but only if any such limitations shall be 
clearly disclosed to the advice recipient 
prior to any transaction based on the in-
vestment advice in the form of a notice that 
only states the following: ‘This recommenda-
tion is based on a limited range of invest-
ment options, and the same or similar in-
vestments may be available at a different 
cost (greater or lesser) from other sources.’, 
or 
‘‘(ii) may result in variable compensa-
tion to the person providing the rec-
ommendation (or any affiliate of such per-
son), but only if the receipt of such com-
pensation shall be clearly disclosed to the 
advice recipient prior to any transaction 
based on the investment advice. 
‘‘(C) CLEAR
DISCLOSURE
OF
VARIABLE 
COMPENSATION.—For purposes of this para-
graph, clear disclosure of variable compensation 
shall include, in a manner calculated to be un-
derstood by the average individual, each of the 
following: 
‘‘(i) A notice that states only the fol-
lowing: ‘This recommendation may result 
VerDate Sep 11 2014 
20:58 Apr 20, 2016
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6203
E:\BILLS\H4294.RH
H4294
rfrederick on DSK6VPTVN1PROD with BILLS
in varying amounts of fees or other com-
pensation to the person providing the rec-
ommendation (or its affiliate), and the 
same or similar investments may be avail-
able at a different cost (greater or lesser) 
from other sources.’. Any regulations or ad-
ministrative guidance implementing this 
clause may not require this notice to be up-
dated more than annually. 
‘‘(ii) A description of any fee or other 
compensation that is directly or indirectly 
payable to the person (or its affiliate) by 
the advice recipient with respect to such 
transaction (expressed as an amount, for-
mula, percentage of assets, per capita 
charge, or estimate or range of such com-
pensation). 
‘‘(iii) A description of the types and 
ranges of any compensation that may be di-
rectly or indirectly payable to the person 
(or its affiliate) by any third party in con-
nection with such transaction (expressed as 
an amount, formula, percentage of assets, 
per capita charge, or estimate or range of 
such compensation). 
VerDate Sep 11 2014 
20:58 Apr 20, 2016
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6203
E:\BILLS\H4294.RH
H4294
rfrederick on DSK6VPTVN1PROD with BILLS
‘‘(iv) Upon request of the advice recipi-
ent, a disclosure of the specific amounts of 
compensation described in clause (iii) that 
the person will receive in connection with 
the particular transaction (expressed as an 
amount, formula, percentage of assets, per 
capita charge, or estimate of such com-
pensation). 
‘‘(D) DEFINITION OF AFFILIATE.—For pur-
poses of this paragraph, the term ‘affiliate’ has 
the meaning given in subsection (f)(8)(J)(ii). 
‘‘(E) CORRECTION OF CERTAIN ERRORS AND 
OMISSIONS.—A recommendation shall not fail to 
be a best interest recommendation solely because 
a person who, acting in good faith and with rea-
sonable diligence, makes an error or omission in 
disclosing the information specified in subpara-
graph (B), if the person discloses the correct in-
formation to the advice recipient as soon as 
practicable but not later than 30 days from the 
date on which the person knows of such error or 
omission. 
‘‘(F) SPECIAL RULE.—Any notice provided 
pursuant to a requirement under subparagraph 
(B)(i) or subparagraph (C)(i) shall have no effect 
VerDate Sep 11 2014 
20:58 Apr 20, 2016
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6203
E:\BILLS\H4294.RH
H4294
rfrederick on DSK6VPTVN1PROD with BILLS
on any other notice otherwise required without 
regard to this title, and shall be provided in ad-
dition to, and not in lieu of, any other such no-
tice.’’. 
(3) FAILURES
RELATING
TO
BEST
INTEREST 
RECOMMENDATION.— 
(A) CORRECTION.—Section 4975(f)(5) of 
such Code is amended— 
(i) by striking ‘‘(5) CORRECTION.—The 
terms’’ and inserting: 
‘‘(5) CORRECTION.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the terms’’, and 
(ii) by adding at the end the following: 
‘‘(B) DETERMINATION
OF
‘CORRECTION’ 
AND ‘CORRECT’ WITH RESPECT TO BEST INTER-
EST ADVICE RECOMMENDATIONS.—In the case of 
a prohibited transaction arising by the failure of 
investment advice to be a best interest rec-
ommendation, the terms ‘correction’ and ‘correct’ 
mean the payment to, or reimbursement of, ac-
tual damages of the plan, plan participants, or 
plan beneficiaries resulting directly from the 
plan’s, plan participant’s, or plan beneficiary’s 
reliance on such investment advice, if any, that 
VerDate Sep 11 2014 
20:58 Apr 20, 2016
Jkt 059200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6203
E:\BILLS\H4294.RH
H4294
rfrederick on DSK6VPTVN1PROD with BILLS
have not otherwise been paid or reimbursed to 
the plan, plan participants, or plan bene-
ficiaries, including payments and reimburse-
ments made pursuant to subparagraph (A) if 
such amount is greater than the amount deter-
mined under subparagraph (A).’’. 
(B) AMOUNT INVOLVED FOR PURPOSES OF 
EXCISE
TAX.—The first sentence of section 
4975(f)(4) of such Code is amended by striking 
‘‘excess compensation.’’ and inserting ‘‘excess 
compensation, and in the case of a prohibited 
transaction arising by the failure of investment 
advice to be a best interest recommendation, the 
amount involved shall be the amount paid to the 
person providing the advice (or its affiliate, as 
defined in paragraph (8)(J)(ii)) that has not 
been paid or reimbursed to the plan, plan par-
ticipants, or plan beneficiaries, including pay-
ments and reimbursements made pursuant to 
paragraph (5).’’. 
(b) EFFECTIVE DATE.— 
(1) MODIFICATION
OF
CERTAIN
RULES, AND 
RULES
AND
ADMINISTRATIVE
POSITIONS
PROMUL-
GATED BEFORE ENACTMENT BUT NOT EFFECTIVE ON 
JANUARY 1, 2015, PROHIBITED.—The Department of 
VerDate Sep 11 2014 
20:58 Apr 20, 2016
Jkt 059200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6203
E:\BILLS\H4294.RH
H4294
rfrederick on DSK6VPTVN1PROD with BILLS
Labor is prohibited from amending any rules or ad-
ministrative positions promulgated under section 
3(21) of the Employee Retirement Security Act of 
1974 and section 4975(e)(3) of the Internal Revenue 
Code of 1986 (including Department of Labor Inter-
pretive Bulletin 96–1 (29 C.F.R. 2509.96–1) and De-
partment of Labor Advisory Opinion 2005–23A), and 
no such rule or administrative position promulgated 
by the Department of Labor prior to the date of the 
enactment of this Act but not effective on January 1, 
2015, may become effective unless a bill or joint reso-
lution referred to in paragraph (3) is enacted as de-
scribed in such paragraph not later than 60 days 
after the date of the enactment of this Act. 
(2) GENERAL
EFFECTIVE
DATE
OF
AMEND-
MENTS.—Except as provided in paragraph (3), the 
amendments made by subsection (a) of this section 
shall take effect on the 61st day after the date of the 
enactment of this Act and shall apply with respect to 
information provided or recommendations made on or 
after 2 years after the date of the enactment of this 
Act. 
(3) EXCEPTION.—If a bill or joint resolution is 
enacted prior to the 61st day after the date of the en-
actment of this Act that specifically approves any 
VerDate Sep 11 2014 
20:58 Apr 20, 2016
Jkt 059200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6203
E:\BILLS\H4294.RH
H4294
rfrederick on DSK6VPTVN1PROD with BILLS
rules or administrative positions promulgated under 
section 3(21) of the Employee Retirement Income Se-
curity Act of 1974 and section 4975(e)(3) of the Inter-
nal Revenue Code of 1986 that is not in effect on Jan-
uary 1, 2015, the amendments made by subsection (a) 
of this section shall not take effect. 
(c) GRANDFATHERED
TRANSACTIONS
AND
SERV-
ICES.—The amendments made by subsection (a) shall not 
apply to any service or transaction rendered, entered into, 
or for which a person has been compensated prior to the 
date on which the amendments made by subsection (a) of 
this Act become effective under subsection (b)(2). 
(d) TRANSITION.—If the amendments made by sub-
section (a) of this section take effect, then nothing in this 
section shall be construed to prohibit the issuance of guid-
ance to carry out such amendments so long as such guid-
ance is necessary to implement such amendments. Until 
such time as regulations or other guidance is issued to carry 
out such amendments, a plan or a fiduciary shall be treated 
as meeting the requirements of such amendments if the plan 
or fiduciary, as the case may be, complies with a reasonable 
good faith interpretation of such amendments. 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Strength-
ening Access to Valuable Education and Re-
VerDate Sep 11 2014 
20:58 Apr 20, 2016
Jkt 059200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6202
E:\BILLS\H4294.RH
H4294
rfrederick on DSK6VPTVN1PROD with BILLS
tirement Support Act of 2015’’ or the ‘‘SAVERS 
Act of 2015’’. 
SEC. 2. PURPOSE. 
The purpose of this Act is to provide that 
advisors who— 
(1) provide advice that is impermis-
sible under the prohibited transaction 
provisions under section 4975 of the In-
ternal Revenue Code of 1986, or 
(2) breach the best interest standard 
for the provision of investment advice, 
are subject to liability under the Internal Rev-
enue Code of 1986. 
SEC. 3. RULES RELATING TO THE PROVISION OF INVEST-
MENT ADVICE. 
(a) AMENDMENTS TO THE INTERNAL REVENUE 
CODE OF 1986.— 
(1) EXEMPTION FOR INVESTMENT ADVICE 
WHICH
IS
BEST
INTEREST
RECOMMENDA-
TION.—Section 4975(d) of the Internal 
Revenue Code of 1986 is amended by 
striking ‘‘or’’ at the end of paragraph (22), 
by striking the period at the end of para-
graph (23) and inserting ‘‘, or’’, and by in-
VerDate Sep 11 2014 
20:58 Apr 20, 2016
Jkt 059200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6202
E:\BILLS\H4294.RH
H4294
rfrederick on DSK6VPTVN1PROD with BILLS
serting after paragraph (23) the fol-
lowing: 
‘‘(24) provision of investment advice 
by a fiduciary to a plan, plan participant, 
or beneficiary with respect to the plan, 
which is a best interest recommenda-
tion.’’. 
(2) INVESTMENT ADVICE; BEST INTEREST 
RECOMMENDATION.—Section 
4975(e) 
of 
such Code is amended by adding at the 
end the following: 
‘‘(10) INVESTMENT ADVICE.— 
‘‘(A) IN GENERAL.—For purposes of 
this section, the term ‘investment ad-
vice’ means a recommendation that— 
‘‘(i) relates to— 
‘‘(I) the advisability of ac-
quiring, holding, disposing, or 
exchanging any moneys or 
other property of a plan by 
the plan, plan participants, or 
plan beneficiaries, including 
any recommendation whether 
to take a distribution of bene-
fits from such plan or any rec-
VerDate Sep 11 2014 
20:58 Apr 20, 2016
Jkt 059200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6202
E:\BILLS\H4294.RH
H4294
rfrederick on DSK6VPTVN1PROD with BILLS
ommendation relating to the 
investment of any moneys or 
other property of such plan to 
be rolled over or otherwise 
distributed from such plan; 
‘‘(II) the management of 
moneys or other property of 
such 
plan, 
including 
rec-
ommendations relating to the 
management of moneys or 
other property to be rolled 
over or otherwise distributed 
from such plan; or 
‘‘(III) the advisability of 
retaining or ceasing to retain 
a person who would receive a 
fee or other compensation for 
providing any of the types of 
advice described in this sub-
clause; and 
‘‘(ii) is rendered pursuant to— 
‘‘(I) a written acknowledg-
ment that the person is a fidu-
ciary with respect to the pro-
VerDate Sep 11 2014 
20:58 Apr 20, 2016
Jkt 059200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6202
E:\BILLS\H4294.RH
H4294
rfrederick on DSK6VPTVN1PROD with BILLS