exemption granted under this subparagraph 
shall not relieve a fiduciary from any other ap-
plicable provision of this Act. 
(B) CONDITIONS.—The Secretary of Labor 
may not grant an exemption under subpara-
graph (A) unless the Secretary of Labor finds 
that such exemption is— 
(i) administratively feasible; 
(ii) in the interests of the Fund and 
its participants; and 
(iii) protective of the rights of partici-
pants and beneficiaries of such Fund. 
(C) NOTICE.—An exemption under sub-
paragraph (A) may not be granted unless— 
(i) notice of the proposed exemption is 
published in the Federal Register; 
(ii) interested persons are given an 
opportunity to present views; and 
(iii) the Secretary of Labor affords an 
opportunity for a hearing and makes a de-
termination on the record with respect to 
the respective requirements of clauses (i), 
(ii), and (iii) of subparagraph (B). 
(D) APPLICATION
OF
ERISA
FIDUCIARY 
EXEMPTIONS.—Notwithstanding subparagraph 
VerDate Sep 11 2014 
04:28 Dec 20, 2022
Jkt 039200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6201
E:\BILLS\H9462.IH
H9462
SSpencer on DSK126QN23PROD with BILLS
(C), the Secretary of Labor may determine that 
an exemption granted for any class of fidu-
ciaries or transactions under section 408(a) of 
the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1108(a)) shall, upon publi-
cation of notice in the Federal Register under 
this subparagraph, constitute an exemption 
from the application of paragraph (2). 
(e) NONAPPLICATION.—This section does not pro-
hibit any fiduciary from— 
(1) receiving any benefit which the fiduciary is 
entitled to receive under this Act as a participant, 
former participant, or beneficiary; 
(2) receiving any reasonable compensation au-
thorized by this Act for services rendered, or for re-
imbursement of expenses properly and actually in-
curred, in the performance of the fiduciary’s duties 
under this Act; or 
(3) serving as a fiduciary in addition to being 
an officer, employee, agent, or other representative 
of a party in interest. 
(f) LIABILITY.— 
(1) IN GENERAL.—Any fiduciary that breaches 
the responsibilities, duties, and obligations set out in 
subsection (b) or violates subsection (c) shall be per-
VerDate Sep 11 2014 
04:28 Dec 20, 2022
Jkt 039200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6201
E:\BILLS\H9462.IH
H9462
SSpencer on DSK126QN23PROD with BILLS
sonally liable to the Fund for any losses to such 
Fund resulting from each such breach or violation 
and to restore to such Fund any profits made by the 
fiduciary through use of assets of such Fund by the 
fiduciary, and, except as provided in paragraphs (3) 
and (4), shall be subject to such other equitable or 
remedial relief as a court considers appropriate . A 
fiduciary may be removed for a breach referred to 
in the preceding sentence. 
(2) CIVIL PENALTIES.—The Secretary of Labor 
may assess a civil penalty against a party in interest 
with respect to each transaction prohibited by sub-
section (d) which is engaged in by the party in inter-
est. The amount of such penalty shall be equal to 5 
percent of the amount involved in each such trans-
action (as defined in section 4975(f)(4) of the Inter-
nal Revenue Code of 1986) for each year or part 
thereof during which the prohibited transaction con-
tinues, except that, if the transaction is not cor-
rected (in such manner as the Secretary of Labor 
shall prescribe by regulation consistent with section 
4975(f)(5) of such Code) within 90 days after the 
date the Secretary of Labor transmits notice to the 
party in interest (or such longer period as the Sec-
retary of Labor may permit), such penalty may be 
VerDate Sep 11 2014 
04:28 Dec 20, 2022
Jkt 039200
PO 00000
Frm 00051
Fmt 6652
Sfmt 6201
E:\BILLS\H9462.IH
H9462
SSpencer on DSK126QN23PROD with BILLS
in the amount of not more than 100 percent of the 
amount involved. 
(3) SPECIAL RULES.— 
(A) IN GENERAL.—A fiduciary shall not be 
liable under paragraph (1)— 
(i) with respect to a breach of fidu-
ciary duty under subsection (b) committed 
before becoming a fiduciary or after ceas-
ing to be a fiduciary; 
(ii) for providing for the automatic 
enrollment of a participant in accordance 
with section 104; 
(iii) for enrolling a participant or ben-
eficiary in a default investment fund or op-
tion in accordance with section 104; or 
(iv) for allowing a participant or bene-
ficiary to invest through the mutual fund 
window or for establishing restrictions ap-
plicable to participants’ or beneficiaries’ 
ability to invest through the mutual fund 
window. 
(B) JOINT AND SEVERAL LIABILITY.—A fi-
duciary shall be jointly and severally liable 
under paragraph (1) for a breach of fiduciary 
VerDate Sep 11 2014 
04:28 Dec 20, 2022
Jkt 039200
PO 00000
Frm 00052
Fmt 6652
Sfmt 6201
E:\BILLS\H9462.IH
H9462
SSpencer on DSK126QN23PROD with BILLS
duty under subsection (b) by another fiduciary 
only if— 
(i) the fiduciary participates know-
ingly in, or knowingly undertakes to con-
ceal, an act or omission of such other fidu-
ciary, knowing such act or omission is such 
a breach; 
(ii) by the fiduciary’s failure to com-
ply with subsection (b) in the administra-
tion of the fiduciary’s specific responsibil-
ities which give rise to the fiduciary status, 
the fiduciary has enabled such other fidu-
ciary to commit such a breach; or 
(iii) the fiduciary has knowledge of a 
breach by such other fiduciary, unless the 
fiduciary makes reasonable efforts under 
the circumstances to remedy the breach. 
(4) ALLOCATION OF DUTIES.—The Secretary of 
Labor shall prescribe, in regulations, procedures for 
allocating fiduciary responsibilities among fidu-
ciaries, including asset managers. Any fiduciary who, 
pursuant to such procedures, allocates to any person 
any fiduciary responsibility shall not be liable for an 
act or omission of such person unless such fiduciary 
violated subsection (b) with respect to the allocation, 
VerDate Sep 11 2014 
04:28 Dec 20, 2022
Jkt 039200
PO 00000
Frm 00053
Fmt 6652
Sfmt 6201
E:\BILLS\H9462.IH
H9462
SSpencer on DSK126QN23PROD with BILLS
with respect to the implementation of the procedures 
prescribed by the Secretary of Labor. 
(5) OTHER CIVIL ACTIONS.— 
(A) IN GENERAL.—No civil action may be 
maintained against any fiduciary with respect 
to the responsibilities, liabilities, and penalties 
authorized or provided for in this section except 
in accordance with subparagraphs (B) and (C). 
(B) ACTIONS PERMITTED.—A civil action 
may be brought in the district courts of the 
United States— 
(i) by the Secretary of Labor against 
any fiduciary other than a member of the 
Board or the Executive Director of the 
Board— 
(I) to determine and enforce a li-
ability under paragraph (1); 
(II) to collect any civil penalty 
under paragraph (2); 
(III) to enjoin any act or practice 
which violates any provision of sub-
section (b) or (c); 
(IV) to obtain any appropriate 
equitable relief to redress a violation 
of any such provision; or 
VerDate Sep 11 2014 
04:28 Dec 20, 2022
Jkt 039200
PO 00000
Frm 00054
Fmt 6652
Sfmt 6201
E:\BILLS\H9462.IH
H9462
SSpencer on DSK126QN23PROD with BILLS
(V) to enjoin any act or practice 
which violates subsection (g)(2) or (h) 
of section 201; 
(ii) by any participant, beneficiary, or 
fiduciary— 
(I) to enjoin any act or practice 
which violates any provision of sub-
section (b) or (c); 
(II) to obtain any other appro-
priate equitable relief to redress a vio-
lation of any such provision; or 
(III) to enjoin any act or practice 
which violate subsection (g)(2) or (h) 
of section 201; or 
(iii) by any participant or bene-
ficiary— 
(I) to recover benefits of such 
participant or beneficiary under the 
provisions of title I, to enforce any 
right of such participant or bene-
ficiary under such provisions, or to 
clarify any such right to future bene-
fits under such provisions; or 
(II) to enforce a claim otherwise 
cognizable under sections 1346(b) and 
VerDate Sep 11 2014 
04:28 Dec 20, 2022
Jkt 039200
PO 00000
Frm 00055
Fmt 6652
Sfmt 6201
E:\BILLS\H9462.IH
H9462
SSpencer on DSK126QN23PROD with BILLS
2671 through 2680 of title 28, United 
States Code, except that the remedy 
against the United States provided by 
section 1346(b) and 2672 of such title 
28 for damages for injury or loss of 
property caused by the negligent or 
wrongful act or omission of any fidu-
ciary while acting within the scope of 
the fiduciary’s duties or employment 
shall be exclusive of any other civil ac-
tion or proceeding by the participant 
or beneficiary for recovery of money 
by reason of the same subject matter 
against the fiduciary (or the estate of 
such fiduciary) whose act or omission 
gave rise to such action or proceeding, 
whether or not such action or pro-
ceeding is based on an alleged viola-
tion of subsection (b) or (c). 
(C) REPRESENTATION.— 
(i) IN GENERAL.—In all civil actions 
under subparagraph (B)(i), attorneys ap-
pointed by the Secretary may represent the 
Secretary (except as provided in section 
518(a) of title 28, United States Code), 
VerDate Sep 11 2014 
04:28 Dec 20, 2022
Jkt 039200
PO 00000
Frm 00056
Fmt 6652
Sfmt 6201
E:\BILLS\H9462.IH
H9462
SSpencer on DSK126QN23PROD with BILLS
however, all such litigation shall be subject 
to the direction and control of the Attorney 
General. 
(ii) ATTORNEY GENERAL.—The Attor-
ney General shall defend any civil action or 
proceeding brought in any court against 
any fiduciary referred to in subparagraph 
(B)(iii)(II) (or the estate of such fiduciary) 
for any such injury. Any fiduciary against 
whom such a civil action or proceeding is 
brought shall deliver, within such time 
after date of service or knowledge of serv-
ice as determined by the Attorney General, 
all process served upon such fiduciary (or 
an attested copy thereof) to the Executive 
Director, who shall promptly furnish copies 
of the pleading and process to the Attorney 
General and the United States Attorney 
for the district wherein the action or pro-
ceeding is brought. 
(iii) CERTIFICATION
OF
SCOPE
OF 
DUTY.—Upon certification by the Attorney 
General that a fiduciary described in sub-
paragraph (B)(iii)(II) was acting in the 
scope of such fiduciary’s duties or employ-
VerDate Sep 11 2014 
04:28 Dec 20, 2022
Jkt 039200
PO 00000
Frm 00057
Fmt 6652
Sfmt 6201
E:\BILLS\H9462.IH
H9462
SSpencer on DSK126QN23PROD with BILLS
ment as a fiduciary at the time of the oc-
currence or omission out of which the ac-
tion arose, any such civil action or pro-
ceeding commenced in the State court shall 
be— 
(I) removed without bond at any 
time before trial by the Attorney Gen-
eral to the district court of the United 
States for the district and division in 
which it is pending; and 
(II) deemed a tort action brought 
against the United States under the 
provisions of title 28, United States 
Code, and all references thereto. 
(iv) COMPROMISE OR SETTLEMENT.— 
The Attorney General may compromise or 
settle any claim asserted in such civil ac-
tion or proceeding in the manner provided 
in section 2677 of title 28, United States 
Code, and with the same effect. To the ex-
tent section 2672 of title 28, United States 
Code, provides that persons other than the 
Attorney General or the Attorney General’s 
designee 
may 
compromise 
and 
settle 
claims, and that payments of such claims 
VerDate Sep 11 2014 
04:28 Dec 20, 2022
Jkt 039200
PO 00000
Frm 00058
Fmt 6652
Sfmt 6201
E:\BILLS\H9462.IH
H9462
SSpencer on DSK126QN23PROD with BILLS
may be made from agency appropriations, 
such provisions shall not apply to claims 
based upon an alleged violation of sub-
section (b) or (c). 
(v) CERTAIN CLAIMS.—For the pur-
poses of subparagraph (B)(iii)(II), the pro-
visions of section 2680(h) of title 28, 
United States Code shall not apply to any 
claim based upon an alleged violation of 
subsection (b) or (c). 
(vi) PAYMENT OF AWARDS.—Notwith-
standing 
sections 
1346(b) 
and 
2671 
through 2680 of title 28, United States 
Code, whenever an award, compromise, or 
settlement is made under such section 
upon any claim based upon an alleged vio-
lation of subsection (b) or (c), payment of 
such award, compromise, or settlement 
shall be made to the appropriate account 
with in the Fund, or where there is no 
such appropriate account, to the partici-
pant or beneficiary bringing the claim. 
(vii) DEFINITION.—For purposes of 
subparagraph (B)(iii)(II), the term ‘‘fidu-
VerDate Sep 11 2014 
04:28 Dec 20, 2022
Jkt 039200
PO 00000
Frm 00059
Fmt 6652
Sfmt 6201
E:\BILLS\H9462.IH
H9462
SSpencer on DSK126QN23PROD with BILLS
ciary’’ includes only the members of the 
Board and the Board’s Executive Director. 
(D) LIMITATION ON MONETARY RELIEF.— 
Any relief awarded against a member of the 
Board or the Board’s Executive Director in a 
civil action authorized by subparagraph (B) 
may not include any monetary damages or any 
other recovery of money. 
(E) TIME
FOR
COMMENCEMENT
OF
AC-
TION.—An action may not be commenced under 
clause (i) or (ii) of subparagraph (B) with re-
spect to a fiduciary’s breach of any responsi-
bility, duty, or obligation under subsection (b) 
or a violation of subsection (c) after the earlier 
of— 
(i) 6 years after— 
(I) the date of the last action 
which constituted a part of the breach 
or violation; or 
(II) in the case of an omission, 
the latest date on which the fiduciary 
could have cured the breach or viola-
tion; or 
(ii) 3 years after the earliest date on 
which the plaintiff had actual knowledge of 
VerDate Sep 11 2014 
04:28 Dec 20, 2022
Jkt 039200
PO 00000
Frm 00060
Fmt 6652
Sfmt 6201
E:\BILLS\H9462.IH
H9462
SSpencer on DSK126QN23PROD with BILLS
by the Secretary of Labor) shall be served 
on the Executive Director, the Secretary of 
Labor, and the Secretary of the Treasury 
by certified mail. 
(ii) INTERVENTION.—Any officer re-
ferred to in clause (i) shall have the right 
in the officer’s discretion to intervene in 
any action. If the Secretary of Labor 
brings an action under subparagraph 
(B)(i) on behalf of a participant or bene-
ficiary, the Secretary of Labor shall notify 
the Executive Director and the Secretary 
of the Treasury. 
(g) REGULATIONS.—The Secretary of Labor may 
prescribe regulations to carry out this section. 
(h) AUDITS.— 
(1) IN GENERAL.—The Secretary of Labor shall 
establish a program to carry out audits to determine 
the level of compliance with the requirements of this 
section relating to fiduciary responsibilities and pro-
hibited activities of fiduciaries. 
(2) DELEGATION.—An audit under this sub-
section may be conducted by the Secretary of Labor, 
by contract with a qualified non-governmental orga-
nization, or in cooperation with the Comptroller 
VerDate Sep 11 2014 
04:28 Dec 20, 2022
Jkt 039200
PO 00000
Frm 00062
Fmt 6652
Sfmt 6201
E:\BILLS\H9462.IH
H9462
SSpencer on DSK126QN23PROD with BILLS
General of the United States, as the Secretary of 
Labor considers appropriate. 
SEC. 207. BONDING. 
(a) REQUIREMENTS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), each fiduciary and each person who han-
dles funds or property of the Fund shall be bonded 
as provided in this section. 
(2) EXCEPTIONS.— 
(A) IN GENERAL.—Bond shall not be re-
quired of a fiduciary (or of any officer or em-
ployee of such fiduciary) if such fiduciary— 
(i) is a corporation organized and 
doing business under the laws of the 
United States or of any State; 
(ii) is authorized under such laws to 
exercise trust powers or to conduct an in-
surance business; 
(iii) is subject to supervision or exam-
ination by Federal or State authority; and 
(iv) has at all times a combined cap-
ital and surplus in excess of such minimum 
amount (not less than $1,000,000) as the 
Secretary of Labor prescribes in regula-
tions. 
VerDate Sep 11 2014 
04:28 Dec 20, 2022
Jkt 039200
PO 00000
Frm 00063
Fmt 6652
Sfmt 6201
E:\BILLS\H9462.IH
H9462
SSpencer on DSK126QN23PROD with BILLS
(B) LIMITATION.—If— 
(i) a bank or other financial institu-
tion would, but for this subparagraph, not 
be required to be bonded under this section 
by reason of the application of the excep-
tion provided in subparagraph (A), 
(ii) the bank or financial institution is 
authorized to exercise trust powers, and 
(iii) the deposits of the bank or finan-
cial institution are not insured by the Fed-
eral Deposit Insurance Corporation, 
such exception shall apply to such bank or fi-
nancial institution only if the bank or institu-
tion meets bonding requirements under State 
law which the Secretary of Labor determines 
are at least equivalent to those imposed on 
banks by Federal law. 
(b) REGULATIONS.— 
(1) IN GENERAL.—The Secretary of Labor shall 
prescribe the amount of a bond under this section at 
the beginning of each fiscal year. Such amount shall 
not be less than 10 percent of the amount of funds 
handled, except that in no case shall such bond be 
less than $1,000 or more than $500,000, or such 
higher amount as the Secretary of Labor, after due 
VerDate Sep 11 2014 
04:28 Dec 20, 2022
Jkt 039200
PO 00000
Frm 00064
Fmt 6652
Sfmt 6201
E:\BILLS\H9462.IH
H9462
SSpencer on DSK126QN23PROD with BILLS
notice and opportunity for hearing to all interested 
parties, and other consideration of the record, may 
prescribe. 
(2) AMOUNT
OF
FUNDS
HANDLED.—For the 
purpose of prescribing the amount of a bond under 
paragraph (1), the amount of funds handled shall be 
determined by reference to the amount of the funds 
handled by the person, group, or class to be covered 
by such bond or by their predecessor or prede-
cessors, if any, during the preceding fiscal year, or 
to the amount of funds to be handled during the 
current fiscal year by such person, group, or class, 
estimated as provided in regulations prescribed by 
the Secretary of Labor. 
(c) TERMS.—A bond required by subsection (a)— 
(1) shall include such terms and conditions as 
the Secretary of Labor considers necessary to pro-
tect the Fund against loss by reason of acts of fraud 
or dishonesty on the part of the bonded person di-
rectly or through connivance with others; 
(2) shall have as surety thereon a corporate 
surety company which is an acceptable surety on 
Federal bonds under authority granted by the Sec-
retary of the Treasury pursuant to sections 9304 
through 9308 of title 31, United States Code; and 
VerDate Sep 11 2014 
04:28 Dec 20, 2022
Jkt 039200
PO 00000
Frm 00065
Fmt 6652
Sfmt 6201
E:\BILLS\H9462.IH
H9462
SSpencer on DSK126QN23PROD with BILLS
(3) shall be in a form or of a type approved by 
the Secretary of Labor, including individual bonds or 
schedule or blanket forms of bonds which cover a 
group or class. 
(d) CUSTODY OF FUNDS.— 
(1) IN GENERAL.—It shall be unlawful for any 
person to whom subsection (a) applies, to receive, 
handle, disburse, or otherwise exercise custody or 
control of any of the funds or other property of the 
Fund without being bonded as required by this sec-
tion. 
(2) FIDUCIARIES.—It shall be unlawful for any 
fiduciary, or any other person having authority to 
direct the performance of functions described in 
paragraph (1), to permit any such function to be 
performed by any person to whom subsection (a) ap-
plies unless such person has met the requirements of 
such subsection. 
(e) EXEMPTION.—Notwithstanding any other provi-
sion of law, any person who is required to be bonded as 
provided in subsection (a) shall be exempt from any other 
provision of law which would, but for this subsection, re-
quire such person to be bonded for the handling of the 
funds or other property of the Fund. 
VerDate Sep 11 2014 
04:28 Dec 20, 2022
Jkt 039200
PO 00000
Frm 00066
Fmt 6652
Sfmt 6201
E:\BILLS\H9462.IH
H9462
SSpencer on DSK126QN23PROD with BILLS