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and the participant’s personal invest-
ment objectives, 
‘‘(ii) include a statement of the right 
under paragraph (2) of participants and 
beneficiaries to request, and a description of 
how a participant or beneficiary may re-
quest, a copy of the statements received by 
the plan administrator under section 111 
with respect to the plan, and 
‘‘(iii) include the plan fee comparison 
chart described in subparagraph (C). 
‘‘(C) PLAN FEE COMPARISON CHART.— 
‘‘(i) IN GENERAL.— 
‘‘(I) IN
GENERAL.—The notice 
provided under this paragraph shall 
include a plan fee comparison chart 
consisting of a comparison of the serv-
ice and investment charges that will or 
could be assessed against the account of 
the participant or beneficiary with re-
spect to the plan year. 
‘‘(II) EXPRESSED
AS
DOLLAR 
AMOUNT OR FORMULA.—For purposes 
of this subparagraph, such charges 
shall be provided in the form of a dol-
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•HR 4213 EAH1S 
lar amount or as a formula (such as a 
percentage of assets), as appropriate. 
‘‘(ii) CATEGORIZATION OF CHARGES.— 
The plan fee comparison chart shall provide 
information in relation to the following cat-
egories of charges that will or could be as-
sessed against the account of the participant 
or beneficiary: 
‘‘(I) ASSET-BASED CHARGES SPE-
CIFIC TO INVESTMENT.—Charges that 
vary depending on the investment op-
tions selected by the participant or 
beneficiary, including the annual oper-
ating expenses of the investment option 
and 
investment-specific 
asset-based 
charges (such as loads, commissions, 
brokerage fees, exchange fees, redemp-
tion fees, and surrender charges). Ex-
cept as provided by the Secretary in 
regulations under this section, the in-
formation relating to such charges 
shall include a statement noting any 
charges for 1 or more investment op-
tions which pay for services other than 
investment management.
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‘‘(II) RECURRING
ASSET-BASED 
CHARGES
NOT
SPECIFIC
TO
INVEST-
MENT.—Charges that are assessed as a 
percentage of the total assets in the ac-
count of the participant or beneficiary, 
regardless of the investment option se-
lected. 
‘‘(III) 
ADMINISTRATIVE
AND 
TRANSACTION-BASED
CHARGES.—Ad-
ministration 
and 
transaction-based 
charges, including fees charged to par-
ticipants to cover plan administration, 
compliance, and recordkeeping costs, 
plan loan origination fees, possible re-
demption fees, and possible surrender 
charges, that are not assessed as a per-
centage of the total assets in the ac-
count and are either automatically de-
ducted each year or result from certain 
transactions engaged in by the partici-
pant or beneficiary. 
‘‘(IV) 
OTHER
CHARGES.—Any 
other charges which may be deducted 
from participants’ or beneficiaries’ ac-
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•HR 4213 EAH1S 
counts and which are not described in 
subclauses (I), (II), and (III). 
‘‘(iii) FEES
AND
HISTORICAL
RE-
TURNS.—The plan fee comparison chart 
shall include— 
‘‘(I) the historical returns, net of 
fees and expenses, for the previous 
year, 5 years, and 10 years (or for the 
period since inception, if shorter) with 
respect to such investment option, and 
‘‘(II) the historical returns of an 
appropriate benchmark, index, or other 
point of comparison for each such pe-
riod. 
‘‘(D) MODEL NOTICES.—The Secretary shall 
prescribe one or more model notices that may be 
used for purposes of satisfying the requirements 
of this paragraph, including model plan fee com-
parison charts. 
‘‘(E) ESTIMATIONS.—For purposes of pro-
viding the notice required under this paragraph, 
the plan administrator may provide a reasonable 
and representative estimate for any charges or 
percentages disclosed under subparagraph (B) or 
(C) and shall indicate whether the amount of
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•HR 4213 EAH1S 
any such charges or percentages disclosed is an 
estimate. 
‘‘(2) DISCLOSURE OF SERVICE PROVIDER STATE-
MENTS.—The plan administrator shall provide to any 
participant or beneficiary a copy of any statement re-
ceived pursuant to section 111 within 30 days after 
receipt of a request for such a statement. 
‘‘(3) NOTICE
OF
MATERIAL
CHANGES.—In the 
case of any event or other change which causes the in-
formation included in any notice described in para-
graph (1) to become materially incorrect, the plan ad-
ministrator shall provide participants and bene-
ficiaries a written statement providing the corrected 
information not later than 30 days after the plan ad-
ministrator knows, or exercising reasonable diligence 
would have known, of such event or other change. 
‘‘(4) TIME AND MANNER OF PROVIDING NOTICES 
AND DISCLOSURES.— 
‘‘(A) IN GENERAL.—The notices described in 
paragraph (1) shall be provided at such times 
and in such manner as the Secretary may pro-
vide. Other notices and materials required to be 
provided under this subsection shall be provided 
in such manner as the Secretary may provide. 
‘‘(B) MANNER OF PRESENTATION.—
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•HR 4213 EAH1S 
‘‘(i) IN GENERAL.—All information in-
cluded in such notices or explanations shall 
be presented in a manner which is easily 
understood by the typical participant. 
‘‘(ii) GENERIC
EXAMPLE
OF
OPER-
ATING
EXPENSES
OF
INVESTMENT
OP-
TIONS.—The information described in para-
graph (1)(C)(ii)(I) shall include a generic 
example describing the charges that would 
apply during an annual period with respect 
to a $10,000 investment in the investment 
option. 
‘‘(b) APPLICABLE INDIVIDUAL ACCOUNT PLAN.—For 
purposes of this section, the term ‘applicable individual ac-
count plan’ means the portion of any individual account 
plan which permits a participant or beneficiary to exercise 
control over assets in his or her account. 
‘‘(c) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary or 
appropriate to carry out the purposes of this section, in-
cluding regulations or other guidance which— 
‘‘(1) provide a later deadline for providing the 
notice of investment menu changes described in sub-
section (a)(3) in appropriate circumstances, and
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•HR 4213 EAH1S 
the investment of assets, the informa-
tion described in subparagraph (C).’’; 
and 
(C) by inserting after subparagraph (B) the 
following new subparagraphs: 
‘‘(C) QUARTERLY BENEFIT STATEMENTS.— 
The plan administrator shall provide to each 
participant and beneficiary, at least once each 
calendar quarter, an explanation describing the 
investment options in which the participant’s or 
beneficiary’s account is invested as of the last 
day of the preceding quarter. Such explanation 
shall provide, to the extent applicable, the fol-
lowing for the preceding quarter: 
‘‘(i) As of the last day of the quarter, 
a statement of the different asset classes that 
the participant’s or beneficiary’s account is 
invested in and the percentage of the ac-
count allocated to each asset class. 
‘‘(ii) A statement of the starting and 
ending balance of the participant’s or bene-
ficiary’s account for such quarter. 
‘‘(iii) A statement of the total contribu-
tions made to the participant’s or bene-
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•HR 4213 EAH1S 
ficiary’s account during the quarter and a 
separate statement of— 
‘‘(I) the amount of such contribu-
tions, and the total amount of any re-
storative payments, which were made 
by the employer during the quarter, 
and 
‘‘(II) the amount of such contribu-
tions which were made by the em-
ployee. 
‘‘(iv) A statement of the total fees and 
expenses which were directly deducted from 
the participant’s or beneficiary’s account 
during the quarter and an itemization of 
such fees and expenses. 
‘‘(v) A statement of the net returns for 
the year to date, expressed as a percentage, 
and a statement as to whether the net re-
turns include amounts described in clause 
(iv). 
‘‘(vi) With respect to each investment 
option in which the participant or bene-
ficiary was invested as of the last day of the 
quarter, the following:
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•HR 4213 EAH1S 
‘‘(I) A statement of the percentage 
of the participant’s or beneficiary’s ac-
count that is invested in such option as 
of the last day of such quarter. 
‘‘(II) A statement of the starting 
and ending balance of the participant’s 
or beneficiary’s account that is in-
vested in such option for such quarter. 
‘‘(III) A statement of the annual 
operating expenses of the investment 
option. 
‘‘(IV) A statement of whether the 
disclosure described in clause (iv) in-
cludes the annual operating expenses of 
the investment options of the partici-
pant or beneficiary. 
‘‘(vii) The statement described in sec-
tion 112(a)(1)(B)(i)(VI). 
‘‘(viii) A statement regarding how a 
participant or beneficiary may access the 
information required to be disclosed under 
section 112(a)(1). 
‘‘(D) MODEL
EXPLANATIONS.—The Sec-
retary shall prescribe one or more model expla-
187 
•HR 4213 EAH1S 
nations that may be used for purposes of satis-
fying the requirements of subparagraph (C). 
‘‘(E) DETERMINATION OF EXPENSES.—For 
purposes of subparagraph (C)(vi)(III)— 
‘‘(i) Expenses may be expressed as a 
dollar amount or as a percentage of assets 
(or a combination thereof). 
‘‘(ii) The plan administrator may pro-
vide disclosure of the expenses for the quar-
ter or may provide a reasonable and rep-
resentative estimate of such expenses and 
shall indicate any such estimate as being an 
estimate. Any such estimate shall be based 
on reasonable assumptions stated together 
with such estimate. 
‘‘(iii) To the extent that estimated ex-
penses are expressed as a percentage of as-
sets, the disclosure shall also include one of 
the following, stated in dollar amounts: 
‘‘(I) an estimate of the expenses 
for the quarter based on the amount 
invested in the option; or 
‘‘(II) an example describing the 
expenses that would apply during the