I
103D CONGRESS
1ST SESSION
H. R. 2832
To amend title I of the Employee Retirement Income Security Act of 1974
to require clear and concise notification to participants and beneficiaries
under a group health plan of the right of the employer to terminate
such plan and to otherwise revise the type and amount of benefits
provided thereunder, and to provide for civil enforcement of such require-
ment.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 2, 1993
Ms. SHEPHERD (for herself, Mr. BROWN of Ohio, Mr. MILLER of California,
Mrs. LOWEY, Mr. HUGHES, Mr. FROST, Mr. FILNER, Ms. NORTON, and
Ms. ESHOO) introduced the following bill; which was referred to the Com-
mittee on Education and Labor
A BILL
To amend title I of the Employee Retirement Income Secu-
rity Act of 1974 to require clear and concise notification
to participants and beneficiaries under a group health
plan of the right of the employer to terminate such
plan and to otherwise revise the type and amount of
benefits provided thereunder, and to provide for civil
enforcement of such requirement.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. NOTIFICATION OF PARTICIPANTS AND BENE-
FICIARIES UNDER GROUP HEALTH PLANS OF
EMPLOYER’S 
RIGHT 
TO 
TERMINATE 
THE
PLAN.
(a) IN GENERAL.—Section 102(b) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1022(b)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) In the case of an employee benefit plan which
constitutes a group health plan (as defined in section
607(1)), the summary plan description shall contain, in
addition to the information described in paragraph (1), a
clear and concise statement describing any right reserved
by the employer under the plan to terminate the plan or
to otherwise revise the type and amount of benefits pro-
vided thereunder.’’.
(b) NOTIFICATION REQUIREMENT INELIGIBLE FOR
WAIVER.—Section 104(a)(3) of such Act (29 U.S.C.
1024(a)(3)) is amended by adding at the end the following
new sentence: ‘‘The preceding sentence shall not apply
with respect to the requirements of section 102(b)(2).’’.
(c) PENALTY FOR FAILURE TO PROVIDE NOTIFICA-
TION.—Section 502(c)(4) of such Act (29 U.S.C.
1132(c)(4)) is amended by adding at the end the following
new paragraph:
‘‘(4) In any case in which, at the time a summary
plan description relating to a group health plan (as de-
fined in section 607(1)) is furnished to a participant or
beneficiary as provided in section 104(b), the requirements
of section 102(b)(2) are not met with respect to such sum-
mary plan description, the employer may in the court’s
discretion be liable to such participant or beneficiary in
the amount of up to $100 a day from the date of such
failure until the date on which the employer corrects such
failure by means of furnishing to such participant or bene-
ficiary a summary plan description meeting such require-
ments, and the court may in its discretion order such other
relief as it deems proper.’’.
SEC. 2. EFFECTIVE DATE.
The amendments made by section 1 shall apply with
respect to summary plan descriptions furnished to plan
participants and beneficiaries on or after January 1, 1994.
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