358
person shall provide notice of such submission to 
each participant and beneficiary under the plan (and 
under all plans maintained by members of the con-
trolled group of each contributing sponsor of the 
plan). Such notice shall also set forth—
‘‘(A) the number of single-employer plans 
covered by this title which are in at-risk status 
and are maintained by contributing sponsors of 
such plan (and by members of their controlled 
groups) with respect to which the funding tar-
get attainment percentage for the preceding 
plan year of each plan is less than 60 percent; 
‘‘(B) the value of the assets of each of the 
plans described in subparagraph (A) for the 
plan year, the funding target for each of such 
plans for the plan year, and the funding target 
attainment percentage of each of such plans for 
the plan year; and 
‘‘(C) taking into account all single-em-
ployer plans maintained by the contributing 
sponsor and the members of its controlled 
group as of the end of such plan year—
‘‘(i) the aggregate total of the values 
of plan assets of such plans as of the end 
of such plan year,
359
‘‘(ii) the aggregate total of the fund-
ing targets of such plans, as of the end of 
such plan year, taking into account only 
benefits to which participants and bene-
ficiaries have a nonforfeitable right, and 
‘‘(iii) the aggregate funding targets 
attainment percentage with respect to the 
contributing sponsor for the preceding plan 
year. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) VALUE OF PLAN ASSETS.—The term 
‘value of plan assets’ means the value of plan 
assets, as determined under section 303(g)(3). 
‘‘(B) FUNDING TARGET.—The term ‘fund-
ing target’ has the meaning provided under sec-
tion 303(d)(1). 
‘‘(C) FUNDING TARGET ATTAINMENT PER-
CENTAGE.—The term ‘funding target attain-
ment percentage’ has the meaning provided in 
section 303(d)(2). 
‘‘(D) AGGREGATE FUNDING TARGETS AT-
TAINMENT PERCENTAGE.—The term ‘aggregate 
funding targets attainment percentage’ with re-
spect to a contributing sponsor for a plan year
360
is the percentage, taking into account all plans 
maintained by the contributing sponsor and the 
members of its controlled group as of the end 
of such plan year, which 
‘‘(i) the aggregate total of the values 
of plan assets, as of the end of such plan 
year, of such plans, is of 
‘‘(ii) the aggregate total of the fund-
ing targets of such plans, as of the end of 
such plan year, taking into account only 
benefits to which participants and bene-
ficiaries have a nonforfeitable right. 
‘‘(E) AT-RISK STATUS.—The term ‘at-risk 
status’ has the meaning provided in section 
303(i)(3). 
‘‘(3) COMPLIANCE.—
‘‘(A) IN GENERAL.—Any notice required to 
be provided under paragraph (1) may be pro-
vided in written, electronic, or other appropriate 
form to the extent such form is reasonably ac-
cessible to individuals to whom the information 
is required to be provided. 
‘‘(B) LIMITATIONS.—In no case shall a 
participant or beneficiary be entitled under this 
subsection to receive more than one notice de-
361
scribed in paragraph (1) during any one 12-
month period. The person required to provide 
such notice may make a reasonable charge to 
cover copying, mailing, and other costs of fur-
nishing such notice pursuant to paragraph (1). 
The corporation may by regulations prescribe 
the maximum amount which will constitute a 
reasonable charge under the preceding sentence. 
‘‘(4) NOTICE TO CONGRESS.—Concurrent with 
the provision of any notice under paragraph (1), 
such person shall provide such notice to the Com-
mittee on Education and the Workforce and the 
Committee on Ways and Means of the House of 
Representatives and the Committee on Health, Edu-
cation, Labor, and Pensions and the Committee on 
Finance of the Senate, which shall be treated as ma-
terials provided in executive session.’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply with respect to plan years begin-
ning after December 31, 2006.
362
TITLE VI—INVESTMENT ADVICE 
SEC. 601. AMENDMENTS TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974 PROVIDING 
PROHIBITED TRANSACTION EXEMPTION FOR 
PROVISION OF INVESTMENT ADVICE. 
(a) 
EXEMPTION
FROM
PROHIBITED
TRANS-
ACTIONS.—Section 408(b) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1108(b)) is 
amended by adding at the end the following new para-
graph: 
‘‘(14)(A) Any transaction described in subpara-
graph (B) in connection with the provision of invest-
ment advice described in section 3(21)(A)(ii), in any 
case in which—
‘‘(i) the investment of assets of the plan is 
subject to the direction of plan participants or 
beneficiaries, 
‘‘(ii) the advice is provided to the plan or 
a participant or beneficiary of the plan by a fi-
duciary adviser in connection with any sale, ac-
quisition, or holding of a security or other prop-
erty for purposes of investment of plan assets, 
and
363
‘‘(iii) the requirements of subsection (g) 
are met in connection with the provision of the 
advice. 
‘‘(B) The transactions described in this sub-
paragraph are the following: 
‘‘(i) the provision of the advice to the 
plan, participant, or beneficiary; 
‘‘(ii) the sale, acquisition, or holding 
of a security or other property (including 
any lending of money or other extension of 
credit associated with the sale, acquisition, 
or holding of a security or other property) 
pursuant to the advice; and 
‘‘(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 a sale, acquisition, or 
holding of a security or other property pur-
suant to the advice.’’. 
(b) REQUIREMENTS.—Section 408 of such Act is 
amended further by adding at the end the following new 
subsection:
364
‘‘(g) REQUIREMENTS RELATING TO PROVISION OF 
INVESTMENT ADVICE BY FIDUCIARY ADVISERS.—
‘‘(1) IN GENERAL.—The requirements of this 
subsection are met in connection with the provision 
of 
investment 
advice 
referred 
to 
in 
section 
3(21)(A)(ii), provided to an employee benefit plan or 
a participant or beneficiary of an employee benefit 
plan by a fiduciary adviser with respect to the plan 
in connection with any sale, acquisition, or holding 
of a security or other property for purposes of in-
vestment of amounts held by the plan, if—
‘‘(A) in the case of the initial provision of 
the advice with regard to the security or other 
property by the fiduciary adviser to the plan, 
participant, or beneficiary, the fiduciary adviser 
provides to the recipient of the advice, at a time 
reasonably contemporaneous with the initial 
provision of the advice, a written notification 
(which may consist of notification by means of 
electronic communication)—
‘‘(i) 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-
365
sion of the advice or in connection with the 
sale, acquisition, or holding of the security 
or other property, 
‘‘(ii) of any material affiliation or con-
tractual relationship of the fiduciary ad-
viser or affiliates thereof in the security or 
other property, 
‘‘(iii) of any limitation placed on the 
scope of the investment advice to be pro-
vided by the fiduciary adviser with respect 
to any such sale, acquisition, or holding of 
a security or other property, 
‘‘(iv) of the types of services provided 
by the fiduciary adviser in connection with 
the provision of investment advice by the 
fiduciary adviser, 
‘‘(v) that the adviser is acting as a fi-
duciary of the plan in connection with the 
provision of the advice, and 
‘‘(vi) 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,
366
‘‘(B) 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, 
‘‘(C) the sale, acquisition, or holding oc-
curs solely at the direction of the recipient of 
the advice, 
‘‘(D) 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 
‘‘(E) 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. 
‘‘(2) STANDARDS FOR PRESENTATION OF IN-
FORMATION.—
‘‘(A) IN
GENERAL.—The notification re-
quired to be provided to participants and bene-
ficiaries under paragraph (1)(A) shall be writ-
ten in a clear and conspicuous manner and in 
a manner calculated to be understood by the av-
erage plan participant and shall be sufficiently 
accurate and comprehensive to reasonably ap-
367
prise such participants and beneficiaries of the 
information required to be provided in the noti-
fication. 
‘‘(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 (1)(A)(i) which meets the require-
ments of subparagraph (A). 
‘‘(3) EXEMPTION CONDITIONED ON MAKING RE-
QUIRED
INFORMATION
AVAILABLE
ANNUALLY, ON 
REQUEST, 
AND
IN
THE
EVENT
OF
MATERIAL 
CHANGE.—The requirements of paragraph (1)(A) 
shall be deemed not to have been met in connection 
with the initial or any subsequent provision of advice 
described in paragraph (1) to the plan, participant, 
or beneficiary if, at any time during the provision of 
advisory services to the plan, participant, or bene-
ficiary, the fiduciary adviser fails to maintain the in-
formation described in clauses (i) through (iv) of 
subparagraph (A) in currently accurate form and in 
the manner described in paragraph (2) or fails—
‘‘(A) to provide, without charge, such cur-
rently accurate information to the recipient of 
the advice no less than annually,