425 
SEC. 411. DIRECTOR OF THE PENSION BENEFIT GUARANTY 
CORPORATION. 
(a) IN GENERAL.—Title IV of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1301 et 
seq.) is amended— 
(1) by striking the second sentence of section 
4002(a) and inserting the following: ‘‘In carrying 
out its functions under this title, the corporation 
shall be administered by a Director, who shall be ap-
pointed by the President, by and with the advice and 
consent of the Senate, and who shall act in accord-
ance with the policies established by the board.’’; 
and 
(2) in section 4003(b), by— 
(A) striking ‘‘under this title, any mem-
ber’’ and inserting ‘‘under this title, the Direc-
tor, any member’’; and 
(B) striking ‘‘designated by the chairman’’ 
and inserting ‘‘designated by the Director or 
chairman’’. 
(b) COMPENSATION OF DIRECTOR.—Section 5314 of 
title 5, United States Code, is amended by adding at the 
end the following new item: 
‘‘Director, Pension Benefit Guaranty Corporation.’’. 
(c) JURISDICTION OF NOMINATION.— 
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(1) IN GENERAL.—The Committee on Finance 
of the Senate and the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate shall have 
joint jurisdiction over the nomination of a person 
nominated by the President to fill the position of Di-
rector of the Pension Benefit Guaranty Corporation 
under section 4002 of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C. 1302) (as 
amended by this Act), and if one committee votes to 
order reported such a nomination, the other shall re-
port within 30 calendar days, or be automatically 
discharged. 
(2) RULEMAKING OF THE SENATE.—This sub-
section is enacted by Congress— 
(A) as an exercise of rulemaking power of 
the Senate, and as such it is deemed a part of 
the rules of the Senate, but applicable only with 
respect to the procedure to be followed in the 
Senate in the case of a nomination described in 
such sentence, and it supersedes other rules 
only to the extent that it is inconsistent with 
such rules; and 
(B) with full recognition of the constitu-
tional right of the Senate to change the rules 
(so far as relating to the procedure of the Sen-
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427 
ate) at any time, in the same manner and to 
the same extent as in the case of any other rule 
of the Senate. 
(d) TRANSITION.—The term of the individual serving 
as Executive Director of the Pension Benefit Guaranty 
Corporation on the date of enactment of this Act shall ex-
pire on such date of enactment. Such individual, or any 
other individual, may serve as interim Director of such 
Corporation until an individual is appointed as Director 
of such Corporation under section 4002 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1302) 
(as amended by this Act). 
SEC. 412. INCLUSION OF INFORMATION IN THE PBGC AN-
NUAL REPORT. 
Section 4008 of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1308) is amended by— 
(1) striking ‘‘As soon as practicable’’ and in-
serting ‘‘(a) As soon as practicable’’; and 
(2) adding at the end the following: 
‘‘(b) The report under subsection (a) shall include— 
‘‘(1) a summary of the Pension Insurance Mod-
eling System microsimulation model, including the 
specific simulation parameters, specific initial values, 
temporal parameters, and policy parameters used to 
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428 
calculate the financial statements for the corpora-
tion; 
‘‘(2) a comparison of— 
‘‘(A) the average return on investments 
earned with respect to assets invested by the 
corporation for the year to which the report re-
lates; and 
‘‘(B) an amount equal to 60 percent of the 
average return on investment for such year in 
the Standard & Poor’s 500 Index, plus 40 per-
cent of the average return on investment for 
such year in the Lehman Aggregate Bond 
Index (or in a similar fixed income index); and 
‘‘(3) a statement regarding the deficit or sur-
plus for such year that the corporation would have 
had if the corporation had earned the return de-
scribed in paragraph (2)(B) with respect to assets 
invested by the corporation.’’. 
TITLE V—DISCLOSURE 
SEC. 501. DEFINED BENEFIT PLAN FUNDING NOTICE. 
(a) IN GENERAL.—Section 101(f) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1021(f)) is amended to read as follows: 
‘‘(f) DEFINED BENEFIT PLAN FUNDING NOTICES.— 
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429 
‘‘(1) IN GENERAL.—The administrator of a de-
fined benefit plan to which title IV applies shall for 
each plan year provide a plan funding notice to the 
Pension Benefit Guaranty Corporation, to each plan 
participant and beneficiary, to each labor organiza-
tion representing such participants or beneficiaries, 
and, in the case of a multiemployer plan, to each 
employer that has an obligation to contribute to the 
plan. 
‘‘(2) INFORMATION CONTAINED IN NOTICES.— 
‘‘(A) IDENTIFYING
INFORMATION.—Each 
notice required under paragraph (1) shall con-
tain identifying information, including the name 
of the plan, the address and phone number of 
the plan administrator and the plan’s principal 
administrative officer, each plan sponsor’s em-
ployer identification number, and the plan num-
ber of the plan. 
‘‘(B) SPECIFIC
INFORMATION.—A plan 
funding notice under paragraph (1) shall in-
clude— 
‘‘(i)(I) in the case of a single-employer 
plan, a statement as to whether the plan’s 
funding target attainment percentage (as 
defined in section 303(d)(2)) for the plan 
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430 
year to which the notice relates, and for 
the 2 preceding plan years, is at least 100 
percent (and, if not, the actual percent-
ages), or 
‘‘(II) in the case of a multiemployer 
plan, a statement as to whether the plan’s 
funded percentage (as defined in section 
305(i)) for the plan year to which the no-
tice relates, and for the 2 preceding plan 
years, is at least 100 percent (and, if not, 
the actual percentages), 
‘‘(ii)(I) in the case of a single-em-
ployer plan, a statement of— 
‘‘(aa) the total assets (separately 
stating the prefunding balance and 
the funding standard carryover bal-
ance) and liabilities of the plan, deter-
mined in the same manner as under 
section 303, for the plan year for 
which the latest annual report filed 
under section 104(a) was filed and for 
the 2 preceding plan years, as re-
ported in the annual report for each 
such plan year, and 
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431 
‘‘(bb) the value of the plan’s as-
sets and liabilities for the plan year to 
which the notice relates as of the last 
day of the plan year to which the no-
tice relates determined using the asset 
valuation under subclause (II) of sec-
tion 4006(a)(3)(E)(iii) and the inter-
est 
rate 
under 
section 
4006(a)(3)(E)(iv), and 
‘‘(II) in the case of a multiemployer 
plan, a statement of the value of the plan’s 
assets and liabilities for the plan year to 
which the notice relates as the last day of 
such plan year and the preceding 2 plan 
years, 
‘‘(iii) a statement of the number of 
participants who are— 
‘‘(I) retired or separated from 
service and are receiving benefits, 
‘‘(II) retired or separated partici-
pants entitled to future benefits, and 
‘‘(III) active participants under 
the plan, 
‘‘(iv) a statement setting forth the 
funding policy of the plan and the asset al-
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432 
location of investments under the plan (ex-
pressed as percentages of total assets) as 
of the end of the plan year to which the 
notice relates, 
‘‘(v) in the case of a multiemployer 
plan, whether the plan was in critical or 
endangered status under section 305 for 
such plan year and, if so— 
‘‘(I) a statement describing how 
a person may obtain a copy of the 
plan’s funding improvement or reha-
bilitation plan, as appropriate, adopt-
ed under section 305 and the actu-
arial and financial data that dem-
onstrate any action taken by the plan 
toward fiscal improvement, and 
‘‘(II) a summary of any funding 
improvement plan, rehabilitation plan, 
or modification thereof adopted under 
section 305 during the plan year to 
which the notice relates, 
‘‘(vi) in the case of any plan amend-
ment, scheduled benefit increase or reduc-
tion, or other known event taking effect in 
the current plan year and having a mate-
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433 
rial effect on plan liabilities or assets for 
the year (as defined in regulations by the 
Secretary), an explanation of the amend-
ment, schedule 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, 
‘‘(vii)(I) in the case of a single-em-
ployer plan, a summary of the rules gov-
erning termination of single-employer plans 
under subtitle C of title IV, or 
‘‘(II) in the case of a multiemployer 
plan, a summary of the rules governing re-
organization or insolvency, including the 
limitations on benefit payments, 
‘‘(viii) a general description of the 
benefits under the plan which are eligible 
to be guaranteed by the Pension Benefit 
Guaranty Corporation, along with an ex-
planation of the limitations on the guar-
antee and the circumstances under which 
such limitations apply, 
‘‘(ix) a statement that a person may 
obtain a copy of the annual report of the 
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plan filed under section 104(a) upon re-
quest, through the Internet website of the 
Department of Labor, or through an 
Intranet website maintained by the appli-
cable plan sponsor (or plan administrator 
on behalf of the plan sponsor), and 
‘‘(x) if applicable, a statement that 
each contributing sponsor, and each mem-
ber of the contributing sponsor’s controlled 
group, of the single-employer plan was re-
quired to provide the information under 
section 4010 for the plan year to which the 
notice relates. 
‘‘(C) OTHER INFORMATION.—Each notice 
under paragraph (1) shall include— 
‘‘(i) in the case of a multiemployer 
plan, a statement that the plan adminis-
trator shall provide, upon written request, 
to any labor organization representing plan 
participants and beneficiaries and any em-
ployer that has an obligation to contribute 
to the plan, a copy of the annual report 
filed with the Secretary under section 
104(a), and 
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ccoleman on PROD1PC71 with BILLS
435 
‘‘(ii) any additional information which 
the plan administrator elects to include to 
the extent not inconsistent with regulations 
prescribed by the Secretary. 
‘‘(3) TIME FOR PROVIDING NOTICE.— 
‘‘(A) IN
GENERAL.—Any notice under 
paragraph (1) shall be provided not later than 
120 days after the end of the plan year to 
which the notice relates. 
‘‘(B) EXCEPTION FOR SMALL PLANS.—In 
the case of a small plan (as such term is used 
under section 303(g)(2)(B)) any notice under 
paragraph (1) shall be provided upon filing of 
the annual report under section 104(a). 
‘‘(4) FORM AND MANNER.—Any notice under 
paragraph (1)— 
‘‘(A) shall be provided in a form and man-
ner prescribed in regulations of the Secretary, 
‘‘(B) shall be written in a manner so as to 
be understood by the average plan participant, 
and 
‘‘(C) may be provided in written, elec-
tronic, or other appropriate form to the extent 
such form is reasonably accessible to persons to 
whom the notice is required to be provided.’’. 
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436 
(b) REPEAL OF NOTICE TO PARTICIPANTS OF FUND-
ING STATUS.— 
(1) IN GENERAL.—Title IV of such Act (29 
U.S.C. 1301 et seq.) is amended by striking section 
4011. 
(2) CLERICAL AMENDMENT.—Section 1 of such 
Act is amended in the table of contents by striking 
the item relating to section 4011. 
(c) MODEL NOTICE.—Not later than 1 year after the 
date of the enactment of this Act, the Secretary of Labor 
shall publish a model version of the notice required by sec-
tion 101(f) of the Employee Retirement Income Security 
Act of 1974. The Secretary of Labor may promulgate any 
interim final rules as the Secretary determines appropriate 
to carry out the provisions of this subsection. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to plan years beginning after 
December 31, 2007, except that the amendment 
made by subsection (b) shall apply to plan years be-
ginning after December 31, 2006. 
(2) 
TRANSITION
RULE.—Any 
requirement 
under section 101(f) of the Employee Retirement In-
come Security Act of 1974 (as amended by this sec-
tion) to report the funding target attainment per-
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437 
centage or funded percentage of a plan with respect 
to any plan year beginning before January 1, 2008, 
shall be treated as met if the plan reports— 
(A) in the case of a plan year beginning in 
2006, the funded current liability percentage 
(as defined in section 302(d)(8) of such Act) of 
the plan for such plan year, and 
(B) in the case of a plan year beginning in 
2007, the funding target attainment percentage 
or funded percentage as determined using such 
methods of estimation as the Secretary of the 
Treasury may provide. 
SEC. 502. ACCESS TO MULTIEMPLOYER PENSION PLAN IN-
FORMATION. 
(a) FINANCIAL INFORMATION WITH RESPECT
TO 
MULTIEMPLOYER PLANS.— 
(1) IN GENERAL.—Section 101 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1021), as amended by section 103, is amended— 
(A) by redesignating subsection (k) as sub-
section (l); and 
(B) by inserting after subsection (j) the 
following new subsection: 
‘‘(k) MULTIEMPLOYER PLAN INFORMATION MADE 
AVAILABLE ON REQUEST.— 
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438 
‘‘(1) IN
GENERAL.—Each administrator of a 
multiemployer plan shall, upon written request, fur-
nish to any plan participant or beneficiary, employee 
representative, or any employer that has an obliga-
tion to contribute to the plan— 
‘‘(A) a copy of any periodic actuarial re-
port (including any sensitivity testing) received 
by the plan for any plan year which has been 
in the plan’s possession for at least 30 days, 
‘‘(B) a copy of any quarterly, semi-annual, 
or annual financial report prepared for the plan 
by any plan investment manager or advisor or 
other fiduciary which has been in the plan’s 
possession for at least 30 days, and 
‘‘(C) a copy of any application filed with 
the Secretary of the Treasury requesting an ex-
tension under section 304 of this Act or section 
431(d) of the Internal Revenue Code of 1986 
and the determination of such Secretary pursu-
ant to such application. 
‘‘(2) COMPLIANCE.—Information required to be 
provided under paragraph (1) — 
‘‘(A) shall be provided to the requesting 
participant, beneficiary, or employer within 30 
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ccoleman on PROD1PC71 with BILLS
439 
days after the request in a form and manner 
prescribed in regulations of the Secretary, 
‘‘(B) may be provided in written, elec-
tronic, or other appropriate form to the extent 
such form is reasonably accessible to persons to 
whom the information is required to be pro-
vided, and 
‘‘(C) shall not— 
‘‘(i) include any individually identifi-
able information regarding any plan partic-
ipant, beneficiary, employee, fiduciary, or 
contributing employer, or 
‘‘(ii) reveal any proprietary informa-
tion regarding the plan, any contributing 
employer, or entity providing services to 
the plan. 
‘‘(3) LIMITATIONS.—In no case shall a partici-
pant, beneficiary, or employer be entitled under this 
subsection to receive more than one copy of any re-
port or application described in paragraph (1) dur-
ing any one 12-month period. The administrator 
may make a reasonable charge to cover copying, 
mailing, and other costs of furnishing copies of in-
formation pursuant to paragraph (1). The Secretary 
may by regulations prescribe the maximum amount 
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440 
which will constitute a reasonable charge under the 
preceding sentence.’’. 
(2) ENFORCEMENT.—Section 502(c)(4) of such 
Act (29 U.S.C. 1132(c)(4)) is amended by striking 
‘‘section 101(j)’’ and inserting ‘‘subsection (j) or (k) 
of section 101’’. 
(3) REGULATIONS.—The Secretary shall pre-
scribe regulations under section 101(k)(2) of the 
Employee Retirement Income Security Act of 1974 
(as added by paragraph (1)) not later than 1 year 
after the date of the enactment of this Act. 
(b) NOTICE OF POTENTIAL WITHDRAWAL LIABILITY 
TO MULTIEMPLOYER PLANS.— 
(1) IN GENERAL.—Section 101 of such Act (as 
amended by subsection (a)) is amended— 
(A) by redesignating subsection (l) as sub-
section (m); and 
(B) by inserting after subsection (k) the 
following new subsection: 
‘‘(l) NOTICE OF POTENTIAL WITHDRAWAL LIABIL-
ITY.— 
‘‘(1) IN GENERAL.—The plan sponsor or ad-
ministrator of a multiemployer plan shall, upon writ-
ten request, furnish to any employer who has an ob-
ligation to contribute to the plan a notice of— 
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441 
‘‘(A) the estimated amount which would be 
the amount of such employer’s withdrawal li-
ability under part 1 of subtitle E of title IV if 
such employer withdrew on the last day of the 
plan year preceding the date of the request, and 
‘‘(B) an explanation of how such estimated 
liability amount was determined, including the 
actuarial assumptions and methods used to de-
termine the value of the plan liabilities and as-
sets, the data regarding employer contributions, 
unfunded vested benefits, annual changes in the 
plan’s unfunded vested benefits, and the appli-
cation of any relevant limitations on the esti-
mated withdrawal liability. 
For purposes of subparagraph (B), the term ‘em-
ployer contribution’ means, in connection with a par-
ticipant, a contribution made by an employer as an 
employer of such participant. 
‘‘(2) COMPLIANCE.—Any notice required to be 
provided under paragraph (1)— 
‘‘(A) shall be provided in a form and man-
ner prescribed in regulations of the Secretary to 
the requesting employer within— 
‘‘(i) 180 days after the request, or 
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442 
‘‘(ii) subject to regulations of the Sec-
retary, such longer time as may be nec-
essary in the case of a plan that deter-
mines withdrawal liability based on any 
method described under paragraph (4) or 
(5) of section 4211(c); and 
‘‘(B) may be provided in written, elec-
tronic, or other appropriate form to the extent 
such form is reasonably accessible to employers 
to whom the information is required to be pro-
vided. 
‘‘(3) LIMITATIONS.—In no case shall an em-
ployer be entitled under this subsection to receive 
more than one notice described in paragraph (1) 
during any one 12-month period. The person re-
quired to provide such notice may make a reasonable 
charge to cover copying, mailing, and other costs of 
furnishing such notice pursuant to paragraph (1). 
The Secretary may by regulations prescribe the max-
imum amount which will constitute a reasonable 
charge under the preceding sentence.’’. 
(2) ENFORCEMENT.—Section 502(c)(4) of such 
Act (29 U.S.C. 1132(c)(4)) is amended by striking 
‘‘section 101(j) or (k)’’ and inserting ‘‘subsection (j), 
(k), or (l) of section 101’’. 
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443 
(c) NOTICE OF AMENDMENT REDUCING FUTURE AC-
CRUALS.— 
(1) AMENDMENT OF ERISA.—Section 204(h)(1) 
of such Act (29 U.S.C. 1054(h)(1)) is amended by 
inserting at the end before the period the following: 
‘‘and to each employer who has an obligation to con-
tribute to the plan.’’. 
(2) AMENDMENT
OF
INTERNAL
REVENUE 
CODE.—Section 4980F(e)(1) of such Code is amend-
ed by adding at the end before the period the fol-
lowing: ‘‘and to each employer who has an obligation 
to contribute to the plan.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2007. 
SEC. 503. ADDITIONAL ANNUAL REPORTING REQUIRE-
MENTS. 
(a) ADDITIONAL ANNUAL REPORTING REQUIRE-
MENTS WITH RESPECT TO DEFINED BENEFIT PLANS.— 
(1) IN GENERAL.—Section 103 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1023) is amended— 
(A) in subsection (a)(1)(B), by striking 
‘‘subsections (d) and (e)’’ and inserting ‘‘sub-
sections (d), (e), and (f)’’; and 
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444 
(B) by adding at the end the following new 
subsection: 
‘‘(f) ADDITIONAL INFORMATION WITH RESPECT TO 
DEFINED BENEFIT PLANS.— 
‘‘(1) LIABILITIES UNDER 2 OR MORE PLANS.— 
‘‘(A) IN GENERAL.—In any case in which 
any liabilities to participants or their bene-
ficiaries under a defined benefit plan as of the 
end of a plan year consist (in whole or in part) 
of liabilities to such participants and bene-
ficiaries under 2 or more pension plans as of 
immediately before such plan year, an annual 
report under this section for such plan year 
shall include the funded percentage of each of 
such 2 or more pension plans as of the last day 
of such plan year and the funded percentage of 
the plan with respect to which the annual re-
port is filed as of the last day of such plan 
year. 
‘‘(B) FUNDED
PERCENTAGE.—For pur-
poses of this paragraph, the term ‘funded per-
centage’— 
‘‘(i) in the case of a single-employer 
plan, means the funding target attainment 
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445 
percentage, 
as 
defined 
in 
section 
303(d)(2), and 
‘‘(ii) in the case of a multiemployer 
plan, has the meaning given such term in 
section 305(i)(2). 
‘‘(2) ADDITIONAL INFORMATION FOR MULTIEM-
PLOYER PLANS.—With respect to any defined ben-
efit plan which is a multiemployer plan, an annual 
report under this section for a plan year shall in-
clude, in addition to the information required under 
paragraph (1), the following, as of the end of the 
plan year to which the report relates: 
‘‘(A) The number of employers obligated to 
contribute to the plan. 
‘‘(B) A list of the employers that contrib-
uted more than 5 percent of the total contribu-
tions to the plan during such plan year. 
‘‘(C) The number of participants under the 
plan on whose behalf no contributions were 
made by an employer as an employer of the 
participant for such plan year and for each of 
the 2 preceding plan years. 
‘‘(D) The ratios of— 
‘‘(i) the number of participants under 
the plan on whose behalf no employer had 
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446 
an obligation to make an employer con-
tribution during the plan year, to 
‘‘(ii) the number of participants under 
the plan on whose behalf no employer had 
an obligation to make an employer con-
tribution during each of the 2 preceding 
plan years. 
‘‘(E) Whether the plan received an amorti-
zation extension under section 304(d) of this 
Act or section 431(d) of the Internal Revenue 
Code of 1986 for such plan year and, if so, the 
amount of the difference between the minimum 
required contribution for the year and the min-
imum required contribution which would have 
been required without regard to the extension, 
and the period of such extension. 
‘‘(F) Whether the plan used the shortfall 
funding method (as such term is used in section 
305) for such plan year and, if so, the amount 
of the difference between the minimum required 
contribution for the year and the minimum re-
quired contribution which would have been re-
quired without regard to the use of such meth-
od, and the period of use of such method. 
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447 
‘‘(G) Whether the plan was in critical or 
endangered status under section 305 for such 
plan year, and if so, a summary of any funding 
improvement or rehabilitation plan (or modi-
fication thereto) adopted during the plan year, 
and the funded percentage of the plan. 
‘‘(H) The number of employers that with-
drew from the plan during the preceding plan 
year and the aggregate amount of withdrawal 
liability assessed, or estimated to be assessed, 
against such withdrawn employers. 
‘‘(I) In the case of a multiemployer plan 
that has merged with another plan or to which 
assets and liabilities have been transferred, the 
actuarial valuation of the assets and liabilities 
of each affected plan during the year preceding 
the effective date of the merger or transfer, 
based upon the most recent data available as of 
the day before the first day of the plan year, or 
other valuation method performed under stand-
ards and procedures as the Secretary may pre-
scribe by regulation.’’. 
(2) GUIDANCE BY SECRETARY OF LABOR.—Not 
later than 1 year after the date of enactment of this 
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448 
Act, the Secretary of Labor shall publish guidance 
to assist multiemployer defined benefit plans to— 
(A) identify and enumerate plan partici-
pants for whom there is no employer with an 
obligation to make an employer contribution 
under the plan; and 
(B) report such information under section 
103(f)(2)(D) of the Employee Retirement In-
come Security Act of 1974 (as added by this 
section). 
(b) ADDITIONAL INFORMATION IN ANNUAL ACTU-
ARIAL STATEMENT REGARDING PLAN RETIREMENT PRO-
JECTIONS.—Section 103(d) of such Act (29 U.S.C. 
1023(d)) is amended— 
(1) by redesignating paragraphs (12) and (13) 
as paragraphs (13) and (14), respectively; and 
(2) by inserting after paragraph (11) the fol-
lowing new paragraph: 
‘‘(12) A statement explaining the actuarial as-
sumptions and methods used in projecting future re-
tirements and forms of benefit distributions under 
the plan.’’. 
(c) REPEAL
OF SUMMARY ANNUAL REPORT RE-
QUIREMENT FOR DEFINED BENEFIT PLANS.— 
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449 
(1) IN GENERAL.—Section 104(b)(3) of such 
Act (29 U.S.C. 1024(b)(3)) is amended by inserting 
‘‘(other than an administrator of a defined benefit 
plan to which the requirements of section 103(f) ap-
plies)’’ after ‘‘the administrators’’. 
(2) 
CONFORMING
AMENDMENTS.—Section 
101(a)(2) of such Act (29 U.S.C. 1021(a)(2)) is 
amended by inserting ‘‘subsection (f) and’’ before 
‘‘sections 104(b)(3) and 105(a) and (c)’’. 
(d) FURNISHING SUMMARY PLAN INFORMATION TO 
EMPLOYERS
AND
EMPLOYEE
REPRESENTATIVES
OF 
MULTIEMPLOYER PLANS.—Section 104 of such Act (29 
U.S.C. 1024) is amended— 
(1) in the header, by striking ‘‘PARTICI-
PANTS’’ and inserting ‘‘PARTICIPANTS AND CER-
TAIN EMPLOYERS’’; 
(2) redesignating subsection (d) as subsection 
(e); and 
(3) inserting after subsection (c) the following: 
‘‘(d) FURNISHING SUMMARY PLAN INFORMATION TO 
EMPLOYERS
AND
EMPLOYEE
REPRESENTATIVES
OF 
MULTIEMPLOYER PLANS.— 
‘‘(1) IN GENERAL.—With respect to a multiem-
ployer plan subject to this section, within 30 days 
after the due date under subsection (a)(1) for the 
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450 
filing of the annual report for the fiscal year of the 
plan, the administrators shall furnish to each em-
ployee organization and to each employer with an 
obligation to contribute to the plan a report that 
contains— 
‘‘(A) a description of the contribution 
schedules and benefit formulas under the plan, 
and any modification to such schedules and for-
mulas, during such plan year; 
‘‘(B) the number of employers obligated to 
contribute to the plan; 
‘‘(C) a list of the employers that contrib-
uted more than 5 percent of the total contribu-
tions to the plan during such plan year; 
‘‘(D) the number of participants under the 
plan on whose behalf no contributions were 
made by an employer as an employer of the 
participant for such plan year and for each of 
the 2 preceding plan years; 
‘‘(E) whether the plan was in critical or 
endangered status under section 305 for such 
plan year and, if so, include— 
‘‘(i) a list of the actions taken by the 
plan to improve its funding status; and 
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451 
‘‘(ii) a statement describing how a 
person may obtain a copy of the plan’s im-
provement or rehabilitation plan, as appli-
cable, adopted under section 305 and the 
actuarial and financial data that dem-
onstrate any action taken by the plan to-
ward fiscal improvement; 
‘‘(F) the number of employers that with-
drew from the plan during the preceding plan 
year and the aggregate amount of withdrawal 
liability assessed, or estimated to be assessed, 
against such withdrawn employers, as reported 
on the annual report for the plan year to which 
the report under this subsection relates; 
‘‘(G) in the case of a multiemployer plan 
that has merged with another plan or to which 
assets and liabilities have been transferred, the 
actuarial valuation of the assets and liabilities 
of each affected plan during the year preceding 
the effective date of the merger or transfer, 
based upon the most recent data available as of 
the day before the first day of the plan year, or 
other valuation method performed under stand-
ards and procedures as the Secretary may pre-
scribe by regulation; 
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452 
‘‘(H) a description as to whether the 
plan— 
‘‘(i) sought or received an amortiza-
tion extension under section 304(d) of this 
Act or section 431(d) of the Internal Rev-
enue Code of 1986 for such plan year; or 
‘‘(ii) used the shortfall funding meth-
od (as such term is used in section 305) 
for such plan year; and 
‘‘(I) notification of the right under this 
section of the recipient to a copy of the annual 
report filed with the Secretary under subsection 
(a), summary plan description, summary of any 
material modification of the plan, upon written 
request, but that— 
‘‘(i) in no case shall a recipient be en-
titled to receive more than one copy of any 
such document described during any one 
12-month period; and 
‘‘(ii) the administrator may make a 
reasonable charge to cover copying, mail-
ing, and other costs of furnishing copies of 
information pursuant to this subpara-
graph. 
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453 
‘‘(2) EFFECT OF SUBSECTION.—Nothing in this 
subsection waives any other provision under this title 
requiring plan administrators to provide, upon re-
quest, information to employers that have an obliga-
tion to contribute under the plan.’’. 
(e) MODEL FORM.—Not later than 1 year after the 
date of the enactment of this Act, the Secretary of Labor 
shall publish a model form for providing the statements, 
schedules, and other material required to be provided 
under section 101(f) of the Employee Retirement Income 
Security Act of 1974, as amended by this section. The 
Secretary of Labor may promulgate any interim final rules 
as the Secretary determines appropriate to carry out the 
provisions of this subsection. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2007. 
SEC. 504. ELECTRONIC DISPLAY OF ANNUAL REPORT IN-
FORMATION. 
(a) ELECTRONIC DISPLAY OF INFORMATION.—Sec-
tion 104(b) of such Act (29 U.S.C. 1024(b)) is amended 
by adding at the end the following: 
‘‘(5) Identification and basic plan information and ac-
tuarial information included in the annual report for any 
plan year shall be filed with the Secretary in an electronic 
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454 
format which accommodates display on the Internet, in ac-
cordance with regulations which shall be prescribed by the 
Secretary. The Secretary shall provide for display of such 
information included in the annual report, within 90 days 
after the date of the filing of the annual report, on an 
Internet website maintained by the Secretary and other 
appropriate media. Such information shall also be dis-
played on any Intranet website maintained by the plan 
sponsor (or by the plan administrator on behalf of the plan 
sponsor) for the purpose of communicating with employees 
and not the public, in accordance with regulations which 
shall be prescribed by the Secretary.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2007. 
SEC. 505. SECTION 4010 FILINGS WITH THE PBGC. 
(a) CHANGE IN CRITERIA FOR PERSONS REQUIRED 
TO PROVIDE INFORMATION TO PBGC.—Section 4010(b) 
of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1310(b)) is amended by striking paragraph (1) 
and inserting the following: 
‘‘(1) the funding target attainment percentage 
(as defined in subsection (d)) at the end of the pre-
ceding plan year of a plan maintained by the con-
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ccoleman on PROD1PC71 with BILLS
455 
tributing sponsor or any member of its controlled 
group is less than 80 percent;’’. 
(b) ADDITIONAL INFORMATION REQUIRED.—Section 
4010 of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1310) is amended by adding at the end 
the following new subsection: 
‘‘(d) ADDITIONAL INFORMATION REQUIRED.— 
‘‘(1) IN GENERAL.—The information submitted 
to the corporation under subsection (a) shall in-
clude— 
‘‘(A) the amount of benefit liabilities under 
the plan determined using the assumptions used 
by the corporation in determining liabilities; 
‘‘(B) the funding target of the plan deter-
mined as if the plan has been in at-risk status 
for at least 5 plan years; and 
‘‘(C) the funding target attainment per-
centage of the plan. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section: 
‘‘(A) FUNDING TARGET.—The term ‘fund-
ing target’ has the meaning provided under sec-
tion 303(d)(1). 
‘‘(B) FUNDING TARGET ATTAINMENT PER-
CENTAGE.—The term ‘funding target attain-
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456 
ment percentage’ has the meaning provided 
under section 302(d)(2). 
‘‘(C) AT-RISK STATUS.—The term ‘at-risk 
status’ has the meaning provided in section 
303(i)(4). 
‘‘(e) NOTICE TO CONGRESS.—The corporation shall, 
on an annual basis, submit to the Committee on Health, 
Education, Labor, and Pensions and the Committee on Fi-
nance of the Senate and the Committee on Education and 
the Workforce and the Committee on Ways and Means 
of the House of Representatives, a summary report in the 
aggregate of the information submitted to the corporation 
under this section.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to years beginning 
after 2007. 
SEC. 506. DISCLOSURE OF TERMINATION INFORMATION TO 
PLAN PARTICIPANTS. 
(a) DISTRESS TERMINATIONS.— 
(1) IN
GENERAL.—Section 4041(c)(2) of the 
Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1341(c)(2)) is amended by adding at the 
end the following: 
‘‘(D) DISCLOSURE
OF
TERMINATION
IN-
FORMATION.— 
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457 
‘‘(i) IN GENERAL.—A plan adminis-
trator that has filed a notice of intent to 
terminate under subsection (a)(2) shall 
provide to an affected party any informa-
tion provided to the corporation under sub-
section (a)(2) not later than 15 days 
after— 
‘‘(I) receipt of a request from the 
affected party for the information; or 
‘‘(II) the provision of new infor-
mation to the corporation relating to 
a previous request. 
‘‘(ii) CONFIDENTIALITY.— 
‘‘(I) IN GENERAL.—The plan ad-
ministrator shall not provide informa-
tion under clause (i) in a form that 
includes any information that may di-
rectly or indirectly be associated with, 
or otherwise identify, an individual 
participant or beneficiary. 
‘‘(II) LIMITATION.—A court may 
limit disclosure under this subpara-
graph of confidential information de-
scribed in section 552(b) of title 5, 
United States Code, to any authorized 
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458 
representative of the participants or 
beneficiaries that agrees to ensure the 
confidentiality of such information. 
‘‘(iii) FORM AND MANNER OF INFOR-
MATION; CHARGES.— 
‘‘(I) FORM AND MANNER.—The 
corporation may prescribe the form 
and manner of the provision of infor-
mation 
under 
this 
subparagraph, 
which shall include delivery in written, 
electronic, or other appropriate form 
to the extent that such form is rea-
sonably accessible to individuals to 
whom the information is required to 
be provided. 
‘‘(II) REASONABLE CHARGES.—A 
plan administrator may charge a rea-
sonable fee for any information pro-
vided under this subparagraph in 
other than electronic form. 
‘‘(iv) 
AUTHORIZED
REPRESENTA-
TIVE.—For purposes of this subparagraph, 
the term ‘authorized representative’ means 
any employee organization representing 
participants in the pension plan.’’. 
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ccoleman on PROD1PC71 with BILLS
459 
(2) 
CONFORMING
AMENDMENT.—Section 
4041(c)(1) of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1341(c)(1)) is amend-
ed in subparagraph (C) by striking ‘‘subparagraph 
(B)’’ and inserting ‘‘subparagraphs (B) and (D)’’. 
(b) INVOLUNTARY TERMINATIONS.— 
(1) IN GENERAL.—Section 4042(c) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1342(c)) is amended by— 
(A) striking ‘‘(c) If the’’ and inserting 
‘‘(c)(1) If the’’; 
(B) redesignating paragraph (3) as para-
graph (2); and 
(C) adding at the end the following: 
‘‘(3) DISCLOSURE OF TERMINATION INFORMA-
TION.— 
‘‘(A) IN GENERAL.— 
‘‘(i) INFORMATION FROM PLAN SPON-
SOR OR ADMINISTRATOR.—A plan sponsor 
or plan administrator of a single-employer 
plan that has received a notice from the 
corporation of a determination that the 
plan should be terminated under this sec-
tion shall provide to an affected party any 
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460 
information provided to the corporation in 
connection with the plan termination. 
‘‘(ii) INFORMATION
FROM
CORPORA-
TION.—The corporation shall provide a 
copy of the administrative record, includ-
ing the trusteeship decision record of a ter-
mination of a plan described under clause 
(i). 
‘‘(B) TIMING OF DISCLOSURE.—The plan 
sponsor, plan administrator, or the corporation, 
as applicable, shall provide the information de-
scribed in subparagraph (A) not later than 15 
days after— 
‘‘(i) receipt of a request from an af-
fected party for such information; or 
‘‘(ii) in the case of information de-
scribed under subparagraph (A)(i), the 
provision of any new information to the 
corporation relating to a previous request 
by an affected party. 
‘‘(C) CONFIDENTIALITY.— 
‘‘(i) IN GENERAL.—The plan adminis-
trator and plan sponsor shall not provide 
information under subparagraph (A)(i) in 
a form which includes any information that 
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461 
may directly or indirectly be associated 
with, or otherwise identify, an individual 
participant or beneficiary. 
‘‘(ii) LIMITATION.—A court may limit 
disclosure under this paragraph of con-
fidential information described in section 
552(b) of title 5, United States Code, to 
authorized 
representatives 
(within 
the 
meaning of section 4041(c)(2)(D)(iv)) of 
the participants or beneficiaries that agree 
to ensure the confidentiality of such infor-
mation. 
‘‘(D) FORM
AND
MANNER
OF
INFORMA-
TION; CHARGES.— 
‘‘(i) FORM AND MANNER.—The cor-
poration may prescribe the form and man-
ner of the provision of information under 
this paragraph, which shall include delivery 
in written, electronic, or other appropriate 
form to the extent that such form is rea-
sonably accessible to individuals to whom 
the information is required to be provided. 
‘‘(ii) REASONABLE CHARGES.—A plan 
sponsor may charge a reasonable fee for 
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462 
any information provided under this para-
graph in other than electronic form.’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to any plan termination 
under title IV of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1301 et seq.) with 
respect to which the notice of intent to terminate (or 
in the case of a termination by the Pension Benefit 
Guaranty Corporation, a notice of determination 
under section 4042 of such Act (29 U.S.C. 1342)) 
occurs after the date of enactment of this Act. 
(2) TRANSITION RULE.—If notice under section 
4041(c)(2)(D) or 4042(c)(3) of the Employee Re-
tirement Income Security Act of 1974 (as added by 
this section) would otherwise be required to be pro-
vided before the 90th day after the date of the en-
actment of this Act, such notice shall not be re-
quired to be provided until such 90th day. 
SEC. 507. NOTICE OF FREEDOM TO DIVEST EMPLOYER SE-
CURITIES. 
(a) IN GENERAL.—Section 101 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1021), 
as amended by this Act, is amended by redesignating sub-
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ccoleman on PROD1PC71 with BILLS
463 
section (m) as subsection (n) and by inserting after sub-
section (l) the following: 
‘‘(m) NOTICE OF RIGHT TO DIVEST.—Not later than 
30 days before the first date on which an applicable indi-
vidual of an applicable individual account plan is eligible 
to exercise the right under section 204(j) to direct the pro-
ceeds from the divestment of employer securities with re-
spect to any type of contribution, the administrator shall 
provide to such individual a notice— 
‘‘(1) setting forth such right under such sec-
tion, and 
‘‘(2) describing the importance of diversifying 
the investment of retirement account assets. 
The notice required by this subsection shall be written in 
a manner calculated to be understood by the average plan 
participant and may be delivered in written, electronic, or 
other appropriate form to the extent that such form is rea-
sonably accessible to the recipient.’’ 
(b) PENALTIES.—Section 502(c)(7) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1132(c)(7)) is amended by striking ‘‘section 101(i)’’ and 
inserting ‘‘subsection (i) or (m) of section 101’’. 
(c) MODEL NOTICE.—The Secretary of the Treasury 
shall, within 180 days after the date of the enactment of 
this subsection, prescribe a model notice for purposes of 
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464 
satisfying the requirements of the amendments made by 
this section. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to plan years beginning after 
December 31, 2006. 
(2) TRANSITION RULE.—If notice under section 
101(m) of the Employee Retirement Income Secu-
rity Act of 1974 (as added by this section) would 
otherwise be required to be provided before the 90th 
day after the date of the enactment of this Act, such 
notice shall not be required to be provided until such 
90th day. 
SEC. 508. PERIODIC PENSION BENEFIT STATEMENTS. 
(a) AMENDMENTS OF ERISA.— 
(1) IN GENERAL.—Section 105(a) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1025(a)) is amended to read as follows: 
‘‘(a) REQUIREMENTS TO PROVIDE PENSION BEN-
EFIT STATEMENTS.— 
‘‘(1) REQUIREMENTS.— 
‘‘(A) INDIVIDUAL
ACCOUNT
PLAN.—The 
administrator of an individual account plan 
(other than a one-participant retirement plan 
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465 
described in section 101(i)(8)(B)) shall furnish 
a pension benefit statement— 
‘‘(i) at least once each calendar quar-
ter to a participant or beneficiary who has 
the right to direct the investment of assets 
in his or her account under the plan, 
‘‘(ii) at least once each calendar year 
to a participant or beneficiary who has his 
or her own account under the plan but 
does not have the right to direct the invest-
ment of assets in that account, and 
‘‘(iii) upon written request to a plan 
beneficiary not described in clause (i) or 
(ii). 
‘‘(B) DEFINED BENEFIT PLAN.—The ad-
ministrator of a defined benefit plan (other 
than a one-participant retirement plan de-
scribed in section 101(i)(8)(B)) shall furnish a 
pension benefit statement— 
‘‘(i) at least once every 3 years to 
each participant with a nonforfeitable ac-
crued benefit and who is employed by the 
employer maintaining the plan at the time 
the statement is to be furnished, and 
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466 
‘‘(ii) to a participant or beneficiary of 
the plan upon written request. 
Information furnished under clause (i) to a par-
ticipant may be based on reasonable estimates 
determined under regulations prescribed by the 
Secretary, in consultation with the Pension 
Benefit Guaranty Corporation. 
‘‘(2) STATEMENTS.— 
‘‘(A) IN
GENERAL.—A pension benefit 
statement under paragraph (1)— 
‘‘(i) shall indicate, on the basis of the 
latest available information— 
‘‘(I) the total benefits accrued, 
and 
‘‘(II) the nonforfeitable pension 
benefits, if any, which have accrued, 
or the earliest date on which benefits 
will become nonforfeitable, 
‘‘(ii) shall include an explanation of 
any permitted disparity under section 
401(l) of the Internal Revenue Code of 
1986 or any floor-offset arrangement that 
may be applied in determining any accrued 
benefits described in clause (i), 
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467 
‘‘(iii) shall be written in a manner cal-
culated to be understood by the average 
plan participant, and 
‘‘(iv) may be delivered in written, elec-
tronic, or other appropriate form to the ex-
tent such form is reasonably accessible to 
the participant or beneficiary. 
‘‘(B) ADDITIONAL INFORMATION.—In the 
case of an individual account plan, any pension 
benefit statement under clause (i) or (ii) of 
paragraph (1)(A) shall include— 
‘‘(i) the value of each investment to 
which assets in the individual account have 
been allocated, determined as of the most 
recent valuation date under the plan, in-
cluding the value of any assets held in the 
form of employer securities, without regard 
to whether such securities were contributed 
by the plan sponsor or acquired at the di-
rection of the plan or of the participant or 
beneficiary, and 
‘‘(ii) in the case of a pension benefit 
statement under paragraph (1)(A)(i)— 
‘‘(I) an explanation of any limita-
tions or restrictions on any right of 
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468 
the participant or beneficiary under 
the plan to direct an investment, 
‘‘(II) an explanation, written in a 
manner calculated to be understood 
by the average plan participant, of the 
importance, for the long-term retire-
ment security of participants and 
beneficiaries, of a well-balanced and 
diversified investment portfolio, in-
cluding a statement of the risk that 
holding more than 20 percent of a 
portfolio in the security of one entity 
(such as employer securities) may not 
be adequately diversified, and 
‘‘(III) a notice directing the par-
ticipant or beneficiary to the Internet 
website of the Department of Labor 
for sources of information on indi-
vidual investing and diversification. 
‘‘(C) ALTERNATIVE NOTICE.—The require-
ments of subparagraph (A)(i)(II) are met if, at 
least annually and in accordance with require-
ments of the Secretary, the plan— 
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469 
‘‘(i) updates the information described 
in such paragraph which is provided in the 
pension benefit statement, or 
‘‘(ii) provides in a separate statement 
such information as is necessary to enable 
a participant or beneficiary to determine 
their nonforfeitable vested benefits. 
‘‘(3) DEFINED BENEFIT PLANS.— 
‘‘(A) ALTERNATIVE NOTICE.—In the case 
of a defined benefit plan, the requirements of 
paragraph (1)(B)(i) shall be treated as met 
with respect to a participant if at least once 
each year the administrator provides to the par-
ticipant notice of the availability of the pension 
benefit statement and the ways in which the 
participant may obtain such statement. Such 
notice may be delivered in written, electronic, or 
other appropriate form to the extent such form 
is reasonably accessible to the participant. 
‘‘(B) YEARS IN WHICH NO BENEFITS AC-
CRUE.—The Secretary may provide that years 
in which no employee or former employee bene-
fits (within the meaning of section 410(b) of 
the Internal Revenue Code of 1986) under the 
plan need not be taken into account in deter-
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470 
mining the 3-year period under paragraph 
(1)(B)(i).’’ 
(2) CONFORMING AMENDMENTS.— 
(A) Section 105 of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 
1025) is amended by striking subsection (d). 
(B) Section 105(b) of such Act (29 U.S.C. 
1025(b)) is amended to read as follows: 
‘‘(b) LIMITATION ON NUMBER OF STATEMENTS.—In 
no case shall a participant or beneficiary of a plan be enti-
tled to more than 1 statement described in subparagraph 
(A)(iii) or (B)(ii) of subsection (a)(1), whichever is appli-
cable, in any 12-month period.’’ 
(C) Section 502(c)(1) of such Act (29 
U.S.C. 1132(c)(1)) is amended by striking ‘‘or 
section 101(f)’’ and inserting ‘‘section 101(f), 
or section 105(a)’’. 
(b) MODEL STATEMENTS.— 
(1) IN
GENERAL.—The Secretary of Labor 
shall, within 1 year after the date of the enactment 
of this section, develop 1 or more model benefit 
statements that are written in a manner calculated 
to be understood by the average plan participant and 
that may be used by plan administrators in com-
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471 
plying with the requirements of section 105 of the 
Employee Retirement Income Security Act of 1974. 
(2) INTERIM FINAL RULES.—The Secretary of 
Labor may promulgate any interim final rules as the 
Secretary determines appropriate to carry out the 
provisions of this subsection. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to plan years beginning after 
December 31, 2006. 
(2) SPECIAL
RULE
FOR
COLLECTIVELY
BAR-
GAINED AGREEMENTS.—In the case of a plan main-
tained 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, paragraph (1) shall be 
applied to benefits pursuant to, and individuals cov-
ered by, any such agreement by substituting for 
‘‘December 31, 2006’’ the earlier of— 
(A) the later of— 
(i) December 31, 2007, or 
(ii) the date on which the last of such 
collective bargaining agreements termi-
nates (determined without regard to any 
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ccoleman on PROD1PC71 with BILLS
472 
extension thereof after such date of enact-
ment), or 
(B) December 31, 2008. 
SEC. 509. NOTICE TO PARTICIPANTS OR BENEFICIARIES OF 
BLACKOUT PERIODS. 
(a) IN GENERAL.—Section 101(i)(8)(B) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1021(i)(8)(B)) is amended by striking clauses (i) 
through (iv), by redesignating clause (v) as clause (ii), and 
by inserting before clause (ii), as so redesignated, the fol-
lowing new clause: 
‘‘(i) on the first day of the plan 
year— 
‘‘(I) covered only one individual 
(or the individual and the individual’s 
spouse) and the individual (or the in-
dividual and the individual’s spouse) 
owned 100 percent of the plan spon-
sor (whether or not incorporated), or 
‘‘(II) covered only one or more 
partners 
(or 
partners 
and 
their 
spouses) in the plan sponsor, and’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this subsection shall take effect as if included in the provi-
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ccoleman on PROD1PC71 with BILLS
473 
sions of section 306 of Public Law 107–204 (116 Stat. 
745 et seq.). 
TITLE VI—INVESTMENT ADVICE, 
PROHIBITED TRANSACTIONS, 
AND FIDUCIARY RULES 
Subtitle A—Investment Advice 
SEC. 601. PROHIBITED TRANSACTION EXEMPTION FOR 
PROVISION OF INVESTMENT ADVICE. 
(a) AMENDMENTS TO THE EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974.— 
(1) EXEMPTION
FROM
PROHIBITED
TRANS-
ACTIONS.—Section 408(b) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 
1108(b)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(14) Any transaction in connection with the 
provision of investment advice described in section 
3(21)(A)(ii) to a participant or beneficiary of an in-
dividual account plan that permits such participant 
or beneficiary to direct the investment of assets in 
their individual account, if— 
‘‘(A) the transaction is— 
‘‘(i) the provision of the investment 
advice to the participant or beneficiary of 
the plan with respect to a security or other 
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474 
property available as an investment under 
the plan, 
‘‘(ii) the acquisition, holding, or sale 
of a security or other property available as 
an investment under the plan pursuant to 
the investment advice, or 
‘‘(iii) the direct or indirect receipt of 
fees or other compensation by the fiduciary 
adviser or an affiliate thereof (or any em-
ployee, agent, or registered representative 
of the fiduciary adviser or affiliate) in con-
nection with the provision of the advice or 
in connection with an acquisition, holding, 
or sale of a security or other property 
available as an investment under the plan 
pursuant to the investment advice; and 
‘‘(B) the requirements of subsection (g) 
are met.’’. 
(2) REQUIREMENTS.—Section 408 of such Act 
is amended further by adding at the end the fol-
lowing new subsection: 
‘‘(g) PROVISION OF INVESTMENT ADVICE TO PARTIC-
IPANT AND BENEFICIARIES.— 
‘‘(1) IN GENERAL.—The prohibitions provided 
in section 406 shall not apply to transactions de-
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ccoleman on PROD1PC71 with BILLS
475 
scribed in subsection (b)(14) if the investment advice 
provided by a fiduciary adviser is provided under an 
eligible investment advice arrangement. 
‘‘(2) ELIGIBLE INVESTMENT ADVICE ARRANGE-
MENT.—For purposes of this subsection, the term 
‘eligible investment advice arrangement’ means an 
arrangement— 
‘‘(A) which either— 
‘‘(i) provides that any fees (including 
any commission or other compensation) re-
ceived by the fiduciary adviser for invest-
ment advice or with respect to the sale, 
holding, or acquisition of any security or 
other property for purposes of investment 
of plan assets do not vary depending on 
the basis of any investment option selected, 
or 
‘‘(ii) uses a computer model under an 
investment advice program meeting the re-
quirements of paragraph (3) in connection 
with the provision of investment advice by 
a fiduciary adviser to a participant or ben-
eficiary, and 
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ccoleman on PROD1PC71 with BILLS
476 
‘‘(B) with respect to which the require-
ments of paragraph (4), (5), (6), (7), (8), and 
(9) are met. 
‘‘(3) INVESTMENT
ADVICE
PROGRAM
USING 
COMPUTER MODEL.— 
‘‘(A) IN GENERAL.—An investment advice 
program meets the requirements of this para-
graph if the requirements of subparagraphs 
(B), (C), and (D) are met. 
‘‘(B) COMPUTER
MODEL.—The require-
ments of this subparagraph are met if the in-
vestment advice provided under the investment 
advice program is provided pursuant to a com-
puter model that— 
‘‘(i) applies generally accepted invest-
ment theories that take into account the 
historic returns of different asset classes 
over defined periods of time, 
‘‘(ii) 
utilizes 
relevant 
information 
about the participant, which may include 
age, life expectancy, retirement age, risk 
tolerance, other assets or sources of in-
come, and preferences as to certain types 
of investments, 
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ccoleman on PROD1PC71 with BILLS
477 
‘‘(iii) utilizes prescribed objective cri-
teria to provide asset allocation portfolios 
comprised of investment options available 
under the plan, 
‘‘(iv) operates in a manner that is not 
biased in favor of investments offered by 
the fiduciary adviser or a person with a 
material affiliation or contractual relation-
ship with the fiduciary adviser, and 
‘‘(v) takes into account all investment 
options under the plan in specifying how a 
participant’s account balance should be in-
vested and is not inappropriately weighted 
with respect to any investment option. 
‘‘(C) CERTIFICATION.— 
‘‘(i) IN GENERAL.—The requirements 
of this subparagraph are met with respect 
to any investment advice program if an eli-
gible investment expert certifies, prior to 
the utilization of the computer model and 
in accordance with rules prescribed by the 
Secretary, that the computer model meets 
the requirements of subparagraph (B). 
‘‘(ii) 
RENEWAL
OF
CERTIFI-
CATIONS.—If, as determined under regula-
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ccoleman on PROD1PC71 with BILLS
478 
tions prescribed by the Secretary, there are 
material modifications to a computer 
model, the requirements of this subpara-
graph are met only if a certification de-
scribed in clause (i) is obtained with re-
spect to the computer model as so modi-
fied. 
‘‘(iii) ELIGIBLE
INVESTMENT
EX-
PERT.—The term ‘eligible investment ex-
pert’ means any person— 
‘‘(I) which meets such require-
ments as the Secretary may provide, 
and 
‘‘(II) does not bear any material 
affiliation or contractual relationship 
with any investment adviser or a re-
lated person thereof (or any employee, 
agent, or registered representative of 
the investment adviser or related per-
son). 
‘‘(D) 
EXCLUSIVITY
OF
RECOMMENDA-
TION.—The requirements of this subparagraph 
are met with respect to any investment advice 
program if— 
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479 
‘‘(i) the only investment advice pro-
vided under the program is the advice gen-
erated by the computer model described in 
subparagraph (B), and 
‘‘(ii) any transaction described in sub-
section (b)(14)(B)(ii) occurs solely at the 
direction of the participant or beneficiary. 
Nothing in the preceding sentence shall pre-
clude the participant or beneficiary from re-
questing investment advice other than that de-
scribed in subparagraph (A), but only if such 
request has not been solicited by any person 
connected with carrying out the arrangement. 
‘‘(4) EXPRESS AUTHORIZATION BY SEPARATE 
FIDUCIARY.—The requirements of this paragraph 
are met with respect to an arrangement if the ar-
rangement is expressly authorized by a plan fidu-
ciary other than the person offering the investment 
advice program, any person providing investment op-
tions under the plan, or any affiliate of either. 
‘‘(5) ANNUAL AUDIT.—The requirements of this 
paragraph are met if an independent auditor, who 
has appropriate technical training or experience and 
proficiency and so represents in writing— 
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480 
‘‘(A) conducts an annual audit of the ar-
rangement for compliance with the require-
ments of this subsection, and 
‘‘(B) following completion of the annual 
audit, issues a written report to the fiduciary 
who authorized use of the arrangement which 
presents its specific findings regarding compli-
ance of the arrangement with the requirements 
of this subsection. 
For purposes of this paragraph, an auditor is con-
sidered independent if it is not related to the person 
offering the arrangement to the plan and is not re-
lated to any person providing investment options 
under the plan. 
‘‘(6) DISCLOSURE.—The requirements of this 
paragraph are met if— 
‘‘(A) the fiduciary adviser provides to a 
participant or a beneficiary before the initial 
provision of the investment advice with regard 
to any security or other property offered as an 
investment option, a written notification (which 
may consist of notification by means of elec-
tronic communication)— 
‘‘(i) of the role of any party that has 
a material affiliation or contractual rela-
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ccoleman on PROD1PC71 with BILLS
481 
tionship with the financial adviser in the 
development of the investment advice pro-
gram and in the selection of investment 
options available under the plan, 
‘‘(ii) of the past performance and his-
torical rates of return of the investment 
options available under the plan, 
‘‘(iii) of all fees or other compensation 
relating to the advice that the fiduciary ad-
viser or any affiliate thereof is to receive 
(including compensation provided by any 
third party) in connection with the provi-
sion of the advice or in connection with the 
sale, acquisition, or holding of the security 
or other property, 
‘‘(iv) of any material affiliation or 
contractual relationship of the fiduciary 
adviser or affiliates thereof in the security 
or other property, 
‘‘(v) the manner, and under what cir-
cumstances, any participant or beneficiary 
information provided under the arrange-
ment will be used or disclosed, 
‘‘(vi) of the types of services provided 
by the fiduciary adviser in connection with 
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ccoleman on PROD1PC71 with BILLS
482 
the provision of investment advice by the 
fiduciary adviser, 
‘‘(vii) that the adviser is acting as a 
fiduciary of the plan in connection with the 
provision of the advice, and 
‘‘(viii) that a recipient of the advice 
may separately arrange for the provision of 
advice by another adviser, that could have 
no material affiliation with and receive no 
fees or other compensation in connection 
with the security or other property, and 
‘‘(B) at all times during the provision of 
advisory services to the participant or bene-
ficiary, the fiduciary adviser— 
‘‘(i) maintains the information de-
scribed in subparagraph (A) in accurate 
form and in the manner described in para-
graph (8), 
‘‘(ii) provides, without charge, accu-
rate information to the recipient of the ad-
vice no less frequently than annually, 
‘‘(iii) provides, without charge, accu-
rate information to the recipient of the ad-
vice upon request of the recipient, and 
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483 
‘‘(iv) provides, without charge, accu-
rate information to the recipient of the ad-
vice concerning any material change to the 
information required to be provided to the 
recipient of the advice at a time reasonably 
contemporaneous to the change in informa-
tion. 
‘‘(7) OTHER
CONDITIONS.—The requirements 
of this paragraph are met if— 
‘‘(A) the fiduciary adviser provides appro-
priate disclosure, in connection with the sale, 
acquisition, or holding of the security or other 
property, in accordance with all applicable secu-
rities laws, 
‘‘(B) the sale, acquisition, or holding oc-
curs solely at the direction of the recipient of 
the advice, 
‘‘(C) the compensation received by the fi-
duciary adviser and affiliates thereof in connec-
tion with the sale, acquisition, or holding of the 
security or other property is reasonable, and 
‘‘(D) the terms of the sale, acquisition, or 
holding of the security or other property are at 
least as favorable to the plan as an arm’s 
length transaction would be. 
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484 
‘‘(8) STANDARDS FOR PRESENTATION OF IN-
FORMATION.— 
‘‘(A) IN GENERAL.—The requirements of 
this paragraph are met if the notification re-
quired to be provided to participants and bene-
ficiaries under paragraph (6)(A) is written in a 
clear and conspicuous manner and in a manner 
calculated to be understood by the average plan 
participant and is sufficiently accurate and 
comprehensive to reasonably apprise such par-
ticipants and beneficiaries of the information 
required to be provided in the notification. 
‘‘(B) MODEL FORM FOR DISCLOSURE OF 
FEES AND OTHER COMPENSATION.—The Sec-
retary shall issue a model form for the disclo-
sure of fees and other compensation required in 
paragraph (6)(A)(iii) which meets the require-
ments of subparagraph (A). 
‘‘(9) MAINTENANCE FOR 6 YEARS OF EVIDENCE 
OF COMPLIANCE.—The requirements of this para-
graph are met if a fiduciary adviser who has pro-
vided advice referred to in paragraph (1) maintains, 
for a period of not less than 6 years after the provi-
sion of the advice, any records necessary for deter-
mining whether the requirements of the preceding 
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