countant’s notification made to the plan admin-
istrator on the next business day following such 
period. 
‘‘(3) IRREGULARITY DEFINED.— 
‘‘(A) For purposes of this subsection, the 
term ’irregularity’ means— 
‘‘(i) a theft, embezzlement, or a viola-
tion of section 664 of title 18, United 
States Code (relating to theft or embezzle-
ment from an employee benefit plan); 
‘‘(ii) an extortion or a violation of sec-
tion 1951 of title 18, United States Code 
(relating to interference with commerce by 
threats or violence); 
‘‘(iii) a bribery, a kickback, or a viola-
tion of section 1954 of title 18, United 
States Code (relating to offer, acceptance, 
or solicitation to influence operations of an 
employee benefit plan); 
‘‘(iv) a violation of section 1027 of 
title 18, United States Code (relating to 
false statements and concealment of facts 
in relation to employer benefit plan 
records); or
‘‘(v) a violation of section 411, 501, or 
511 of this title (relating to criminal viola-
tions). 
‘‘(B) The term ’irregularity’ does not in-
clude any act or omission described in this 
paragraph involving less than $1,000 unless 
there is reason to believe that the act or omis-
sion may bear on the integrity of plan manage-
ment. 
‘‘(b) NOTIFICATION UPON TERMINATION
OF EN-
GAGEMENT OF ACCOUNTANT.— 
‘‘(1) 
NOTIFICATION
BY
PLAN
ADMINIS-
TRATOR.—Within 5 business days after the termi-
nation of an engagement under section 103(a)(3)(A) 
with respect to an employee benefit plan, the admin-
istrator of such plan shall— 
‘‘(A) notify the Secretary in writing of 
such termination, giving the reasons for such 
termination, and 
‘‘(B) furnish the accountant whose engage-
ment was terminated with a copy of the notifi-
cation sent to the Secretary. 
‘‘(2) NOTIFICATION BY ACCOUNTANT.—If the 
accountant referred to in paragraph (1)(B) has not 
received a copy of the administrator’s notification to
the Secretary as required under paragraph (1)(B), 
or if the accountant disagrees with the reasons given 
in the notification of termination of the engagement 
for auditing services, the accountant shall notify the 
Secretary in writing of the termination, giving the 
reasons for the termination, within 10 business days 
after the termination of the engagement. 
‘‘(c) DETERMINATION OF PERIODS REQUIRED FOR 
NOTIFICATION.—In determining whether a notification re-
quired under this section with respect to any act or omis-
sion has been made within the required number of busi-
ness days— 
‘‘(1) the day on which such act or omission be-
gins shall not be included; and 
‘‘(2) Saturdays, Sundays, and legal holidays 
shall not be included. 
For purposes of this subsection, the term ’legal holiday’ 
means any Federal legal holiday and any other day ap-
pointed as a holiday by the State in which the person re-
sponsible for making the notification principally conducts 
business. 
‘‘(d) IMMUNITY FOR GOOD FAITH NOTIFICATION.— 
Except as provided in this Act, no accountant or plan ad-
ministrator shall be liable to any person for any finding, 
conclusion, or statement made in any notification made
pursuant to subsections (a)(2) or (b)(2), or pursuant to 
any regulations issued under those subsections, if the find-
ing, conclusion, or statement is made in good faith.’’. 
(b) CLERICAL AMENDMENTS.— 
(1) Section 514(d)(29 U.S.C. 114(d)) is amend-
ed by striking ‘‘111’’ and inserting ‘‘112’’. 
(2) The table of contents in section 1 is amend-
ed by striking the item relating to section 111 and 
inserting the following new items: 
‘‘Sec. 111. Direct reporting of certain events. 
‘‘Sec. 112. Repeal and effective date.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to any irregularity or 
termination of engagement described in the amendments, 
but only if the 5-day period described in the amendments 
in connection with the irregularity or termination com-
mences at least 90 days after the date of the enactment 
of this Act. 
SEC. 407. STUDY OF PENSION TRENDS AND CHARACTERIS-
TICS. 
(a) IN GENERAL.—Section 513 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1143) 
is amended by adding at the end the following new sub-
section: 
‘‘(d) PENSION SURVEYS.—
‘‘(1) IN GENERAL.—The Secretary shall submit 
to each House of the Congress, before the close of 
the second session of each Congress, a report, based 
on a study of current statistical and survey data, 
which describes dominant and emerging trends and 
characteristics of the private pension system, so as 
to ensure that the Congress is provided with periodic 
and timely information regarding such system. 
‘‘(2) INCLUDED
INFORMATION.—Each report 
submitted pursuant to paragraph (1) shall include, 
but not be limited to, information relating to exist-
ing pension plans regarding— 
‘‘(A) the types of such plans, 
‘‘(B) the level of employer and employee 
contributions, 
‘‘(C) vesting status, 
‘‘(D) accrued benefits, 
‘‘(E) benefit receipt, and 
‘‘(F) form of benefit payments. 
Such information shall be presented by category in 
connection with cohorts defined on the basis of ap-
propriate attributes of the participants involved, in-
cluding gender, age, race, and income. 
‘‘(3) IDENTIFICATION
OF
BARRIERS
TO
PEN-
SION RECEIPT.—Each report submitted pursuant to
paragraph (1) shall also include information which 
summarizes the types of problems that plan partici-
pants and beneficiaries experience in connection with 
the receipt of promised retirement benefits.’’. 
(b) INITIAL REPORT.—The initial report submitted 
pursuant to section 513(d) of the Employee Retirement 
Income Security Act of 1974 shall be submitted not later 
than December 31, 2005. 
SEC. 408. EARLY RESOLUTION PROGRAM FOR PENSION 
BENEFIT CLAIMS. 
(a) IN GENERAL.—Section 503 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1133) 
is amended— 
(1) by adding at the end of the heading the fol-
lowing: ‘‘AND
EARLY
RESOLUTION
OF
PENSION 
CLAIMS’’; 
(2) by inserting ‘‘(a) IN GENERAL.—’’ after 
‘‘Sec. 503.’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(b) EARLY RESOLUTION PROGRAM FOR PENSION 
BENEFIT CLAIMS.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish, in consultation with national bar and arbitra-
tion associations and other interested organizations,
an early resolution program for mediation of dis-
putes regarding claims for benefits which have been 
denied under pension plans. 
‘‘(2) MEDIATORS.—The program shall provide 
for recruitment of mediators to serve under the pro-
gram from individuals who have the requisite exper-
tise for such service. The program shall provide for 
ongoing training for all mediators in employee bene-
fits law as determined necessary. Upon submission 
of a claim to mediation proceedings under this sub-
section, the program shall provide for appointment 
of a mediator, from the roster of mediators serving 
under the program, to act as the mediator with re-
gard to the claim. Such appointment shall be 
through a random selection procedure which shall be 
prescribed in regulations. 
‘‘(3) FEES.—The Secretary shall assess fees as 
necessary from each party to cover the costs of par-
ticipation in the program. The Secretary may reduce 
or waive a fee on the basis of inability to pay. 
‘‘(4) INITIATION OF PROCEEDINGS.—A claim-
ant with a dispute which is eligible under the pro-
gram for submission to mediation thereunder may 
elect to commence proceedings under the program 
by means of filing under the program an election for
100 
mediation of the dispute. An election to commence 
mediation proceedings under the program shall be in 
such form and manner as the Secretary may pre-
scribe. Any such election shall in all cases be vol-
untary, and any provision of the plan or other ar-
rangement which has the effect of providing for the 
commencement of such proceedings other than by 
means of voluntary election by the claimant shall be 
null and void as a matter of law. 
‘‘(5) PARTICIPATION IN PROCEEDINGS.—Upon 
receipt of the election to commence proceedings, the 
program shall provide for participation by all rel-
evant parties. Each such party shall participate, and 
cooperate fully, in the proceedings. The plan admin-
istrator shall ensure that a copy of the written 
record of any claims procedure completed by the 
plan pursuant to subsection (a) and all relevant plan 
documents are presented to the mediator within 30 
days after commencement of the proceedings. The 
program shall provide for appropriate confidentiality 
of the proceedings. 
‘‘(6) TIME LIMIT FOR PROCEEDINGS.—The me-
diation proceedings under the program with respect 
to the claim in dispute shall be completed within 30
101 
days after compilation of all relevant plan documents 
relating to the claim has been achieved. 
‘‘(7) PROCESS
NONBINDING.—Findings and 
conclusions made in the mediation proceedings 
under the program shall be treated as advisory in 
nature and nonbinding. Except as provided in para-
graph (8), the rights of the parties under this title 
shall not be affected by participation in the medi-
ation proceedings under the program. 
‘‘(8) 
RESOLUTION
THROUGH
SETTLEMENT 
AGREEMENT.—If a case is settled through participa-
tion in the mediation proceedings under the pro-
gram, the mediator shall assist the parties in draw-
ing up an agreement which shall constitute, upon 
signature of the parties, a binding contract between 
the parties, which shall be enforceable under section 
502 as if the terms of such agreement were terms 
of the plan. 
‘‘(9) OVERSIGHT.—The Secretary shall provide 
for ongoing oversight of the program so as to ensure 
that proceedings are conducted equitably and that 
mediators meet prescribed standards of performance. 
The Secretary shall monitor and record the results 
of mediation proceedings conducted under the pro-
gram so as to enable comprehensive evaluation of
102 
the effectiveness of the program as a means of alter-
native dispute resolution. 
‘‘(10) NOTICE.—The Secretary shall— 
‘‘(A) notify individuals of the program or 
other sources of assistance in resolving benefits 
claim disputes, and 
‘‘(B) provide model information with re-
spect to the program to be included in all sum-
mary plan descriptions and benefit determina-
tions.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to claims arising on 
or after December 31, 2005. 
SEC. 409. REVIEW OF BENEFIT DETERMINATIONS. 
(a) DE NOVO REVIEW.— 
(1) INTERNAL
REVIEW.—Section 503 of the 
Employee Retirement Income Security Act of 1974 
(as amended by section 408) is amended further— 
(A) by redesignating subsection (b) as sub-
section (c); and 
(B) by inserting after subsection (a) the 
following new subsection: 
‘‘(b) REVIEW REQUIREMENTS.—Any review required 
under subsection (a)(2)— 
‘‘(1) shall be de novo, and
103 
‘‘(2) shall be conducted by an individual who did not 
make the initial decision denying the claim and who is au-
thorized to approve payment of the claim.’’. 
(2) COURT
REVIEW.—Section 502(e) of such 
Act (29 U.S.C. 1132(e)) is amended by adding at 
the end the following new paragraph: 
‘‘(3) Notwithstanding any provision by the plan for 
the exercise by a fiduciary of discretionary authority with 
respect to any benefit determination, in any action under 
paragraph (1)(B) or (3) of subsection (a) or in any other 
action under this section to review a final benefit deter-
mination under the plan, the review by the court shall be 
de novo, and the court may review all evidence pre-
sented.’’. 
(b) APPLICATION OF COMMON LAW PRINCIPLES OF 
CONTRACT INTERPRETATION.—Section 502(e) of such 
Act (as amended by subsection (a)(2)) is amended further 
by adding at the end the following new paragraph: 
‘‘(4) In interpreting the terms of an employee benefit 
plan under this section, the court shall employ such com-
mon law principles of contract interpretation as are deter-
mined appropriate by the court. Nothing in this title shall 
preclude the Federal courts from developing and applying 
Federal common law for purposes of this paragraph which 
is consistent with the provisions of this title.’’.
104 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to causes of action 
arising after December 31, 2005. 
SEC. 410. ALLOWABLE RELIEF. 
(a) PRE-JUDGMENT INTEREST, ATTORNEY FEES, 
AND COSTS OF ACTION.— 
(1) PRE-JUDGMENT INTEREST ON UNPAID BEN-
EFITS.—Section 502(a)(1)(B) of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 
1132(a)(1)(B)) is amended by inserting ‘‘(together 
with reasonable pre-judgment interest on unpaid 
pension plan benefits)’’ after ‘‘to recover benefits 
due to him under the terms of his plan’’. 
(2) ATTORNEY FEES AND COSTS OF ACTION.— 
Section 502(g) of such Act (29 U.S.C. 1132(g)) is 
amended— 
(A) in paragraph (1), by inserting ‘‘or (3)’’ 
after ‘‘paragraph (2)’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(3) In any action or settlement proceeding under 
this title with respect to an employee pension benefit plan 
brought by a participant or beneficiary under such plan 
in which the participant or beneficiary prevails or substan-
tially prevails, the participant or beneficiary shall be enti-
105 
tled to reasonable attorney’s fees, reasonable expert wit-
ness fees, and other reasonable costs relating to the ac-
tion.’’. 
(b) ALLOWANCE
FOR
LEGAL
RELIEF.—Section 
502(a) of such Act (29 U.S.C. 1132(a)) is amended, in 
paragraphs (3)(B), (5)(B), and (8)(B), by inserting ‘‘legal 
or’’ before ‘‘equitable’’ each place it appears. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to causes of action 
arising after December 31, 2005. 
SEC. 411. ASSESSMENT BY SECRETARY OF LABOR OF PEN-
ALTIES FOR FAILURES TO MEET DISCLOSURE 
REQUIREMENTS. 
(a) IN GENERAL.—Section 502(c) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1132(c)) is amended to read as follows: 
‘‘(c)(1) The Secretary may assess a civil penalty 
against any person of up to $1,000 a day from the date 
of any failure or refusal by such person described in para-
graph (2). 
‘‘(2) A failure or refusal described in this paragraph 
is any of the following: 
‘‘(A) A failure or refusal by a plan adminis-
trator to comply with a request for any information 
which such administrator is required by this title to
106 
furnish to a participant or beneficiary by mailing the 
material requested to the last known address of the 
requesting participant or beneficiary within 30 days 
after such request. 
‘‘(B) A failure or refusal by a plan adminis-
trator to file the annual report required to be filed 
with the Secretary under section 101(b)(4). For pur-
poses of this subparagraph, an annual report that 
has been rejected under section 104(a)(4) for failure 
to provide material information shall not be treated 
as having been filed with the Secretary. 
‘‘(C) A failure or refusal by an employer main-
taining a plan to meet the notice requirement of sec-
tion 101(d) with respect to any participant or bene-
ficiary. 
‘‘(D) A failure or refusal by a plan adminis-
trator to meet the requirements of section 101(e)(1) 
with respect to a participant or beneficiary. 
‘‘(E) A failure or refusal by an employer main-
taining a plan to meet the requirements of section 
101(e)(2) with respect to any person. 
‘‘(F) A failure or refusal by any person to meet 
the requirements of section 101(f)(1). 
‘‘(G) A failure or refusal by any person to file 
the information required to be filed by such person
107 
with the Secretary under regulations prescribed pur-
suant to section 101(g). 
‘‘(H) A failure or refusal by a plan adminis-
trator to provide notice to participants and bene-
ficiaries in accordance with section 101(i). 
‘‘(I) A failure or refusal by a plan adminis-
trator to furnish documents to the Secretary, as re-
quested by the Secretary under section 104(a)(6), 
within 30 days after such a request. 
‘‘(J) A failure or refusal by a plan adminis-
trator to meet the requirements of paragraph (1) or 
(4) of section 606. 
‘‘(3) For purposes of this subsection, each violation 
described in subparagraph (A), (C), (D), (E), (F), (H), 
or (J) of paragraph (2) with respect to any single partici-
pant, beneficiary, or other person shall be treated as a 
separate violation. 
‘‘(4) In the case of any failure or refusal described 
in paragraph subparagraph (A), (C), or (J) of paragraph 
(2) by any administrator or employer with respect to any 
participant, beneficiary, or other person, such adminis-
trator or employer may, in the court’s discretion, be liable 
to such participant, beneficiary, or other person in the 
amount of up to $1,000 a day from the date of such fail-
108 
ure or refusal. Any liability under this paragraph shall be 
in addition to any liability imposed under paragraph (1). 
‘‘(5)(A) The Secretary may assess a civil penalty of 
up to $50,000 against any administrator who fails to pro-
vide the Secretary with any notification as required under 
section 111. 
‘‘(B) The Secretary may assess a civil penalty of up 
to $50,000 against any accountant who knowingly and 
willfully fails to provide the Secretary with any notification 
as required under section 111. 
‘‘(6) In addition to any liability imposed under para-
graph (1), (4), or (5), the court may in its discretion order 
such other relief as it deems proper. 
‘‘(7) No liability may be imposed on any person under 
this subsection for any failure resulting from matters rea-
sonably beyond the control of such person. 
‘‘(8) The Secretary and the Secretary of Health and 
Human Services shall maintain such ongoing consultation 
as may be necessary and appropriate to coordinate en-
forcement under this subsection with enforcement under 
section 1144(c)(8) of the Social Security Act.’’. 
(b) CONFORMING AMENDMENT.—Section 502(a)(6) 
of such Act (29 U.S.C. 1132(a)(6)) is amended by striking 
‘‘under paragraph (2), (4), (5), (6), or (7) of subsection
109 
(c) or under subsection (i) or (l)’’ and inserting ‘‘under 
subsection (c), (i), or (l)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to failures and refus-
als occurring after December 31, 2005. 
SEC. 412. MISSING PARTICIPANTS AND UNCLAIMED BENE-
FITS. 
(a) TREATMENT
OF MISSING PARTICIPANTS
OF 
MULTIEMPLOYER PLANS AND CERTAIN PLANS NOT OTH-
ERWISE COVERED.—Section 4050 of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1350) is 
amended— 
(1) by redesignating subsections (b) and (c) as 
subsections (f) and (g), respectively; and 
(2) by inserting after subsection (a) the fol-
lowing new subsections: 
‘‘(b) MULTIEMPLOYER
PLANS.—The corporation 
shall prescribe rules similar to the rules in subsection (a) 
for multiemployer plans covered by this title that termi-
nate under section 4041A. 
‘‘(c) ELECTIVE TRANSFER
OF MISSING PARTICI-
PANT’S BENEFITS TO THE CORPORATION BY CERTAIN 
OTHER PLANS UPON TERMINATION.— 
‘‘(1) IN GENERAL.—The plan administrator of 
a plan described in paragraph (4) may elect to
110 
transfer a missing participant’s benefits to the cor-
poration upon termination of the plan. 
‘‘(2) INFORMATION TO THE CORPORATION.—To 
the extent provided in regulations, the plan adminis-
trator of a plan described in paragraph (4) shall, 
upon termination of the plan, provide the corpora-
tion information with respect to the benefits of a 
missing participant if the plan transfers such bene-
fits— 
‘‘(A) to the corporation, or 
‘‘(B) to an entity other than the corpora-
tion or a plan described in paragraph (4)(B)(ii). 
‘‘(3) PAYMENT BY THE CORPORATION.—If ben-
efits of a missing participant were transferred to the 
corporation under paragraph (1), the corporation 
shall, upon location of the participant or beneficiary, 
pay to the participant or beneficiary the amount 
transferred (or the appropriate survivor benefit) ei-
ther— 
‘‘(A) in a single sum (plus interest), or 
‘‘(B) in such other form as is specified in 
regulations of the corporation. 
‘‘(4) PLANS DESCRIBED.—A plan is described 
in this paragraph if—