‘‘(II) such spouse is ordered or
required to pay in such judgment,
order, 
decree, 
or 
settlement 
an
amount to the plan in connection with
a violation of part 4 of subtitle B of
title I of such Act, or
‘‘(III) in such judgment, order,
decree, or settlement, such spouse re-
tains the right to receive the value of
the survivor annuity under a qualified
joint and survivor annuity provided
pursuant to paragraph (11)(A)(i) and
under a qualified preretirement survi-
vor annuity provided pursuant to
paragraph (11)(A)(ii), determined in
accordance with subparagraph (D).
‘‘(D) DETERMINATION OF VALUE OF SUR-
VIVOR
ANNUITY
IN
CONNECTION
WITH
OFF-
SET.—The value of the survivor annuity de-
scribed in subparagraph (C)(iii)(III) shall be
determined as if—
‘‘(i) the participant terminated em-
ployment on the date of the offset,
‘‘(ii) there was no offset,
‘‘(iii) the plan permitted retirement
only on or after normal retirement age,
‘‘(iv) the plan provided only the mini-
mum-required qualified joint and survivor
annuity, and
‘‘(v) the amount of the qualified pre-
retirement survivor annuity under the plan
is equal to the amount of the survivor an-
nuity payable under the minimum-required
qualified joint and survivor annuity.
For purposes of this subparagraph, the term
‘minimum-required qualified joint and survivor
annuity’ means the qualified joint and survivor
annuity which is the actuarial equivalent of a
single annuity for the life of the participant and
under which the survivor annuity is 50 percent
of the amount of the annuity which is payable
during the joint lives of the participant and the
spouse.
‘‘(E) WAIVER OF CERTAIN DISTRIBUTION
REQUIREMENTS.—With respect to the require-
ments of this subsection and subsection(k), and
sections 403(b) and 409(d), a plan shall not be
treated as failing to meet such requirements
solely by reason of an offset under subpara-
graph (C).’’.
(2) EFFECTIVE DATE.—The amendment made
by subsection (a) shall apply to judgments, orders,
and decrees issued, and settlement agreements en-
tered into, on or after the date of enactment of this
Act.
(c) CIVIL PENALTIES FOR BREACH OF FIDUCIARY
RESPONSIBILITY.—
(1) IMPOSITION
AND
AMOUNT
OF
PENALTY
MADE
DISCRETIONARY.—Section 502(l)(1) of the
Employee Retirement Income Security Act of 1974
(29 U.S.C. 1132(l)) is amended—
(A) by striking ‘‘shall’’ and inserting
‘‘may’’, and
(B) by striking ‘‘equal to’’ and inserting
‘‘not greater than’’.
(2) APPLICABLE RECOVERY AMOUNT.—Section
502(l)(2) of such Act (29 U.S.C. 1132(l)(2)) is
amended to read as follows:
‘‘(2) For purposes of paragraph (1), the term ‘appli-
cable recovery amount’ means any amount which is recov-
ered from (or on behalf of) any fiduciary or other person
in connection with a breach or violation described in para-
graph (1), following receipt by the fiduciary or other per-
son of written notice from the Secretary of the violation,
whether paid voluntarily or by order of a court in a judicial
proceeding instituted by the Secretary under subsection
(a)(2) or (a)(5) if the recovery is not made within 30 days.
The Secretary may, in the Secretary’s sole discretion, ex-
tend the 30-day period described in the preceding sen-
tence.’’.
(3) OTHER RULES.—Section 502(l) (29 U.S.C.
1132(l)) is amended by adding at the end the follow-
ing new paragraphs:
‘‘(5) A person shall be jointly and severally liable for
the penalty described in paragraph (1) to the same extent
that the person is jointly and severally liable for the appli-
cable recovery amount on which the penalty is based.
‘‘(6) No penalty shall be assessed under this sub-
section unless the person against whom the penalty is as-
sessed is given notice and opportunity for a hearing with
respect to the violation and applicable recovery amount.’’.
(4) EFFECTIVE DATES.—
(A) IN GENERAL.—The amendments made
by this subsection shall apply to any breach of
fiduciary responsibility or other violation of part
4 of title I of the Employee Retirement Income
Security Act of 1974 occurring on or after the
date of enactment of this Act.
(B) TRANSITION RULE.—In applying the
amendment made by paragraph (2) (relating to
applicable recovery amount), a breach or other
violation occurring before the date of the enact-
ment of this Act which continues after the
180th day after that date (disregarding any
break in the continuance before the end of the
180th day period) shall be treated as having oc-
curred after the date of enactment.
SEC. 6. INSPECTOR GENERAL STUDY.
(a) STUDY.—The Inspector General of the Depart-
ment of Labor shall conduct a study on the need for regu-
latory standards and procedures to authorize the Sec-
retary, in appropriate cases, to prohibit persons from serv-
ing as qualified accountants for purposes of section 103
of the Employee Retirement Income Security Act of 1974
(29 U.S.C. 1023).
(b) MATTERS TO BE STUDIED.—In conducting the
study under this section, the Inspector General shall ad-
dress whether standards and procedures to prohibit per-
sons from serving as qualified public accountants are like-
ly to improve the quality of employee benefit plan audits,
and the potential for increased costs to plans. If the In-
spector General concludes that regulations incorporating