retary regarding whether such standards are 
being met by particular requests.’’. 
(b) CONFORMING AMENDMENT.—Section 101(h)(1) 
of such Act (29 U.S.C. 1021(h)(1)) is amended by insert-
ing ‘‘or subsection (f)’’ after ‘‘this subsection’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to written requests 
received after December 31, 2005. 
SEC. 307. IMMEDIATE WARNING OF EXCESSIVE STOCK 
HOLDINGS. 
Section 105 of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1025) is amended by adding 
at the end the following new subsection: 
‘‘(e)(1) Upon receipt of information by the plan ad-
ministrator of an individual account plan indicating that 
the individual account of any participant which had not 
been excessively invested in employer securities is exces-
sively invested in such securities (or that such account, 
as initially invested, is excessively invested in employer se-
curities), the plan administrator shall immediately provide 
to the participant a separate, written statement— 
‘‘(A) indicating that the participant’s account 
has become excessively invested in employer securi-
ties,
‘‘(B) setting forth the notice described in sub-
section (e)(7), and 
‘‘(C) referring the participant to investment 
education materials and investment advice which 
shall be made available by or under the plan. 
In any case in which such a separate, written statement 
is required to be provided to a participant under this para-
graph, each statement issued to such participant pursuant 
to subsection (a) thereafter shall also contain such sepa-
rate, written statement until the plan administrator is 
made aware that such participant’s account has ceased to 
be excessively invested in employer securities or the em-
ployee, in writing, waives the receipt of the notice and ac-
knowledges understanding the importance of diversifica-
tion. 
‘‘(2) Each notice required under this subsection shall 
be provided in a form and manner which shall be pre-
scribed in regulations of the Secretary. Such regulations 
shall provide for inclusion in the notice a prominent ref-
erence to the risks of large losses in assets available for 
retirement from excessive investment in employer securi-
ties. 
‘‘(3) For purposes of paragraph (1), a participant’s 
account is ‘excessively invested’ in employer securities if 
more than 10 percent of the balance in such account is
invested in employer securities (as defined in section 
407(d)(1)).’’. 
SEC. 308. REPORT TO PARTICIPANTS AND BENEFICIARIES 
OF TRADES IN EMPLOYER SECURITIES. 
(a) IN GENERAL.—Section 104 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1024) 
is amended— 
(1) by redesignating subsection (d) as sub-
section (e); and 
(2) by inserting after subsection (c) the fol-
lowing new subsection: 
‘‘(d)(1) In any case in which assets in the individual 
account of a participant or beneficiary under an individual 
account plan include employer securities, if any person en-
gages in a transaction constituting a direct or indirect 
purchase or sale of employer securities and— 
‘‘(A) such transaction is required under section 
16 of the Securities Exchange Act of 1934 to be re-
ported by such person to the Securities and Ex-
change Commission, or 
‘‘(B) such person is a named fiduciary of the 
plan, 
such person shall comply with the requirements of para-
graph (2).
‘‘(2) A person described in paragraph (1) complies 
with the requirements of this paragraph in connection 
with a transaction described in paragraph (1) if such per-
son provides to the plan administrator of the plan a writ-
ten notification of the transaction not later than 1 busi-
ness day after the date of the transaction. 
‘‘(3)(A) If the plan administrator is made aware, on 
the basis of notifications received pursuant to paragraph 
(2) or otherwise, that the proceeds from any transaction 
described in paragraph (1), constituting direct or indirect 
sales of employer securities by any person described in 
paragraph (1), exceed $100,000, the plan administrator 
of the plan shall provide to each participant and bene-
ficiary a notification of such transaction. Such notification 
shall be in writing, except that such notification may be 
in electronic or other form to the extent that such form 
is reasonably accessible to the participant or beneficiary. 
‘‘(B) In any case in which the proceeds from any 
transaction described in paragraph (1) (with respect to 
which a notification has not been provided pursuant to 
this paragraph), together with the proceeds from any 
other such transaction or transactions described in para-
graph (1) occurring during the preceding one-year period, 
constituting direct or indirect sales of employer securities 
by any person described in paragraph (1), exceed (in the
aggregate) $100,000, such series of transactions by such 
person shall be treated as a transaction described in sub-
paragraph (A) by such person. 
‘‘(C) Each notification required under this paragraph 
shall be provided as soon as practicable, but not later than 
3 business days after receipt of the written notification 
or notifications indicating that the transaction (or series 
of transactions) requiring such notice has occurred. 
‘‘(4) Each notification required under paragraph (2) 
or (3) shall be made in such form and manner as may 
be prescribed in regulations of the Secretary and shall in-
clude the number of shares involved in each transaction 
and the price per share, and the notification required 
under paragraph (3) shall be written in language designed 
to be understood by the average plan participant. The Sec-
retary may provide by regulation, in consultation with the 
Securities and Exchange Commission, for exemptions 
from the requirements of this subsection with respect to 
specified types of transactions to the extent that such ex-
emptions are consistent with the best interests of plan par-
ticipants and beneficiaries. Such exemptions may relate to 
transactions involving reinvestment plans, stock splits, 
stock dividends, qualified domestic relations orders, and 
similar matters.
‘‘(5) For purposes of this subsection, the term ‘em-
ployer security’ has the meaning provided in section 
407(d)(1).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to transactions occur-
ring after 90 days after the date of the enactment of this 
Act. 
TITLE 
IV—IMPROVEMENTS 
IN 
PENSION INFORMATION AND 
ENFORCEMENT 
SEC. 401. PENSION BENEFIT INFORMATION. 
(a) PENSION BENEFIT STATEMENTS REQUIRED ON 
PERIODIC BASIS.— 
(1) IN
GENERAL.—Subsection (a) of section 
105 of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1025(a)) is amended—— 
(A) by redesignating paragraphs (1) and 
(2) as subparagraphs (A) and (B), respectively, 
and by inserting ‘‘(1)’’ after ‘‘(a)’’; 
(B) by striking ‘‘shall furnish to any plan 
participant or beneficiary who so requests in 
writing, a statement’’ and inserting ‘‘shall, as 
provided in paragraph (2), provide to plan par-
ticipants and beneficiaries statements’’; and
(C) by adding at the end the following new 
paragraphs: 
‘‘(2)(A) The statements described in paragraph 
(1) shall be furnished—— 
‘‘(i) in the case of a defined benefit plan, 
at last once every 3 years to participants who 
have attained age 35, 
‘‘(ii) in the case of an individual account 
plan, at least annually to each participant, and 
‘‘(iii) to any participant or beneficiary who 
so requests in writing. 
‘‘(B) Subparagraph (A)(i) shall not apply to a 
plan to which more than 1 unaffiliated employer is 
required to contribute. 
‘‘(3) Information furnished under paragraph 
(1) to a participant in a defined benefit plan (other 
than at the request of the participant) may be based 
on reasonable estimates determined under regula-
tions prescribed by the Secretary. 
‘‘(4)(A) The Secretary of Labor shall develop a 
model benefit statement which shall be used by plan 
administrators in complying with the requirements 
of paragraph (1). Such statement shall include—
‘‘(i) the amount of nonforfeitable accrued 
benefits as of the statement date which is pay-
able at normal retirement age under the plan, 
‘‘(ii) the amount of accrued benefits which 
are forfeitable but which may become non-
forfeitable under the terms of the plan, 
‘‘(iii) the amount or percentage of any re-
duction due to integration of the benefit with 
the participant’s Social Security benefits or 
similar governmental benefits, 
‘‘(iv) information on early retirement ben-
efit and joint and survivor annuity reductions, 
‘‘(v) in the case of an individual account 
plan, the percentage of the net return on invest-
ment of plan assets for the preceding plan year 
(or, with respect to investments directed by the 
participant, the net return on investment of 
plan assets for such year so directed), itemized 
with respect to each type of investment, and, 
stated separately, the administrative and trans-
action fees incurred in connection with each 
such type of investment, and 
‘‘(vi) in the case of an individual account 
plan, the amount and percentage of assets in 
the individual account that consists of employer
securities and employer real property (as de-
fined in paragraphs (1) and (2), respectively, of 
section 407(d)), as determined as of the most 
recent valuation date of the plan. 
‘‘(B) The Secretary shall also develop a sepa-
rate notice, which shall be included by the plan ad-
ministrator with the information furnished pursuant 
to paragraph (1), which advises participants and 
beneficiaries of generally accepted investment prin-
ciples, including principles of risk management and 
diversification for long-term retirement security and 
the risks of holding substantial assets in a single 
asset such as employer securities.’’. 
(2) CONFORMING AMENDMENT.—Subsection (d) 
of section 105 of such Act (29 U.S.C. 1025(d)) is 
repealed. 
(b) DISCLOSURE OF BENEFIT CALCULATIONS.— 
(1) IN GENERAL.—Section 105 of such Act (as 
amended by the preceding provisions of this section) 
is amended further— 
(A) by redesignating subsection (c) as sub-
section (d); and 
(B) by inserting after subsection (b) the 
following new subsection:
‘‘(c)(1) In the case of a participant or beneficiary who 
is entitled to a distribution of a benefit under an employee 
pension benefit plan, the administrator of such plan shall 
provide to the participant or beneficiary the information 
described in paragraph (2) upon the written request of 
the participant or beneficiary. 
‘‘(2) The information described in this paragraph in-
cludes— 
‘‘(A) a worksheet explaining how the amount of 
the distribution was calculated and stating the as-
sumptions used for such calculation, 
‘‘(B) upon written request of the participant or 
beneficiary, any documents relating to the calcula-
tion (if available), and 
‘‘(C) such other information as the Secretary 
may prescribe. 
Any information provided under this paragraph shall be 
in a form calculated to be understood by the average plan 
participant.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 101(a)(2) of such Act (29 
U.S.C. 1021(a)(2)) is amended by striking 
‘‘105(a) and (c)’’ and inserting ‘‘105(a), (c), 
and (d)’’.
(B) Section 106(b) of such Act (29 U.S.C. 
1026(b)) is amended by striking ‘‘sections 
105(a) and 105(c)’’ and inserting ‘‘section 
105’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall take effect 60 days after the adop-
tion of rules or other guidance to carry out the 
amendments made by this subsection, which shall in-
clude a model notice of generally accepted invest-
ment principles, including principles of risk manage-
ment and diversification. 
(2) MODEL
INVESTMENT
PRINCIPLES.—For 
purposes of paragraph (1), not later than 120 days 
after the date of the enactment of this Act, the Sec-
retary of Labor shall issue rules or other guidance 
and a model notice which meets the requirements of 
section 105 of the Employee Retirement Income Se-
curity Act of 1974 added by this section.
SEC. 402. DISCLOSURES TO SECRETARY OF LABOR RELAT-
ING TO PLAN TERMINATION AND RELATING 
TO PLAN SPONSORS AFTER ACQUISITION OR 
MERGER OF PLANS. 
(a) IN GENERAL.—Section 104 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1024) 
is amended— 
(1) by redesignating subsection (d) as sub-
section (e); and 
(2) by inserting after subsection (c) the fol-
lowing new subsection: 
‘‘(d)(1) The administrator of any employee benefit 
plan subject to this part shall file with the Secretary a 
written notice of— 
‘‘(A) the termination of the plan, or 
‘‘(B) in connection with any plan that is ac-
quired by or merged with another plan, the name 
and address of the sponsor of the acquired or 
merged plan. 
‘‘(2) The notice required under paragraph (1) shall 
be filed with the Secretary not later than 60 days after 
the effective date of the termination, acquisition, or merg-
er.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to terminations, acqui-
sitions, and mergers occurring after December 31, 2005.
SEC. 403. DISCLOSURE OF OPERATING INCOME OF EM-
PLOYERS ADJUSTED SO AS TO EXCLUDE CER-
TAIN 
COMPONENTS 
MANDATED 
IN 
FASB 
RULES GOVERNING ACCOUNTING FOR DE-
FINED BENEFIT PENSION PLANS. 
(a) MATTERS TO BE INCLUDED IN ANNUAL RE-
PORT.—Section 103(c) of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C. 1023(c)) is amend-
ed— 
(1) by redesignating paragraph (5) as para-
graph (6); and 
(2) by inserting after paragraph (4) the fol-
lowing new paragraph: 
‘‘(5) In the case of a pension plan that is a de-
fined benefit plan, the amount of the annual oper-
ating income of each employer maintaining the plan, 
as shown on the employer’s most recent annual fi-
nancial statement, together with such amount as ad-
justed by excluding all components of net benefit 
cost other than the service cost component.’’. 
(b) INFORMATION TO BE PROVIDED ANNUALLY TO 
PARTICIPANTS AND BENEFICIARIES.—Section 104(b)(3) 
of such Act (29 U.S.C. 1024(b)(3)) is amended by adding 
at the end the following new sentence: ‘‘In the case of a 
defined benefit plan, such other material shall include the 
information described in paragraph (5) of section 103(c),
together with an explanation, written in a manner cal-
culated to be understood by the average plan participant, 
of such information, of the service cost component in-
cluded in the adjusted amount of annual operating income 
reported pursuant to such paragraph, and of each compo-
nent excluded from such adjusted amount of annual oper-
ating income.’’. 
SEC. 404. SPECIFIC INFORMATION REGARDING MULTIEM-
PLOYER PLANS INCLUDED IN ANNUAL RE-
PORT. 
Section 103 of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1023) is amended by adding 
at the end the following new subsection: 
‘‘(f) With respect to a pension plan that is a multiem-
ployer plan, an annual report under this section shall in-
clude the following information regarding each contrib-
uting employer: 
‘‘(1) the employer’s name, 
‘‘(2) the employer’s taxpayer identification 
number, 
‘‘(3) the contract period relating to the plan, 
and 
‘‘(4) the amount contributed by the employer 
for the year.’’.
SEC. 405. LIMITED SCOPE AUDITS. 
Subparagraph (C) of section 103(a)(3) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1023(a)(3)(C)) is amended to read as follows: 
‘‘(C)(i) Subject to clause (ii), the opinion required by 
subparagraph (A) need not be expressed as to any state-
ments required by subsection (b)(3)(G) prepared by a 
bank or similar institution or insurance carrier regulated 
and supervised and subject to periodic examination by a 
State or Federal agency if no less than 95 percent of the 
plan’s assets have a readily ascertainable market value at 
the end of the plan year for which the opinion is being 
offered, and if such statements— 
‘‘(I) are certified by the bank, similar insti-
tution, or insurance carrier as complete and ac-
curate, 
‘‘(II) certify the current value of each 
asset, 
‘‘(III) include a representation that, within 
the 18-month month period preceding the date 
of its certification, an independent, qualified 
public accountant who has satisfied the require-
ments of subsection (D), has issued a report, in 
accordance with generally accepted auditing 
standards, to the bank or similar institution or 
insurance carrier, stating that its internal con-
trols and procedures or the internal controls 
and procedures of any affiliated entity, as they 
pertain to the execution, maintenance of ac-
countability, recording and processing of trans-
actions related to plan or participant record-
keeping, are adequate, and 
‘‘(IV) are made a part of the annual re-
port. 
‘‘(ii) To the extent that the processing of trans-
actions related to plan or participant recordkeeping 
is performed by an entity unaffiliated with the bank 
or similar institution or insurance carrier, clause (i) 
shall not apply unless the plan has obtained a rep-
resentation from the entity that, within the 18- 
month period preceding the date of the opinion, an 
independent, qualified public accountant who has 
satisfied the requirements of subparagraph (D), has 
issued a report, in accordance with generally accept-
ed auditing standards, to the entity stating that its 
internal controls and procedures, as they pertain to 
the execution, maintenance of accountability, record-
ing, and processing of transactions related to plan or 
participant recordkeeping, are adequate. 
‘‘(iii) For purposes of clause (i), the term ‘read-
ily ascertainable market value’ means a value that
can be readily determined on an established securi-
ties market or in accordance with regulations pro-
mulgated by the Secretary.’’. 
SEC. 406. REPORTING AND ENFORCEMENT REQUIREMENTS 
FOR EMPLOYEE BENEFIT PLANS. 
(a) IN GENERAL.—Part 1 of subtitle B of title I of 
the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1021 et seq.) is amended— 
(1) by redesignating section 111 as section 112, 
and 
(2) inserting after section 110 the following 
new section: 
‘‘DIRECT REPORTING OF CERTAIN EVENTS 
‘‘SEC. 111. (a) REQUIRED NOTIFICATIONS.— 
‘‘(1) 
NOTIFICATIONS
BY
PLAN
ADMINIS-
TRATOR.—The administrator of an employee benefit 
plan, within 5 business days after the administrator 
determines that there is evidence (or after the ad-
ministrator is notified under paragraph (2)) that an 
irregularity may have occurred with respect to the 
plan, shall— 
‘‘(A) notify the Secretary of the irregu-
larity in writing; and 
‘‘(B) furnish a copy of such notification to 
the accountant who is currently engaged under 
section 103(a)(3)(A).
‘‘(2) NOTIFICATIONS BY ACCOUNTANT.— 
‘‘(A) IN
GENERAL.—An accountant en-
gaged by the administrator of an employee ben-
efit plan under section 103(a)(3)(A), within 5 
business days after the accountant in connec-
tion with such engagement determines that 
there is evidence that an irregularity may have 
occurred with respect to the plan, shall— 
‘‘(i) notify the plan administrator of 
the irregularity in writing, or 
‘‘(ii) if the accountant determines that 
there is evidence that the irregularity may 
have involved an individual who is the plan 
administrator or who is a senior official of 
the plan administrator, notify the Sec-
retary of the irregularity in writing. 
‘‘(B) NOTIFICATION
UPON
FAILURE
OF 
PLAN ADMINISTRATOR TO NOTIFY.—If an ac-
countant who has provided notification to the 
plan administrator pursuant to subparagraph 
(A)(i) does not receive a copy of the administra-
tor’s notification to the Secretary required 
under paragraph (1)(B) within the 5-business- 
day period specified therein, the accountant 
shall furnish to the Secretary a copy of the ac-