II 

115TH CONGRESS 

2D SESSION S. 2318 

To require the payment of user fees by qualified professional asset managers 

seeking an individual exemption from certain requirements. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 17, 2018 

Ms. BALDWIN (for herself 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 require the payment of user fees by qualified professional 

asset managers seeking an individual exemption from 

certain requirements. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Pension Stability Act’’. 

5 SEC. 2. USER FEES. 

6 (a) IN GENERAL.—Not later than 6 months after the 

7 date of enactment of this Act, the Secretary of Labor (re8 ferred to in this section as the ‘‘Secretary’’) shall promul9 gate regulations establishing user fees applicable to large 


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1 regulated banks, savings and loan associations, insurance 

2 companies, and federally registered investment advisors 

3 (referred to in this section as ‘‘entities’’) that— 

4 (1) meet the definition of a ‘‘qualified profes5 sional asset manager’’, as set forth by the Secretary; 

6 and 

7 (2) apply for an individual exemption, pursuant 

8 to the Prohibited Transaction Exemption 84–14, 

9 from the prohibitions of section 406 of the Employee 

10 Retirement Income Security Act of 1974 (29 U.S.C. 

11 1106) and the sanctions resulting from the applica12 tion of section 4975 of the Internal Revenue Code 

13 of 1986, despite the inability of such entities to com14 ply with section I(g) of this exemption. 

15 (b) USER FEE AMOUNTS.— 

16 (1) GENERAL FEES.—In establishing user fees 

17 under subsection (a), the Secretary shall ensure that 

18 such fees— 

19 (A) are not less than $1,000,000 per appli20 cation for an individual exemption under section 

21 I(g) of Prohibited Transaction Exemption 84– 

22 14; and 

23 (B) are scaled higher than the base fee es24 tablished under subparagraph (A), based on the 

25 severity of the crime related to such application. 


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1 (2) REPEAT OFFENDERS.—In the case of an 

2 entity that previously filed an application for an in3 dividual exemption under section I(g) of the Prohib4 ited Transaction Exemption 84–14 (including a suc5 cessor company or a company that has subsequently 

6 acquired a previous offender), the applicable user fee 

7 under paragraph (1) shall be multiplied by the num8 ber of such prior applications. 

9 (c) TRANSFER OF FEES COLLECTED.— 

10 (1) IN GENERAL.—Amounts collected in user 

11 fees under this section shall be transferred to the 

12 first and the second Pension Benefit Guaranty funds 

13 described in section 4005(a) of the Employee Retire14 ment Income Security Act of 1974 (29 U.S.C. 

15 1305(a)) and shall be allocated— 

16 (A) to the fund used with respect to basic 

17 benefits guaranteed under section 4022A of 

18 such Act, until such time that the Pension Ben19 efits Guaranty Corporation’s annual projections 

20 report indicates that such fund and the fund 

21 used with respect to basic benefits guaranteed 

22 under section 4022 of such Act have substan23 tially similar future financial conditions and 

24 substantially similar risks of insolvency; and 


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1 (B) thereafter, to each of the funds de2 scribed in subparagraph (A) in equal amounts, 

3 subject to paragraph (2). 

4 (2) ADJUSTMENTS TO ALLOCATIONS.—If, after 

5 amounts collected in user fees under this section 

6 have been allocated in accordance with paragraph 

7 (1)(B), the Director of the Pension Benefit Guar8 anty Corporation determines that the future finan9 cial conditions or risks of insolvency of the funds 

10 used with respect to basic benefits guaranteed under 

11 each of sections 4022A and 4022 of the Employee 

12 Retirement Income Security Act of 1974 are no 

13 longer substantially similar as described in para14 graph (1)(A), the Director, in consultation with the 

15 board of directors of the Pension Benefit Guaranty 

16 Corporation, shall determine an appropriate alloca17 tion of such amounts between such funds. 

Æ 


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