II 

116TH CONGRESS 

1ST SESSION S. 1011 

To amend the Internal Revenue Code of 1986 and the Employee Retirement 

Income Security Act of 1974 to modify the requirements for multiple 

employer plans, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 3, 2019 

Mr. COTTON (for himself, Mr. YOUNG, and Mr. JONES) 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 and the Employee Retirement Income Security Act of 1974 to modify the requirements for multiple employer plans, and 

for other purposes. 

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

3 SECTION 1. MULTIPLE EMPLOYER PLANS. 

4 (a) QUALIFICATION REQUIREMENTS.— 

5 (1) IN GENERAL.—Section 413 of the Internal 

6 Revenue Code of 1986 is amended by adding at the 

7 end the following new subsection: 


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1 ‘‘(e) APPLICATION OF QUALIFICATION REQUIRE2 MENTS FOR CERTAIN MULTIPLE EMPLOYER PLANS WITH

3 POOLED PLAN PROVIDERS.— 

4 ‘‘(1) IN GENERAL.—Except as provided in para5 graph (2), if a defined contribution plan to which 

6 subsection (c) applies— 

7 ‘‘(A) is sponsored by employers all of 

8 which have both a common interest other than 

9 having adopted the plan and control of the 

10 plan, or 

11 ‘‘(B) in the case of a plan not described in 

12 subparagraph (A), has a pooled plan provider, 

13 then the plan shall not be treated as failing to meet 

14 the requirements under this title applicable to a plan 

15 described in section 401(a) or to a plan that consists 

16 of individual retirement accounts described in sec17 tion 408 (including by reason of subsection (c) 

18 thereof), whichever is applicable, merely because one 

19 or more employers of employees covered by the plan 

20 fail to take such actions as are required of such em21 ployers for the plan to meet such requirements. 

22 ‘‘(2) LIMITATIONS.— 

23 ‘‘(A) IN GENERAL.—Paragraph (1) shall 

24 not apply to any plan unless the terms of the 

25 plan provide that in cases of employers failing 


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1 to take the actions described in paragraph 

2 (1)— 

3 ‘‘(i) the assets of the plan attributable 

4 to employees of the employer will be trans5 ferred to a plan maintained only by the 

6 employer (or its successor), to an eligible 

7 retirement plan as defined in section 

8 402(c)(8)(B) for each individual whose ac9 count is transferred, or to any other ar10 rangement that the Secretary determines is 

11 appropriate, unless the Secretary deter12 mines it is in the best interests of such em13 ployees to retain the assets in the plan, 

14 and 

15 ‘‘(ii) the employer described in clause 

16 (i) (and not the plan with respect to which 

17 the failure occurred or any other partici18 pating employer in such plan) shall, except 

19 to the extent provided by the Secretary, be 

20 liable for any liabilities with respect to 

21 such plan attributable to employees of the 

22 employer. 

23 ‘‘(B) FAILURES BY POOLED PLAN PRO24 VIDERS.—If the pooled plan provider of a plan 

25 described in paragraph (1)(B) does not perform 


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1 substantially all of the administrative duties 

2 which are required of the provider under para3 graph (3)(A)(i) for any plan year, the Sec4 retary, in the Secretary’s own discretion, may 

5 provide that the determination as to whether 

6 the plan meets the requirements under this title 

7 applicable to a plan described in section 401(a) 

8 or to a plan that consists of individual retire9 ment accounts described in section 408 (includ10 ing by reason of subsection (c) thereof), which11 ever is applicable, shall be made in the same 

12 manner as would be made without regard to 

13 paragraph (1). 

14 ‘‘(3) POOLED PLAN PROVIDER.—For purposes 

15 of this subsection— 

16 ‘‘(A) IN GENERAL.—The term ‘pooled plan 

17 provider’ means, with respect to any plan, a 

18 person who— 

19 ‘‘(i) is designated by the terms of the 

20 plan as a named fiduciary (within the 

21 meaning of section 402(a)(2) of the Em22 ployee Retirement Income Security Act of 

23 1974), as the plan administrator, and as 

24 the person responsible to perform all ad25 ministrative duties (including conducting 


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1 proper testing with respect to the plan and 

2 employees of each participating employer) 

3 which are reasonably necessary to ensure 

4 that— 

5 ‘‘(I) the plan meets any require6 ment applicable under the Employee 

7 Retirement Income Security Act of 

8 1974 or this title to a plan described 

9 in section 401(a) or to a plan that 

10 consists of individual retirement ac11 counts described in section 408 (in12 cluding by reason of subsection (c) 

13 thereof), whichever is applicable, and 

14 ‘‘(II) each participating employer 

15 takes such actions as the Secretary or 

16 such person determines are necessary 

17 for the plan to meet the requirements 

18 described in subclause (I), including 

19 providing to such person any disclo20 sures or other information which the 

21 Secretary may require or which such 

22 person otherwise determines is nec23 essary to administer the plan or to 

24 allow the plan to meet such require25 ments, 


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1 ‘‘(ii) registers as a pooled plan pro2 vider with the Secretary, and provides such 

3 other information to the Secretary as the 

4 Secretary may require, before beginning 

5 operations as a pooled plan provider, 

6 ‘‘(iii) acknowledges in writing that 

7 such person is a named fiduciary (within 

8 the meaning of section 402(a)(2) of the 

9 Employee Retirement Income Security Act 

10 of 1974), and the plan administrator, with 

11 respect to the plan, and 

12 ‘‘(iv) is responsible for ensuring that 

13 all persons who handle assets of, or who 

14 are fiduciaries of, the plan are bonded in 

15 accordance with section 412 of the Em16 ployee Retirement Income Security Act of 

17 1974. 

18 ‘‘(B) AUDITS, EXAMINATIONS, AND INVES19 TIGATIONS.—The Secretary may perform au20 dits, examinations, and investigations of pooled 

21 plan providers as may be necessary to enforce 

22 and carry out the purposes of this subsection. 

23 ‘‘(4) GUIDANCE.— 

24 ‘‘(A) IN GENERAL.—The Secretary shall 

25 issue such guidance as the Secretary determines 


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1 appropriate to carry out this subsection, includ2 ing guidance— 

3 ‘‘(i) to identify the administrative du4 ties and other actions required to be per5 formed by a pooled plan provider under 

6 this subsection, 

7 ‘‘(ii) which describes the procedures to 

8 be taken to terminate a plan which fails to 

9 meet the requirements to be a plan de10 scribed in paragraph (1), including the 

11 proper treatment of, and actions needed to 

12 be taken by, any participating employer of 

13 the plan and the assets and liabilities of 

14 the plan with respect to employees of that 

15 employer, and 

16 ‘‘(iii) identifying appropriate cases to 

17 which the rules of paragraph (2)(A) will 

18 apply to employers failing to take the ac19 tions described in paragraph (1). 

20 The Secretary shall take into account under 

21 clause (iii) whether the failure of an employer 

22 or pooled plan provider to provide any disclo23 sures or other information, or to take any other 

24 action, necessary to administer a plan or to 

25 allow a plan to meet requirements applicable to 


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1 the plan under section 401(a) or 408, whichever 

2 is applicable, has continued over a period of 

3 time that clearly demonstrates a lack of com4 mitment to compliance. 

5 ‘‘(B) PROSPECTIVE APPLICATION.—Any 

6 guidance issued by the Secretary under this 

7 paragraph shall not apply to any action or fail8 ure occurring before the issuance of such guid9 ance. 

10 ‘‘(5) MODEL PLAN.—Not later than June 30, 

11 2020, the Secretary shall, in consultation with the 

12 Secretary of Labor when appropriate, publish— 

13 ‘‘(A) model plan language which may be 

14 adopted by a plan to which subsection (c) ap15 plies and which is not described in paragraph 

16 (1)(B), in order for the plan to qualify for the 

17 application of this subsection, and 

18 ‘‘(B) model plan language which meets the 

19 requirements of this subsection and of para20 graphs (43) and (44) of section 3 of the Em21 ployee Retirement Income Security Act of 1974 

22 and which may be adopted in order for a plan 

23 to be treated as a plan described in paragraph 

24 (1)(B).’’. 


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1 (2) CONFORMING AMENDMENT.—Paragraph (2) 

2 of section 413(c) of such Code is amended by strik3 ing ‘‘section 401(a)’’ and inserting ‘‘sections 401(a) 

4 and 408(c)’’. 

5 (3) TECHNICAL AMENDMENT.—Subsection (c) 

6 of section 408 of such Code is amended by inserting 

7 after paragraph (2) the following new paragraph: 

8 ‘‘(3) There is a separate accounting for any in9 terest of an employee or member (or spouse of an 

10 employee or member) in a Roth IRA.’’. 

11 (b) NO COMMON INTEREST REQUIRED FOR POOLED

12 EMPLOYER PLANS.—Section 3(2) of the Employee Retire13 ment Income Security Act of 1974 (29 U.S.C. 1002(2)) 

14 is amended by adding at the end the following: 

15 ‘‘(C) A pooled employer plan shall be treat16 ed as— 

17 ‘‘(i) a single employee pension benefit 

18 plan or single pension plan; and 

19 ‘‘(ii) a plan to which section 210(a) 

20 applies.’’. 

21 (c) POOLED EMPLOYER PLAN AND PROVIDER DE22 FINED.— 

23 (1) IN GENERAL.—Section 3 of the Employee 

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


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1 1002) is amended by adding at the end the fol2 lowing: 

3 ‘‘(43) POOLED EMPLOYER PLAN.— 

4 ‘‘(A) IN GENERAL.—The term ‘pooled em5 ployer plan’ means a plan— 

6 ‘‘(i) which is an individual account 

7 plan established or maintained for the pur8 pose of providing benefits to the employees 

9 of two or more employers; 

10 ‘‘(ii) which is a plan described in sec11 tion 401(a) of the Internal Revenue Code 

12 of 1986 which includes a trust exempt 

13 from tax under section 501(a) of such 

14 Code or a plan that consists of individual 

15 retirement accounts described in section 

16 408 of such Code (including by reason of 

17 subsection (c) thereof); and 

18 ‘‘(iii) the terms of which meet the re19 quirements of subparagraph (B). 

20 Such term shall not include a plan with respect 

21 to which all of the participating employers have 

22 both a common interest other than having 

23 adopted the plan and control of the plan. 

24 ‘‘(B) REQUIREMENTS FOR PLAN TERMS.— 

25 The requirements of this subparagraph are met 


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1 with respect to any plan if the terms of the 

2 plan— 

3 ‘‘(i) designate a pooled plan provider 

4 and provide that the pooled plan provider 

5 is a named fiduciary of the plan; 

6 ‘‘(ii) designate one or more trustees 

7 meeting the requirements of section 

8 408(a)(2) of the Internal Revenue Code of 

9 1986 (other than a participating employer) 

10 to be responsible for collecting contribu11 tions to, and holding the assets of, the 

12 plan and require such trustees to imple13 ment written contribution collection proce14 dures that are reasonable, diligent, and 

15 systematic; 

16 ‘‘(iii) except as provided in section 

17 404(e), provide that each participating em18 ployer retains fiduciary responsibility for— 

19 ‘‘(I) the selection and monitoring 

20 in accordance with section 404(a) of 

21 the person designated as the pooled 

22 plan provider and any other person 

23 who, in addition to the pooled plan 

24 provider, is designated as a named fi25 duciary of the plan; and 


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1 ‘‘(II) to the extent not otherwise 

2 delegated to another fiduciary by the 

3 pooled plan provider and subject to 

4 the provisions of section 404(c), the 

5 investment and management of that 

6 portion of the plan’s assets attrib7 utable to the employees of that par8 ticipating employer; 

9 ‘‘(iv) provide that a participating em10 ployer, or a participant or beneficiary, is 

11 not subject to unreasonable restrictions, 

12 fees, or penalties with regard to ceasing 

13 participation, receipt of distributions, or 

14 otherwise transferring assets of the plan in 

15 accordance with section 208 or paragraph 

16 (44)(C)(i)(II); 

17 ‘‘(v) require— 

18 ‘‘(I) the pooled plan provider to 

19 provide to participating employers any 

20 disclosures or other information which 

21 the Secretary may require, including 

22 any disclosures or other information 

23 to facilitate the selection or any moni24 toring of the pooled plan provider by 

25 participating employers; and 


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1 ‘‘(II) each participating employer 

2 to take such actions as the Secretary 

3 or the pooled plan provider determines 

4 are necessary to administer the plan 

5 or for the plan to meet any require6 ment applicable under this Act or the 

7 Internal Revenue Code of 1986 to a 

8 plan described in section 401(a) of 

9 such Code or to a plan that consists 

10 of individual retirement accounts de11 scribed in section 408 of such Code 

12 (including by reason of subsection (c) 

13 thereof), whichever is applicable, in14 cluding providing any disclosures or 

15 other information which the Secretary 

16 may require or which the pooled plan 

17 provider otherwise determines is nec18 essary to administer the plan or to 

19 allow the plan to meet such require20 ments; and 

21 ‘‘(vi) provide that any disclosure or 

22 other information required to be provided 

23 under clause (v) may be provided in elec24 tronic form and will be designed to ensure 

25 only reasonable costs are imposed on 


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1 pooled plan providers and participating 

2 employers. 

3 ‘‘(C) EXCEPTIONS.—The term ‘pooled em4 ployer plan’ does not include— 

5 ‘‘(i) a multiemployer plan; 

6 ‘‘(ii) a plan established before Janu7 ary 1, 2016, unless the plan administrator 

8 elects that the plan will be treated as a 

9 pooled employer plan and the plan meets 

10 the requirements of this title applicable to 

11 a pooled employer plan established on or 

12 after such date; and 

13 ‘‘(iii) a plan with respect to which all 

14 of the participating employers have both a 

15 common interest other than having adopt16 ed the plan and control of the plan. 

17 ‘‘(44) POOLED PLAN PROVIDER.— 

18 ‘‘(A) IN GENERAL.—The term ‘pooled plan 

19 provider’ means a person who— 

20 ‘‘(i) is designated by the terms of a 

21 pooled employer plan as a named fiduciary, 

22 as the plan administrator, and as the per23 son responsible for the performance of all 

24 administrative duties (including conducting 

25 proper testing with respect to the plan and 


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1 employees of each participating employer) 

2 which are reasonably necessary to ensure 

3 that— 

4 ‘‘(I) the plan meets any require5 ment applicable under this Act or the 

6 Internal Revenue Code of 1986 to a 

7 plan described in section 401(a) of 

8 such Code or to a plan that consists 

9 of individual retirement accounts de10 scribed in section 408 of such Code 

11 (including by reason of subsection (c) 

12 thereof), whichever is applicable; and 

13 ‘‘(II) each participating employer 

14 takes such actions as the Secretary or 

15 pooled plan provider determines are 

16 necessary for the plan to meet the re17 quirements described in subclause (I), 

18 including providing the disclosures 

19 and information described in para20 graph (43)(B)(v)(II); 

21 ‘‘(ii) registers as a pooled plan pro22 vider with the Secretary, and provides to 

23 the Secretary such other information as 

24 the Secretary may require, before begin25 ning operations as a pooled plan provider; 


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1 ‘‘(iii) acknowledges in writing that 

2 such person is a named fiduciary, and the 

3 plan administrator, with respect to the 

4 pooled employer plan; and 

5 ‘‘(iv) is responsible for ensuring that 

6 all persons who handle assets of, or who 

7 are fiduciaries of, the pooled employer plan 

8 are bonded in accordance with section 412. 

9 ‘‘(B) AUDITS, EXAMINATIONS, AND INVES10 TIGATIONS.—The Secretary may perform au11 dits, examinations, and investigations of pooled 

12 plan providers as may be necessary to enforce 

13 and carry out the purposes of this paragraph 

14 and paragraph (43). 

15 ‘‘(C) GUIDANCE.— 

16 ‘‘(i) IN GENERAL.—The Secretary 

17 shall issue such guidance as the Secretary 

18 determines appropriate to carry out this 

19 paragraph and paragraph (43), including 

20 guidance— 

21 ‘‘(I) to identify the administra22 tive duties and other actions required 

23 to be performed by a pooled plan pro24 vider under either such paragraph; 

25 and 


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1 ‘‘(II) which requires in appro2 priate cases that if a participating 

3 employer fails to take the actions re4 quired under subparagraph 

5 (A)(i)(II)— 

6 ‘‘(aa) the assets of the plan 

7 attributable to employees of the 

8 participating employer are trans9 ferred to a plan maintained only 

10 by the participating employer (or 

11 its successor), to an eligible re12 tirement plan as defined in sec13 tion 402(c)(8)(B) of the Internal 

14 Revenue Code of 1986 for each 

15 individual whose account is 

16 transferred, or to any other ar17 rangement that the Secretary de18 termines is appropriate in such 

19 guidance; and 

20 ‘‘(bb) the participating em21 ployer described in item (aa) 

22 (and not the plan with respect to 

23 which the failure occurred or any 

24 other participating employer in 

25 such plan) shall, except to the exVerDate Sep 11 2014 23:53 Apr 08, 2019 Jkt 089200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S1011.IS S1011

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1 tent provided in such guidance, 

2 be liable for any liabilities with 

3 respect to such plan attributable 

4 to employees of the participating 

5 employer. 

6 The Secretary shall take into account 

7 under subclause (II) whether the fail8 ure of an employer or pooled plan pro9 vider to provide any disclosures or 

10 other information, or to take any 

11 other action, necessary to administer 

12 a plan or to allow a plan to meet re13 quirements described in subparagraph 

14 (A)(i)(II) has continued over a period 

15 of time that clearly demonstrates a 

16 lack of commitment to compliance. 

17 The Secretary may waive the require18 ments of subclause (II)(aa) in appro19 priate circumstances if the Secretary 

20 determines it is in the best interests 

21 of the employees of the participating 

22 employer described in such clause to 

23 retain the assets in the plan with re24 spect to which the employer’s failure 

25 occurred. 


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1 ‘‘(ii) PROSPECTIVE APPLICATION.— 

2 Any guidance issued by the Secretary 

3 under this subparagraph shall not apply to 

4 any action or failure occurring before the 

5 issuance of such guidance. 

6 ‘‘(D) AGGREGATION RULES.—For purposes 

7 of this paragraph— 

8 ‘‘(i) IN GENERAL.—In determining 

9 whether a person meets the requirements 

10 of this paragraph to be a pooled plan pro11 vider with respect to any plan, all persons 

12 who are members of the same controlled 

13 group and who perform services for the 

14 plan shall be treated as one person. 

15 ‘‘(ii) MEMBERS OF COMMON GROUP.— 

16 Persons shall be treated as members of the 

17 same controlled group if such persons are 

18 treated as a single employer under sub19 section (c) or (d) of section 210.’’. 

20 (2) BONDING REQUIREMENTS FOR POOLED EM21 PLOYER PLANS.—The last sentence of section 412(a) 

22 of the Employee Retirement Income Security Act of 

23 1974 (29 U.S.C. 1112(a)) is amended by inserting 

24 ‘‘or in the case of a pooled employer plan (as defined 

25 in section 3(43))’’ after ‘‘section 407(d)(1))’’. 


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1 (3) CONFORMING AND TECHNICAL AMEND2 MENTS.—Section 3 of the Employee Retirement In3 come Security Act of 1974 (29 U.S.C. 1002) is 

4 amended— 

5 (A) in paragraph (16)(B)— 

6 (i) by striking ‘‘or’’ at the end of 

7 clause (ii); and 

8 (ii) by striking the period at the end 

9 and inserting ‘‘, or (iv) in the case of a 

10 pooled employer plan, the pooled plan pro11 vider.’’; and 

12 (B) by striking the second paragraph (41). 

13 (d) EFFECTIVE DATE.— 

14 (1) IN GENERAL.—The amendments made by 

15 this section shall apply to years beginning after De16 cember 31, 2020. 

17 (2) RULE OF CONSTRUCTION.—Nothing in the 

18 amendments made by subsection (a) shall be con19 strued as limiting the authority of the Secretary of 

20 the Treasury or the Secretary’s delegate (determined 

21 without regard to such amendment) to provide for 

22 the proper treatment of a failure to meet any re23 quirement applicable under the Internal Revenue 

24 Code of 1986 with respect to one employer (and its 

25 employees) in a multiple employer plan. 


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1 SEC. 2. LIMITATION ON EMPLOYER LIABILITY. 

2 Section 404 of the Employee Retirement Income Se3 curity Act of 1974 (29 U.S.C. 1104) is amended by adding 

4 at the end the following new subsection: 

5 ‘‘(e)(1) Except as provided in paragraph (2), an eligi6 ble employer (as defined in section 408(p)(2)(C)(i) of the 

7 Internal Revenue Code of 1986) participating in a reg8 istered pooled employer plan shall not be treated as a fidu9 ciary with respect to such plan, including with respect to 

10 the selection or monitoring of any plan service provider 

11 or any investment under the plan, if— 

12 ‘‘(A) the employer selected the registered pooled 

13 employer plan from the Department of Labor Inter14 net website established under paragraph (6); 

15 ‘‘(B) the pooled plan provider of such plan re16 ceives no more than reasonable compensation for its 

17 services; and 

18 ‘‘(C) the employer is not the pooled plan pro19 vider or a plan service provider for the plan. 

20 ‘‘(2) Notwithstanding paragraph (1), eligible employ21 ers participating in such a registered pooled employer plan 

22 shall be responsible for— 

23 ‘‘(A) ensuring, at the time of entering into the 

24 participation agreement and periodically thereafter 

25 (not less frequently than annually and upon any 

26 agreed-to change in the compensation of the pooled 


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1 plan provider), that the compensation received by 

2 the pooled plan provider pursuant to the participa3 tion agreement is reasonable; 

4 ‘‘(B) meeting the enrollment requirements ap5 plicable to such employer under the plan; 

6 ‘‘(C) transmitting contributions to the plan in a 

7 timely manner in accordance with the terms of the 

8 plan; 

9 ‘‘(D) providing such information and assistance 

10 as is within the sole control of the eligible employer 

11 and is needed by the plan to operate in accordance 

12 with the plan document; and 

13 ‘‘(E) providing such other information or assist14 ance as may be required in regulations prescribed by 

15 the Secretary. 

16 ‘‘(3) For purposes of this subsection, the term ‘reg17 istered pooled employer plan’ means a pooled employer 

18 plan if the pooled plan provider— 

19 ‘‘(A) agrees in the plan document to— 

20 ‘‘(i) comply with all requirements applica21 ble to a pooled plan provider under this title 

22 and the Internal Revenue Code of 1986; 

23 ‘‘(ii) assume all fiduciary responsibility for 

24 the plan (except as retained by the eligible em25 ployer under paragraph (2)) with respect to 


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1 such eligible employer, including for the pru2 dent selection and monitoring of investments 

3 and negotiation of reasonable fees; 

4 ‘‘(iii) serve as the plan sponsor for pur5 poses of this title; and 

6 ‘‘(iv) notify the eligible employer reason7 ably in advance of the obligations of both the 

8 employer and the pooled plan provider under 

9 the pooled employer plan; 

10 ‘‘(B) submits all key plan information requested 

11 by the Secretary under paragraph (5); 

12 ‘‘(C) would not be precluded for any other rea13 son from acting as a fiduciary of the plan under this 

14 title; and 

15 ‘‘(D) either— 

16 ‘‘(i) has fiduciary liability insurance with a 

17 per-claim limit which is at least— 

18 ‘‘(I) the greater of 5 percent of plan 

19 assets or $1,000,000; or 

20 ‘‘(II) such other amount as is deter21 mined by the Secretary by regulation; or 

22 ‘‘(ii) is— 

23 ‘‘(I) a bank, as defined in section 

24 202(a)(2) of the Investment Advisers Act 

25 of 1940, that has the power to manage, acVerDate Sep 11 2014 23:53 Apr 08, 2019 Jkt 089200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S1011.IS S1011

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1 quire, or dispose of assets of a plan, and 

2 that has, as of the last day of its most re3 cent fiscal year, equity capital in excess of 

4 $1,000,000; 

5 ‘‘(II) a savings and loan association, 

6 the accounts of which are insured by the 

7 Federal Savings and Loan Insurance Cor8 poration, that has made application for 

9 and been granted trust powers to manage, 

10 acquire, or dispose of assets of any plan by 

11 a State or Federal authority having super12 vision over savings and loan associations, 

13 and that has, as of the last day of its most 

14 recent fiscal year, equity capital or net 

15 worth in excess of $1,000,000; 

16 ‘‘(III) an insurance company subject 

17 to supervision and examination by a State 

18 authority having supervision over insur19 ance companies that is qualified under the 

20 laws of more than 1 State to manage, ac21 quire, or dispose of assets of a plan, and 

22 that has, as of the last day of its most re23 cent fiscal year, net worth in excess of 

24 $1,000,000; or 


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1 ‘‘(IV) an investment adviser registered 

2 under the Investment Advisers Act of 1940 

3 that, as of the last day of its most recent 

4 fiscal year, has total client assets under its 

5 management and control in excess of 

6 $85,000,000, and shareholders’ or part7 ners’ equity in excess of $1,000,000. 

8 ‘‘(4)(A) In the case of a registered pooled employer 

9 plan that substantially fails to comply with the require10 ments of paragraph (3), the Secretary shall provide notifi11 cation to the pooled plan provider with an explanation of 

12 the noncompliance and actions needed to return to compli13 ance. 

14 ‘‘(B) If the plan fails to return to compliance with 

15 paragraph (3) within 90 days of receiving the notification 

16 under subparagraph (A), the Secretary shall remove the 

17 plan from the website established under paragraph (6) and 

18 provide notification to all participating employers that the 

19 plan no longer qualifies them to be relieved of fiduciary 

20 duty under paragraph (1), and if they desire such relief 

21 they must select another registered pooled employer plan 

22 listed on such website. 

23 ‘‘(C) The Secretary shall promulgate regulations as 

24 necessary to ensure that timely notification is provided to 

25 eligible employers pursuant to subparagraph (B) and in 


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1 the case of a registered pooled employer plan that termi2 nates registration. 

3 ‘‘(5)(A) The Secretary, in consultation with the Sec4 retary of the Treasury, shall determine the information 

5 that a pooled employer plan must submit in order to be 

6 included on the website established under paragraph (6), 

7 including sufficient information for employers and partici8 pants to evaluate and compare plans. 

9 ‘‘(B) The information required under subparagraph 

10 (A) may be provided in any reasonable manner or pursu11 ant to regulations issued by the Secretary. The Secretary 

12 shall take reasonable efforts to ensure the collection of 

13 such information is not unduly burdensome for pooled 

14 plan providers while balancing the needs of employers and 

15 participants, and to ensure that the information requested 

16 does not discriminate in favor of certain providers with 

17 respect to the type of investments or investment strategies 

18 offered. 

19 ‘‘(6)(A) Not later than the date that is 1 year after 

20 the date of the enactment of this Act, the Secretary, in 

21 consultation with the Secretary of the Treasury, shall 

22 make publicly available an Internet website to provide key 

23 plan information for plans that qualify as pooled employer 

24 plans (including contact information) to employers search25 ing for a plan in which to participate. 


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27 

•S 1011 IS

1 ‘‘(B) The website established under this paragraph 

2 shall include, in a timely manner, all plans that qualify 

3 as pooled employer plans and that have submitted in full, 

4 on an annual basis and at the time of any material change, 

5 the information described in paragraph (5). Such website 

6 shall enable users to search pooled employer plans based 

7 on the information submitted under paragraph (5), includ8 ing whether the pooled plan provider of the plan has ac9 cepted the additional fiduciary responsibilities described in 

10 paragraph (3)(A). The Secretary shall take reasonable ef11 forts to ensure that the information on the website is writ12 ten in a manner calculated to be understood by the aver13 age plan participant, and is sufficiently accurate and com14 prehensive to reasonably apprise participants and bene15 ficiaries of their rights and obligations under each plan. 

16 ‘‘(C) The submission of information for inclusion on 

17 such website by a plan shall be voluntary, except in the 

18 case of a plan seeking treatment as a registered pooled 

19 employer plan.’’. 

Æ 


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