginning on January 1, 2017; and
                    (D) 6 percent of compensation for calendar years 
                beginning after December 31, 2017.
            (5) Coordination with withholding.--The Secretary of the 
        Treasury shall modify the withholding exemption certificate 
        under section 3402(f) of the Internal Revenue Code of 1986 so 
        that, in the case of any qualifying employee covered by a USA 
        Retirement Fund arrangement, any notice and election 
        requirements with respect to the arrangement may be met through 
        the use of an attachment to such certificate or other 
        modifications of the withholding exemption procedures.
    (e) Deposits to USA Retirement Funds.--
            (1) In general.--Except as provided in paragraph (2), an 
        employer shall make all contributions on behalf of employees to 
        the USA Retirement Fund specified by the employee.
            (2) USA retirement funds other than those selected by 
        employee.--In the absence of an affirmative selection of a USA 
        Retirement Fund by the employee, contributions on behalf of the 
        employee shall be made to the USA Retirement Fund designated by 
        the employer.
            (3) Regulations.--The Secretary may issue such regulations 
        as are necessary to carry out this subsection.
    (f) Preemption of Conflicting State Laws.--The requirements under 
this section preempt any law of a State that directly or indirectly 
prohibits or restricts the establishment or operation of an automatic 
USA Retirement Fund arrangement. Nothing in this section shall be 
construed to impair or preempt any State law to the extent such State 
law provides a remedy for the failure to make payroll deposit payments 
under any such automatic USA Retirement Fund arrangement within the 
period required.

SEC. 102. ESTABLISHMENT OF USA RETIREMENT FUNDS.

    (a) Qualification as a USA Retirement Fund.--For purposes of this 
title--
            (1) In general.--The term ``USA Retirement Fund'' means a 
        fund for which the Secretary has determined the requirements 
        under this title are met.
            (2) Request for determination.--The board of trustees of a 
        program established for purposes of being treated as a USA 
        Retirement Fund under this section shall, prior to beginning 
        operations, submit to the Secretary (at such time and in such 
        manner as the Secretary may prescribe) a request for the 
        Secretary to make a determination as to whether the plan meets 
        the requirements of this title for such treatment. Such request 
        shall include copies of the written documents establishing the 
        plan and such other materials as the Secretary may request. The 
        Secretary shall make such determination within 180 days of 
        receiving such request.
            (3) Periodic review.--The Secretary shall establish a 
        process to periodically review each plan determined to be a USA 
        Retirement Fund under paragraph (1) to ensure that the plan 
        continues to meet the requirements of this title.
            (4) Public list of plans.--The Secretary shall maintain a 
        public list of plans determined by the Secretary to qualify as 
        USA Retirement Funds. Such list shall be posted to a publicly 
        available Internet website.
    (b) Participation.--
            (1) Eligibility.--An individual may participate in any USA 
        Retirement Fund for which such individual meets the eligibility 
        requirements, individually or through an arrangement 
        established by an employer.
            (2) Participation in other plans.--An individual who 
        participates in a USA Retirement Fund shall not be precluded 
        from participating in a plan or arrangement described in 
        section 219(g)(5) of the Internal Revenue Code of 1986.
    (c) Governance.--
            (1) Assets held in trust; board of trustees.--For purposes 
        of this title--
                    (A) the assets of each USA Retirement Fund shall be 
                held in trust, and
                    (B) the Fund shall be governed by a board of 
                trustees which shall consist of at least 3 individuals 
                who--
                            (i) are independent of service providers to 
                        the Fund;
                            (ii) meet the qualification requirements 
                        established under this section; and
                            (iii) are collectively able to adequately 
                        represent the interests of active participants, 
                        retirees, and contributing employers.
            (2) Independence requirement.--An individual is not 
        independent of Fund service providers for purposes of paragraph 
        (1)(B)(i) if such individual--
                    (A) is an employee of any Fund service provider;
                    (B) is a current or former officer or director of a 
                significant Fund service provider, or is otherwise 
                affiliated with such a provider;
                    (C) is a member of the immediate family of any 
                person who is affiliated with a significant Fund 
                service provider;
                    (D) derives more than 1 percent of the individual's 
                annual income from a significant Fund service provider;
                    (E) derives more than 5 percent of the individual's 
                annual income from any Fund service provider; or
                    (F) fails to meet meets such other criteria as are 
                specified by the Secretary to ensure the independence 
                of the board of directors.
            (3) Multiple trusteeships.--No individual may serve on the 
        board of trustees of more than 1 USA Retirement Fund unless the 
        Secretary receives attestation from the board of trustees of 
        each applicable USA Retirement Fund and the individual that, at 
        the time of appointment, there is no reasonably foreseeable 
        conflict between the duties of such individual to the 
        participants in each applicable USA Retirement Fund. In no case 
        may an individual serve on the boards of trustees of more than 
        3 USA Retirement Funds.
            (4) Trustee qualifications.--Each trustee of a USA 
        Retirement Fund shall attest that the trustee is knowledgeable 
        of the trustee's duties and responsibilities as a fiduciary of 
        a USA Retirement Fund. The Secretary may require by regulation 
        such other qualifications and documentation as may be necessary 
        to ensure that trustees are suitable and qualified. Such 
        requirements may include those related to education, training, 
        and minimum competency standards.
            (5) Trustee selection and removal.--
                    (A) In general.--Each board of trustees of a USA 
                Retirement Fund shall establish written procedures 
                regarding the appointment, removal, and replacement of 
                trustees on the board. Such procedures shall--
                            (i) take effect after adoption by the 
                        majority of the board of trustees;
                            (ii) be readily available to participants;
                            (iii) provide participants with a 
                        reasonable opportunity to comment on, or 
                        participate in, the trustee selection process; 
                        and
                            (iv) provide for periodic election of 
                        trustees.
                    (B) Removal by the secretary.--The Secretary may 
                require removal or suspension of a trustee if the 
                conduct of the trustee is fraudulent or is causing, or 
                can be reasonably expected to cause, significant, 
                imminent, and irreparable harm to the participants or 
                beneficiaries of a USA Retirement Fund.
                    (C) Funds without qualified trustees.--If a board 
                of trustees of a USA Retirement Fund has no members 
                meeting the criteria under this subsection, the 
                Secretary shall appoint replacement trustees.
            (6) Trustee compensation.--Trustees of the Fund may be 
        compensated at reasonable rates from the Fund, but only if such 
        compensation is paid in accordance with the written board 
        compensation policy adopted under paragraph (7)(A)(iv).
            (7) Transparency and participant democracy.--
                    (A) Publicly available policies.--The board of 
                trustees of a USA Retirement Fund shall adopt and make 
                available to participants and beneficiaries of, and 
                employers contributing to, the USA Retirement Fund--
                            (i) a written investment policy statement;
                            (ii) a written lifetime income policy 
                        statement;
                            (iii) an annual performance assessment of 
                        the board of trustees, including an evaluation 
                        of weaknesses of the board and a plan to 
                        address such weaknesses;
                            (iv) a written board compensation policy 
                        that includes current compensation levels and 
                        provides a reasonable opportunity for comment 
                        from participants, beneficiaries, and 
                        employers; and
                            (v) a written policy addressing conflicts 
                        of interests with respect to trustees.
                    (B) Participant input regarding board of 
                trustees.--
                            (i) In general.--The board of trustees of a 
                        USA Retirement Fund shall establish procedures 
                        whereby a participant or beneficiary of such 
                        USA Retirement Fund may--
                                    (I) petition the board of trustees 
                                to remove a trustee or service 
                                provider;
                                    (II) comment on the management and 
                                administration of the USA Retirement 
                                Fund; and
                                    (III) with respect to a USA 
                                Retirement Fund with more than 
                                $250,000,000 of assets, vote to approve 
                                or disapprove the compensation of the 
                                trustees at least once every 3 years.
                            (ii) Effect of vote.--If participants and 
                        beneficiaries of a USA Retirement Fund vote to 
                        disapprove the compensation of trustees under 
                        clause (i)(III)--
                                    (I) the results of such vote shall 
                                not be binding on the board of 
                                trustees; and
                                    (II) the board of trustees shall 
                                notify the Secretary of the results of 
                                such vote and provide an explanation of 
                                why the compensation is reasonable or 
                                anticipated changes to the 
                                compensation.
            (8) Liability insurance for trustees.--The trustees of each 
        USA Retirement Fund shall have fiduciary liability insurance 
        with a per-claim limit equal to no less than the greater of--
                    (A) 5 percent of plan assets; or
                    (B) $1,000,000.
            (9) Trustee duties.--
                    (A) In general.--The trustees of a USA Retirement 
                Fund shall manage the Fund with the intention of 
                providing each participant with a cost-effective stream 
                of income in retirement and reducing benefit level 
                volatility (particularly for those approaching 
                retirement).
                    (B) Applicability of other requirements.--Each 
                trustee of a USA Retirement Fund shall be a fiduciary 
                subject to sections 404(a), 404(b), 405, 406, and 408 
                through 413 of the Employee Retirement Income Security 
                Act of 1974 with respect to the Fund and participants 
                and beneficiaries of the Fund. Each such trustee shall 
                be subject to the standards and remedies of such 
                sections and section 502 of such Act, as if the Fund 
                were an employee benefit plan.
    (d) Employer Contribution Limitation.--
            (1) In general.--Subject to paragraph (2), employers may, 
        in addition to contributions an employee elects (or is treated 
        as having elected) to have made, make a contribution of up to 
        $5,000 per year to a USA Retirement Fund on behalf of each 
        employee eligible to participate in a USA Retirement Fund, 
        provided such contributions are made in a uniform manner (as 
        the same dollar amount for each such employee or the same 
        percentage of pay for each such employee) and are not intended 
        to benefit solely highly compensated employees.
            (2) Annual indexing of amount.--The dollar amount under 
        paragraph (1) shall be indexed annually for inflation.
    (e) Benefits in the Form of an Annuity.--
            (1) In general.--A USA Retirement Fund shall pay benefits 
        in the form of an annuity in accordance with paragraph (2). The 
        amount of such benefits shall be dependent on the amount of 
        contributions made by the participant, the experience of the 
        Fund, and the form of distribution elected by the participant. 
        The amount of an annuity may be adjusted to reflect the 
        experience of the Fund as necessary to protect the financial 
        integrity of the Fund, except that annuity payments for those 
        in pay status shall not be reduced more than 5 percent per year 
        unless the Fund is faced with a significant financial hardship 
        and the Secretary has approved the reduction.
            (2) Annuity.--A USA Retirement Fund shall pay benefits in 
        accordance with one of the following:
                    (A) In the case of a participant who does not die 
                before the annuity starting date, the benefit payable 
                to such participant shall be provided in the form of a 
                qualified joint and survivor annuity (as defined in 
                section 205(d)(1) of the Employee Retirement Income 
                Security Act of 1974 (29 U.S.C. 1055(d)(1))).
                    (B) In the case of a participant who dies before 
                the annuity starting date and who has a surviving 
                spouse, a qualified preretirement survivor annuity (as 
                defined in section 205(d)(2) of the Employee Retirement 
                Income Security Act of 1974 (29 U.S.C. 1055(d)(2))) 
                shall be provided to the surviving spouse of such 
                participant.
                    (C) In lieu of a qualified joint and survivor 
                annuity form of benefit or the qualified preretirement 
                survivor annuity form of benefit (or both), a 
                participant may elect to receive a distribution 
                described in subsection (f)(2) if one of the following 
                conditions are met:
                            (i)(I) The spouse of the participant 
                        consents in writing to the election.
                            (II) Such election designates a beneficiary 
                        (or form of benefits) which may not be changed 
                        without spousal consent (or the consent of the 
                        spouse expressly permits designations by the 
                        participant without any requirement of further 
                        consent by the spouse).
                            (III) The spouse's consent acknowledges the 
                        effect of such election and is witnessed by a 
                        plan representative or a notary public.
                            (ii) It is established to the satisfaction 
                        of a Fund representative that the consent 
                        required under subclause (I) cannot be obtained 
                        because there is no spouse, because the spouse 
                        cannot be located, or because of such other 
                        circumstances as the Secretary may by 
                        regulations prescribe.
                The consent of a spouse (or establishment that the 
                consent of a spouse cannot be obtained) under this 
                subparagraph shall be effective only with respect to 
                such spouse.
            (3) Commencement of benefit payments.--A participant may 
        elect the time to start receiving benefit payments from the USA 
        Retirement Fund, except that a participant--
                    (A) except as provided in subsection (f)(2)(B), may 
                not elect to receive benefit payments before reaching 
                the age of 60; and
                    (B) must begin receiving benefit payments before 
                the age of 72.
            (4) Notice.--Each Fund shall provide to each participant, 
        within a reasonable period of time before the annuity starting 
        date, a written explanation substantially similar to that 
        required by section 205(c)(3) of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1055(c)(3)).
            (5) Assignment or alienation of fund benefits.--Benefits 
        under a USA Retirement Fund shall be subject to section 206(d) 
        of the Employee Retirement Income Security Act of 1974 (29 
        U.S.C. 1056(d)).
    (f) Limits on Withdrawals and Transfers.--
            (1) Transfers.--A participant may, not more frequently than 
        once per year, transfer such participant's benefit to another 
        USA Retirement Fund.
            (2) Limits on distributions.--
                    (A) In general.--Except as provided in 
                subparagraphs (B) and (C), a participant may not take a 
                distribution other than one described in subsection 
                (e)(2).
                    (B) Participants aged 59 and younger.--A 
                participant may before age 60 take a distribution of a 
                portion of the participant's benefit if such 
                distribution does not to exceed $5,500 and is rolled 
                over to a qualifying plan or arrangement described in 
                section 219(g)(5) of the Internal Revenue Code of 1986 
                or an individual retirement plan.
                    (C) Participants aged 60 and older.--A participant 
                who is 60 or older but who has not entered pay status 
                may elect one time to take a distribution of the 
                greater of $10,000 or 50 percent of the participant's 
                benefit if the participant demonstrates to the 
                satisfaction of the trustees of the Fund that the 
                participant has sufficient retirement income apart from 
                the Fund or is facing a substantial hardship.
    (g) Methods for Providing Annuitized Benefit Payments.--
            (1) In general.--A USA Retirement Fund shall establish and 
        maintain mechanisms for adequately securing the payment of 
        annuity benefits from the Fund. The Fund shall include a 
        written description of such mechanisms in the investment and 
        lifetime income policy statements required to be disclosed to 
        participants.
            (2) Specific goals.--The mechanisms described in paragraph 
        (1) shall ensure that--
                    (A) each participant receives a stream of income 
                for life;
                    (B) each participant and beneficiary has an 
                opportunity to be protected against longevity risk; and
                    (C) volatility in benefit levels is minimized for 
                participants and beneficiaries in pay status and those 
                approaching pay status.
            (3) Self-annuitization.--
                    (A) In general.--Notwithstanding any other 
                provision of law, a USA retirement Fund may self-
                annuitize if the Fund meets such requirements as the 
                Secretary establishes as necessary to protect 
                participants and beneficiaries in consideration of the 
                recommendations of the Commission under section 103.
                    (B) Duty to address emerging issues.--The Secretary 
                shall, periodically and in accordance with established 
                procedures, update the funding requirements promulgated 
                under this paragraph in response to changing economic 
                and business conditions to the extent necessary to 
                carry out the purposes of this Act, taking into 
                consideration the recommendations of the Commission.
    (h) Reporting and Disclosure.--
            (1) Annual statement.--The trustees of a USA Retirement 
        Fund shall provide each participant in the Fund an annual 
        statement of--
                    (A) the estimated amount of the monthly benefit 
                which the participant or beneficiary is projected to 
                receive from the USA Retirement Fund, in the form of 
                the default benefit described in the plan in accordance 
                with subsection (e)(2);
                    (B) an explanation, written in a manner calculated 
                to be understood by the average plan participant, that 
                includes interest and mortality assumptions used in 
                calculating the estimate and a statement that actual 
                benefits may be materially different from such 
                estimate;
                    (C) a disclosure of Fund fees and performance that 
                is substantially similar to the disclosures required of 
                individual account plans under the Employee Retirement 
                Income Security Act of 1974;
                    (D) any other disclosures, including projected 
                benefit estimates, that the board of trustees of the 
                USA Retirement Fund determines appropriate; and
                    (E) such other disclosures as may be required by 
                the Secretary.
            (2) Summary plan description.--The trustees of a USA 
        Retirement Fund shall provide participants a summary plan 
        description (as described in section 102 of the Employee 
        Retirement Income Security Act (29 U.S.C. 1022)) as required by 
        section 104(b) of the Employee Retirement Income Security Act 
        (29 U.S.C. 1024(b)).
            (3) Annual reports.--The trustees of a USA Retirement Fund 
        shall file with the Secretary of Labor periodic reports in 
        accordance with regulations promulgated by the Secretary.
            (4) Additional requirements.--Each USA Retirement Fund 
        shall be subject to sections 106 and 107 of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1026, 1027).

SEC. 103. COMMISSION ON USA RETIREMENT FUNDS.

    (a) Recognition of Private Commission.--The Secretary shall--
            (1) recognize an independent, private commission, to be 
        known as the ``Commission for USA Retirement Funds Funding'' 
        (referred to in this title as the ``Commission''), and
            (2) in carrying out the Secretary's duties under this 
        title, consider the recommendations of such Commission.
    (b) Commission.--The Commission recognized under subsection (a) 
shall meet the following requirements:
            (1) Membership.--
                    (A) Composition.--The Commission shall be composed 
                of 9 members selected by the Secretary, in consultation 
                with the Secretary of the Treasury, of whom no more 
                than 5 may be from one political party. The Secretary 
                shall designate one member of the Commission as the 
                Chairman. No person may be appointed to the Commission 
                if, during the 2-year period preceding the date of 
                appointment, such person was a trustee of a USA 
                Retirement Fund.
                    (B) Date.--The appointments of the members of the 
                Commission shall be made not later than 90 days after 
                the date of enactment of this Act.
                    (C) Period of appointment; vacancies.--Members 
                shall be appointed for terms of 2 years and may be 
                appointed for consecutive terms. Any vacancy in the 
                Commission shall not affect its powers, and shall be 
                filled in the same manner as the original appointment.
            (2) Majority vote.--The Commission may act by majority vote 
        of its members, provided that at least 7 members are present.
            (3) Commission personnel matters.--
                    (A) Compensation of members.--Each member of the 
                Commission who is not an officer or employee of the 
                Federal Government shall be compensated at a rate equal 
                to the daily equivalent of the annual rate of basic pay 
                prescribed for level IV of the Executive Schedule under 
                section 5315 of title 5, United States Code, for each 
                day (including travel time) during which such member is 
                engaged in the performance of the duties of the 
                Commission. All members of the Commission who are 
                officers or employees of the United States shall serve 
                without compensation in addition to that received for 
                their services as officers or employees of the United 
                States.
                    (B) Travel expenses.--The members of the Commission 
                shall be allowed travel expenses, including per diem in 
                lieu of subsistence, at rates authorized for employees 
                of agencies under subchapter I of chapter 57 of title 
                5, United States Code, while away from their homes or 
                regular places of business in the performance of 
                services for the Commission.
                    (C) Staff.--
                            (i) In general.--The Chairman of the 
                        Commission may, without regard to the civil 
                        service laws and regulations, appoint and 
                        terminate an executive director and such other 
                        additional personnel as may be necessary to 
                        enable the Commission to perform its duties. 
                        The employment of an executive director shall 
                        be subject to confirmation by the Commission.
                            (ii) Compensation.--The Chairman of the 
                        Commission may fix the compensation of the 
                        executive director and other personnel without 
                        regard to chapter 51 and subchapter III of 
                        chapter 53 of title 5, United States Code, 
                        relating to classification of positions and 
                        General Schedule pay rates, except that the 
                        rate of pay for the executive director and 
                        other personnel may not exceed the rate payable 
                        for level V of the Executive Schedule under 
                        section 5316 of such title.
                            (iii) Detail of government employees.--Any 
                        Federal Government employee may be detailed to 
                        the Commission without reimbursement, and such 
                        detail shall be without interruption or loss of 
                        civil service status or privilege.
                            (iv) Procurement of temporary and 
                        intermittent services.--The Chairman of the 
                        Commission may procure temporary and 
                        intermittent services under section 3109(b) of 
                        title 5, United States Code, at rates for 
                        individuals which do not exceed the daily 
                        equivalent of the annual rate of basic pay 
                        prescribed for level V of the Executive 
                        Schedule under section 5316 of such title.
            (4) Recommendations and regulations on funding and 
        distribution requirements.--
                    (A) In general.--After taking into consideration 
                the recommendations of the Commission and providing the 
                public notice and an opportunity for comment, the 
                Secretary shall promulgate regulations with respect to 
                funding and distribution requirements for USA 
                Retirement Funds, as necessary or appropriate in the 
                public interest and for the protection of participants 
                and beneficiaries, including regulations described in 
                subparagraphs (B) and (C).
                    (B) Requirements relating to annuity payments made 
                directly by a fund.--The regulations under subparagraph 
                (A) shall provide that in the case of annuity payments 
                made directly by the Fund--
                            (i) the maximum annuity payment for a 
                        participant or beneficiary shall be determined 
                        using the mortality tables and interest rates 
                        prescribed by the Secretary under subparagraph 
                        (C) at the time benefits commence; and
                            (ii) the level of benefits paid may be 
                        adjusted periodically in order to reflect the 
                        mortality experience and the investment 
                        experience of the Fund, but only after the Fund 
                        has obtained a certification from a member of 
                        the American Academy of Actuaries that the 
                        adjustment is sustainable for the remaining 
                        lifetime of participants then receiving 
                        benefits, based on the mortality tables and 
                        interest rates prescribed under subparagraph 
                        (C) by the Secretary for that time.
                    (C) Mortality tables and interest rates used 
                requirements.--The regulations promulgated under 
                subparagraph (A) shall include the following:
                            (i) Mortality tables.--
                                    (I) In general.--The Secretary 
                                shall prescribe mortality tables to be 
                                used in determining annuity payments 
                                made directly by the Fund. Such tables 
                                shall be based on the actual experience 
                                of insurance companies that issue group 
                                annuities and projected trends in such 
                                experience. In prescribing such tables, 
                                the Secretary shall take into account 
                                results of available independent 
                                studies of the mortality of individuals 
                                receiving annuities under group annuity 
                                contracts.
                                    (II) Periodic revisions of 
                                mortality tables.--The Secretary shall 
                                make revisions, to become effective as 
                                soon as practicable, in any mortality 
                                table in effect to reflect more recent 
                                actual experience of insurance 
                                companies that issue group annuities 
                                and projected trends in such 
                                experience. In revising such tables, 
                                the Secretary shall take into account 
                                the results of more recent available 
                                independent studies of the mortality 
                                and projected trends of individuals 
                                receiving annuities under group annuity 
                                contracts.
                            (ii) Interest rates.--The Secretary shall 
                        prescribe interest rates to be used in 
                        determining annuity payments made directly by 
                        the Fund. Such rates shall be based on the 
                        yields on investment grade corporate bonds with 
                        varying maturities and that are in the top 3 
                        quality levels available. Interest rates shall 
                        be prescribed quarterly or more frequently, as 
                        determined by the Secretary.
            (5) Duty to address best practices.--The Commission shall 
        prepare, and periodically update, a report that describes the 
        best practices for the governance of boards of trustees of USA 
        Retirement Funds, including board of trustee composition, 
        appointment procedures, term length, term staggering, trustee 
        qualifications, delegation of duties, and performance 
        assessment procedures.

SEC. 104. LIMITATION ON EMPLOYER LIABILITY.

    Section 404 of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1021 et seq.) is amended by adding at the end the following:
    ``(e) An employer shall not be a fiduciary with respect to the 
selection, management or administration of a USA Retirement Fund solely 
because such employer makes available such Fund through an automatic 
USA Retirement Fund arrangement. Notwithstanding the preceding 
sentence, employers participating in a USA Retirement Fund shall be 
responsible for meeting the enrollment requirements and transmitting 
contributions, as required under the USA Retirement Funds Act.''.

SEC. 105. ENFORCEMENT AND FRAUD PREVENTION.

    (a) Penalty for Failure To Timely Remit Contributions to Automatic 
USA Retirement Fund Arrangements.--
            (1) In general.--If an employer is required under an 
        automatic USA Retirement Fund arrangement to deposit amounts 
        withheld from an employee's compensation into a USA Retirement 
        Fund but fails to do so within the time prescribed under 
        section 101(d)(3), such amounts shall be treated as assets of a 
        USA Retirement Fund.
            (2) Failure to provide access to payroll savings 
        arrangements.--
                    (A) General rule.--A covered employer who fails to 
                meet the requirements of section 101(a) for a calendar 
                year shall be subject to a civil money penalty of $100 
                per calendar year for each employee to whom such 
                failure relates.
                    (B) Exceptions.--No civil money penalty shall be 
                imposed under this paragraph for a failure to meet the 
                requirements under section 101(a)--
                            (i) during a period for which the Secretary 
                        determines that the employer subject to 
                        liability for the civil money penalty did not 
                        know that the failure existed and exercised 
                        reasonable diligence to meet the requirements 
                        of section 101(a); or
                            (ii)(I) the employer subject to liability 
                        for the civil money penalty exercised 
                        reasonable diligence to meet the requirements 
                        of section 101(a); and
                            (II) the employer provides the automatic 
                        USA Retirement Fund arrangement described to 
                        each employee eligible to participate in the 
                        arrangement by the end of the 90-day period 
                        beginning on the first date the employer knew, 
                        or exercising reasonable diligence should have 
                        known, that such failure existed.
                    (C) Waiver by the secretary.--In the case of a 
                failure to meet the requirements of section 101(a) that 
                is due to reasonable cause and not to willful neglect, 
                the Secretary may, in the sole discretion of the 
                Secretary, waive part or all of the civil money penalty 
                imposed under this paragraph to the extent that the 
                payment of such civil money penalty would be excessive 
                or otherwise inequitable relative to the failure 
                involved.
                    (D) Procedures for notice.--The Secretary may 
                prescribe and implement procedures for obtaining 
                confirmation that employers are in compliance with 
                subsection (a). The Secretary, in the discretion of 
                such Secretary, may prescribe that the confirmation 
                shall be obtained on an annual or less frequent basis, 
                and may use for this purpose the annual report or 
                quarterly report for employment taxes, or such other 
                means as the Secretary may deem advisable.
    (b) Civil Actions and Enforcement.--
            (1) Administration and enforcement.--Part 5 of title I of 
        the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1132 et seq.) shall apply to a USA Retirement Fund as if a USA 
        Retirement Fund were an employee benefit plan.
            (2) Amendment.--Section 502(a) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1132 et seq.) is 
        amended--
                    (A) in paragraph (9), by striking ``; or'' and 
                inserting ``;'';
                    (B) in paragraph (10), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(11) in the event that an employer fails to make timely 
        contributions or payments to a USA Retirement Fund established 
        under title I of the USA Retirement Funds Act, by the 
        Secretary, a participant, a beneficiary, or a fiduciary, to 
        compel an employer to make such contributions or payments as if 
        such contributions or payments were delinquent contributions or 
        payments under section 515 or subsection (g)(2).''.
            (3) Non-preemption of certain state law.--Nothing in this 
        section shall preempt State law insofar as State law relates to 
        the enforcement of an obligation to contribute to a USA 
        Retirement Fund.
    (c) False Statements.--
            (1) In general.--No person, in connection with a plan or 
        other arrangement that is or purports to be a USA Retirement 
        Fund, shall make a false statement or false representation of 
        fact, knowing it to be false, in connection with the marketing 
        or sale of such plan or arrangement, to any employee, any 
        member of an employee organization, any beneficiary, any 
        employer, any employee organization, the Secretary, or any 
        State, or the representative or agent of any such person, 
        State, or the Secretary, concerning--
                    (A) the financial condition or solvency of such 
                fund or arrangement;
                    (B) the benefits provided by such fund or 
                arrangement;
                    (C) the regulatory status of such fund or other 
                arrangement under any Federal or State law governing 
                collective bargaining, labor management relations, or 
                intern union affairs; or
                    (D) the regulatory status of such fund or other 
                arrangement.
            (2) Penalty.--Any person who violates this subsection 
        shall, upon conviction, be imprisoned not more than 10 years or 
        fined under title 18, United States Code, or both.
    (d) Cease and Desist Orders.--
            (1) Issuance of order.--The Secretary may issue a cease and 
        desist (ex parte) order under this title if the Secretary 
        determines that the alleged conduct of a fund purporting to be 
        a USA Retirement Fund is fraudulent, or creates an immediate 
        danger to the public safety or welfare, or is causing or can be 
        reasonably expected to cause significant, imminent, and 
        irreparable public injury.
            (2) Hearings.--
                    (A) In general.--A person who is adversely affected 
                by the issuance of a cease and desist order under 
                paragraph (1) may request a hearing by the Secretary 
                regarding such order. The Secretary may require that a 
                hearing under this paragraph, including all related 
                information and evidence, be conducted in a 
                confidential manner.
                    (B) Burden of proof.--The burden of proof in any 
                hearing conducted under subparagraph (A) shall be on 
                the party requesting the hearing to show cause why the 
                cease and desist order should be set aside.
                    (C) Determination.--Based upon the evidence 
                presented at a hearing under subparagraph (A), the 
                Secretary may affirm, modify, or set aside the cease 
                and desist order at issue, in whole or in part.
            (3) Regulations.--The Secretary may promulgate such 
        regulations or other guidance as may be necessary or 
        appropriate to carry out this subsection.

              TITLE II--DEFINED CONTRIBUTION PLAN REFORMS

                    Subtitle A--Savings Enhancements

SEC. 201. POOLED EMPLOYER PLANS.

    (a) No Common Interest Required for Pooled Employer Plans.--Section 
3(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1002(2)) is amended by adding at the end the following:
                    ``(C) A pooled employer plan shall be treated as a 
                single employee pension benefit plan or single pension 
                plan without regard to whether the participating 
                employers share a common interest other than 
                participation in the plan.''.
    (b) Pooled Employer Plan and Provider Defined.--Section 3 of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002) is 
amended by adding at the end the following:
            ``(43)(A) The term `pooled employer plan' means a pension 
        plan (without regard to whether any participating employers 
        share a common interest other than participation in the plan) 
        that is a single individual account plan established or 
        maintained for the purpose of providing benefits to the 
        employees of 2 or more employers but only if--
                    ``(i) the terms of the plan designate a pooled plan 
                provider,
                    ``(ii) under the plan each participating employer 
                retains fiduciary responsibility for--
                            ``(I) the prudent selection and monitoring 
                        of the person designated as the pooled employer 
                        plan provider and, if different from the 
                        provider, the person designated as the plan's 
                        named fiduciary, and
                            ``(II) to the extent not otherwise 
                        delegated to another fiduciary, the investment 
                        and management of that portion of the plan's 
                        assets attributable to the employees of that 
                        participating employer,
                    ``(iii) under the plan a participating employer is 
                not subject to unreasonable restrictions, fees, or 
                penalties with regard to ceasing participation or 
                otherwise transferring assets of the plan in accordance 
                with section 414(l) of the Internal Revenue Code of 
                1986, and
                    ``(iv) the pooled employer plan provider provides 
                to participating employers any disclosures or other 
                information as the Secretary may require.
            ``(B) The term `pooled employer plan' does not include--
                    ``(i) a multiemployer plan, or
                    ``(ii) a plan established before January 1, 2014, 
                or any successor thereof.
            ``(44)(A) The term `pooled plan provider' means a person 
        who--
                    ``(i) is designated by the terms of a pooled 
                employer plan as a pooled plan provider;
                    ``(ii) registers as a pooled plan provider with the 
                Secretary and provides such other identifying 
                information to the Secretary as the Secretary may 
                require; and
                    ``(iii) has such educational or professional 
                qualifications as the Secretary may require.
            ``(B) The Secretary may perform examinations and 
        investigations of pooled plan providers as may be necessary to 
        enforce and carry out the purposes of the Act.
            ``(C) For purposes of this section, the following shall be 
        treated as a single pooled plan provider:
                    ``(i) All corporations that provide services to a 
                plan and are members of a controlled group of 
                corporations within the meaning of section 1563(a) of 
                the Internal Revenue Code of 1986 (determined without 
                regard to subsection (a)(4) of such section 1563).
                    ``(ii) All persons treated as a single employer 
                under section 210(d).''.
    (c) Technical Amendment.--Section 3 of such Act is amended by 
striking the second paragraph (41).

SEC. 202. POOLED EMPLOYER AND MULTIPLE EMPLOYER PLAN REPORTING.

    (a) Additional Information.--Section 103 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1023) is amended--
            (1) in subsection (a)(1)(B), by striking ``applicable 
        subsections (d), (e), and (f)'' and inserting ``applicable 
        subsections (d), (e), (f), and (g)''; and
            (2) by adding at the end the following:
    ``(g) Additional Information With Respect to Pooled Employer and 
Multiple Employer Plans.--An annual report under this section for a 
plan year shall include--
            ``(1) with respect to any pooled employer plan or other 
        pension plan maintained by more than one employer (other than a 
        multiemployer plan), a list of participating employers and a 
        good faith estimate of the percentage of the total 
        contributions made, or expected to be made, by each such 
        participating employer for the plan year, and
            ``(2) with respect to a pooled employer plan, the 
        identifying information for the person designated under the 
        terms of the plan as the pooled plan provider.''.
    (b) Simplified Annual Reports.--Section 104(a) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1024(a)) is amended 
by striking paragraph (2)(A) and inserting the following:
            ``(2)(A) With respect to annual reports required to be 
        filed with the Secretary under this part, the Secretary may by 
        regulation prescribe simplified annual reports for any pension 
        plan that--
                    ``(i) covers fewer than 100 participants, or
                    ``(ii) is a pooled employer plan (as defined in 
                section 3(43)) that covers fewer than 1,000 
                participants but only if no single participating 
                employer has more than 100 participants covered by the 
                plan.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to annual reports for plan years beginning after December 31, 
2014.

                  Subtitle B--Participant Protections

SEC. 211. ALTERNATIVE FIDUCIARY ARRANGEMENTS TO PROTECT PLAN 
              PARTICIPANTS.

    Section 405 of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1105) is amended by adding at the end the following:
    ``(e) Small Employer Plan Alternative Fiduciary Arrangements.--
            ``(1) In general.--A small employer that is a plan sponsor 
        of an employee pension benefit plan shall not be liable for a 
        breach of fiduciary responsibility of a small employer plan 
        service provider with respect to the same plan if the 
        requirements of the following subparagraphs are met:
                    ``(A) Small employer plan sponsor requirements.--
                The requirements of this subparagraph are met if the 
                small employer prudently selects and monitors the small 
                employer plan named fiduciary.
                    ``(B) Small employer plan named fiduciary 
                requirements.--The requirements of this subparagraph 
                are met if the small employer plan named fiduciary--
                            ``(i) engages a small employer plan service 
                        provider with respect to the employee pension 
                        benefit plan;
                            ``(ii) registers as a small employer plan 
                        named fiduciary with the Secretary in 
                        accordance with paragraph (2)(A);
                            ``(iii) has such educational or 
                        professional qualifications as the Secretary 
                        may require;
                            ``(iv) provides to employers disclosures or 
                        other information as may be required by the 
                        Secretary by regulations to facilitate 
                        monitoring of the named fiduciary;
                            ``(v) is bonded in accordance with section 
                        412; and
                            ``(vi) meets the financial responsibility 
                        requirements of paragraph (2)(B).
            ``(2) Rules relating to named fiduciary requirements.--
                    ``(A) Reporting by small employer plan named 
                fiduciary.--For purposes of paragraph (1)(B)(ii), the 
                small employer plan named fiduciary shall file the 
                required registration with the Secretary--
                            ``(i) before the date upon which the safe 
                        harbor provided in this subsection first 
                        applies to a small employer plan sponsor and at 
                        such other times as the Secretary may prescribe 
                        by regulations, and
                            ``(ii) in such form and manner, and 
                        containing such information, as the Secretary 
                        determines necessary or appropriate to carry 
                        out the purposes of this Act.
                    ``(B) Financial responsibility requirements.--For 
                purposes of paragraph (1)(B)(vi), a small employer plan 
                named fiduciary shall meet the requirements of this 
                subparagraph if the fiduciary either--
                            ``(i) has fiduciary liability insurance 
                        with a per-claim limit equal to no less than--
                                    ``(I) the greater of 5 percent of 
                                plan assets or $1,000,000; or
                                    ``(II) such other amount as is 
                                determined by the Secretary by 
                                regulation; or
                            ``(ii) is--
                                    ``(I) a bank, as defined in section 
                                202(a)(2) of the Investment Advisers 
                                Act of 1940, that has the power to 
                                manage, acquire, or dispose of assets 
                                of a plan, and that has, as of the last 
                                day of its most recent fiscal year, 
                                equity capital in excess of $1,000,000;
                                    ``(II) a savings and loan 
                                association, the accounts of which are 
                                insured by the Federal Savings and Loan 
                                Insurance Corporation, that has made 
                                application for and been granted trust 
                                powers to manage, acquire, or dispose 
                                of assets of a plan by a State or 
                                Federal authority having supervision 
                                over savings and loan associations, and 
                                that has, as of the last day of its 
                                most recent fiscal year, equity capital 
                                or net worth in excess of $1,000,000;
                                    ``(III) an insurance company that 
                                is subject to supervision and 
                                examination by a State authority having 
                                supervision over insurance companies, 
                                that is qualified under the laws of 
                                more than one State to manage, acquire, 
                                or dispose of assets of a plan, and 
                                that has, as of the last day of its 
                                most recent fiscal year, net worth in 
                                excess of $1,000,000; or
                                    ``(IV) an investment adviser 
                                registered under the Investment 
                                Advisers Act of 1940 that, as of the 
                                last day of its most recent fiscal 
                                year, has total client assets under its 
                                management and control in excess of 
                                $85,000,000 and shareholders' or 
                                partners' equity in excess of 
                                $1,000,000.
                    ``(C) Adjustment of amounts.--The Secretary may by 
                regulation adjust the dollar amounts under subparagraph 
                (B)(ii).
            ``(3) Administrative summary cease and desist orders and 
        summary seizure orders against small employer plan named 
        fiduciary.--
                    ``(A) In general.--The Secretary may issue an ex 
                parte cease and desist order under this title if the 
                Secretary--
                            ``(i) determines that a small plan named 
                        fiduciary or small employer plan service 
                        provider has not met the requirements under 
                        paragraph (1) or (2); or
                            ``(ii) has reasonable cause to believe that 
                        the named fiduciary or service provider has 
                        engaged in or is about to engage in conduct 
                        that is a violation of this title or that the 
                        Secretary determines to be contrary to accepted 
                        standards of plan operations that might result 
                        in abnormal risk to the plan or participants 
                        and beneficiaries of the plan.
                    ``(B) Hearings.--
                            ``(i) In general.--A person that is 
                        adversely affected by the issuance of a cease 
                        and desist order under subparagraph (A) may 
                        request a hearing by the Secretary regarding 
                        such order.
                            ``(ii) Confidentiality.--The Secretary may 
                        require that a hearing under this subparagraph, 
                        including all related information and evidence, 
                        be conducted in a confidential manner.
                            ``(iii) Burden of proof.--The burden of 
                        proof in any hearing conducted under this 
                        subparagraph shall be on the party requesting 
                        the hearing to show cause why the cease and 
                        desist order should be set aside.
                            ``(iv) Determination.--Based upon the 
                        evidence presented at a hearing under this 
                        subparagraph, the Secretary may affirm, modify, 
                        or set aside the cease and desist order, in 
                        whole or in part.
                    ``(C) Seizure.--The Secretary may issue a summary 
                seizure order under this subtitle if the Secretary 
                determines that a small employer plan named fiduciary 
                or small employer plan service provider is in a 
                financially hazardous condition.
                    ``(D) Regulations.--The Secretary may promulgate 
                such regulations or other guidance as may be necessary 
                or appropriate to carry out this paragraph.
                    ``(E) Exception.--This paragraph shall not apply to 
                any named fiduciary that is not a named fiduciary under 
                paragraph (1)(A) or small employer plan service 
                provider under paragraph (1)(B)(i).
                    ``(F) Savings clause.--The Secretary's authority 
                under this paragraph shall not be construed to limit 
                the Secretary's ability to exercise enforcement or 
                investigatory authority under any other provision of 
                this title. The Secretary may, in the sole discretion 
                of the Secretary, initiate court proceedings without 
                using the procedures in this paragraph.
            ``(4) Definitions.--For purposes of this subsection--
                    ``(A) Small employer.--
                            ``(i) In general.--The term `small 
                        employer' means, with respect to any year, an 
                        employer that did not have more than 50 
                        employees on any day during the preceding year.
                            ``(ii) 2-year grace period.--A small 
                        employer that establishes and maintains an 
                        employee pension benefit plan for 1 or more 
                        years and that is not a small employer for any 
                        subsequent year shall be treated as a small 
                        employer for the 2 years following the last 
                        year the employer was a small employer. If such 
                        employer is not a small employer as described 
                        in the preceding sentence on account of an 
                        acquisition, disposition, or similar 
                        transaction involving a small employer, the 
                        preceding sentence shall not apply.
                    ``(B) Small employer plan named fiduciary.--The 
                term `small employer plan named fiduciary' means the 
                fiduciary that is designated as the small employer plan 
                named fiduciary in the instrument under which an 
                employee pension benefit plan is maintained.
                    ``(C) Small employer plan service provider.--The 
                term `small employer plan service provider' means--
                            ``(i) an administrator (as defined in 
                        section 3(16)(A));
                            ``(ii) a fiduciary (as defined in section 
                        3(21)(A)); or
                            ``(iii) an investment manager (as defined 
                        in section 3(38)),
                that is independent from the small employer plan named 
                fiduciary.''.

SEC. 212. ROLLOVER PROTECTIONS.

    (a) Sense of Congress.--It is the sense of Congress that a person 
may be providing investment advice within the meaning of section 3(21) 
of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1002(21)) when such person advises a plan participant to take a 
permissible plan distribution and such distribution advice is combined 
with a recommendation as to how the distribution should be invested.
    (b) Guidance.--Not later than 90 days after the date of enactment 
of this Act, the Secretary of Labor shall issue guidance consistent 
with subsection (a) clarifying the applicability of section 3(21) of 
the Employee Retirement Income Security Act of 1974 to investment 
advice provided in connection with distribution recommendations.
    (c) Fiduciary and Prohibited Transaction Awareness.--The 
Comptroller General of the United States shall study the extent to 
which advisors, broker-dealers, and other financial professionals 
dealing with individual and employer-provided retirement plans are 
aware of, and receive ongoing training regarding, the requirements of 
part 4 of subtitle B of title I of the Employee Retirement Income 
Security Act (29 U.S.C. 1101 et seq.) and section 4975 of the Internal 
Revenue Code of 1986. The Comptroller General shall submit a report to 
the Committee on Health, Education, Labor, and Pensions of the Senate 
and the Committee on Education and the Workforce of the House of 
Representatives summarizing its findings and including recommendations 
regarding ways to improve awareness of and compliance with the 
fiduciary and prohibited transaction rules.

                      Subtitle C--Lifetime Income

SEC. 221. LIFETIME INCOME DISCLOSURE.

    (a) Requirements To Provide Pension Benefit Statements.--Section 
105(a)(2)(B) of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1025(a)(2)(B)) is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii), by striking the period at the end and 
        inserting ``, and''; and
            (3) by adding at the end the following:
                            ``(iii) an illustration of the 
                        participant's benefit as an estimated lifetime 
                        income stream beginning at retirement 
                        determined in accordance with assumptions and 
                        requirements established by regulation.''.
    (b) Limitation on Liability.--Section 404 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1104), as amended by 
section 105, is amended by adding at the end the following:
    ``(f) Limitation on Liability.--No plan fiduciary, plan sponsor, or 
other person shall have any liability under this title solely by reason 
of providing an illustration as required under section 
105(a)(2)(B)(iii).''.
    (c) Regulations.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary of Labor shall issue regulations 
implementing the amendments made by subsections (a) and (b).
    (d) Clarification.--The requirement under section 105(a)(2)(B)(iii) 
of the Employee Retirement Income Security Act of 1974, as added by 
subsection (a)(3), shall apply to pension benefit statements furnished 
more than 1 year after the issuance of the final rules implementing 
section 105(a)(2)(B)(iii) of such Act.

SEC. 222. LIFETIME INCOME SAFE HARBOR.

    Section 404 of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1104), as amended by sections 105 and 221(b), is amended by 
adding at the end the following:
    ``(g) Safe Harbor for Annuity Selection.--
            ``(1) In general.--With respect to the selection of a 
        lifetime retirement income contract as part of an individual 
        account plan, a fiduciary will be deemed to satisfy the 
        requirements of subsection (a)(1)(B) with respect to the 
        selection of an insurer and lifetime retirement income contract 
        if the fiduciary engages in an objective, thorough, and 
        analytical search for the purpose of identifying insurers from 
        which to purchase lifetime retirement income contracts and 
        appropriately concludes that--
                    ``(A) at the time of the selection, the insurer is 
                financially capable of satisfying its obligations under 
                the lifetime income contract; and
                    ``(B) the cost (including fees, surrender 
                penalties, and commissions) of the selected lifetime 
                retirement income contract is reasonable in relation to 
                the benefits and product features of the contract and 
                the administrative services to be provided under such 
                contract.
            ``(2) Fiduciaries.--A fiduciary meets the requirements of 
        paragraph (1)(A) if the fiduciary meets all of the following 
        conditions:
                    ``(A) The fiduciary obtains written representations 
                from the insurer that--
                            ``(i) the insurer is licensed to offer 
                        lifetime retirement income contracts;
                            ``(ii) the insurer, at the time of 
                        selection and for each of the immediately 
                        preceding 10 years--
                                    ``(I) operates under a certificate 
                                of authority from the Insurance 
                                Commissioner of its domiciliary state 
                                that has not been revoked or suspended;
                                    ``(II) has filed financial 
                                statements in accordance with the laws 
                                of its domiciliary state under 
                                applicable statutory accounting 
                                principles;
                                    ``(III) maintains reserves that 
                                satisfy all the statutory requirements 
                                of all States where the insurer does 
                                business; and
                                    ``(IV) is not operating under an 
                                order of supervision, rehabilitation, 
                                or liquidation;
                            ``(iii) the insurer undergoes, at least 
                        every 5 years, a financial examination (within 
                        the meaning of the law of the State in which 
                        the insurer is domiciled) by the insurance 
                        commissioner of the domiciliary State (or any 
                        representative, designee, or other party 
                        approved thereby);
                            ``(iv) if, following the issuance of the 
                        representations described in clauses (i) 
                        through (iii), there is any change that would 
                        preclude the insurer from making such 
                        representations at the time of issuance of the 
                        lifetime retirement income contract, the 
                        insurer will inform the fiduciary that the 
                        fiduciary can no longer rely on one or more of 
                        the representations; and
                            ``(v) meet such other requirements 
                        specified by the Secretary by regulation.
                    ``(B) The fiduciary has not received the 
                notification described in clause (iv) of subparagraph 
                (A) and has no other facts that would cause the 
                fiduciary to question the representations described in 
                clauses (i) through (iii) of subparagraph (A).
                    ``(C) The fiduciary inquires about additional 
                protections that might be available through a State 
                guaranty association for the lifetime retirement income 
                contract.
                    ``(D) The fiduciary obtains evidence from the 
                insurer that, not more than 1 year prior to the time of 
                selection, the insurer has obtained written 
                confirmation from the insurance commissioner of the 
                domiciliary State of such insurer that, at the time the 
                confirmation is issued, the insurer met the conditions 
                of clauses (i) and (ii) of subparagraph (A).
            ``(3) Time of selection.--For purposes of this subsection, 
        the `time of selection' is--
                    ``(A) the time that the insurer and contract are 
                selected for distribution of benefits to a specific 
                participant or beneficiary; or
                    ``(B) the time that the insurer and contract are 
                selected to provide benefits at future dates to 
                participants or beneficiaries, but only if the 
                selecting fiduciary periodically reviews the continuing 
                appropriateness of the conclusion described in 
                paragraph (1)(A).
            ``(4) Periodic review.--For purposes of paragraph (3)(B), a 
        fiduciary is not required to review the appropriateness of the 
        conclusion under paragraph (1)(A) before or after the purchase 
        of any contract for specific participants or beneficiaries. A 
        fiduciary will be deemed to have conducted a periodic review of 
        the financial capability of the insurer if the fiduciary 
        obtains the written representations described in clauses (i) 
        through (iii) of paragraph (2)(A) on an annual basis, unless, 
        in the interim, the fiduciary becomes aware of facts that would 
        cause the fiduciary to question such representations.
            ``(5) Definitions.--For purposes of this subsection--
                    ``(A) the term `insurer' means an insurance 
                company, insurance service, or insurance organization 
                qualified to do business in a State and includes 
                affiliates of such companies to the extent the 
                affiliate is licensed to offer lifetime retirement 
                income contracts; and
                    ``(B) the term `lifetime retirement income 
                contract' means an annuity contract or a contract (or 
                provision or feature thereof) that provides a 
                participant fixed or variable benefits for a fixed term 
                or the remainder of the life of the participant or the 
                joint lives of the participant and the designated 
                beneficiary of the participant.
            ``(6) Savings clause.--Nothing in this subsection shall be 
        construed to establish minimum requirements or the exclusive 
        means for a fiduciary to satisfy the fiduciary duties under 
        subsection (a)(1)(B). Nothing in this subsection shall be 
        construed to require a fiduciary to select the lowest cost 
        contract. A fiduciary may consider the value, including 
        features and benefits of the contract and attributes of the 
        insurer, in conjunction with the contract's cost. Attributes of 
        the insurer that may be considered may include, without 
        limitation, the issuer's financial strength.''.

SEC. 223. DEFAULT INVESTMENT SAFE HARBOR CLARIFICATION.

    (a) In General.--Section 404(c)(5) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1104(c)(5)) is amended by adding 
at the end the following:
                    ``(C) Availability of options.--The availability of 
                annuity purchase rights, death benefit guarantees, 
                investment guarantees, or other features in insurance 
                contracts will not, in and of themselves, affect the 
                status of a fund, product, or portfolio as a default 
                investment under this paragraph.''.
    (b) Rules of Construction.--The amendment made by subsection (a) 
shall be construed to codify existing law and shall not be construed as 
modifying the regulations promulgated by the Secretary of Labor under 
section 404(c)(5) of Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1104(c)(5)), as in effect before the amendment made by this 
section.

SEC. 224. ADMINISTRATION OF JOINT AND SURVIVOR ANNUITY REQUIREMENTS.

    (a) Option To Appoint Annuity Administrators.--Section 402(c) of 
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1102(c)) 
is amended--
            (1) in paragraph (2), by striking ``or'' at the end,
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; or'', and
            (3) by adding at the end the following new paragraph:
            ``(4) that a named fiduciary, or a fiduciary designated by 
        a named fiduciary pursuant to a plan procedure described in 
        section 405(c)(1), may appoint an annuity administrator or 
        administrators with responsibility for administration of an 
        individual account plan in accordance with the requirements of 
        section 205 and payment of any annuity required thereunder.''.
    (b) Liability of Annuity Administrator.--Section 405 of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1105), as 
amended by section 211(a), is amended by adding at the end the 
following:
    ``(f) Annuity Administrator.--If 1 or more persons has been 
appointed under section 402(c)(4) as an annuity administrator or 
administrators of an individual account plan, and each such person 
acknowledges in writing that such person is the annuity administrator 
and a fiduciary under the plan with respect to appointed duties, 
neither the named fiduciary nor any appointing fiduciary shall be 
liable for any act or omission of the annuity administrator except to 
the extent that--
            ``(1) the named fiduciary or appointing fiduciary violated 
        section 404(a)(1)--
                    ``(A) with respect to such appointment; or
                    ``(B) in continuing the appointment;
            ``(2) the named fiduciary or appointing fiduciary would 
        otherwise be liable in accordance with subsection (a); or
            ``(3) the entity appointed to be the annuity administrator 
        is not an insurance company or approved to be an annuity 
        administrator by the Secretary.''.

               TITLE III--DEFINED BENEFIT SYSTEM REFORMS

            Subtitle A--Defined Benefit Pension Plan Reforms

SEC. 301. HYBRID PLANS.

    (a) Amendments to ERISA.--
            (1) Reasonable minimum rates disregarded.--Section 
        204(b)(5)(B)(i) of the Employee Retirement Income Security Act 
        of 1974 (29 U.S.C. 1054(b)(5)(B)(i)) is amended--
                    (A) in subclause (I), by adding at the end the 
                following new sentence: ``Any rate described in 
                subclause (IV) or (V) shall be disregarded in 
                determining whether a plan is treated as satisfying the 
                requirements of the first sentence of this 
                subclause.''; and
                    (B) by adding at the end the following:
                                    ``(IV) Reasonable minimum 
                                guaranteed rates for investment-based 
                                interest credits.--In the case of an 
                                interest credit (or equivalent amount) 
                                that is based on an actual investment 
                                (or on an index that is structured to 
                                have effects similar to the effects of 
                                an actual investment), a fixed annual 
                                crediting rate equal to 3 percent (or a 
                                lower rate not less than zero that is 
                                specified in the plan) with respect to 
                                all contribution credits credited to a 
                                participant's account balance or 
                                similar amount during the guarantee 
                                period shall be treated as a reasonable 
                                minimum guaranteed rate of return. For 
                                purposes of this subclause, the 
                                guarantee period begins on the 
                                prospective date that such reasonable 
                                minimum guaranteed rate applies to the 
                                participant's benefit under the plan 
                                and ends on the date that such 
                                reasonable minimum guaranteed rate 
                                ceases to apply to the participant's 
                                benefit.
                                    ``(V) Reasonable minimum rates for 
                                other interest crediting bases.--In the 
                                case of an interest credit (or 
                                equivalent amount) that is not 
                                described in subclause (IV), an annual 
                                interest rate equal to the lowest 
                                interest rate permitted with respect to 
                                any plan under section 415(b)(2)(E)(i) 
                                of the Internal Revenue Code of 1986 
                                (without regard to section 
                                415(b)(2)(E)(ii) of such Code) shall be 
                                treated as a reasonable minimum 
                                guaranteed rate of return described in 
                                such subclause.''.
            (2) Permitted fixed rates.--Section 204(b)(5)(B)(i) of such 
        Act (29 U.S.C. 1054(b)(5)(B)(i)), as amended by paragraph 
        (1)(B), is amended by adding at the end the following:
                                    ``(VI) Permitted fixed rate of 
                                return.--An annual interest crediting 
                                rate that is a fixed annual crediting 
                                rate and that does not exceed the rate 
                                described in subclause (V) plus one 
                                percentage point shall be deemed to 
                                satisfy the requirements of subclause 
                                (I).''.
            (3) Protecting plan participants from losing access to 
        market rates.--
                    (A) In general.--Section 204(b)(5)(B) of such Act 
                (29 U.S.C. 1054(b)(5)(B)(i)(III)) is amended by adding 
                at the end the following new clause:
                            ``(iii) Special rules relating to market 
                        rate of return.--For purposes of clause 
                        (i)(III)--
                                    ``(I) In general.--Except as 
                                provided in this subclause, any rate of 
                                return available in the market, shall, 
                                under the regulation under clause 
                                (i)(III), be permitted as a market rate 
                                of return under clause (i)(I).
                                    ``(II) Secretarial authority.--
                                Except as provided in subclause (III), 
                                the Secretary of the Treasury may 
                                prescribe by regulation that a rate of 
                                return available in the market is not 
                                permitted under clause (i)(I) if such 
                                rate is designed to evade the purposes 
                                of clause (i)(I) and is not consistent 
                                with the purposes of a defined benefit 
                                plan. Such authority shall apply only 
                                to a rate of return based exclusively 
                                or primarily on the returns on employer 
                                securities (as defined in section 
                                407(d)(1)), on alternative investments 
                                generally not appropriate as an 
                                exclusive or primary investment for 
                                retirement, or on other similar 
                                investments.
                                    ``(III) Specified safe harbor 
                                rates.--The following rates of return 
                                and any combination of such rates shall 
                                be deemed to be market rates of return 
                                that satisfy clause (i)(I):
                                            ``(aa) The first, second, 
                                        or third segment rate (as 
                                        defined in section 430(h)(2)(C) 
                                        of the Internal Revenue Code of 
                                        1986 (without regard to clause 
                                        (iv) thereof)) or any 
                                        combination of such rates.
                                            ``(bb) The discount rate on 
                                        3-month, 6-month, and 12-month 
                                        Treasury bills with appropriate 
                                        margins determined under 
                                        regulations prescribed by the 
                                        Secretary of the Treasury.
                                            ``(cc) The yield on 1-year, 
                                        2-year, 3-year, 5-year, 7-year, 
                                        10-year, and 30-year Treasury 
                                        Constant Maturities with 
                                        appropriate margins determined 
                                        under regulations prescribed by 
                                        the Secretary of the Treasury.
                                            ``(dd) The actual return on 
                                        all or a diversified portion of 
                                        the assets of the plan.
                                            ``(ee) Any total return 
                                        index or price index commonly 
                                        used as an investment 
                                        benchmark, as determined under 
                                        regulations prescribed by the 
                                        Secretary of the Treasury.
                                            ``(ff) The rate of return 
                                        on an annuity contract for a 
                                        participant issued by an 
                                        insurance company licensed 
                                        under the laws of a State.
                                            ``(gg) A cost of living 
                                        index with appropriate margin, 
                                        as determined under regulations 
                                        promulgated by the Secretary of 
                                        the Treasury.
                                            ``(hh) The rate of return 
                                        on a broad-based regulated 
                                        investment company, as 
                                        determined under regulations 
                                        promulgated by the Secretary of 
                                        the Treasury.
                                            ``(ii) Any investment in 
                                        which participants may elect to 
                                        invest under a defined 
                                        contribution plan maintained by 
                                        the sponsor of the plan other 
                                        than an investment with a rate 
                                        of return prohibited under 
                                        clause (i), a stable value 
                                        fund, or an investment 
                                        available only through a 
                                        brokerage account (or similar 
                                        arrangement).''.
    (b) Amendments to 1986 Code.--
            (1) Reasonable minimum rates disregarded.--Section 
        411(b)(5)(B)(i) of the Internal Revenue Code of 1986 is 
        amended--
                    (A) in subclause (I), by adding at the end the 
                following new sentence: ``Any rate described in 
                subclause (IV) or (V) shall be disregarded in 
                determining whether a plan is treated as satisfying the 
                requirements of the first sentence of this 
                subclause.''; and
                    (B) by adding at the end the following:
                                    ``(IV) Reasonable minimum 
                                guaranteed rates for investment-based 
                                interest credits.--In the case of an 
                                interest credit (or equivalent amount) 
                                that is based on an actual investment 
                                (or on an index that is structured to 
                                have effects similar to the effects of 
                                an actual investment), a fixed annual 
                                crediting rate equal to 3 percent (or a 
                                lower rate not less than zero that is 
                                specified in the plan) with respect to 
                                all contribution credits credited to a 
                                participant's account balance or 
                                similar amount during the guarantee 
                                period shall be treated as a reasonable 
                                minimum guaranteed rate of return. For 
                                purposes of this subclause, the 
                                guarantee period begins on the 
                                prospective date that such reasonable 
                                minimum guaranteed rate applies to the 
                                participant's benefit under the plan 
                                and ends on the date that such 
                                reasonable minimum guaranteed rate 
                                ceases to apply to the participant's 
                                benefit.
                                    ``(V) Reasonable minimum rates for 
                                other interest crediting bases.--In the 
                                case of an interest credit (or 
                                equivalent amount) that is not 
                                described in subclause (IV), an annual 
                                interest rate equal to the lowest 
                                interest rate permitted with respect to 
                                any plan under section 415(b)(2)(E)(i) 
                                (without regard to section 
                                415(b)(2)(E)(ii)) shall be treated as a 
                                reasonable minimum guaranteed rate of 
                                return described in such subclause.''.
            (2) Permitted fixed rates.--Section 411(b)(5)(B)(i) of such 
        Code, as amended by paragraph (1)(B), is further amended by 
        adding at the end the following:
                                    ``(VI) Permitted fixed rate of 
                                return.--An annual interest crediting 
                                rate that is a fixed annual crediting 
                                rate and that does not exceed the rate 
                                described in subclause (V) plus one 
                                percentage point shall be deemed to 
                                satisfy the requirements of subclause 
                                (I).''.
            (3) Protecting plan participants from losing access to 
        market rates.--
                    (A) In general.--Section 411(b)(5)(B) of such Code 
                is amended by adding at the end the following:
                            ``(iii) Special rules relating to market 
                        rate of return.--For purposes of clause 
                        (i)(III)--
                                    ``(I) In general.--Except as 
                                provided in this subclause, any rate of 
                                return available in the market, shall, 
                                under the regulation under clause 
                                (i)(III), be permitted as a market rate 
                                of return under clause (i)(I).
                                    ``(II) Secretarial authority.--
                                Except as provided in subclause (III), 
                                the Secretary may prescribe by 
                                regulation that a rate of return 
                                available in the market is not 
                                permitted under clause (i)(I) if such 
                                rate is designed to evade the purposes 
                                of clause (i)(I) and is not consistent 
                                with the purposes of a defined benefit 
                                plan. Such authority shall apply only 
                                to a rate of return based exclusively 
                                or primarily on the returns on employer 
                                securities (as defined in section 
                                407(d)(1)), on alternative investments 
                                generally not appropriate as an 
                                exclusive or primary investment for 
                                retirement, or on other similar 
                                investments.
                                    ``(III) Specified safe harbor 
                                rates.--The following rates of return 
                                and any combination of such rates shall 
                                be deemed to be market rates of return 
                                that satisfy clause (i)(I):
                                            ``(aa) The first, second, 
                                        or third segment rate (as 
                                        defined in section 430(h)(2)(C) 
                                        (without regard to clause (iv) 
                                        thereof)) or any combination of 
                                        such rates.
                                            ``(bb) The discount rate on 
                                        3-month, 6-month, and 12-month 
                                        Treasury bills with appropriate 
                                        margins determined under 
                                        regulations prescribed by the 
                                        Secretary.
                                            ``(cc) The yield on 1-year, 
                                        2-year, 3-year, 5-year, 7-year, 
                                        10-year, and 30-year Treasury 
                                        Constant Maturities with 
                                        appropriate margins determined 
                                        under regulations prescribed by 
                                        the Secretary.
                                            ``(dd) The actual return on 
                                        all or a diversified portion of 
                                        the assets of the plan.
                                            ``(ee) Any total return 
                                        index or price index commonly 
                                        used as an investment 
                                        benchmark, as determined under 
                                        regulations prescribed by the 
                                        Secretary.
                                            ``(ff) The rate of return 
                                        on an annuity contract for a 
                                        participant issued by an 
                                        insurance company licensed 
                                        under the laws of a State.
                                            ``(gg) A cost of living 
                                        index with appropriate margin, 
                                        as determined under regulations 
                                        promulgated by the Secretary.
                                            ``(hh) The rate of return 
                                        on a broad-based regulated 
                                        investment company, as 
                                        determined under regulations 
                                        promulgated by the Secretary.
                                            ``(ii) Any investment in 
                                        which participants may elect to 
                                        invest under a defined 
                                        contribution plan maintained by 
                                        the sponsor of the plan other 
                                        than an investment with a rate 
                                        of return prohibited under 
                                        clause (i), a stable value 
                                        fund, or an investment 
                                        available only through a 
                                        brokerage account (or similar 
                                        arrangement).''.
    (c) Protecting Plan Participants From Retroactive Benefit 
Decreases.--
            (1) In general.--If an interest credit (or equivalent 
        amount) under a plan subject to section 411(b)(5)(B)(i)(I) of 
        the Internal Revenue Code of 1986 or section 204(b)(5)(B)(i)(I) 
        of the Employee Retirement Income Security Act of 1974 (29 
        U.S.C. 1054(b)(5)(B)(i)(I)) was reasonable in relation to 
        market rates in existence when such interest credit (or 
        equivalent amount) was established (disregarding any minimum 
        rates of return that were reasonable when established), such 
        interest credit (or equivalent amount) shall be treated as 
        satisfying the requirements of section 411(b)(5)(B)(i)(I) of 
        such Code and section 204(b)(5)(B)(i)(I) of such Act for the 
        transition period.
            (2) Transition period.--For purposes of paragraph (1), the 
        transition period, with respect to any plan, begins on the date 
        that section 411(b)(5)(B)(i)(I) of such Code or section 
        204(b)(5)(B)(i)(I) of such Act first applied to such plan and 
        ends on the effective date of comprehensive final regulations 
        under such sections prescribed by the Secretary of the 
        Treasury.
    (d) Ensuring Fairness When Interest Credits Are Required To Be 
Decreased.--
            (1) In general.--In the case of an interest credit (or 
        equivalent amount) under a plan subject to section 
        411(b)(5)(B)(i)(I) of the Internal Revenue Code of 1986 or 
        section 204(b)(5)(B)(i)(I) of the Employee Retirement Income 
        Security Act of 1974 that is in effect for the last plan year 
        prior to the effective date of comprehensive final regulations 
        under such section of such Code but does not comply with such 
        regulations determined after application of subsection (c), the 
        Secretary of the Treasury shall provide an exception from the 
        requirements of section 411(d)(6) of such Code and section 
        204(g) of such Act for a reduction in such interest credit (or 
        equivalent amendment) that is made pursuant to such 
        comprehensive final regulations.
            (2) Exception.--The exception under paragraph (1) from 
        section 204(g) of such Act and section 411(d)(6) of such Code 
        shall be issued through regulations to ensure the opportunity 
        of interested persons to make comments through a public notice 
        and comment process. Such exception shall permit any interest 
        credit (or equivalent amount) to which this subsection applies 
        to be modified to be the maximum fixed rate of return permitted 
        under section 204(b)(5)(B)(i)(VI) of such Act or section 
        411(b)(5)(B)(i)(VI) of such Code or to be the maximum rate 
        permitted under any rate of return deemed to be a market rate 
        of return pursuant to section 204(b)(5)(B)(i)(III) of such Act 
        or section 411(b)(5)(B)(i)(III) of such Code. The Secretary of 
        the Treasury shall further structure the exception to ensure 
        that there are clear and simple methods for plans to comply 
        with the requirements of section 204(b)(5)(B)(i)(I) of such Act 
        and section 411(b)(5)(B)(i)(I) of such Code.
    (e) Protecting Participants From Plan Freezes Through Appropriate 
Transition Rules.--
            (1) In general.--In the case of any defined benefit plan to 
        which this subsection applies, comprehensive regulations under 
        sections 203(f)(1) and 204(b)(5)(B)(i) of the Employee 
        Retirement Income Security Act of 1974 or sections 
        411(a)(13)(A) and 411(b)(5)(B)(i) of the Internal Revenue Code 
        of 1986 shall not take effect before the first plan year 
        beginning at least 1 year after the later of--
                    (A) the date of publication of such regulations; or
                    (B) the date of publication of the regulations 
                described in subsection (d).
            (2) Pension equity plans.--This subsection applies to any 
        defined benefit plan that--
                    (A) is subject to section 204(b)(5) of the Employee 
                Retirement Income Security Act of 1974 or section 
                411(b)(5) of the Internal Revenue Code of 1986;
                    (B) expresses any portion of any participant's 
                benefit as a current value equal to an accumulated 
                percentage of the employee's final average 
                compensation; and
                    (C) in the absence of guidance from the Secretary 
                of the Treasury or the Secretary of Labor, has been 
                structured in a reasonable, good faith manner to comply 
                with the requirements of such Code and such Act with 
                respect to benefits described in subparagraph (B).
            (3) Period prior to effective date of regulations.--In the 
        case of a plan to which this subsection applies, no rule shall 
        be issued and no adverse enforcement action shall be taken by 
        the Secretary of the Treasury or the Secretary of Labor with 
        respect to a plan described in paragraph (2) regarding the 
        structure of the benefits described in paragraph (2)(B) for any 
        period prior to the effective date of comprehensive final 
        regulations issued by the Secretary of the Treasury with 
        respect to such benefits. Such final regulations shall not be 
        effective before the first plan year beginning at least 1 year 
        after publication of such regulations.
    (f) Effective Date.--
            (1) In general.--Except as otherwise provided, the 
        amendments and other provisions of this section shall take 
        effect as if included in section 701 of the Pension Protection 
        Act of 2006 (Public Law 109-280; 120 Stat. 981).
            (2) Hold harmless.--With respect to any period prior to the 
        effective date of the comprehensive regulations described in 
        subsection (e), no plan shall fail to comply with any 
        requirement of the Employee Retirement Income Security Act of 
        1974 or of the Internal Revenue Code of 1986 by reason of 
        complying with the law in effect without regard to the 
        amendments made by subsections (a) and (b).

SEC. 302. CLARIFICATION OF THE NORMAL RETIREMENT AGE.

    (a) Amendments to ERISA.--Section 204 of the Employee Retirement 
Income Security Act of 1974 is amended by redesignating subsection (k) 
as subsection (l) and by inserting after subsection (j) the following 
new subsection:
    ``(k) Special Rule for Determining Normal Retirement Age for 
Certain Existing Defined Benefit Plans.--
            ``(1) In general.--For purposes of section 3(24), an 
        applicable plan shall not be treated as failing to meet any 
        requirement of this title, or as failing to have a uniform 
        normal retirement age for purposes of this title, solely 
        because the plan has adopted the normal retirement age 
        described in paragraph (2).
            ``(2) Applicable plan.--For purposes of this subsection--
                    ``(A) In general.--The term `applicable plan' means 
                a defined benefit plan that, on the date of the 
                introduction of this subsection, has adopted a normal 
                retirement age which is the earlier of--
                            ``(i) an age otherwise permitted under 
                        section 2(24), or
                            ``(ii) the age at which a participant 
                        completes the number of years (not less than 30 
                        years) of benefit accrual service specified by 
                        the plan.
                A plan shall not fail to be treated as an applicable 
                plan solely because, as of such date, the normal 
                retirement age described in the preceding sentence only 
                applied to certain participants or to certain employers 
                participating in the plan.
                    ``(B) Expanded application.--If, after the date 
                described in subparagraph (A), an applicable plan 
                expands the application of the normal retirement age 
                described in subparagraph (A) to additional 
                participants or participating employers, such plan 
                shall also be treated as an applicable plan with 
                respect to such participants or participating 
                employers.''.
    (b) Amendment to 1986 Code.--Section 411 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new 
subsection:
    ``(f) Special Rule for Determining Normal Retirement Age for 
Certain Existing Defined Benefit Plans.--
            ``(1) In general.--For purposes of subsection (a)(8)(A), an 
        applicable plan shall not be treated as failing to meet any 
        requirement of this subchapter, or as failing to have a uniform 
        normal retirement age for purposes of this subchapter, solely 
        because the plan has adopted the normal retirement age 
        described in paragraph (2).
            ``(2) Applicable plan.--For purposes of this subsection--
                    ``(A) In general.--The term `applicable plan' means 
                a defined benefit plan that, on the date of the 
                introduction of this subsection, has adopted a normal 
                retirement age which is the earlier of--
                            ``(i) an age otherwise permitted under 
                        subsection (a)(8)(A), or
                            ``(ii) the age at which a participant 
                        completes the number of years (not less than 30 
                        years) of benefit accrual service specified by 
                        the plan.
                A plan shall not fail to be treated as an applicable 
                plan solely because, as of such date, the normal 
                retirement age described in the preceding sentence only 
                applied to certain participants or to certain employers 
                participating in the plan.
                    ``(B) Expanded application.--If, after the date 
                described in subparagraph (A), an applicable plan 
                expands the application of the normal retirement age 
                described in subparagraph (A) to additional 
                participants or participating employers, such plan 
                shall also be treated as an applicable plan with 
                respect to such participants or participating 
                employers.''.

SEC. 303. MORATORIUM ON IMPOSITION OF SHUTDOWN LIABILITY.

    (a) In General.--The Pension Benefit Guaranty Corporation shall not 
bring any new action against a plan sponsor to enforce subsection (e) 
of section 4062 of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1362) before January 30, 2016.
    (b) Study.--The Comptroller General of the United States shall 
study the effectiveness, fairness, and utility of section 4062(e) of 
the Employee Retirement Income Security Act (29 U.S.C. 1101 et seq.). 
No later than January 30, 2015, the Comptroller General shall submit a 
report to the Committee on Health, Education, Labor, and Pensions of 
the Senate and the Committee on Education and the Workforce of the 
House of Representatives summarizing its findings and including 
recommendations for alternative ways to protect retirees and the 
Pension Benefit Guaranty Corporation from cessations of operations 
while encouraging employers to both continue to offer defined benefit 
pension plans and to restructure as may be necessary to ensure the 
ongoing viability of the business.

SEC. 304. ALTERNATIVE FUNDING TARGET ATTAINMENT PERCENTAGE DETERMINED 
              WITHOUT REGARD TO REDUCTION FOR CREDIT BALANCES.

    (a) Amendments to ERISA.--Section 206(g) of Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1056(g)) is amended--
            (1) in paragraph (5), by striking subparagraph (C); and
            (2) in paragraph (9)--
                    (A) in subparagraph (B)--
                            (i) by striking the period at the end and 
                        inserting ``; and'';
                            (ii) by striking ``under subparagraph (A) 
                        by increasing'' and inserting the following: 
                        ``under subparagraph (A)--
                            ``(i) by increasing''; and
                            (iii) by adding at the end the following:
                            ``(ii) without regard to the reduction 
                        under section 303(f)(4)(B).''; and
                    (B) by striking subparagraphs (C) and (D).
    (b) Amendments to 1986 Code.--Section 436 of the Internal Revenue 
Code of 1986 is amended--
            (1) in subsection (f), by striking paragraph (3); and
            (2) in subsection (j)--
                    (A) in paragraph (2)--
                            (i) by striking the period at the end and 
                        inserting ``, and''; and
                            (ii) by striking ``under paragraph (1) by 
                        increasing'' and inserting the following: 
                        ``under subparagraph (A)--
                    ``(A) by increasing''; and
                            (iii) by adding at the end the following:
                    ``(B) without regard to the reduction under section 
                430(f)(4)(B).''; and
                    (B) by striking the first and second paragraph (3).
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2014.

SEC. 305. METHOD FOR DETERMINING CHANGES FOR QUARTERLY CONTRIBUTIONS.

    (a) Amendment to ERISA.--Section 303(j)(3)(A) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1083(j)(3)(A)) is 
amended by inserting ``(determined without regard to the reduction 
under subsection (f)(4)(B))'' after ``preceding plan year''.
    (b) Amendment to 1986 Code.--Section 430(j)(3) of the Internal 
Revenue Code of 1986 is amended by inserting ``(determined without 
regard to the reduction under subsection (f)(4)(B))'' after ``preceding 
plan year''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2014.

SEC. 306. ELECTION TO DISCOUNT CONTRIBUTIONS FROM FINAL DUE DATE.

    (a) Amendment to ERISA.--Section 303(j)(2) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1083(j)(2)) is 
amended by adding at the end the following: ``For purposes of this 
paragraph, a plan sponsor may elect to treat all payments made after 
the valuation date as having been made on the last day permissible 
under paragraph (1).''.
    (b) Amendment to 1986 Code.--Section 430(j)(2) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following: 
``For purposes of this paragraph, a plan sponsor may elect to treat all 
payments made after the valuation date as having been made on the last 
day permissible under paragraph (1).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2014.

SEC. 307. SIMPLIFICATION OF ELECTIONS AND NOTICES.

    (a) Amendments to ERISA.--
            (1) Timeliness of elections.--Section 303 of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1083) is 
        amended by adding at the end the following:
    ``(m) Timeliness of Elections.--An election required to be made by 
the plan sponsor under this section, including an election made under 
rules prescribed by the Secretary of the Treasury to implement this 
section, shall be deemed to have been timely made if the election is 
made on or before the due date specified in subsection (j)(1) or, if 
later, the due date of the actuarial report required under section 
103(d).''.
            (2) Time for providing notice.--Section 101(f)(3)(B) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1021(f)(3)(B)) is amended--
                    (A) in the heading, by striking ``for small 
                plans'';
                    (B) by inserting ``a plan with an adjusted funding 
                target attainment percentage of more than 80 percent 
                for the prior year or'' after ``In the case of'';
                    (C) by striking ``(as such term is used under 
                section 303(g)(2)(B))''; and
                    (D) by striking ``upon'' and inserting ``not later 
                than 2 months after''.
    (b) Amendment to 1986 Code.--Section 430 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following:
    ``(m) Timeliness of Elections.--An election required to be made by 
the plan sponsor under this section, including an election made under 
rules prescribed by the Secretary to implement this section, shall be 
deemed to have been timely made if the election is made on or before 
the due date specified in subsection (j)(1) or, if later, the due date 
of the actuarial report required under section 6059.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2014.

SEC. 308. IMPROVED MULTIEMPLOYER PLAN DISCLOSURE.

    (a) Disclosure and Reporting by Multiemployer Plans.--
            (1) Plan funding notices.--Section 101(f) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1021(f)) is 
        amended--
                    (A) in paragraph (2)(B)--
                            (i) by striking clause (v);
                            (ii) by redesignating clauses (vi) through 
                        (x) as clauses (v) through (ix), respectively;
                            (iii) in clause (vi), as so redesignated--
                                    (I) by striking ``(I) in the case 
                                of'' and inserting ``in the case of'';
                                    (II) by striking ``, or'' and 
                                inserting a comma; and
                                    (III) by striking subclause (II); 
                                and
                            (iv) by amending clause (vii), as so 
                        redesignated, to read as follows:
                            ``(vii)(I) in the case of a single-employer 
                        plan, a general description of the benefits 
                        under the plan which are eligible to be 
                        guaranteed by the Pension Benefit Guaranty 
                        Corporation, and an explanation of the 
                        limitations on the guarantee and the 
                        circumstances under which such limitations 
                        apply, and
                            ``(II) in the case of a multiemployer plan, 
                        a statement that eligible benefits are 
                        guaranteed by the Pension Benefit Guaranty 
                        Corporation, and a statement of how to obtain 
                        both a general description of the benefits 
                        under the plan which are eligible to be 
                        guaranteed by the Pension Benefit Guaranty 
                        Corporation and an explanation of the 
                        limitations on the guarantee and the 
                        circumstances under which such limitations 
                        apply,''; and
                    (B) in paragraph (4)(C)--
                            (i) by striking ``(C) may be provided'' and 
                        inserting ``(C)(i) subject to clause (ii), may 
                        be provided''; and
                            (ii) by striking the period and inserting 
                        the following:
                    ``(ii) in the case of such a notice provided to the 
                Pension Benefit Guaranty Corporation, shall be in an 
                electronic format in such manner prescribed in 
                regulations of such Corporation.''.
            (2) Disclosures by plans regarding status.--
                    (A) Amendments to erisa.--Section 305(b)(3) of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1085(b)(3)) is amended--
                            (i) in the paragraph heading, by striking 
                        ``by plan actuary'' and inserting ``and 
                        report'';
                            (ii) by amending subparagraph (A) to read 
                        as follows:
                    ``(A) In general.--Not later than the 90th day of 
                each plan year of a multiemployer plan, the plan 
                sponsor shall file, in accordance with regulations 
                prescribed by the ERISA agencies, a report that 
                contains--
                            ``(i) documentation from the plan actuary 
                        certifying to the ERISA agencies and to the 
                        plan sponsor--
                                    ``(I) whether or not the plan is in 
                                endangered status for such plan year 
                                and whether or not the plan is or will 
                                be in critical status for such plan 
                                year or any of the 5 succeeding plan 
                                years,
                                    ``(II) in the case of a plan which 
                                is in a funding improvement or 
                                rehabilitation period, whether or not 
                                the plan is making the scheduled 
                                progress in meeting the requirements of 
                                its funding improvement or 
                                rehabilitation plan and, if not, a 
                                summary of the primary reasons the plan 
                                is not making the scheduled progress,
                                    ``(III) the funded percentage of 
                                the plan determined as of the first day 
                                of the current plan year and the value 
                                of assets and liabilities used to 
                                calculate such funded percentage,
                                    ``(IV) a projection of the funding 
                                standard account on a year-by-year 
                                basis for the current plan year and the 
                                nine succeeding plan years and a 
                                statement of the actuarial assumptions 
                                for such projections, and
                                    ``(V)(aa) subject to item (bb), a 
                                projection of the cash flow of the plan 
                                and actuarial assumptions for the 
                                current plan year and six succeeding 
                                plan years, and
                                    ``(bb) in the case in which it is 
                                certified that a multiemployer plan is 
                                or will be in endangered or critical 
                                status for a plan year, the projection 
                                of the cash flow of the plan and 
                                actuarial assumptions for the current 
                                year and ten succeeding plan years,
                            ``(ii) as of the last day of the prior plan 
                        year, a good faith determination of--
                                    ``(I) the fair market value of the 
                                assets of the plan,
                                    ``(II) the number of participants 
                                who are--
                                            ``(aa) retired or separated 
                                        from service and are receiving 
                                        benefits,
                                            ``(bb) retired or separated 
                                        participants entitled to future 
                                        benefits, and
                                            ``(cc) active participants 
                                        under the plan,
                                    ``(III) the total value of all 
                                benefits paid during the prior plan 
                                year,
                                    ``(IV) the total value of all 
                                contributions made to the plan during 
                                the prior plan year, and
                                    ``(V) the total value of all 
                                investment gains or losses during the 
                                prior plan year,
                            ``(iii) a description of any material 
                        changes during the previous plan year to the 
                        rates at which participants accrue benefits or 
                        the rate at which employers contribute,
                            ``(iv) a copy of any funding improvement 
                        plan, rehabilitation plan, and any update 
                        thereto or modification thereof, that was 
                        adopted under this section prior to the filing 
                        of the report for the current plan year in 
                        accordance with this subparagraph and, if 
                        applicable, after the filing of the report 
                        required by this subparagraph for the prior 
                        plan year,
                            ``(v) in the case of any plan amendment, 
                        scheduled benefit increase or reduction, or 
                        other known event taking effect in the current 
                        plan year and having a material effect on plan 
                        liabilities or assets for the year (as defined 
                        in regulations by the ERISA agencies), an 
                        explanation of the amendment, scheduled 
                        increase or reduction, or event, and a 
                        projection to the end of such plan year of the 
                        effect of the amendment, scheduled increase or 
                        reduction, or event on plan liabilities,
                            ``(vi) in the case of a multiemployer plan 
                        certified to be in critical status for which 
                        the plan sponsor has determined that, based on 
                        reasonable actuarial assumptions and upon 
                        exhaustion of all reasonable measures, the plan 
                        cannot reasonably be expected to emerge from 
                        critical status by the end of the 
                        rehabilitation period, a description of all 
                        reasonable measures, whether or not such 
                        measures were implemented, and a summary of the 
                        consideration of such measures,
                            ``(vii) a good faith statement describing--
                                    ``(I) the withdrawal of any 
                                employer during the prior plan year and 
                                the percentage of total contributions 
                                made by that employer during the prior 
                                plan year,
                                    ``(II) any material reduction in 
                                total contributions or withdrawal 
                                liability payments of any employers and 
                                the reason for such reduction,
                                    ``(III) any significant reduction 
                                in the number of active plan 
                                participants and the reason for such 
                                reduction, and
                                    ``(IV) the annual withdrawal 
                                liability payment each employer is 
                                obligated to pay to the plan for the 
                                plan year, whether that amount was 
                                collected by the plan (and if not, the 
                                amount that was collected), and the 
                                remaining years on the employer's 
                                obligation to make withdrawal liability 
                                payments, and
                            ``(viii) such other information as may be 
                        required by the ERISA agencies by 
                        regulation.'';
                            (iii) by striking subparagraph (C) and 
                        inserting the following:
                    ``(C) Form and manner.--The report required by 
                subparagraph (A) shall be filed electronically in 
                accordance with regulations prescribed by the ERISA 
                agencies.''; and
                            (iv) in subparagraph (D)--
                                    (I) by redesignating clauses (ii) 
                                and (iii) as clauses (iii) and (iv), 
                                respectively;
                                    (II) by inserting after clause (i) 
                                the following:
                            ``(ii) Plans in endangered or critical 
                        status.--If it is certified under subparagraph 
                        (A) that a multiemployer plan is or will be in 
                        endangered or critical status, the plan sponsor 
                        shall include in the notice under clause (i)--
                                    ``(I) a statement describing how a 
                                person may obtain a copy of the plan's 
                                funding improvement or rehabilitation 
                                plan, as appropriate, adopted under 
                                this section and the actuarial and 
                                financial data that demonstrate any 
                                action taken by the plan toward fiscal 
                                improvement,
                                    ``(II) a summary of any funding 
                                improvement plan, rehabilitation plan, 
                                and any update thereto or modification 
                                thereof, adopted under this section 
                                prior to the furnishing of such notice,
                                    ``(III) a summary of the rules 
                                governing reorganization or insolvency, 
                                including the limitations on benefit 
                                payments, and
                                    ``(IV) a general description of the 
                                benefits under the plan which are 
                                eligible to be guaranteed by the 
                                Pension Benefit Guaranty Corporation 
                                and an explanation of the limitations 
                                on the guarantee and the circumstances 
                                under which such limitations apply.'';
                                    (III) in clause (iv), as so 
                                redesignated--
                                            (aa) by striking ``The 
                                        Secretary of the Treasury, in 
                                        consultation with the 
                                        Secretary'' and inserting ``The 
                                        ERISA agencies''; and
                                            (bb) by striking ``clause 
                                        (ii)'' and inserting ``clauses 
                                        (ii) and (iii)''; and
                                    (IV) by adding at the end the 
                                following:
                    ``(E) Designation and coordination.--The ERISA 
                agencies shall--
                            ``(i) designate one ERISA agency to receive 
                        the report described in subparagraph (A) on 
                        behalf of all the ERISA agencies, which shall 
                        each have full access to such report; and
                            ``(ii) consult with each other and develop 
                        rules, regulations, practices, and forms, which 
                        to the extent appropriate for the efficient 
                        administration of the provisions of this 
                        paragraph are designed to replace duplication 
                        of effort, duplication of reporting, 
                        conflicting or overlapping requirements, and 
                        the burden of compliance with such provisions 
                        by plan administrators and plan sponsors.
                    ``(F) ERISA agencies.--In this paragraph, the term 
                `ERISA agencies' means the Secretary of Labor, the 
                Secretary of the Treasury, and the Pension Benefit 
                Guaranty Corporation.''.
                    (B) Amendments to 1986 code.--Section 432(b)(3) of 
                the Internal Revenue Code of 1986 is amended--
                            (i) in the paragraph heading, by striking 
                        ``by plan actuary'' and inserting ``and 
                        report'';
                            (ii) by amending subparagraph (A) to read 
                        as follows:
                    ``(A) In general.--Not later than the 90th day of 
                each plan year of a multiemployer plan, the plan 
                sponsor shall file, in accordance with regulations 
                prescribed by the ERISA agencies, a report that 
                contains--
                            ``(i) documentation from the plan actuary 
                        certifying to the ERISA agencies and to the 
                        plan sponsor--
                                    ``(I) whether or not the plan is in 
                                endangered status for such plan year 
                                and whether or not the plan is or will 
                                be in critical status for such plan 
                                year or any of the 5 succeeding plan 
                                years,
                                    ``(II) in the case of a plan which 
                                is in a funding improvement or 
                                rehabilitation period, whether or not 
                                the plan is making the scheduled 
                                progress in meeting the requirements of 
                                its funding improvement or 
                                rehabilitation plan and, if not, a 
                                summary of the primary reasons the plan 
                                is not making the scheduled progress,
                                    ``(III) the funded percentage of 
                                the plan determined as of the first day 
                                of the current plan year and the value 
                                of assets and liabilities used to 
                                calculate such funded percentage,
                                    ``(IV) a projection of the funding 
                                standard account on a year-by-year 
                                basis for the current plan year and the 
                                nine succeeding plan years and a 
                                statement of the actuarial assumptions 
                                for such projections, and
                                    ``(V)(aa) subject to item (bb), a 
                                projection of the cash flow of the plan 
                                and actuarial assumptions for the 
                                current plan year and six succeeding 
                                plan years, and
                                    ``(bb) in the case in which it is 
                                certified that a multiemployer plan is 
                                or will be in endangered or critical 
                                status for a plan year, the projection 
                                of the cash flow of the plan and 
                                actuarial assumptions for the current 
                                year and ten succeeding plan years,
                            ``(ii) as of the last day of the prior plan 
                        year, a good faith determination of--
                                    ``(I) the fair market value of the 
                                assets of the plan,
                                    ``(II) the number of participants 
                                who are--
                                            ``(aa) retired or separated 
                                        from service and are receiving 
                                        benefits,
                                            ``(bb) retired or separated 
                                        participants entitled to future 
                                        benefits, and
                                            ``(cc) active participants 
                                        under the plan,
                                    ``(III) the total value of all 
                                benefits paid during the prior plan 
                                year,
                                    ``(IV) the total value of all 
                                contributions made to the plan during 
                                the prior plan year, and
                                    ``(V) the total value of all 
                                investment gains or losses during the 
                                prior plan year,
                            ``(iii) a description of any material 
                        changes during the previous plan year to the 
                        rates at which participants accrue benefits or 
                        the rate at which employers contribute,
                            ``(iv) a copy of any funding improvement 
                        plan, rehabilitation plan, and any update 
                        thereto or modification thereof, that was 
                        adopted under this section prior to the filing 
                        of the report for the current plan year in 
                        accordance with this subparagraph and, if 
                        applicable, after the filing of the report 
                        required by this subparagraph for the prior 
                        plan year,
                            ``(v) in the case of any plan amendment, 
                        scheduled benefit increase or reduction, or 
                        other known event taking effect in the current 
                        plan year and having a material effect on plan 
                        liabilities or assets for the year (as defined 
                        in regulations by the ERISA agencies), an 
                        explanation of the amendment, scheduled 
                        increase or reduction, or event, and a 
                        projection to the end of such plan year of the 
                        effect of the amendment, scheduled increase or 
                        reduction, or event on plan liabilities,
                            ``(vi) in the case of a multiemployer plan 
                        certified to be in critical status for which 
                        the plan sponsor has determined that, based on 
                        reasonable actuarial assumptions and upon 
                        exhaustion of all reasonable measures, the plan 
                        cannot reasonably be expected to emerge from 
                        critical status by the end of the 
                        rehabilitation period, a description of all 
                        reasonable measures, whether or not such 
                        measures were implemented, and a summary of the 
                        consideration of such measures,
                            ``(vii) a good faith statement describing--
                                    ``(I) the withdrawal of any 
                                employer during the prior plan year and 
                                the percentage of total contributions 
                                made by that employer during the prior 
                                plan year,
                                    ``(II) any material reduction in 
                                total contributions or withdrawal 
                                liability payments of any employers and 
                                the reason for such reduction,
                                    ``(III) any significant reduction 
                                in the number of active plan 
                                participants and the reason for such 
                                reduction, and
                                    ``(IV) the annual withdrawal 
                                liability payment each employer is 
                                obligated to pay to the plan for the 
                                plan year, whether that amount was 
                                collected by the plan (and if not, the 
                                amount that was collected), and the 
                                remaining years on the employer's 
                                obligation to make withdrawal liability 
                                payments, and
                            ``(viii) such other information as may be 
                        required by the ERISA agencies by 
                        regulation.'';
                            (iii) by striking subparagraph (C) and 
                        inserting the following:
                    ``(C) Form and manner.--The report required by 
                subparagraph (A) shall be filed electronically in 
                accordance with regulations prescribed by the ERISA 
                agencies.'';
                            (iv) in subparagraph (D)--
                                    (I) by redesignating clauses (ii) 
                                and (iii) as clauses (iii) and (iv), 
                                respectively;
                                    (II) by inserting after clause (i) 
                                the following:
                            ``(ii) Plans in endangered or critical 
                        status.--If it is certified under subparagraph 
                        (A) that a multiemployer plan is or will be in 
                        endangered or critical status, the plan sponsor 
                        shall include in the notice under clause (i)--
                                    ``(I) a statement describing how a 
                                person may obtain a copy of the plan's 
                                funding improvement or rehabilitation 
                                plan, as appropriate, adopted under 
                                this section and the actuarial and 
                                financial data that demonstrate any 
                                action taken by the plan toward fiscal 
                                improvement,
                                    ``(II) a summary of any funding 
                                improvement plan, rehabilitation plan, 
                                and any update thereto or modification 
                                thereof, adopted under this section 
                                prior to the furnishing of such notice,
                                    ``(III) a summary of the rules 
                                governing reorganization or insolvency, 
                                including the limitations on benefit 
                                payments, and
                                    ``(IV) a general description of the 
                                benefits under the plan which are 
                                eligible to be guaranteed by the 
                                Pension Benefit Guaranty Corporation 
                                and an explanation of the limitations 
                                on the guarantee and the circumstances 
                                under which such limitations apply.''; 
                                and
                                    (III) in clause (iv), as so 
                                redesignated--
                                            (aa) by striking ``The 
                                        Secretary, in consultation with 
                                        the Secretary of Labor'' and 
                                        inserting ``The ERISA 
                                        agencies''; and
                                            (bb) by striking ``clause 
                                        (ii)'' and inserting ``clauses 
                                        (ii) and (iii)''; and
                            (v) by adding at the end the following:
                    ``(E) Designation and coordination.--The ERISA 
                agencies shall--
                            ``(i) designate one ERISA agency to receive 
                        the report described in subparagraph (A) on 
                        behalf of all the ERISA agencies, which shall 
                        each have full access to such report; and
                            ``(ii) consult with each other and develop 
                        rules, regulations, practices, and forms, which 
                        to the extent appropriate for the efficient 
                        administration of the provisions of this 
                        paragraph are designed to replace duplication 
                        of effort, duplication of reporting, 
                        conflicting or overlapping requirements, and 
                        the burden of compliance with such provisions 
                        by plan administrators and plan sponsors.
                    ``(F) ERISA agencies.--In this paragraph, the term 
                `ERISA agencies' means the Secretary of Labor, the 
                Secretary of the Treasury, and the Pension Benefit 
                Guaranty Corporation.''.
                    (C) Disclosures by plans regarding status.--Section 
                4003 of the Employee Retirement Income Security Act of 
                1974 (29 U.S.C. 1303) is amended--
                            (i) in the section heading, by inserting 
                        ``; multiemployer plan information'' after 
                        ``actions''; and
                            (ii) by adding at the end the following:
    ``(g) The corporation is authorized to require such information as 
it deems necessary to investigate or review any facts, conditions, or 
other matters related to the actuarial certification and report by 
multiemployer plans under section 305(b)(3)(A), or to obtain such 
information as any duly authorized committee or subcommittee of the 
Congress may request with respect to such plans. The preceding sentence 
shall be considered a statute described in section 552(b)(3) of title 
5, United States Code, and the information received pursuant to such 
sentence shall be exempt from disclosure under such section 552(b).''.
            (3) Civil enforcement.--
                    (A) In general.--Section 502(c) of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 1132) 
                is amended--
                            (i) in paragraph (7)--
                                    (I) by striking ``(7) The 
                                Secretary'' and inserting ``(7)(A) The 
                                Secretary''; and
                                    (II) by adding at the end the 
                                following:
    ``(B) The Secretary may assess a civil penalty against a plan 
administrator (or plan sponsor with respect to the notice of endangered 
or critical status) of up to $110 per day from the date of the plan 
administrator's or sponsor's failure or refusal to provide the relevant 
notices under section 101(f) or section 305(b)(3)(D) to a recipient 
other than the Secretary or the Pension Benefit Guaranty Corporation. 
For purposes of this paragraph, each violation with respect to any 
single recipient shall be treated as a separate violation.'';
                            (ii) by redesignating the second paragraph 
                        (10) (regarding coordinating enforcement under 
                        section 502(c) of such Act with enforcement 
                        under section 1144(c)(8) of the Social Security 
                        Act) as paragraph (12); and
                            (iii) by inserting after paragraph (10) 
                        (regarding enforcement authority relating to 
                        use of genetic information) the following:
            ``(11)(A) The Secretary may assess a civil penalty against 
        any plan sponsor of up to $1,100 per day from the date of the 
        plan sponsor's failure to file with the Secretary the notice 
        required under section 305(b)(3)(D) or with the Pension Benefit 
        Guaranty Corporation the notice required under section 101(f).
            ``(B) The Secretary may assess a civil penalty against any 
        plan sponsor of up to $1,100 per day from the date of the plan 
        sponsor's failure to file with the ERISA agency designated in 
        accordance with subparagraph (E) of section 305(b)(3) the 
        report under subparagraph (A) of such section.''.
                    (B) Conforming amendment.--Section 502(a)(6) of 
                such Act is amended by striking ``or (9)'' and 
                inserting ``(9), (10), or (11)''.
    (b) Coordination With Respect to Multiemployer Plans.--
            (1) In general.--Subtitle A of title III of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1201 et seq.) 
        is amended by adding at the end the following:

``SEC. 3005. DATABASE OF MULTIEMPLOYER PLAN INFORMATION.

    ``(a) In General.--The Secretary of Labor, the Secretary of the 
Treasury, and the Pension Benefit Guaranty Corporation shall jointly 
establish an electronic database that contains the following 
information:
            ``(1) Each defined benefit plan funding notice submitted to 
        the Pension Benefit Guaranty Corporation by a multiemployer 
        plan under section 101(f).
            ``(2) Each report submitted by a multiemployer plan under 
        section 305(b)(3)(A).
            ``(3) Each notice submitted to the Secretary of Labor and 
        the Pension Benefit Guaranty Corporation by a multiemployer 
        plan under section 305(b)(3)(D).
    ``(b) Shared Access to Database.--Subject to the agreement 
described in subsection (c), the Secretary of Labor, the Secretary of 
the Treasury, and the Pension Benefit Guaranty Corporation shall have 
full access to the data in the database established under subsection 
(a). To avoid unnecessary expense and duplication of functions among 
the agencies, the Secretary of Labor, the Secretary of the Treasury, 
and the Pension Benefit Guaranty Corporation may make such arrangements 
and agreements for cooperation or mutual assistance with respect to 
access to and utilization of the data in the database.
    ``(c) Shared Cost of Database.--The Secretary of Labor, the 
Secretary of the Treasury, and the Pension Benefit Guaranty Corporation 
shall execute a cost sharing agreement to equitably allocate the 
design, implementation, and maintenance costs of the database 
established under subsection (a).
    ``(d) Exemption.--The information contained in the report described 
under subsection (a)(2) shall be exempt from disclosure under section 
552(b) of title 5, United States Code. For purposes of such section 552 
of title 5, United States Code, this subsection shall be considered a 
statute described in subsection (b)(3) of such section 552.''.
            (2) Clerical amendment.--The table of sections for subtitle 
        A of title III of the Employee Retirement Income Security Act 
        of 1974 is amended by adding at the end the following new item:

``3005. Database of multiemployer plan information.''.
    (c) Applicability.--This section (and the amendments made by this 
section) shall apply to plan years beginning after the date that is 1 
year after the date of enactment of this Act.

       Subtitle B--Improvements to the Pension Insurance Program

SEC. 311. MODIFICATIONS OF TECHNICAL CHANGES MADE BY THE PENSION 
              PROTECTION ACT OF 2006 TO TERMINATION LIABILITY.

    (a) In General.--Section 4062(c) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1362(c)) is amended by striking 
paragraphs (1) and (2) and inserting the following:
            ``(1) the aggregate unpaid minimum required contributions 
        (within the meaning of section 4971(c)(4) of the Internal 
        Revenue Code of 1986) of the plan (if any) for the plan year in 
        which the termination date occurs and for all preceding plan 
        years, including, for purposes of this paragraph, the amount of 
        any increase in such aggregate unpaid minimum required 
        contributions that would result if--
                    ``(A) all pending applications for waivers of the 
                minimum funding standard under section 302(c) of this 
                Act and section 412(c) of such Code with respect to 
                such plan were denied, and
                    ``(B) no additional contributions (other than those 
                already made by the termination date) were made for the 
                plan year in which the termination date occurs or for 
                any previous plan year, and
            ``(2) the unamortized portion (if any) of any amounts 
        waived for the plan under section 302(c) of this Act and 
        section 412(c) of such Code for--
                    ``(A) the plan year in which the termination date 
                occurs, and
                    ``(B) all preceding plan years,''.
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in section 107 of the Pension Protection Act of 
2006 (Public Law 109-280; 120 Stat. 816).

SEC. 312. PAYMENT OF LUMP SUM DISTRIBUTIONS IN BANKRUPTCY.

    (a) Amendments to ERISA.--The second sentence of section 
206(g)(3)(B) of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1056(g)(3)) is amended to read as follows: ``The preceding 
sentence shall not apply on or after the date on which the enrolled 
actuary of the plan certifies that the adjusted funding target 
attainment percentage of such plan (determined by not taking into 
account any adjustment of segment rates under section 303(h)(2)(C)(iv)) 
is not less than 100 percent.''.
    (b) Amendments to 1986 Code.--The second sentence of section 
436(d)(2) of the Internal Revenue Code of 1986 is amended to read as 
follows: ``The preceding sentence shall not apply on or after the date 
on which the enrolled actuary of the plan certifies that the adjusted 
funding target attainment percentage of such plan (determined by not 
taking into account any adjustment of segment rates under section 
430(h)(2)(C)(iv)) is not less than 100 percent.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as of July 6, 2012.

SEC. 313. TRUSTEESHIP CLARIFICATIONS.

    (a) Appointment of Trustees in Plan Termination Instituted by 
PBGC.--
            (1) In general.--Subsections (a) and (b) of section 4002 
        (29 U.S.C. 1342) are amended to read as follows:
    ``(a) Authority To Institute Proceedings To Terminate a Plan.--
            ``(1) In general.--The corporation may institute 
        proceedings under this section to terminate a plan whenever it 
        determines that the plan must be terminated in order to protect 
        the interests of the participants or to avoid any unreasonable 
        deterioration of the financial condition of the plan or any 
        unreasonable increase in the liability of the corporation, as 
        shown by one or more of the following conditions:
                    ``(A) The plan has not met the minimum funding 
                standard required under section 412 of the Internal 
                Revenue Code of 1986, or has been notified by the 
                Secretary of the Treasury that a notice of deficiency 
                under section 6212 of such Code has been mailed with 
                respect to the tax imposed under section 4971(a) of 
                such Code.
                    ``(B) The plan will be unable to pay benefits when 
                due.
                    ``(C) The reportable event described in section 
                4043(c)(7) has occurred.
                    ``(D) The possible long-run loss of the corporation 
                with respect to the plan may reasonably be expected to 
                increase unreasonably if the plan is not terminated.
            ``(2) Requirement.--The corporation shall, as soon as 
        practicable, institute proceedings under this section to 
        terminate a single-employer plan whenever the corporation 
        determines that the plan does not have assets available to pay 
        benefits which are currently due under the terms of the plan. 
        Notwithstanding any other provision of this subchapter, the 
        corporation shall, to the extent practicable, pool assets of 
        terminated plans for purposes of administration, investment, 
        payment of liabilities of all such terminated plans, and such 
        other purposes as the corporation determines to be appropriate 
        in the administration of this title.
    ``(b) Appointment of the Corporation To Administer Plan.--
            ``(1) In general.--Whenever the corporation makes a 
        determination under subsection (a) with respect to a plan or is 
        required under subsection (a) to institute proceedings under 
        this section, the corporation may, upon notice to the plan, 
        apply to the appropriate United States district court to 
        appoint the corporation as the person to administer the plan 
        with respect to which the determination is made pending the 
        issuance of a decree under subsection (c) ordering the 
        termination of the plan. If, within 3 business days after the 
        filing of an application under this subsection (or such other 
        period as the court may order), the administrator of the plan 
        consents to the appointment of the corporation to administer 
        the plan, or fails to show why the corporation should not be so 
        appointed, the court may grant the application and appoint the 
        corporation to administer the plan in accordance with its terms 
        until the corporation determines that the plan should be 
        terminated or that termination is unnecessary.
            ``(2) Appointment.--Notwithstanding any other provision of 
        this title--
                    ``(A) upon the petition of a plan administrator or 
                the corporation, the appropriate United States district 
                court may appoint the corporation to administer the 
                plan in accordance with the provisions of this section 
                if the interests of the plan participants would be 
                better served by such appointment, and
                    ``(B) upon the petition of the corporation, the 
                appropriate United States district court shall appoint 
                a trustee proposed by the corporation for a 
                multiemployer plan which is in reorganization to which 
                section 4041A(d) applies, unless such appointment would 
                be adverse to the interests of the plan participants 
                and beneficiaries in the aggregate.
            ``(3) Agreement to appointment.--The corporation and plan 
        administrator may agree to the appointment of the corporation 
        to administer the plan without proceeding in accordance with 
        the requirements of paragraphs (1) and (2).''.
            (2) Conforming amendments.--
                    (A) Subsection (c) of such section 4042 is 
                amended--
                            (i) by striking ``(c)(1)'' and all that 
                        follows through the end of paragraph (1) and 
                        inserting the following:
    ``(c) Decree Enforcing Determination That Plan Must Be 
Terminated.--
            ``(1) Court decree.--
                    ``(A) Application.--If the corporation is required 
                under subsection (a) to commence proceedings under this 
                section with respect to a plan or, after issuing a 
                notice under this section to a plan administrator, has 
                determined that the plan should be terminated, the 
                corporation may, upon notice to the plan administrator, 
                apply to the appropriate United States district court 
                for a decree enforcing the corporation's determination 
                that the plan be terminated.
                    ``(B) Decree.--
                            ``(i) In general.--The district court shall 
                        issue the decree under subparagraph (A) unless 
                        such court finds, upon review of the 
                        administrative record of the corporation's 
                        determination under subsection (a), that such 
                        determination was arbitrary, capricious, an 
                        abuse of discretion, or otherwise not in 
                        accordance with law.
                            ``(ii) Effect of decree.--Upon granting a 
                        decree for which the corporation has applied 
                        under this subsection, the court shall 
                        authorize the corporation if appointed under 
                        subsection (b) (or appoint the corporation if 
                        such corporation has not been appointed under 
                        such subsection and authorize the corporation) 
                        to terminate the plan in accordance with the 
                        provisions of this subtitle.
                    ``(C) Waiver of application.--If the corporation 
                and the plan administrator agree that a plan should be 
                terminated and agree to the appointment of the 
                corporation to carry out the termination of the plan 
                without proceeding in accordance with the requirements 
                of this subsection (other than this subparagraph), the 
                corporation shall have the power described in 
                subsection (d)(1) and shall be subject to the duties 
                described in subsection (d)(3) and any other duties 
                imposed on the corporation under any other provision of 
                law or by agreement between the corporation and the 
                plan administrator.''; and
                            (ii) in paragraph (2), by striking ``(2) In 
                        the case of'' and inserting ``(2) Providing of 
                        information.--In the case of''.
                    (B) Subsection (d) of such section 4042 is 
                amended--
                            (i) in paragraph (1)(A)--
                                    (I) by striking ``A trustee 
                                appointed under subsection (b)'' and 
                                inserting ``If the corporation is 
                                appointed to administer a plan under 
                                subsection (b), the corporation'';
                                    (II) in clause (ii), by striking 
                                ``himself as trustee'' and inserting 
                                ``the corporation'';
                                    (III) in clause (iii), by striking 
                                ``he'' and inserting ``the 
                                corporation'';
                                    (IV) in clause (iv), by striking 
                                ``his appointment'' and inserting ``the 
                                appointment of the corporation'';
                                    (V) in clause (vi), by striking 
                                ``he'' and inserting ``the 
                                corporation'';
                                    (VI) in clause (vii), by striking 
                                ``trustee'' and inserting 
                                ``corporation''; and
                                    (VII) by striking the flush 
                                language after clause (vii) and 
                                inserting the following:
                ``If the court to which application is made under 
                subsection (c) dismisses the application with 
                prejudice, or if the corporation fails to apply for a 
                decree under subsection (c), within 30 days after the 
                date on which the corporation is appointed under 
                subsection (b), the corporation shall transfer all 
                assets and records of the plan held by such corporation 
                to the plan administrator not later than 3 business 
                days after such dismissal or the expiration of such 30-
                day period, and shall not be liable to the plan or any 
                other person for the acts of the corporation in 
                administering the plan except for willful misconduct or 
                gross negligence. The 30-day period described in the 
                preceding sentence may be extended as provided by 
                agreement between the plan administrator and the 
                corporation or by court order.'';
                            (ii) in paragraph (1)(B)--
                                    (I) in the matter preceding clause 
                                (i), by striking ``trustee'' and 
                                inserting ``corporation'';
                                    (II) by striking clauses (iii) and 
                                (v);
                                    (III) by redesignating clause (iv) 
                                as clause (iii); and
                                    (IV) by redesignating clauses (vi) 
                                through (viii) as clauses (iv) through 
                                (vi), respectively;
                            (iii) in paragraph (2)--
                                    (I) in the matter preceding 
                                subparagraph (A) by striking ``his 
                                appointment, the trustee'' and 
                                inserting ``the appointment of the 
                                corporation to administer the plan, the 
                                corporation''; and
                                    (II) in subparagraph (D) by 
                                striking ``section''; and
                            (iv) by striking paragraph (3) and 
                        inserting the following:
            ``(3) Except to the extent inconsistent with the provisions 
        of this Act, the corporation, as appointed under this section, 
        shall be subject to the same duties as those of a trustee under 
        section 704 of title 11, United States Code, and shall be, with 
        respect to the plan, a fiduciary within the meaning of section 
        3(21) (except to the extent that the provisions of this title 
        are inconsistent with the requirements applicable under part 4 
        of subtitle B of title I). Notwithstanding any references in 
        this section to administering a plan, the corporation shall not 
        be considered a plan administrator within the meaning of 
        section 3 and shall not be subject to the duties of a plan 
        administrator under title I, including the duty to file reports 
        on behalf of the plan.
            ``(4) When appointed under subsection (b) to administer a 
        plan or granted a decree to terminate a plan under subsection 
        (c), the corporation shall, within 30 days of the receipt of a 
        written request from any participant or beneficiary of the plan 
        (or as soon as practicable thereafter), furnish a copy of the 
        plan document, summary plan description, and other instruments 
        under which the plan is established or operated that relate to 
        the participant's or beneficiary's benefit under the plan. The 
        corporation may charge a reasonable fee to cover the cost of 
        furnishing complete copies.''.
                    (C) Subsection (f) of such section 4042 is amended 
                to read as follows:
    ``(f) Upon the filing of an application for the appointment of the 
corporation to administer a plan or the issuance of a decree under this 
section, the court to which an application is made shall have exclusive 
jurisdiction of the plan involved and property of the plan, wherever 
located, with the powers, to the extent consistent with the purposes of 
this section, of a court of the United States having jurisdiction over 
cases under chapter 11 of title 11, United States Code. Pending an 
adjudication under subsection (c), such court shall stay, and upon 
appointment of the corporation to carry out the termination of the plan 
under this section, such court shall continue the stay of any pending 
mortgage foreclosure, equity receivership, or other proceeding to 
reorganize, conserve, or liquidate the plan or the property of the plan 
and any other suit against any receiver, conservator, or trustee of the 
plan or property of the plan. Pending such adjudication and upon the 
appointment of the corporation to carry out the termination of the 
plan, the court may stay any proceeding to enforce a lien against 
property of the plan or any other suit against the plan.''.
                    (D) Such section 4042 is amended by striking 
                subsection (h).
    (b) Other Conforming and Technical Amendments.--
            (1) Section 4002(h)(1) of such Act (29 U.S.C. 1302(h)(1)) 
        is amended--
                    (A) in the first sentence--
                            (i) in subparagraph (A), by striking ``the 
                        appointment of trustees in termination 
                        proceedings'' and inserting ``the appointment 
                        of the corporation to administer or carry out a 
                        termination of a plan under section 4042''; and
                            (ii) in subparagraph (C), by striking 
                        ``under a trustee'' and inserting ``under the 
                        corporation''; and
                    (B) in the second sentence--
                            (i) by striking ``recommend persons for 
                        appointment as trustees in termination 
                        proceedings,'';
                            (ii) by striking the comma after ``funds''; 
                        and
                            (iii) by striking ``under a trustee'' and 
                        inserting ``under the corporation''.
            (2) Section 4003 of such Act (29 U.S.C. 1303) is amended--
                    (A) in subsection (e)(6)(B), by amending clause 
                (ii) to read as follows:
            ``(ii) If the corporation brings the action on behalf of a 
        plan that the corporation was appointed to administer or 
        terminate under section 4042, the applicable date specified in 
        this subparagraph is the date on which the corporation was so 
        appointed if such date is later than the date described in 
        clause (i).''; and
                    (B) in subsection (f)(4), by striking ``the 
                corporation in its capacity as a trustee under section 
                4042 or 4049'' and inserting ``the corporation in its 
                capacity as a trustee under section 4049 or in its 
                capacity in administering a plan pursuant to its 
                appointment under section 4042(b) or carrying out the 
                termination of a plan pursuant to its appointment under 
                section 4042(c)''.
            (3) Section 4004(b) of such Act (29 U.S.C. 1304(b)) is 
        amended--
                    (A) in paragraph (1), by striking ``pension plans 
                trusteed by the corporation'' and inserting ``pension 
                plans for which the corporation has been appointed 
                under section 4042 to carry out their termination''; 
                and
                    (B) in paragraph (2), by striking ``plans trusteed 
                by the corporation'' and inserting ``plans for which 
                the corporation has been appointed under section 4042 
                to carry out their termination''.
            (4) Section 4005(b)(1)(B) of such Act (29 U.S.C. 
        1305(b)(1)(B)) is amended by striking ``a plan administered 
        under section 4042 by a trustee'' and inserting ``a plan that 
        the corporation has been appointed to terminate under section 
        4042''.
            (5) Section 4007(a) of such Act (29 U.S.C. 1307(a)) is 
        amended by striking ``a trustee'' and inserting ``the 
        corporation''.
            (6) Section 4044 of such Act (29 U.S.C. 1344) is amended--
                    (A) in subsection (c), by striking ``the date a 
                trustee is appointed under section 4042(b)'' and 
                inserting ``the date the corporation is appointed under 
                section 4042(b) to administer the plan''; and
                    (B) in subsection (f)--
                            (i) in paragraph (2)(C)(ii), by striking 
                        ``the trustee appointed under section 4042(b) 
                        or (c)'' and inserting ``the corporation, for 
                        the account of the plan''; and
                            (ii) in paragraph (3), by amending 
                        subparagraph (B) to read as follows:
                    ``(B) the amount of any liability to the 
                corporation under section 4062(b) or (c).''.
            (7) Section 4045 of such Act (29 U.S.C. 1345) is amended by 
        striking ``trustee'' each place such term appears in 
        subsections (a) and (c) and inserting ``corporation''.
            (8)(A) Section 4046 of such Act (29 U.S.C. 1346) is 
        repealed.
            (B) The table of sections for subtitle C of title IV of 
        such Act is amended by striking the item relating to section 
        4046.
            (9) Section 4048 of such Act (29 U.S.C. 1348) is amended--
                    (A) in subsection (a)(4), by striking ``(or the 
                trustee)''; and
                    (B) in subsection (b)(2), by striking ``(or the 
                trustee appointed under section 4042(b)(2), if any)''.
            (10) Section 4050(a)(2) of such Act (29 U.S.C. 1350(a)(2)) 
        is amended by striking ``to the corporation as trustee, and 
        shall be held with assets of terminated plans for which the 
        corporation is trustee under section 4042'' and inserting ``to 
        the corporation, as appointed under section 4042 to carry out 
        the termination of a plan, and shall be held with assets of 
        terminated plans that the corporation has been appointed to 
        terminate under section 4042''.
            (11) Section 4062 of such Act (29 U.S.C. 1362), as amended 
        by sections 303 and 321, is amended--
                    (A) in subsection (a), by striking paragraphs (1) 
                and (2) and inserting the following:
            ``(1) liability to the corporation, for the account of the 
        corporation, to the extent provided in subsection (b), and
            ``(2) liability to the corporation, for the account of the 
        plan, to the extent provided in subsection (c).'';
                    (B) in the heading of subsection (b), by inserting 
                ``for Its Own Account'' after ``Corporation''; and
                    (C) in subsection (c)--
                            (i) in the heading, by striking ``Section 
                        4042 Trustee'' and inserting ``the Corporation 
                        for the Account of the Plan''; and
                            (ii) in the matter preceding paragraph (1), 
                        by striking ``the trustee appointed under 
                        subsection (b) or (c) of section 4042'' and 
                        inserting ``the corporation, for the account of 
                        the plan, as appointed under section 4042 to 
                        carry out the termination of the plan''.

SEC. 314. RECORDKEEPING FOR TERMINATING PLANS.

    (a) Single-Employer Plan Benefits Guaranteed.--Section 4022 of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1322) is 
amended by adding at the end the following:
    ``(i) Recordkeeping.--The Corporation may issue regulations to 
require plan sponsors or plan administrators to maintain records 
necessary to enable the to determine benefits as of the termination 
date. Such regulations may require plan sponsors or plan administrators 
to certify to the corporation that such records are being 
maintained.''.
    (b) Allocation of Assets.--Section 4044 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1344) is amended by adding at 
the end the following:
    ``(g) Recordkeeping.--The Corporation may issue regulations to 
require plan sponsors or plan administrators to maintain records 
necessary to enable the Corporation to determine benefits as of the 
termination date. Such regulations may require plan sponsors or plan 
administrators to certify to the corporation that such records are 
being maintained.''.

SEC. 315. TERMINATION DATE IN BANKRUPTCY.

    Sections 4022(g) and 4044(e) of the Employee Retirement Income 
Security Act of 1974, as added by section 404 of the Pension Protection 
Act of 2006 (Public Law 109-280; 120 Stat. 928), are repealed as of 
December 31, 2014, and shall not apply with respect to proceedings 
initiated under title 11, United States Code, or under any similar 
Federal law or law of a State or political subdivision, on or after 
such date.

                    TITLE IV--OTHER SYSTEMIC REFORMS

SEC. 401. PLAN AUDIT QUALITY IMPROVEMENT.

    (a) Annual Reports.--Section 103(a)(3) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1023(a)(3)) is amended--
            (1) in subparagraph (A), by striking ``in conformity with 
        generally accepted accounting principles applied on a basis 
        consistent with that of the preceding year. Such examination 
        shall be conducted in accordance with generally accepted 
        auditing standards, and shall involve such tests of the books 
        and records of the plan as are considered necessary by the 
        independent qualified public accountant.'' and inserting ``in 
        conformity with generally accepted accounting principles, as 
        superseded or modified by the Secretary in regulations, applied 
        on a basis consistent with that of the preceding year. Such 
        examination shall be conducted in accordance with generally 
        accepted auditing standards, except as superseded or modified 
        by the Secretary in regulations, and shall involve such tests 
        of the books and records of the plan as are considered 
        necessary by the independent qualified public accountant.''; 
        and
            (2) by adding at the end the following:
                    ``(E) Persons described in subparagraphs (i) 
                through (iii) of subparagraph (D) shall be subject to 
                such additional standards regarding conflicts of 
                interest, qualifications, and direct reporting of 
                certain events such as fraud and other irregularities 
                as the Secretary may prescribe in regulations.''.
    (b) Civil Enforcement.--Section 502(c)(2) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1132(c)(2)) is 
amended by adding at the end the following new sentence: ``If the 
Secretary rejects an annual report in whole or in part due to the 
failure to comply with a requirement of section 103 imposed on an 
accountant, actuary, or other person, the Secretary may assess all or 
part of the civil penalty against such person. The Secretary may 
require remediation in place of assessing all or part of a penalty.''.
    (c) Debarment for Deficient Audits or for Failing To Meet 
Qualification Standards.--
            (1) In general.--Part 5 of subtitle B of title I of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 1131 
        et seq.) is amended by adding at the end the following:

``SEC. 522. DEBARMENT FOR DEFICIENT AUDITS OR FOR FAILING TO MEET 
              QUALIFICATION STANDARDS.

    ``(a) In General.--If the Secretary finds, after notice and 
opportunity for a hearing, that an accountant or accounting firm has 
engaged in any act or practice, or failed to act, in violation of 
section 103 relating to the preparation and issuance of audit reports, 
or with professional standards, the Secretary may issue an order to bar 
an accountant or accounting firm (or division or component of such 
firm), on a temporary or permanent basis, from directly or indirectly 
engaging in specified activities relating to performing or supervising 
plan audits required under section 103.
    ``(b) Hearings.--The subject of a debarment order may request a 
hearing and file an answer not later than 30 days after the date of 
service of the notice of the debarment order, in accordance with 
regulations prescribed by the Secretary. Failure to request a hearing 
within such 30-day period shall constitute a waiver of the right to 
appear and contest the facts alleged in the debarment order and an 
admission of the facts alleged in the order for purposes of any related 
proceedings under this part. Such order shall then become a final 
agency action under section 704 of title 5, United States Code.
    ``(c) Modification or Termination of Orders.--The Secretary may 
modify or terminate an order issued under this section, upon the 
request of the subject of the order and pursuant to procedures 
established by the Secretary, if the Secretary determines that such 
modification or termination is in the interest of plan participants and 
beneficiaries.
    ``(d) Publicity of Orders.--The Secretary shall make all final 
orders under this section (including modified orders) public and shall 
notify applicable State regulatory organizations upon the issuance of 
such final orders (including modified orders).
    ``(e) Jurisdiction.--Lawsuits by the subject of an order to review 
the final order of the Secretary may be brought only in the district 
court of the United States for the district where the subject of the 
order has its principal office or in the United States District Court 
for the District of Columbia.
    ``(f) Regulations.--The Secretary may promulgate such regulations 
or other guidance as may be necessary or appropriate to carry out this 
section.''.
            (2) Clerical amendment.--The table of sections for part 5 
        of subtitle B of title I of the Employee Retirement Income 
        Security Act of 1974 is amended by adding at the end the 
        following new item:

``522. Debarment for deficient audits or for failing to meet 
                            qualification standards.''.
    (d) Exception.--
            (1) In general.--Section 103(a)(3)(C) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 
        1023(a)(3)(C)) is amended by striking ``if such statements are 
        certified by the bank, similar institution, or insurance 
        carrier as accurate and are made part of the annual report.'' 
        and inserting ``except to the extent required under regulations 
        promulgated by the Secretary.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall not become effective until the Secretary has promulgated 
        final regulations with respect to such amendment.

SEC. 402. SPECIAL RULES RELATING TO TREATMENT OF QUALIFIED DOMESTIC 
              RELATIONS ORDERS.

    (a) Preservation of Assets.--
            (1) Amendments to erisa.--Section 206(d)(3) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1056(d)(3)) 
        is amended--
                    (A) by redesignating subparagraph (N) as 
                subparagraph (O); and
                    (B) by inserting after subparagraph (M) the 
                following:
                    ``(N) Preservation of assets.--
                            ``(i) In general.--If a spouse or former 
                        spouse of a participant--
                                    ``(I) notifies a plan in writing 
                                that--
                                            ``(aa) an action is pending 
                                        pursuant to a State domestic 
                                        relations law (including a 
                                        community property law), and
                                            ``(bb) all or a portion of 
                                        the benefits payable with 
                                        respect to the participant 
                                        under the plan are a subject of 
                                        such action, and
                                    ``(II) includes with the notice 
                                evidence of the pendency of the action,
                        the plan administrator shall, during the 
                        segregation period, separately account for 50 
                        percent of such benefits. Any amounts so 
                        separately accounted for may not be distributed 
                        by the plan during the segregation period.
                            ``(ii) Segregation period.--
                                    ``(I) In general.--For purposes of 
                                clause (i), the term `segregation 
                                period' means the period--
                                            ``(aa) beginning on the 
                                        date of receipt by the plan of 
                                        the notice under clause (i), 
                                        and
                                            ``(bb) ending on the 
                                        earlier of--

                                                    ``(AA) 90 days 
                                                after the date of 
                                                receipt of such notice, 
                                                or

                                                    ``(BB) the date of 
                                                receipt of a domestic 
                                                relations order with 
                                                respect to the 
                                                participant and the 
                                                prospective alternate 
                                                payee or the date on 
                                                which the action is no 
                                                longer pending.

                                    ``(II) Extension of segregation 
                                period.--The segregation period shall 
                                be extended for 1 or more additional 
                                periods described in subclause (I) upon 
                                notice by the spouse or former spouse 
                                that the action described in clause 
                                (i)(I)(aa) is still pending as of the 
                                close of any prior segregation 
                                period.''.
            (2) Amendments to 1986 code.--Section 414(p) of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by redesignating paragraph (13) as paragraph 
                (14); and
                    (B) by inserting after paragraph (12) the 
                following:
            ``(13) Preservation of assets.--
                    ``(A) In general.--If a spouse or former spouse of 
                a participant--
                            ``(i) notifies a plan in writing that--
                                    ``(I) an action is pending pursuant 
                                to a State domestic relations law 
                                (including a community property law), 
                                and
                                    ``(II) all or a portion of the 
                                benefits payable with respect to the 
                                participant under the plan are a 
                                subject of such action, and
                            ``(ii) includes with the notice evidence of 
                        the pendency of the action,
                the plan administrator shall, during the segregation 
                period, separately account for 50 percent of such 
                benefits. Any amounts so separately accounted for may 
                not be distributed by the plan during the segregation 
                period.''.
                    ``(B) Segregation period.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A), the term `segregation period' 
                        means the period--
                                    ``(I) beginning on the date of 
                                receipt by the plan of the notice under 
                                clause (i), and
                                    ``(II) ending on the earlier of--
                                            ``(aa) 90 days after the 
                                        date of receipt of such notice, 
                                        or
                                            ``(bb) the date of receipt 
                                        of a domestic relations order 
                                        with respect to the participant 
                                        and the prospective alternate 
                                        payee or the date on which the 
                                        action is no longer pending.
                            ``(ii) Extension of segregation period.--
                        The segregation period shall be extended for 1 
                        or more additional periods described in clause 
                        (i) upon notice by the spouse or former spouse 
                        that the action described in subparagraph 
                        (A)(i)(I) is still pending as of the close of 
                        any prior segregation period.''.
    (b) Penalty for Failure To Provide Information Regarding Alternate 
Payees.--
            (1) In general.--Section 502(c), as amended by section 312, 
        of the Employee Retirement Income Security Act of 1974 (29 
        U.S.C. 1132(c)) is amended--
                    (A) by redesignating paragraphs (8), (9), (10), 
                (11), and (12) as paragraphs (9), (10), (11), (12), and 
                (13) respectively; and
                    (B) by inserting after paragraph (7) the following:
            ``(8) Failure to provide information regarding alternate 
        payees.--The plan administrator shall provide information 
        regarding the benefit to prospective alternative payees under a 
        domestic relations order under section 206(d)(3) or any 
        representative of a prospective alternative payee in connection 
        with such an order. The Secretary may assess a civil penalty 
        against any plan administrator of up to $100 a day from the 
        date of the plan administrator's failure or refusal to provide 
        such information.''.
            (2) Conforming amendment.--Section 502(a)(6) of such Act 
        (29 U.S.C. 1132(a)(6)), as so amended, is amended by striking 
        ``or (11)'' and inserting ``(11), or (12)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2014.

SEC. 403. CORRECTION TO BONDING REQUIREMENT.

    Section 412(a)(3)(D) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1112(a)(3)(D)) is amended by striking ``Paragraph 
(2)'' and inserting ``This paragraph''.

SEC. 404. RETALIATION PROTECTIONS.

    Section 510 of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1140) is amended by inserting ``, has filed or made any oral 
or written complaint (including to a fiduciary, an employer, or the 
Secretary),'' after ``given information''.
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