I
105TH CONGRESS
1ST SESSION
H. R. 510
To establish a Federal cause of action for failure of State and local public
employee pension plans to meet the terms of such plans, subject to
differing burdens of proof depending on whether changes in the plan
relating to employer contributions are subject, under the law of the
principal State involved, to qualified review boards.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 4, 1997
Mr. ANDREWS introduced the following bill; which was referred to the Com-
mittee on the Judiciary, and in addition to the Committee on Education
and the Workforce, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To establish a Federal cause of action for failure of State
and local public employee pension plans to meet the
terms of such plans, subject to differing burdens of proof
depending on whether changes in the plan relating to
employer contributions are subject, under the law of the
principal State involved, to qualified review boards.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Public Employee Pen-
sion Plan Liability Act of 1997’’.
SEC. 2. CIVIL ENFORCEMENT OF PUBLIC EMPLOYEE PEN-
SION PLAN TERMS.
(a) IN GENERAL.—A civil action may be brought, by
a participant or beneficiary under a public employee pen-
sion plan, against the plan—
(1) to recover benefits due to him or her under
the terms of the plan, to enforce his or her rights
under the terms of the plan, or to clarify his or her
rights to future benefits under the terms of the plan;
(2) to enjoin any act or practice which violates
the terms of the plan, or
(3) to obtain other appropriate equitable relief
(A) to redress violations of the terms of the plan or
(B) to enforce the terms of the plan.
(b) BURDEN OF PROOF.—
(1) IN GENERAL.—Except as provided in para-
graph (2), in any action brought under this section,
the plaintiff may prevail if the plaintiff proves his or
her case by a preponderance of the evidence.
(2) SPECIAL RULE FOR PLANS SUBJECT TO RE-
VIEW BY QUALIFIED REVIEW BOARDS.—In the case
of a public employee pension plan which meets the
requirements of section 3, in any action brought
under this section, the plaintiff may prevail only if
the plaintiff proves his or her case by clear and con-
vincing evidence.
(c) PLANS TREATED AS PERSONS.—A public em-
ployee pension plan may sue or be sued under this Act
as a person. Service of summons, subpoena, or other legal
process of a court upon a trustee or an administrator of
a public employee pension plan in the trustee’s or adminis-
trator’s capacity as such shall constitute service upon the
plan.
(d) JURISDICTION AND VENUE.—
(1) IN GENERAL.—State courts of competent
jurisdiction and district court of the United States
shall have concurrent jurisdiction of actions brought
under this section. The district courts of the United
States shall have jurisdiction without regard to the
amount in controversy or the citizenship of the par-
ties, to grant the relief provided for in subsection
(a).
(2) VENUE.—Notwithstanding section 94 of the
National Banking Act (12 U.S.C. 94), in any case
in which an action under this Act is brought in a
district court of the United States, it may be
brought in any district of the State where the plan
is administered, where the breach took place, or
where a defendant resides or may be found, and
process may be served in any other district where a
defendant resides or may be found.
(e) ATTORNEY’S FEES.—In any action brought under
this section, the court may in its discretion award a rea-
sonable attorney’s fee and costs of action to any party who
prevails or substantially prevails in such action.
SEC. 3. REVIEW BY QUALIFIED REVIEW BOARDS OF
CHANGES IN EMPLOYER CONTRIBUTIONS.
(a) IN GENERAL.—A public employee pension plan
meets the requirements of this section if, under the plan,
changes in employer contributions are subject to review
by a qualified review board established for the plan as pro-
vided in this section. For purposes of this section, the term
‘‘qualified review board’’ means a board—
(1) whose membership is determined under the
law of the principal State in accordance with sub-
section (b), and
(2) whose powers are determined under the law
of the principal State in accordance with subsection
(c).
(b) MEMBERSHIP.—
(1) IN GENERAL.—The membership of a quali-
fied review board established for a plan shall consist
of 3 members selected from among individuals who,
by means of their education and experience, have
demonstrated expertise in the area of pension fund
management, as follows:
(A) one member is appointed by the Gov-
ernor of the State,
(B) one member is selected by the partici-
pants in the plan, by means of an election held
in such form and manner as shall be prescribed
in regulations of the Secretary of Labor, and
(C) one member is selected jointly by the
Governor and by a representative of partici-
pants in the plan (from a certified list of pen-
sion experts established in accordance with
paragraph (2)).
Each member of the board shall have 1 vote. Mem-
bers of the board shall serve for such equivalent
terms as shall be prescribed under the law of the
principal State.
(2) CERTIFIED LIST OF EXPERTS.—The Gov-
ernor of the State shall, for purposes of paragraph
(1)(C), establish and maintain with respect to each
public employee pension plan (for which such State
is the principal State) a certified list of pension ex-
perts meeting the requirements for membership on