I
105TH CONGRESS
2D SESSION
H. R. 4152
To provide retirement security for all Americans.
IN THE HOUSE OF REPRESENTATIVES
JUNE 25, 1998
Mr. GEJDENSON (for himself, Mr. NEAL of Massachusetts, Mr. GEPHARDT,
Mr. BONIOR, Mr. FAZIO of California, Mrs. KENNELLY of Connecticut,
Mr. FROST, Mr. RANGEL, Mr. CLAY, Mr. POMEROY, Ms. STABENOW, Mr.
MATSUI, Mr. PAYNE, Mr. LEWIS of Georgia, Mr. YATES, Mr. SANDLIN,
Ms. SANCHEZ, Mr. VENTO, Mr. UNDERWOOD, Mr. PASCRELL, Ms.
DELAURO, Mr. FRANK of Massachusetts, Mr. MCGOVERN, Mr. LANTOS,
Ms. LEE, Mr. FILNER, Mr. TOWNS, Mrs. LOWEY, Mr. RAHALL, Mr. HIN-
CHEY, Mr. BALDACCI, Mr. GORDON, Mr. ANDREWS, Mr. JEFFERSON,
Mrs. MINK of Hawaii, Mr. PRICE of North Carolina, Mr. MANTON, Mr.
DELAHUNT, Ms. CARSON, Mr. NADLER, Mr. LEVIN, and Mr. BORSKI) in-
troduced the following bill; which was referred to the Committee on Ways
and Means, and in addition to the Committees on Education and the
Workforce, Government Reform and Oversight, and Transportation and
Infrastructure, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned
A BILL
To provide retirement security for all Americans.
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 ‘‘Retirement Accessibil-
ity, Security, and Portability Act of 1998’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—PENSION ACCESS AND COVERAGE
Sec. 100. Amendment of 1986 Code.
Subtitle A—Improved Access to Individual Retirement Savings
Sec. 101. Credit for pension plan startup costs of small employers.
Sec. 102. Exclusion for payroll deduction contributions to IRAs.
Sec. 103. Nonrefundable tax credit for contributions to individual retirement
plans.
Sec. 104. Distributions from certain plans may be used without penalty during
periods of unemployment.
Subtitle B—Secure Money Annuity or Retirement (SMART) Trusts
Sec. 111. Secure money annuity or retirement (SMART) trusts.
Subtitle C—Improved Fairness in Retirement Plan Benefits
Sec. 121. Amendments to SIMPLE retirement accounts.
Sec. 122. Nondiscrimination rules for qualified cash or deferred arrangements
and matching contributions.
Sec. 123. Definition of highly compensated employees.
Sec. 124. Treatment of multiemployer plans under section 415.
Sec. 125. Exemption of mirror plans from section 457 limits.
Sec. 126. Immediate participation in the thrift savings plan for Federal employ-
ees.
Sec. 127. Full funding limitation for multiemployer plans.
Sec. 128. Elimination of partial termination rules for multiemployer plans.
Sec. 129. Repeal of 150 percent of current liability funding limit.
TITLE II—SECURITY
Sec. 200. Amendment of ERISA.
Subtitle A—General Provisions
Sec. 201. Periodic pension benefits statements.
Sec. 202. Requirement of annual, detailed investment reports applied to certain
401(k) plans.
Sec. 203. Information required to be provided to investment managers of
401(k) plans.
Sec. 204. Study on investments in collectibles.
Sec. 205. Qualified employer plans prohibited from making loans through credit
cards and other intermediaries.
Sec. 206. Multiemployer plan benefits guaranteed.
Sec. 207. Prohibited transactions.
Sec. 208. Substantial owner benefits.
Sec. 209. Reversion report.
Subtitle B—ERISA Enforcement
Sec. 211. Civil penalties for breach of fiduciary responsibilities made discre-
tionary, etc.
Sec. 212. Reporting and enforcement requirements for employee benefit plans.
Sec. 213. Additional requirements for qualified public accountants.
Sec. 214. Inspector General study.
Subtitle C—Increase in Excise Tax on Employer Reversions
Sec. 221. Increase in excise tax.
TITLE III—PORTABILITY
Sec. 301. Faster vesting of employer matching contributions.
Sec. 302. Rationalization of the restrictions on distributions from 401(k) plans.
Sec. 303. Treatment of transfers between defined contribution plans.
Sec. 304. Missing participants.
Sec. 305. Allowance of rollovers from and to 403(b) plans.
Sec. 306. Rollover contributions from deferred compensation plans of State and
local governments.
Sec. 307. Extension of 60-day rollover period in the case of Presidentially de-
clared disasters and service in combat zone.
Sec. 308. Purchase of service credit in governmental defined benefit plans.
TITLE IV—COMPREHENSIVE WOMEN’S PENSION PROTECTION
Subtitle A—Pension Reform
Sec. 401. Pension right to know proposals.
Sec. 402. Women’s pension toll-free phone number.
Sec. 403. Modification of government pension offset.
Sec. 404. Family leave provisions.
Sec. 405. Pension integration rules.
Sec. 406. Division of pension benefits upon divorce.
Sec. 407. Entitlement of divorced spouses to railroad retirement annuities inde-
pendent of actual entitlement of employee.
Sec. 408. Effective dates.
Subtitle B—Protection of Rights of Former Spouses to Pension Benefits
Under Certain Government and Government-Sponsored Retirement Programs
Sec. 411. Extension of tier II railroad retirement benefits to surviving former
spouses pursuant to divorce agreements.
Sec. 412. Survivor annuities for widows, widowers, and former spouses of Fed-
eral employees who die before attaining age for deferred annu-
ity under civil service retirement system.
Sec. 413. Payment of lump-sum benefits to former spouses of Federal employ-
ees.
Subtitle C—Modifications of Joint and Survivor Annuity Requirements
Sec. 421. Modifications of joint and survivor annuity requirements.
Sec. 422. Spousal consent required for distributions from defined contribution
plans.
TITLE V—DATE FOR ADOPTION OF PLAN AMENDMENTS
Sec. 501. Date for adoption of plan amendments.
TITLE I—PENSION ACCESS AND
COVERAGE
SEC. 100. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in
this title an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of the Internal Revenue Code
of 1986.
Subtitle A—Improved Access to
Individual Retirement Savings
SEC. 101. CREDIT FOR PENSION PLAN STARTUP COSTS OF
SMALL EMPLOYERS.
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 (relating to business related cred-
its) is amended by adding at the end the following new
section:
‘‘SEC. 45D. SMALL EMPLOYER PENSION PLAN STARTUP
COSTS.
‘‘(a) GENERAL RULE.—For purposes of section 38,
in the case of an eligible employer, the small employer pen-
sion plan startup cost credit determined under this section
for any taxable year is an amount equal to 50 percent
of the qualified startup costs paid or incurred by the tax-
payer during the taxable year.
‘‘(b) DOLLAR LIMITATION.—The amount of the cred-
it determined under this section for any taxable year shall
not exceed—
‘‘(1) $1,000 for the first credit year,
‘‘(2) $500 for each of the 2 taxable years imme-
diately following the first credit year, and
‘‘(3) zero for any other taxable year.
‘‘(c) ELIGIBLE EMPLOYER.—For purposes of this
section—
‘‘(1) IN
GENERAL.—The term ‘eligible em-
ployer’ has the meaning given such term by section
408(p)(2)(C)(i).
‘‘(2) EMPLOYERS
MAINTAINING
QUALIFIED
PLANS
DURING
1997
NOT
ELIGIBLE.—Such term
shall not include an employer if such employer (or
any predecessor employer) maintained a qualified
plan (as defined in section 408(p)(2)(D)(ii)) with re-
spect to which contributions were made, or benefits
were accrued, for service in 1997. If only individuals
other than employees described in subparagraph (A)
or (B) of section 410(b)(3) are eligible to participate
in the qualified employer plan referred to in sub-
section (d)(1), then the preceding sentence shall be
applied without regard to any qualified plan in
which only employees so described are eligible to
participate.
‘‘(d) OTHER DEFINITIONS.—For purposes of this
section—
‘‘(1) QUALIFIED STARTUP COSTS.—
‘‘(A) IN
GENERAL.—The term ‘qualified
startup costs’ means any ordinary and nec-
essary expenses of an eligible employer which
are paid or incurred in connection with—
‘‘(i) the establishment or administra-
tion of an eligible employer plan, or
‘‘(ii) the retirement-related education
of employees with respect to such plan.
‘‘(B) PLAN MUST HAVE AT LEAST 2 PAR-
TICIPANTS.—Such term shall not include any
expense in connection with a plan that does not
have at least 2 individuals who are eligible to
participate.
‘‘(C) PLAN
MUST
BE
ESTABLISHED
BE-
FORE JANUARY 1, 2001.—Such term shall not
include any expense in connection with a plan
established after December 31, 2000.
‘‘(2) ELIGIBLE
EMPLOYER
PLAN.—The term
‘eligible employer plan’ means a qualified employer
plan within the meaning of section 4972(d), or a
qualified payroll deduction arrangement within the
meaning of section 408(q)(1) (whether or not an
election is made under section 408(q)(2)). A quali-
fied payroll deduction arrangement shall be treated
as an eligible employer plan only if all employees of
the employer who—
‘‘(A) have been employed for 90 days, and
‘‘(B) are not described in subparagraph
(A) or (C) of section 410(b)(3),
are eligible to make the election under section
408(q)(1)(A).
‘‘(3) FIRST
CREDIT
YEAR.—The term ‘first
credit year’ means—
‘‘(A) the taxable year which includes the
date that the eligible employer plan to which
such costs relate becomes effective, or
‘‘(B) at the election of the eligible em-
ployer, the taxable year preceding the taxable
year referred to in subparagraph (A).
‘‘(e) SPECIAL RULES.—For purposes of this sec-
tion—
‘‘(1) AGGREGATION RULES.—All persons treat-
ed as a single employer under subsection (a) or (b)
of section 52, or subsection (n) or (o) of section 414,