I
105TH CONGRESS
2D SESSION
H. R. 3450
To protect the retirement security of Americans.
IN THE HOUSE OF REPRESENTATIVES
MARCH 12, 1998
Mr. ANDREWS introduced the following bill; which was referred to the Com-
mittee on Education and the Workforce, and in addition to the Commit-
tees on Ways and Means, Transportation and Infrastructure, and Gov-
ernment Reform and Oversight, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To protect the retirement security of 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; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Retirement Protection Act of 1998’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
TITLE I—PUBLIC EMPLOYEE PENSION PLANS
Sec. 101. Reporting and disclosure requirements.
Sec. 102. Civil enforcement of public employee pension plan terms.
Sec. 103. Review by qualified review boards of changes in employer contribu-
tions.
Sec. 104. Effect on other laws.
Sec. 105. Definitions and coverage.
Sec. 106. Effective date.
TITLE II—WOMEN’S PENSION EQUITY
Sec. 201. Model spousal consent form and qualified domestic relations order.
Sec. 202. Extension of tier II railroad retirement benefits to surviving former
spouses pursuant to divorce agreements.
Sec. 203. 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. 204. Court orders relating to Federal retirement benefits for former
spouses of Federal employees.
TITLE III—EMPLOYER REVERSIONS
Sec. 301. Increase in excise tax on reversions.
Sec. 302. Reversion report.
TITLE IV—ALTERNATIVE DISPUTE RESOLUTION
Sec. 401. Alternative dispute resolution of pension benefit claims.
Sec. 402. Effective date.
TITLE V—ALLOWABLE RELIEF
Sec. 501. Pre-judgment interest, attorney fees, and costs of action.
Sec. 502. Consequential damages.
Sec. 503. Effective date.
TITLE VI—ANNUAL REPORTS
Sec. 601. Annual reports to participants and beneficiaries in understandable
language.
Sec. 602. Effective date.
TITLE I—PUBLIC EMPLOYEE
PENSION PLANS
SEC. 101. REPORTING AND DISCLOSURE REQUIREMENTS.
(a) IN GENERAL.—Within 210 days after the close
of each plan year, the administrator of each public em-
ployee pension plan shall furnish to each participant, and
to each beneficiary receiving benefits under the plan—
(1) a statement of the assets and liabilities of
the plan aggregated by categories and valued at
their current value, and the same data displayed in
comparative form for the end of the previous plan
year;
(2) a statement of receipts and disbursements
during the preceding 12-month period aggregated by
general sources and applications;
(3) a report containing—
(A) a description of all investments and as-
sets of the plan, including their value;
(B) the names and positions of all of the
trustees of the plan, and the time remaining be-
fore the expiration of their term;
(C) a description of the method of trustee
selection;
(D) a description of any changes in invest-
ment policy of the plan during the fiscal year;
(E) an evaluation of the long-term solvency
of the plan, including the number of partici-
pants and beneficiaries and a summary of their
benefits, and a projection of the amount of ben-
efits expected to be paid for the fifth, tenth,
and fifteenth plan year following the date of the
publication of the report; and
(F) the percentage which the current value
of the assets of the plan is of the current liabil-
ity under the plan; and
(4) any other material as is necessary to fairly
summarize the latest annual report.
Such information shall be written and calculated to be un-
derstood by the average plan participant, and shall be suf-
ficiently accurate and comprehensive to reasonably apprise
such participants and beneficiaries of their rights and obli-
gations under the plan.
(b) AVAILABILITY OF PLAN DOCUMENTS FOR EXAM-
INATION.—The administrator shall make copies of the
plan description and the latest annual report and the bar-
gaining agreement, trust agreement, contract, or other in-
struments under which the plan was established or is oper-
ated available for examination by any plan participant or
beneficiary in the principal office of the administrator and
in such other places as may be necessary to make available
all pertinent information to all participants (including
such places as the Secretary of Labor may prescribe by
regulations).
(c) AVAILABILITY
OF
INFORMATION
UPON
RE-
QUEST.—The administrator shall, upon written request of
any participant or beneficiary, furnish a copy of the latest
annual report, any terminal report, the bargaining agree-
ment, trust agreement, contract, or other instruments
under which the plan is established or operated. The ad-
ministrator may make a reasonable charge to cover the
cost of furnishing such complete copies. The Secretary of
Labor may by regulation prescribe the maximum amount
which will constitute a reasonable charge under the pre-
ceding sentence.
SEC. 102. 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 this title, 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
this title or (B) to enforce the terms of the plan or
this title.
(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 103 in any action brought
under this section relating to a change in employer
contributions, the plaintiff may prevail only if the
plaintiff proves his or her case by clear and convinc-
ing evidence.
(c) PLANS TREATED AS PERSONS.—A public em-
ployee pension plan may sue or be sued under this title
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 courts 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 title 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. 103. 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
the qualified review board. Individuals may be in-
cluded on such list only by agreement between the
Governor of the State and a representative elected
by participants in the plan, entered into by means
of collective bargaining in such form and manner as
shall be prescribed in regulations of the Secretary of
Labor.
(c) POWERS.—The board shall be treated as a quali-
fied review board for purposes of this section with respect
to any public employee pension plan (for which such State
is the principal State) only if the powers of such board
under the law of the principal State include review by the
board, for approval or disapproval by the board, of any
change in the terms of such plan, as a necessary pre-
requisite for such change to take effect, if—
(1) such change would have the effect of chang-
ing levels of employer contributions to the plan, and
(2) such review is requested, in such form and
manner as shall be prescribed in regulations of the
Secretary of Labor, by—
(A) at least one-third of the total number
of trustees of any trust fund forming a part of
the plan, or
(B) the head of any employee organization
representing at least 20 percent of the total
number of active participants in the plan.
The board may be treated as a qualified review board for
purposes of this section only if, under the law of the prin-
cipal State, any such change submitted to such review by
the board may take effect only upon approval of the
change by the board.
SEC. 104. EFFECT ON OTHER LAWS.
(a) IN GENERAL.—Nothing in this title shall be con-
strued to alter, amend, modify, invalidate, impair, or su-
persede any law of a State or any rule or regulation issued
under any such law, except to the extent that such law—
(1) may now or hereafter relate to the subject
matter of the provisions of this title as they apply
to any public employee pension plan described in
section 105(b)(1) and not exempt under section
105(b)(2), and
(2) prevents the application of such provisions.
(b) STATE CAUSES OF ACTION PRESERVED.—Noth-
ing in this title shall be construed to apply with respect
to State causes of action available in State courts.
SEC. 105. DEFINITIONS AND COVERAGE.
(a) DEFINITIONS.—For purposes of this title—
(1) ADMINISTRATOR.—The term ‘‘adminis-
trator’’ means—
(A) the board of trustees, retirement
board, or similar person with administrative re-
sponsibilities in connection with a plan, or any
other person specifically so designated in con-
nection with any requirement of this title by the
terms of the instrument or instruments under
which the plan is operated, including but not
limited to the law of any State or of any politi-
cal subdivision of any State, or
(B) in any case in which there is no person
described in subparagraph (A) in connection
with the plan, the plan sponsor.
(2) BENEFICIARY.—The term ‘‘beneficiary’’
means a person designated by a participant, or by
the terms of a public employee pension plan, who is
or may become entitled to a benefit thereunder.
(3) CURRENT LIABILITY.—The term ‘‘current
liability’’ has the meaning provided in section
302(d)(7) of the Employee Retirement Income Secu-
rity Act of 1974.
(4) EMPLOYEE.—The term ‘‘employee’’ means
any individual employed by an employer, employer
representative, or other person required to make em-
ployer contributions under the plan.
(5) 
EMPLOYEE
ORGANIZATION.—The 
term
‘‘employee organization’’ means any labor union or
any organization of any kind, or any agency or em-
ployee representation committee, association, group,
or plan, in which employees participate and which
exists for the purpose, in whole or in part, of dealing
with employers or employer representatives concern-
ing a public employee pension plan or other matters
incidental to employment relationships; or any em-
ployees’ beneficiary association organized for the
purpose, in whole or in part, of establishing such a
plan.
(6) 
EMPLOYER.—The 
term 
‘‘employer’’
means—
(A) the government of any State or of any
political subdivision of a State,
(B) any agency or instrumentality of a
government referred to in subparagraph (A), or
(C) any agency or instrumentality of two
or more governments referred to in subpara-
graph (A).
(7) 
EMPLOYER
CONTRIBUTION.—The 
term
‘‘employer contribution’’ means any contribution to
a public employee pension plan other than a con-
tribution made by a participant in the plan.
(8) EMPLOYER
REPRESENTATIVE.—The term
‘‘employer representative’’ means—
(A) any group or association consisting, in
whole or in part, of employers acting, in connec-
tion with a public employee pension plan, for an
employer, or
(B) any person acting, in connection with
a public employee pension plan, indirectly in the
interest of an employer or of a group or asso-
ciation described in subparagraph (A).
(9) PUBLIC
EMPLOYEE
PENSION
PLAN.—The
terms ‘‘public employee pension plan’’ and ‘‘plan’’
mean any plan, fund, or program which was here-
tofore or is hereafter established or maintained, in
whole or in part, by an employer, an employer rep-
resentative, or an employee organization, or by a
combination thereof, to the extent that by its express
terms or as a result of surrounding circumstances
such plan, fund, or program—
(A) provides retirement income to employ-
ees, or
(B) results in a deferral of income by em-
ployees for periods extending to the termination
of covered employment or beyond,
regardless of the method of calculating the contribu-
tions made to the plan, the method of calculating
the benefits under the plan, or the method of distrib-
uting benefits from the plan.
(10) PRINCIPAL STATE.—The term ‘‘principal
State’’ means, for any plan year with respect to a
public employee pension plan, the State in which, as
of the beginning of such plan year, the largest per-
centage of the participants of the plan employed in
any single State is employed.
(11) 
GOVERNOR.—The 
term 
‘‘Governor’’
means, in connection with a public employee pension
plan, the Governor (or equivalent official) of the
principal State.
(12) PARTICIPANT.—The term ‘‘participant’’
means any individual who is or may become eligible
to receive a benefit of any type from a public em-
ployee pension plan or whose beneficiaries may be el-
igible to receive any such benefit.
(13) PERSON.—The term ‘‘person’’ means a
State, a political subdivision of a State, any agency
or instrumentality of a State or a political subdivi-
sion of a State, an individual, a partnership, a joint
venture, a corporation, a mutual company, a joint-
stock company, a trust, an estate, an unincorporated
organization, an association, or an employee organi-
zation.
(14) PLAN SPONSOR.—The term ‘‘plan spon-
sor’’ means—
(A) in the case of a plan established or
maintained solely for employees of a single em-
ployer, such employer,
(B) in the case of a plan established or
maintained by an employee organization, the
employee organization, or
(C) in the case of a plan established or
maintained by two or more employers or jointly
by one or more employers and one or more em-
ployee organizations, the association, commit-
tee, board of trustees, or other similar group of
representatives of the parties who establish or
maintain the plan.
(15) PLAN
YEAR.—The term ‘‘plan year’’
means, with respect to a plan, the calendar, policy,
or fiscal year on which the records of the plan are
kept.
(16) STATE.—The term ‘‘State’’ means any
State of the United States, the District of Columbia,
the Commonwealth of Puerto Rico, the Virgin Is-
lands, American Samoa, and Guam.
(b) COVERAGE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), this title shall apply to any public em-
ployee pension plan.
(2) EXCEPTIONS FROM COVERAGE.—The provi-
sions of this title shall not apply to—
(A) any employee benefit plan described in
section 4(a) of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C.
1003(a)), which is not exempt under section
4(b)(1) of such Act (29 U.S.C. 1003(b)(1));
(B) any plan which is unfunded and is
maintained by an employer or employer rep-
resentative primarily for the purpose of provid-
ing deferred compensation for a select group of
management or highly compensated employees;
(C) any arrangement which would be a
severance pay arrangement, as defined in regu-
lations of the Secretary of Labor under section
3(2)(B)(i) of the Employee Retirement Income
Security 
Act 
of 
1974 
(29 
U.S.C.
1002(2)(B)(i)), if the employer were an em-
ployer within the meaning of section 3(5) of
such Act (29 U.S.C. 1002(5));
(D) any agreement to the extent it is a
coverage agreement entered into pursuant to
section 218 of the Social Security Act (42
U.S.C. 418);
(E) any individual retirement account or
any individual retirement annuity within the
meaning of section 408 of the Internal Revenue
Code of 1986, or a retirement bond within the
meaning of section 409 of such Code;
(F) any plan described in section 401(d) of
such Code;
(G) any individual account plan consisting
of an annuity contract described in section
403(b) of such Code;
(H) any eligible State deferred compensa-
tion plan, as defined in section 457(b) of such
Code; or
(I) any plan maintained solely for the pur-
pose of complying with applicable workers’ com-
pensation laws or disability insurance laws.
SEC. 106. EFFECTIVE DATE.
The preceding provisions of this title shall apply with
respect to plan years beginning on or after January 1,
1999.
TITLE II—WOMEN’S PENSION
EQUITY
SEC. 201. MODEL SPOUSAL CONSENT FORM AND QUALI-
FIED DOMESTIC RELATIONS ORDER.
(a) MODEL SPOUSAL CONSENT FORM.—
(1) AMENDMENT
TO
INTERNAL
REVENUE
CODE.—Section 417(a) of the Internal Revenue
Code of 1986 is amended by adding at the end the
following new paragraph:
‘‘(8) CONSENT FORM.—The Secretary shall de-
velop a form not later than January 1, 1999, for the
spousal consent required under paragraph (2)
which—
‘‘(A) is written in a manner calculated to
be understood by the average person, and
‘‘(B) discloses in plain form whether—
‘‘(i) the waiver is irrevocable, and
‘‘(ii) the waiver may be revoked by a
qualified domestic relations order.’’.
(2) AMENDMENT TO ERISA.—Section 205(c) of
the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1055(c)) is amended by adding at
the end the following new paragraph:
‘‘(9) The Secretary of the Treasury shall develop a
form not later than January 1, 1999, for the spousal con-
sent required under paragraph (2) which—
‘‘(A) is written in a manner calculated to be un-
derstood by the average person, and
‘‘(B) discloses in plain form whether—
‘‘(i) the waiver is irrevocable, and
‘‘(ii) the waiver may be revoked by a quali-
fied domestic relations order.’’.
(b) MODEL
QUALIFIED
DOMESTIC
RELATIONS
ORDER.—
(1) AMENDMENT TO ERISA.—Section 206(d)(3)
of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1056(d)(3)) is amended by adding
at the end the following new subparagraph:
‘‘(O) The Secretary shall develop a form not later
than January 1, 1999, for a qualified domestic relations
order which meets—
‘‘(i) the requirements of subparagraph (B)(i),
and
‘‘(ii) the requirements of this Act related to the
need to consider the treatment of any lump sum
payment, qualified joint and survivor annuity, or
qualified preretirement survivor annuity.’’.
(2) AMENDMENT
TO
INTERNAL
REVENUE
CODE.—Section 414(p) of the Internal Revenue
Code of 1986 is amended by adding at the end the
following new paragraph:
‘‘(13) The Secretary of Labor shall develop a
form not later than January 1, 1999, for a qualified
domestic relations order which meet—
‘‘(A) 
the 
requirements 
of 
paragraph
(1)(A), and
‘‘(B) the requirements of this Act related
to the need to consider the treatment of any
lump sum payment, qualified joint and survivor
annuity, or qualified preretirement survivor an-
nuity.’’.
(c) PUBLICITY.—The Secretary of the Treasury and
the Secretary of Labor shall include publicity for the
model forms required by the amendments made by this
section in the pension outreach efforts undertaken by each
Secretary.
SEC. 202. EXTENSION OF TIER II RAILROAD RETIREMENT
BENEFITS TO SURVIVING FORMER SPOUSES
PURSUANT TO DIVORCE AGREEMENTS.
(a) IN GENERAL.—Section 5 of the Railroad Retire-
ment Act of 1974 (45 U.S.C. 231d) is amended by adding
at the end the following new subsection:
‘‘(d) Notwithstanding any other provision of law, the
payment of any portion of an annuity computed under sec-
tion 3(b) to a surviving former spouse in accordance with
a court decree of divorce, annulment, or legal separation
or the terms of any court-approved property settlement
incident to any such court decree shall not be terminated
upon the death of the individual who performed the service
with respect to which such annuity is so computed unless
such termination is otherwise required by the terms of
such court decree.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall take effect on the date of the enactment
of this Act.
SEC. 203. SURVIVOR ANNUITIES FOR WIDOWS, WIDOWERS,
AND FORMER SPOUSES OF FEDERAL EM-
PLOYEES WHO DIE BEFORE ATTAINING AGE
FOR 
DEFERRED 
ANNUITY 
UNDER 
CIVIL
SERVICE RETIREMENT SYSTEM.
(a) BENEFITS FOR WIDOW OR WIDOWER.—Section
8341(f) of title 5, United States Code, is amended—
(1) in the matter preceding paragraph (1) by—
(A) by inserting ‘‘a former employee sepa-
rated from the service with title to deferred an-
nuity from the Fund dies before having estab-
lished a valid claim for annuity and is survived
by a spouse, or if’’ before ‘‘a Member’’; and
(B) by inserting ‘‘of such former employee
or Member’’ after ‘‘the surviving spouse’’;
(2) in paragraph (1)—
(A) by inserting ‘‘former employee or’’ be-
fore ‘‘Member commencing’’; and
(B) by inserting ‘‘former employee or’’ be-
fore ‘‘Member dies’’; and
(3) in the undesignated sentence following para-
graph (2)—
(A) in the matter preceding subparagraph
(A) by inserting ‘‘former employee or’’ before
‘‘Member’’; and
(B) in subparagraph (B) by inserting
‘‘former employee or’’ before ‘‘Member’’.
(b) BENEFITS
FOR
FORMER
SPOUSE.—Section
8341(h) of title 5, United States Code, is amended—
(1) in paragraph (1) by adding after the first
sentence ‘‘Subject to paragraphs (2) through (5) of
this subsection, a former spouse of a former em-
ployee who dies after having separated from the
service with title to a deferred annuity under section
8338(a) but before having established a valid claim
for annuity is entitled to a survivor annuity under
this subsection, if and to the extent expressly pro-
vided for in an election under section 8339(j)(3) of
this title, or in the terms of any decree of divorce
or annulment or any court order or court-approved
property settlement agreement incident to such de-
cree.’’; and
(2) in paragraph (2)—
(A) in subparagraph (A)(ii) by striking ‘‘or
annuitant,’’ and inserting ‘‘annuitant, or former
employee’’; and
(B) in subparagraph (B)(iii) by inserting
‘‘former employee or’’ before ‘‘Member’’.
(c) PROTECTION OF SURVIVOR BENEFIT RIGHTS.—
Section 8339(j)(3) of title 5, United States Code, is
amended by inserting at the end the following:
‘‘The Office shall provide by regulation for the appli-
cation of this subsection to the widow, widower, or surviv-
ing former spouse of a former employee who dies after
having separated from the service with title to a deferred
annuity under section 8338(a) but before having estab-
lished a valid claim for annuity.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act and shall apply only in the case of a former
employee who dies on or after such date.
SEC. 204. COURT ORDERS RELATING TO FEDERAL RETIRE-
MENT BENEFITS FOR FORMER SPOUSES OF
FEDERAL EMPLOYEES.
(a) CIVIL SERVICE RETIREMENT SYSTEM.—
(1) IN GENERAL.—Section 8345(j) of title 5,
United States Code, is amended—
(A) by redesignating paragraph (3) as
paragraph (4); and
(B) by inserting after paragraph (2) the
following new paragraph:
‘‘(3) Payment to a person under a court decree, court
order, property settlement, or similar process referred to
under paragraph (1) shall include payment to a former
spouse of the employee, Member, or annuitant.’’.
(2) LUMP-SUM
BENEFITS.—Section 8342 of
title 5, United States Code, is amended—
(A) in subsection (c) by striking ‘‘Lump-
sum benefits’’ and inserting ‘‘Subject to sub-
section (j), lump-sum benefits’’; and
(B) in subsection (j)(1) by striking ‘‘the
lump-sum credit under subsection (a) of this
section’’ and inserting ‘‘any lump-sum credit or
lump-sum benefit under this section’’.
(b) FEDERAL EMPLOYEES RETIREMENT SYSTEM.—
Section 8467 of title 5, United States Code, is amended—
(1) by redesignating subsection (c) as sub-
section (d); and
(2) by inserting after subsection (b) the follow-
ing new subsection:
‘‘(c) Payment to a person under a court decree, court
order, property settlement, or similar process referred to
under subsection (a) shall include payment to a former
spouse of the employee, Member, or annuitant.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
TITLE III—EMPLOYER
REVERSIONS
SEC. 301. INCREASE IN EXCISE TAX ON REVERSIONS.
(a) IN GENERAL.—Section 4980 of the Internal Rev-
enue Code of 1986 (relating to tax on reversion of quali-
fied plan assets to employer) is amended—
(1) in subsection (a), by striking ‘‘20 percent’’
and inserting ‘‘35 percent’’; and
(2) in subsection (d)(1), by striking ‘‘substitut-
ing ‘50 percent’ for ‘20 percent’ with respect to any
employer reversion’’ and inserting ‘‘substituting ‘65
percent’ for ‘35 percent’ with respect to any em-
ployer reversion’’.
SEC. 302. REVERSION REPORT.
(a) IN GENERAL.—Section 4008 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1308)
is amended by adding at the end the following new sub-
section:
‘‘(b) REVERSION REPORT.—As soon as practicable
after the close of each fiscal year, the Secretary of Labor
(acting in the Secretary’s capacity as chairman of the cor-
poration’s board) shall transmit to the President and the
Congress a report providing information on plans from
which residual assets were distributed to employers pursu-
ant to section 4044(d).’’
(b) CONFORMING AMENDMENT.—Section 4008 (29
U.S.C. 1308) is amended by striking ‘‘SEC. 4008.’’ and
inserting ‘‘SEC. 4008. (a) ANNUAL REPORT.—’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to fiscal years beginning after Sep-
tember 30, 1998.
TITLE IV—ALTERNATIVE
DISPUTE RESOLUTION
SEC. 401. ALTERNATIVE DISPUTE RESOLUTION OF PEN-
SION BENEFIT CLAIMS.
(a) IN GENERAL.—Section 503 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1133)
is amended—
(1) by adding at the end of the heading the fol-
lowing: ‘‘AND ARBITRATION OF PENSION CLAIMS’’;
(2) by inserting ‘‘(a)’’ after ‘‘SEC. 503.’’; and
(3) by adding at the end the following new sub-
section:
‘‘(b)(1) Any claim of a participant or beneficiary
against an employee pension benefit plan with respect to
benefits under such plan remaining unresolved, after op-
portunity for review provided under subsection (a) has
been exercised, may be resolved through arbitration, upon
the request of the participant or beneficiary which is filed
with the Secretary, in such form and manner as shall be
prescribed by regulation and within the 60-day period
after the participant or beneficiary has received written
notice from the plan of the completion of such review. The
filing of a request for arbitration under this section with
respect to any claim shall constitute a waiver of any right
to review of such claim other than as provided in this sub-
section.
‘‘(2) An arbitration proceeding under this subsection
shall be conducted in accordance with fair and equitable
procedures to be prescribed by the Secretary. Individuals
serving as arbitrators under this section shall be selected
by the Secretary from employees of the Department of
Labor or, to the extent considered by the Secretary more
cost-effective, from individuals whose services are acquired
from other sources. If the parties have not provided by
agreement for the costs of the arbitration, including arbi-
trator’s fees, the arbitrator shall assess such fees, in an
amount for each party not to exceed $500. The arbitrator
shall also award to prevailing participants and bene-
ficiaries reasonable attorney’s fees and pre-judgment in-
terest on unpaid benefits. The award may require payment
of consequential damages.
‘‘(3) Any arbitration proceedings under this sub-
section shall, to the extent consistent with this title, be
conducted in the same manner, subject to the same limita-
tions, carried out with the same powers (including sub-
pena power), and enforced in the United States courts as
an arbitration proceeding carried out under title 9, United
States Code, as if such arbitration had been entered into
by the parties by mutual agreement. Any arbitration
tified mail. The Secretary may intervene in any such ac-
tion.’’.
(b) CONFORMING AMENDMENT.—The item relating
to section 503 in the table of contents in section 1 of such
Act is amended to read as follows:
‘‘Sec. 503. Claims procedure and arbitration of pension claims.’’.
SEC. 402. EFFECTIVE DATE.
The amendments made by this title shall apply with
respect to claims arising on or after the date of the enact-
ment of this Act.
TITLE V—ALLOWABLE RELIEF
SEC. 501. PRE-JUDGMENT INTEREST, ATTORNEY FEES, AND
COSTS OF ACTION.
(a) PRE-JUDGMENT INTEREST ON UNPAID BENE-
FITS.—Section 502(a)(1)(B) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1132(a)(1)(B))
is amended by inserting ‘‘(together with reasonable pre-
judgment interest on unpaid pension plan benefits)’’ after
‘‘to recover benefits due to him under the terms of his
plan’’.
(b) ATTORNEY FEES AND COSTS OF ACTION.—Sec-
tion 502(g) of such Act (29 U.S.C. 1132(g)) is amended—
(1) in paragraph (1), by inserting ‘‘or (3)’’
after ‘‘paragraph (2)’’; and
(2) by adding at the end the following new
paragraph:
‘‘(3) In any action or settlement proceeding under
this title with respect to an employee pension benefit plan
brought by a participant or beneficiary under such plan
in which the participant or beneficiary prevails or substan-
tially prevails, the participant or beneficiary shall be enti-
tled to reasonable attorney’s fees, reasonable expert wit-
ness fees, and other reasonable costs relating to the ac-
tion.’’.
SEC. 502. CONSEQUENTIAL DAMAGES.
Section 502(c) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1132(c)) is amended by
inserting after paragraph (7) (added by section 3(b)(1)
of this Act) the following new paragraph:
‘‘(8) In any case in which any party consisting of the
plan sponsor, the plan administrator, or any other fidu-
ciary of a pension plan acts or fails to act so as to deprive
a participant or beneficiary of the full and timely payment
of a benefit under the plan in violation of the terms of
the plan or this title, such party may, in the court’s discre-
tion, be jointly and severally liable to such participant or
beneficiary, in any action brought under subsection
(a)(1)(B), for consequential damages (whether economic
or noneconomic) in addition to any other remedy available
to such participant or beneficiary.’’.
SEC. 503. EFFECTIVE DATE.
The amendments made by this title shall apply with
respect to causes of action arising on or after the date
of the enactment of this Act.
TITLE VI—ANNUAL REPORTS
SEC. 601. ANNUAL REPORTS TO PARTICIPANTS AND BENE-
FICIARIES IN UNDERSTANDABLE LANGUAGE.
(a) IN GENERAL.—Section 104(b) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1024(b)) is amended to read as follows:
‘‘(b)(1) Within 210 days after the close of each plan
year, the administrator shall furnish to each participant,
and to each beneficiary receiving benefits under the plan—
‘‘(A) a copy of the statements and schedules,
for such plan, described in subparagraphs (A) and
(B) of section 103(b)(3);
‘‘(B) a report containing—
‘‘(i) a description of all investments and
assets of the plan, including their value;
‘‘(ii) the names and positions of all of the
trustees of the plan, and the time remaining be-
fore the expiration of their term;
‘‘(iii) a description of the method of trustee
selection;
‘‘(iv) a description of any changes in in-
vestment policy of the plan during the fiscal
year; and
‘‘(v) an evaluation of the long-term sol-
vency of the plan, including the number of par-
ticipants and beneficiaries and a summary of
their benefits, and a projection of the amount
of benefits expected to be paid for the fifth,
tenth, and fifteenth plan year following the date
of the publication of the report;
‘‘(C) any other material (including the percent-
age determined under section 103(d)(11)) as is nec-
essary to fairly summarize the latest annual report;
and
‘‘(D) information on where participants and
beneficiary may receive assistance with respect to
the plan.
Such information shall be written and calculated to be un-
derstood by the average plan participant, and shall be suf-
ficiently accurate and comprehensive to reasonably apprise
such participants and beneficiaries of their rights and obli-
gations under the plan.
‘‘(2) The administrator shall make copies of the plan
description and the latest annual report and the bargain-
ing agreement, trust agreement, contract, or other instru-
ments under which the plan was established or is operated
available for examination by any plan participant or bene-
ficiary in the principal office of the administrator and in
such other places as may be necessary to make available
all pertinent information to all participants (including
such places as the Secretary may prescribe by regula-
tions).
‘‘(3) The administrator shall, upon written request
of any participant or beneficiary, furnish a copy of the
latest annual report, any terminal report, the bargaining
agreement, trust agreement, contract, or other instru-
ments under which the plan is established or operated.
The administrator may make a reasonable charge to cover
the cost of furnishing such complete copies. The Secretary
may by regulation prescribe the maximum amount which
will constitute a reasonable charge under the preceding
sentence.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 101(a) of such Act (29 U.S.C.
1021(a)) is amended to read as follows—
‘‘SEC. 101. (a) The administrator of each employee
benefit plan shall cause to be furnished in accordance with
section 104(b) to each participant covered under the plan
and to each beneficiary who is receiving benefits under the
plan the information described in sections 104(b)(1) and
105(a) and (c).’’.
(2) Section 101(b) of such Act (29 U.S.C.
1021(b)) is amended by striking paragraph (1) and
redesignating paragraphs (2), (3), (4), and (5), as
paragraphs (1), (2), (3), and (4), respectively.
(3) Section 102(a)(1) of such Act (29 U.S.C.
1022(a)(1)) is amended to read as follows:
‘‘SEC. 102. (a)(1) A report shall be furnished to par-
ticipants and beneficiaries as provided in section 104(b).’’.
(4) Section 102(b) of such Act (29 U.S.C.
1022(b)) is amended by striking ‘‘and summary plan
description’’ and inserting ‘‘report’’.
(5) Section 103(a)(3)(A) of such Act (29
U.S.C. 1023 (a)(3)(A)) is amended in the second
sentence by striking ‘‘104(b)(3)’’ and inserting
‘‘104(b)(1) (A) and (C)’’.
(6) Section 104(a)(1)(C) of such Act (29
U.S.C. 1024(a)(1)(C)) is amended to read as fol-
lows:
‘‘(C) a copy of the materials required to be fur-
nished to participants and beneficiaries pursuant to
subsection (b)(1) of this section; and’’.