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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 2132 Introduced in Senate (IS)]

104th CONGRESS
  2d Session
                                S. 2132

  To amend the Internal Revenue Code of 1986 to provide comprehensive 
                     pension protection for women.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 26, 1996

 Ms. Moseley-Braun introduced the following bill; which was read twice 
                and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
  To amend the Internal Revenue Code of 1986 to provide comprehensive 
                     pension protection for women.

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

SECTION 1. SHORT TITLE.

    (a) Short Title.--This Act may be cited as the ``Comprehensive 
Women's Pension Protection Act of 1996''.
    (b) Table of Contents.--

Sec. 1. Short title.
                        TITLE I--PENSION REFORM

Sec. 101. Pension integration rules.
Sec. 102. Application of minimum coverage requirements with respect to 
                            separate lines of business.
Sec. 103. Division of pension benefits upon divorce.
Sec. 104. Clarification of continued availability of remedies relating 
                            to matters treated in domestic relations 
                            orders entered before 1985.
Sec. 105. Entitlement of divorced spouses to railroad retirement 
                            annuities independent of actual entitlement 
                            of employee.
Sec. 106. Effective dates.
 TITLE II--PROTECTION OF RIGHTS OF FORMER SPOUSES TO PENSION BENEFITS 
 UNDER CERTAIN GOVERNMENT AND GOVERNMENT-SPONSORED RETIREMENT PROGRAMS

Sec. 201. Extension of tier II railroad retirement benefits to 
                            surviving former spouses pursuant to 
                            divorce agreements.
Sec. 202. Survivor annuities for widows, widowers, and former spouses 
                            of Federal employees who die before 
                            attaining age for deferred annuity under 
                            civil service retirement system.
Sec. 203. Court orders relating to Federal retirement benefits for 
                            former spouses of Federal employees.
Sec. 204. Prevention of circumvention of court order by waiver of 
                            retired pay to enhance civil service 
                            retirement annuity.
               TITLE III--REFORMS RELATED TO 401(K) PLANS

Sec. 301. 401(k) plans prohibited from investing in collectibles.
Sec. 302. Requirement of annual, detailed investment reports applied to 
                            certain 401(k) plans.
Sec. 303. 10-percent limitation on acquisition and holding of employer 
                            securities and employer real property 
                            applied to 401(k) plans.
   TITLE IV--MODIFICATIONS OF JOINT AND SURVIVOR ANNUITY REQUIREMENTS

Sec. 401. Modifications of joint and survivor annuity requirements.
TITLE V--SPOUSAL CONSENT REQUIRED FOR DISTRIBUTIONS FROM SECTION 401(K) 
                                 PLANS

Sec. 501. Spousal consent required for distributions from section 
                            401(k) plans.
            TITLE VI--WOMEN'S PENSION TOLL-FREE PHONE NUMBER

Sec. 601. Women's pension toll-free phone number.
             TITLE VII--ANNUAL PENSION BENEFITS STATEMENTS

Sec. 701. Annual pension benefits statements.

                        TITLE I--PENSION REFORM

SEC. 101. PENSION INTEGRATION RULES.

    (a) Applicability of New Integration Rules Extended to All Existing 
Accrued Benefits.--Notwithstanding subsection (c)(1) of section 1111 of 
the Tax Reform Act of 1986 (relating to effective date of application 
of nondiscrimination rules to integrated plans) (100 Stat. 2440), 
effective for plan years beginning after the date of the enactment of 
this Act, the amendments made by subsection (a) of such section 1111 
shall also apply to benefits attributable to plan years beginning on or 
before December 31, 1988.
    (b) Integration Disallowed for Simplified Employee Pensions.--
            (1) In general.--Subparagraph (D) of section 408(k)(3) of 
        the Internal Revenue Code of 1986 (relating to permitted 
        disparity under rules limiting discrimination under simplified 
        employee pensions) is repealed.
            (2) Conforming amendment.--Subparagraph (C) of such section 
        408(k)(3) is amended by striking ``and except as provided in 
        subparagraph (D),''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply with respect to taxable years beginning on or after 
        January 1, 1996.
    (c) Eventual Repeal of Integration Rules.--Effective for plan years 
beginning on or after January 1, 2003--
            (1) subparagraphs (C) and (D) of section 401(a)(5) of the 
        Internal Revenue Code of 1986 (relating to pension integration 
        exceptions under nondiscrimination requirements for 
        qualification) are repealed, and subparagraph (E) of such 
        section 401(a)(5) is redesignated as subparagraph (C); and
            (2) subsection (l) of section 401 of such Code (relating to 
        nondiscriminatory coordination of defined contribution plans 
        with OASDI) is repealed.

SEC. 102. APPLICATION OF MINIMUM COVERAGE REQUIREMENTS WITH RESPECT TO 
              SEPARATE LINES OF BUSINESS.

    (a) In General.--Subsection (b) of section 410 of the Internal 
Revenue Code of 1986 (relating to minimum coverage requirements) is 
amended--
            (1) in paragraph (1), by striking ``A trust'' and inserting 
        ``In any case in which the employer with respect to a plan is 
        treated, under section 414(r), as operating separate lines of 
        business for a plan year, a trust'', and by inserting ``for 
        such plan year'' after ``requirements''; and
            (2) by redesignating paragraphs (3) through (6) as 
        paragraphs (4) through (7), respectively and by inserting after 
        paragraph (2) the following new paragraph:
            ``(3) Special rule where employer operates single line of 
        business.--In any case in which the employer with respect to a 
        plan is not treated, under section 414(r), as operating 
separate lines of business for a plan year, a trust shall not 
constitute a qualified trust under section 401(a) unless such trust is 
designated by the employer as part of a plan which benefits all 
employees of the employer.''.
    (b) Limitation on Line of Business Exception.--Paragraph (6) of 
section 410(b) of such Code (as redesignated by subsection (a)(2) of 
this section) is amended by inserting ``other than paragraph (1)(A)'' 
after ``this subsection''.

SEC. 103. DIVISION OF PENSION BENEFITS UPON DIVORCE.

    (a) Amendments to the Internal Revenue Code of 1986.--
            (1) In general.--Subsection (a) of section 401 of the 
        Internal Revenue Code of 1986 (relating to requirements for 
        qualification) is amended--
                    (A) by inserting after paragraph (31) the following 
                new paragraph:
            ``(32) Division of pension benefits upon divorce.--
                    ``(A) In general.--In the case of a divorce of a 
                participant in a pension plan from a spouse who is, 
                immediately before the divorce, a beneficiary under the 
                plan, a trust forming a part of such plan shall not 
                constitute a qualified trust under this section unless 
                the plan provides that at least 50 percent of the 
                marital share of the accrued benefit of the participant 
                under the plan ceases to be an accrued benefit of such 
                participant and becomes an accrued benefit of such 
                divorced spouse, determined and payable upon the 
                earlier of the retirement of the participant, the 
                participant's death, or the termination of the plan, 
                except to the extent that a qualified domestic 
                relations order in connection with such divorce 
                provides otherwise.
                    ``(B) Limitation.--Subparagraph (A) shall not be 
                construed--
                            ``(i) to require a plan to provide any type 
                        or form of benefit, or any option, not 
                        otherwise provided under the plan,
                            ``(ii) to require the plan to provide 
                        increased benefits (determined on the basis of 
                        actuarial value),
                            ``(iii) to require the payment of benefits 
                        to the divorced spouse which are required to be 
                        paid to another individual in accordance with 
                        this paragraph or pursuant to a domestic 
                        relations order previously determined to be a 
                        qualified domestic relations order, or
                            ``(iv) to require payment of benefits to 
                        the divorced spouse in the form of a qualified 
                        joint and survivor annuity to the divorced 
                        spouse and his or her subsequent spouse.
                    ``(C) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Domestic relations order; qualified 
                        domestic relations order.--The terms `domestic 
                        relations order' and `qualified domestic 
                        relations order' shall have the meanings 
                        provided in section 414(p).
                            ``(ii) Marital share.--The term `marital 
                        share' means, in connection with an accrued 
                        benefit under a pension plan, the product 
                        derived by multiplying--
                                    ``(I) the actuarial present value 
                                of the accrued benefit, by
                                    ``(II) a fraction, the numerator of 
                                which is the period of time, during the 
                                marriage between the spouse and the 
                                participant in the plan, which 
                                constitutes creditable service by the 
                                participant under the plan, and the 
                                denominator of which is the total 
                                period of time which constitutes 
                                creditable service by the participant 
                                under the plan.
                            ``(iii) Qualified joint and survivor 
                        annuity.--The term `qualified joint and 
                        survivor annuity' has the meaning provided in 
                        section 417(b).
                    ``(D) Regulations.--In prescribing regulations 
                under this paragraph, the Secretary shall consult with 
                the Secretary of Labor.''; and
                    (B) in the last sentence, by striking ``and (20)'' 
                and inserting ``(20), and (32)''.
            (2) Conforming amendments.--
                    (A) Subparagraph (B) of section 401(a)(13) of such 
                Code (relating to special rules for domestic relations 
                orders) is amended by inserting ``or if such creation, 
                assignment, or recognition pursuant to such order is 
                necessary for compliance with the requirements of 
                paragraph (32)'' before the period.
                    (B) Subsection (p) of section 414 of such Code 
                (defining qualified domestic relations orders) is 
                amended--
                            (i) in paragraph (3)(C), by inserting ``or 
                        to a divorced spouse of the participant in 
                        connection with a previously occurring divorce 
                        as required under section 401(a)(32)'' before 
                        the period; and
                            (ii) in paragraph (7)(C), by striking ``if 
                        there had been no order'' and inserting ``in 
                        accordance with section 401(a)(32) as if there 
                        had been no qualified domestic relations 
                        order''.
    (b) Amendments to the Employee Retirement Income Security Act of 
1974.--
            (1) In general.--Section 206 of Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1056) is amended by adding at 
        the end the following new subsection:
    ``(e)(1) In the case of a divorce of a participant in a pension 
plan from a spouse who is, immediately before the divorce, a 
beneficiary under the plan, the plan shall provide that at least 50 
percent of the marital share of the accrued benefit of the participant 
under the plan ceases to be an accrued benefit of such participant and 
becomes an accrued benefit of such divorced spouse, determined and 
payable upon the earlier of the retirement of the participant, the 
participant's death, or the termination of the plan, except to the 
extent that a qualified domestic relations order in connection with 
such divorce provides otherwise.
    ``(2) Paragraph (1) shall not be construed--
            ``(A) to require a plan to provide any type or form of 
        benefit, or any option, not otherwise provided under the plan,
            ``(B) to require the plan to provide increased benefits 
        (determined on the basis of actuarial value),
            ``(C) to require the payment of benefits to the divorced 
        spouse which are required to be paid to another individual in 
        accordance with this subsection or pursuant to a domestic 
        relation order previously determined to be a qualified domestic 
        relations order, or
            ``(D) to require payment of benefits to the divorced spouse 
        in the form of a joint and survivor annuity to the divorced 
        spouse and his or her subsequent spouse.
    ``(3) For purposes of this subsection--
            ``(A) The terms `domestic relations order' and `qualified 
        domestic relations order' shall have the meanings provided in 
        subsection (d)(3)(B).
            ``(B) The term `marital share' means, in connection with an 
        accrued benefit under a pension plan, the product derived by 
        multiplying--
                    ``(i) the actuarial present value of the accrued 
                benefit, by
                    ``(ii) a fraction--
                            ``(I) the numerator of which is the period 
                        of time, during the marriage between the spouse 
                        and the participant in the plan, which 
                        constitutes creditable service by the 
                        participant under the plan, and
                            ``(II) the denominator of which is the 
                        total period of time which constitutes 
                        creditable service by the participant under the 
                        plan.
            ``(C) The term `qualified joint and survivor annuity' shall 
        have the meaning provided in section 205(d).
    ``(4) In prescribing regulations under this subsection, the 
Secretary shall consult with the Secretary of the Treasury.''.
            (2) Conforming amendments.--Section 206(d) of such Act (29 
        U.S.C. 1056(d)) is amended--
                    (A) in the first sentence of paragraph (3)(A), by 
                inserting ``or if such creation, assignment, or 
                recognition pursuant to such order is necessary for 
                compliance with the requirements of subsection (e)'' 
                before the period;
                    (B) in paragraph (3)(D)(iii), by inserting ``or to 
                a divorced spouse of the participant in connection with 
                a previously occurring divorce as required under 
                subsection (e)'' before the period; and
                    (C) in paragraph (3)(H)(iii), by striking ``if 
                there had been no order'' and inserting ``in accordance 
                with subsection (e) as if there had been no qualified 
                domestic relations order''.

SEC. 104. CLARIFICATION OF CONTINUED AVAILABILITY OF REMEDIES RELATING 
              TO MATTERS TREATED IN DOMESTIC RELATIONS ORDERS ENTERED 
              BEFORE 1985.

    (a) In General.--In any case in which--
            (1) under a prior domestic relations order entered before 
        January 1, 1985, in an action for divorce--
                    (A) the right of a spouse under a pension plan to 
                an accrued benefit under such plan was not divided 
                between spouses,
                    (B) any right of a spouse with respect to such an 
                accrued benefit was waived without the informed consent 
                of such spouse, or
                    (C) the right of a spouse as a participant under a 
                pension plan to an accrued benefit under such plan was 
                divided so that the other spouse received less than 
                such other spouse's pro rata share of the accrued 
                benefit under the plan, or
            (2) a court of competent jurisdiction determines that any 
        further action is appropriate with respect to any matter to 
        which a prior domestic relations order entered before such date 
        applies,
nothing in the provisions of section 104, 204, or 303 of the Retirement 
Equity Act of 1984 (Public Law 98-397) or the amendments made thereby 
shall be construed to require or permit the treatment, for purposes of 
such provisions, of a domestic relations order, which is entered on or 
after the date of the enactment of this Act and which supersedes, 
amends the terms of, or otherwise affects such prior domestic relations 
order, as other than a qualified domestic relations order solely 
because such prior domestic relations order was entered before January 
1, 1985.
    (b) Definitions.--For purposes of this section--
            (1) In general.--Terms used in this section which are 
        defined in section 3 of the Employee Retirement Income Security 
        Act of 1974 (29 U.S.C. 1002) shall have the meanings provided 
        such terms by such section.
            (2) Pro rata share.--The term ``pro rata share'' of a 
        spouse means, in connection with an accrued benefit under a 
        pension plan, 50 percent of the product derived by 
        multiplying--
                    (A) the actuarial present value of the accrued 
                benefit, by
                    (B) a fraction--
                            (i) the numerator of which is the period of 
                        time, during the marriage between the spouse 
                        and the participant in the plan, which 
                        constitutes creditable service by the 
                        participant under the plan, and
                            (ii) the denominator of which is the total 
                        period of time which constitutes creditable 
                        service by the participant under the plan.
            (3) Plan.--All pension plans in which a person has been a 
        participant shall be treated as one plan with respect to such 
        person.

SEC. 105. ENTITLEMENT OF DIVORCED SPOUSES TO RAILROAD RETIREMENT 
              ANNUITIES INDEPENDENT OF ACTUAL ENTITLEMENT OF EMPLOYEE.

    Section 2 of the Railroad Retirement Act of 1974 (45 U.S.C. 231a) 
is amended--
            (1) in subsection (c)(4)(i), by striking ``(A) is entitled 
        to an annuity under subsection (a)(1) and (B)''; and
            (2) in subsection (e)(5), by striking ``or divorced wife'' 
        the second place it appears.

SEC. 106. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this title, other than section 101, shall apply with 
respect to plan years beginning on or after January 1, 1996, and the 
amendments made by section 103 shall apply only with respect to 
divorces becoming final in such plan years.
    (b) Special Rule for Collectively Bargained Plans.--In the case of 
a plan maintained pursuant to 1 or more collective bargaining 
agreements between employee representatives and 1 or more employers 
ratified on or before the date of the enactment of this Act, subsection 
(a) shall be applied to benefits pursuant to, and individuals covered 
by, any such agreement by substituting for ``January 1, 1996'' the date 
of the commencement of the first plan year beginning on or after the 
earlier of--
            (1) the later of--
                    (A) January 1, 1996, or
                    (B) the date on which the last of such collective 
                bargaining agreements terminates (determined without 
                regard to any extension thereof after the date of the 
                enactment of this Act), or
            (2) January 1, 1999.
    (c) Plan Amendments.--If any amendment made by this title requires 
an amendment to any plan, such plan amendment shall not be required to 
be made before the first plan year beginning on or after January 1, 
1996, if--
            (1) during the period after such amendment made by this 
        title takes effect and before such first plan year, the plan is 
        operated in accordance with the requirements of such amendment 
        made by this title, and
            (2) such plan amendment applies retroactively to the period 
        after such amendment made by this title takes effect and such 
        first plan year.
A plan shall not be treated as failing to provide definitely 
determinable benefits or contributions, or to be operated in accordance 
with the provisions of the plan, merely because it operates in 
accordance with this subsection.

 TITLE II--PROTECTION OF RIGHTS OF FORMER SPOUSES TO PENSION BENEFITS 
 UNDER CERTAIN GOVERNMENT AND GOVERNMENT-SPONSORED RETIREMENT PROGRAMS

SEC. 201. EXTENSION OF TIER II RAILROAD RETIREMENT BENEFITS TO 
              SURVIVING FORMER SPOUSES PURSUANT TO DIVORCE AGREEMENTS.

    (a) In General.--Section 5 of the Railroad Retirement Act of 1974 
(45 U.S.C. 231d) is amended by adding at the end the following new 
subsection:
    ``(d) Notwithstanding any other provision of law, the payment of 
any portion of an annuity computed under section 3(b) to a surviving 
former spouse in accordance with a court decree of divorce, annulment, 
or legal separation or the terms of any court-approved property 
settlement incident to any such court decree shall not be terminated 
upon the death of the individual who performed the service with respect 
to which such annuity is so computed unless such termination is 
otherwise required by the terms of such court decree.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 202. SURVIVOR ANNUITIES FOR WIDOWS, WIDOWERS, AND FORMER SPOUSES 
              OF FEDERAL EMPLOYEES WHO DIE BEFORE ATTAINING AGE FOR 
              DEFERRED ANNUITY UNDER CIVIL SERVICE RETIREMENT SYSTEM.

    (a) Benefits for Widow or Widower.--Section 8341(f) of title 5, 
United States Code, is amended--
            (1) in the matter preceding paragraph (1) by--
                    (A) by inserting ``a former employee separated from 
                the service with title to deferred annuity from the 
                Fund dies before having established a valid claim for 
                annuity and is survived by a spouse, or if'' before ``a 
                Member''; and
                    (B) by inserting ``of such former employee or 
                Member'' after ``the surviving spouse'';
            (2) in paragraph (1)--
                    (A) by inserting ``former employee or'' before 
                ``Member commencing''; and
                    (B) by inserting ``former employee or'' before 
                ``Member dies''; and
            (3) in the undesignated sentence following paragraph (2)--
                    (A) in the matter preceding subparagraph (A) by 
                inserting ``former employee or'' before ``Member''; and
                    (B) in subparagraph (B) by inserting ``former 
                employee or'' before ``Member''.
    (b) Benefits for Former Spouse.--Section 8341(h) of title 5, United 
States Code, is amended--
            (1) in paragraph (1) by adding after the first sentence 
        ``Subject to paragraphs (2) through (5) of this subsection, a 
        former spouse of a former employee who dies after having 
        separated from the service with title to a deferred annuity 
        under section 8338(a) but before having established a valid 
        claim for annuity is entitled to a survivor annuity under this 
        subsection, if and to the extent expressly provided for in an 
        election under section 8339(j)(3) of this title, or in the 
        terms of any decree of divorce or annulment or any court order 
        or court-approved property settlement agreement incident to 
        such decree.''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A)(ii) by striking ``or 
                annuitant,'' and inserting ``annuitant, or former 
                employee''; and
                    (B) in subparagraph (B)(iii) by inserting ``former 
                employee or'' before ``Member''.
    (c) Protection of Survivor Benefit Rights.--Section 8339(j)(3) of 
title 5, United States Code, is amended by inserting at the end the 
following:
    ``The Office shall provide by regulation for the application of 
this subsection to the widow, widower, or surviving former spouse of a 
former employee who dies after having separated from the service with 
title to a deferred annuity under section 8338(a) but before having 
established a valid claim for annuity.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply only in 
the case of a former employee who dies on or after such date.

SEC. 203. COURT ORDERS RELATING TO FEDERAL RETIREMENT BENEFITS FOR 
              FORMER SPOUSES OF FEDERAL EMPLOYEES.

    (a) Civil Service Retirement System.--
            (1) In general.--Section 8345(j) of title 5, United States 
        Code, is amended--
                    (A) by redesignating paragraph (3) as paragraph 
                (4); and
                    (B) by inserting after paragraph (2) the following 
                new paragraph:
    ``(3) Payment to a person under a court decree, court order, 
property settlement, or similar process referred to under paragraph (1) 
shall include payment to a former spouse of the employee, Member, or 
annuitant.''.
            (2) Lump-sum benefits.--Section 8342 of title 5, United 
        States Code, is amended--
                    (A) in subsection (c) by striking ``Lump-sum 
                benefits'' and inserting ``Subject to subsection (j), 
                lump-sum benefits''; and
                    (B) in subsection (j)(1) by striking ``the lump-sum 
                credit under subsection (a) of this section'' and 
                inserting ``any lump-sum credit or lump-sum benefit 
                under this section''.
    (b) Federal Employees Retirement System.--Section 8467 of title 5, 
United States Code, is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Payment to a person under a court decree, court order, 
property settlement, or similar process referred to under subsection 
(a) shall include payment to a former spouse of the employee, Member, 
or annuitant.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 204. PREVENTION OF CIRCUMVENTION OF COURT ORDER BY WAIVER OF 
              RETIRED PAY TO ENHANCE CIVIL SERVICE RETIREMENT ANNUITY.

    (a) Civil Service Retirement and Disability System.--
            (1) In general.--Subsection (c) of section 8332 of title 5, 
        United States Code, is amended by adding at the end the 
        following:
    ``(4) If an employee or Member waives retired pay that is subject 
to a court order for which there has been effective service on the 
Secretary concerned for purposes of section 1408 of title 10, the 
military service on which the retired pay is based may be credited as 
service for purposes of this subchapter only if, in accordance with 
regulations prescribed by the Director of the Office of Personnel 
Management, the employee or Member authorizes the Director to deduct 
and withhold from the annuity payable to the employee or Member under 
this subchapter, and to pay to the former spouse covered by the court 
order, the same amount that would have been deducted and withheld from 
the employee's or Member's retired pay and paid to that former spouse 
under such section 1408.''.
            (2) Conforming amendment.--Paragraph (1) of such subsection 
        is amended by striking out ``Except as provided in paragraph 
        (2)'' and inserting ``Except as provided in paragraphs (2) and 
        (4)''.
    (b) Federal Employees' Retirement System.--
            (1) In general.--Subsection (c) of section 8411 of title 5, 
        United States Code, is amended by adding at the end the 
        following:
    ``(5) If an employee or Member waives retired pay that is subject 
to a court order for which there has been effective service on the 
Secretary concerned for purposes of section 1408 of title 10, the 
military service on which the retired pay is based may be credited as 
service for purposes of this chapter only if, in accordance with 
regulations prescribed by the Director of the Office of Personnel 
Management, the employee or Member authorizes the Director to deduct 
and withhold from the annuity payable to the employee or Member under 
this subchapter, and to pay to the former spouse covered by the court 
order, the same amount that would have been deducted and withheld from 
the employee's or Member's retired pay and paid to that former spouse 
under such section 1408.''.
            (2) Conforming amendment.--Paragraph (1) of such subsection 
        is amended by striking out ``Except as provided in paragraph 
        (2) or (3)'' and inserting ``Except as provided in paragraphs 
        (2), (3), and (5)''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1997.

               TITLE III--REFORMS RELATED TO 401(K) PLANS

SEC. 301. 401(k) PLANS PROHIBITED FROM INVESTING IN COLLECTIBLES.

    (a) In General.--Paragraph (4) of section 401(k) of the Internal 
Revenue Code of 1986 (relating to cash or deferred arrangements) is 
amended by adding at the end the following new subparagraph:
                    ``(D) Investment in collectibles treated as 
                distributions.--The rules of section 408(m) shall apply 
                to a cash or deferred arrangement of any employer.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to plan years beginning after the date of the enactment of this 
Act.

SEC. 302. REQUIREMENT OF ANNUAL, DETAILED INVESTMENT REPORTS APPLIED TO 
              CERTAIN 401(k) PLANS.

    (a) In General.--Paragraph (4) of section 401(k) of the Internal 
Revenue Code of 1986 (relating to cash or deferred arrangements), as 
amended by section 1, is amended by adding at the end the following new 
subparagraph:
                    ``(E) Annual, detailed investment reports 
                required.--
                            ``(i) In general.--A cash or deferred 
                        arrangement of any employer with less than 100 
                        participants shall not be treated as a 
                        qualified cash or deferred arrangement unless 
                        the plan of which it is a part provides to each 
                        participant an annual investment report 
                        detailing the name of each investment acquired 
                        during such plan year and the date and cost of 
                        such acquisition, the name of each investment 
                        sold during such year and the date and net 
                        proceeds of such sale, and the overall rate of 
                        return for all investments for such year.
                            ``(ii) Exception.--Clause (i) shall not 
                        apply with respect to any participant described 
                        in section 404(c) of the Employee Retirement 
                        Income Security Act of 1974 (29 U.S.C. 
                        1104(c)).''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to plan years beginning after the date of the enactment of this 
Act.

SEC. 303. 10-PERCENT LIMITATION ON ACQUISITION AND HOLDING OF EMPLOYER 
              SECURITIES AND EMPLOYER REAL PROPERTY APPLIED TO 401(K) 
              PLANS.

    (a) In General.--Subparagraph (A) of section 407(d)(3) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1107(d)(3)) 
is amended by adding at the end the following new sentence: ``Such term 
also excludes an individual account plan that includes a qualified cash 
or deferred arrangement described in section 401(k) of the Internal 
Revenue Code of 1986, if such plan, together with all other individual 
account plans maintained by the employer, owns more than 10 percent of 
the assets owned by all pension plans maintained by the employer. For 
purposes of the preceding sentence, the assets of such plan subject to 
participant control (within the meaning of section 404(c)) shall not be 
taken into account.''.
    (b) Effective Date; Transition Rule.--
            (1) Effective date.--Except as provided in paragraph (2), 
        the amendment made by this section shall apply to plans on and 
        after the date of the enactment of this Act.
            (2) Transition rule for plans holding excess securities or 
        property.--In the case of a plan which on the date of the 
        enactment of this Act has holdings of employer securities and 
        employer real property (as defined in section 407(d) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1107(d)) in excess of the amount specified in such section 407, 
        the amendment made by this section shall apply to any 
        acquisition of such securities and property on or after such 
        date of enactment, but shall not apply to the specific holdings 
        which constitute such excess during the period of such excess.

   TITLE IV--MODIFICATIONS OF JOINT AND SURVIVOR ANNUITY REQUIREMENTS

SEC. 401. MODIFICATIONS OF JOINT AND SURVIVOR ANNUITY REQUIREMENTS.

    (a) Amendments to ERISA.--
            (1) Amount of annuity.--
                    (A) In general.--Paragraph (1) of section 205(a) of 
                the Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1055(a)) is amended by inserting ``or, at the 
                election of the participant, shall be provided in the 
                form of a qualified joint and two-thirds survivor 
                annuity'' after ``survivor annuity,''.
                    (B) Definition.--Subsection (d) of section 205 of 
                such Act (29 U.S.C. 1055) is amended--
                            (i) by redesignating paragraphs (1) and (2) 
                        as subparagraphs (A) and (B), respectively,
                            (ii) by inserting ``(1)'' after ``(d)'', 
                        and
                            (iii) by adding at the end the following 
                        new paragraph:
    ``(2) For purposes of this section, the term ``qualified joint and 
two-thirds survivor annuity'' means an annuity--
            ``(A) for the participant while both the participant and 
        the spouse are alive with a survivor annuity for the life of 
        the surviving individual (either the participant or the spouse) 
        equal to 66\2/3\ percent of the amount of the annuity which is 
        payable to the participant while both the participant and the 
spouse are alive,
            ``(B) which is the actuarial equivalent of a single annuity 
        for the life of the participant, and
            ``(C) which, for all other purposes of this Act, is treated 
        as a qualified joint and survivor annuity.''.
            (2) Illustration requirement.--Clause (i) of section 
        205(c)(3)(A) of such Act (29 U.S.C. 1055(c)(3)(A)) is amended 
        to read as follows:
            ``(i) the terms and conditions of each qualified joint and 
        survivor annuity and qualified joint and two-thirds survivor 
        annuity offered, accompanied by an illustration of the benefits 
        under each such annuity for the particular participant and 
        spouse and an acknowledgement form to be signed by the 
        participant and the spouse that they have read and considered 
        the illustration before any form of retirement benefit is 
        chosen,''.
    (b) Amendments to Internal Revenue Code.--
            (1) Amount of annuity.--
                    (A) In general.--Clause (i) of section 
                401(a)(11)(A) of the Internal Revenue Code of 1986 
                (relating to requirement of joint and survivor annuity 
                and preretirement survivor annuity) is amended by 
                inserting ``or, at the election of the participant, 
                shall be provided in the form of a qualified joint and 
                two-thirds survivor annuity'' after ``survivor 
                annuity,''.
                    (B) Definition.--Section 417 of such Code (relating 
                to definitions and special rules for purposes of 
                minimum survivor annuity requirements) is amended by 
                redesignating subsection (f) as subsection (g) and by 
                inserting after subsection (e) the following new 
                subsection:
    ``(f) Definition of Qualified Joint and Two-thirds Survivor 
Annuity.--For purposes of this section and section 401(a)(11), the term 
``qualified joint and two-thirds survivor annuity'' means an annuity--
            ``(1) for the participant while both the participant and 
        the spouse are alive with a survivor annuity for the life of 
        the surviving individual (either the participant or the spouse) 
        equal to 66\2/3\ percent of the amount of the annuity which is 
        payable to the participant while both the participant and the 
        spouse are alive,
            ``(2) which is the actuarial equivalent of a single annuity 
        for the life of the participant, and
            ``(3) which, for all other purposes of this title, is 
        treated as a qualified joint and survivor annuity.''.
            (2) Illustration requirement.--Clause (i) of section 
        417(a)(3)(A) of such Code (relating to explanation of joint and 
        survivor annuity) is amended to read as follows:
                            ``(i) the terms and conditions of each 
                        qualified joint and survivor annuity and 
                        qualified joint and two-thirds survivor annuity 
                        offered, accompanied by an illustration of the 
                        benefits under each such annuity for the 
                        particular participant and spouse and an 
                        acknowledgement form to be signed by the 
                        participant and the spouse that they have read 
                        and considered the illustration before any form 
                        of retirement benefit is chosen,''.
    (c) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply to plan years beginning after December 31, 1996.
            (2) Special rule for collectively bargained plans.--In the 
        case of a plan maintained pursuant to one or more collective 
        bargaining agreements between employee representatives and one 
        or more employers ratified on or before the date of the 
        enactment of this Act, the amendments made by this section 
        shall apply to the first plan year beginning on or after the 
        earlier of--
                    (A) the later of--
                            (i) January 1, 1997, or
                            (ii) the date on which the last of such 
                        collective bargaining agreements terminates 
                        (determined without regard to any extension 
                        thereof after the date of the enactment of this 
                        Act), or
                    (B) January 1, 1998.
            (3) Plan amendments.--If any amendment made by this section 
        requires an amendment to any plan, such plan amendment shall 
        not be required to be made before the first plan year beginning 
        on or after January 1, 1998, if--
                    (A) during the period after such amendment made by 
                this section takes effect and before such first plan 
                year, the plan is operated in accordance with the 
                requirements of such amendment made by this section, 
                and
                    (B) such plan amendment applies retroactively to 
                the period after such amendment made by this section 
                takes effect and such first plan year.
        A plan shall not be treated as failing to provide definitely 
        determinable benefits or contributions, or to be operated in 
        accordance with the provisions of the plan, merely because it 
        operates in accordance with this paragraph.

TITLE V--SPOUSAL CONSENT REQUIRED FOR DISTRIBUTIONS FROM SECTION 401(k) 
                                 PLANS

SEC. 501. SPOUSAL CONSENT REQUIRED FOR DISTRIBUTIONS FROM SECTION 
              401(k) PLANS.

    (a) In General.--Paragraph (2) of section 401(k) of the Internal 
Revenue Code of 1986 (defining qualified cash or deferred arrangement) 
is amended by striking ``and'' at the end of subparagraph (C), by 
striking the period at the end of subparagraph (D) and inserting ``, 
and'', and by adding at the end the following new subparagraph:
                    ``(E) which provides that no distribution may be 
                made unless--
                            ``(i) the spouse of the employee (if any) 
                        consents in writing (during the 90-day period 
                        ending on the date of the distribution) to such 
                        distribution, and
                            ``(ii) requirements comparable to the 
                        requirements of section 417(a)(2) are met with 
                        respect to such consent.''
    (b) Effective Date.--The amendments made by this section shall 
apply to distributions in plan years beginning after December 31, 1996.

            TITLE VI--WOMEN'S PENSION TOLL-FREE PHONE NUMBER

SEC. 601. WOMEN'S PENSION TOLL-FREE PHONE NUMBER.

    (a) In General.--The Secretary of Labor shall contract with an 
independent organization to create a women's pension toll-free 
telephone number and contact to serve as--
            (1) a resource for women on pension questions and issues;
            (2) a source for referrals to appropriate agencies; and
            (3) a source for printed information.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated $500,000 for each of the fiscal years 1997, 1998, 1999, 
and 2000 to carry out subsection (a).

             TITLE VII--ANNUAL PENSION BENEFITS STATEMENTS

SEC. 701. ANNUAL PENSION BENEFITS STATEMENTS.

    (a) In General.--Subsection (a) of section 105 of Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1025) is amended by 
striking ``shall furnish to any plan participant or beneficiary who so 
requests in writing,'' and inserting ``shall annually furnish to any 
plan participant and shall furnish to any plan beneficiary who so 
requests,''.
    (b) Conforming Amendment.--Subsection (a) of section 105 of such 
Act (29 U.S.C. 1025) is amended by striking ``participant or''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 1996.
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