ployee benefit plan, within 5 business days after the
administrator first has reason to believe (or after the
administrator is notified under paragraph (2)) that
an irregularity may have occurred with respect to
the plan, the administrator shall—
‘‘(A) notify the Secretary of the irregular-
ity 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.—In the case of an ac-
countant engaged by the administrator of an
employee 
benefit 
plan 
under 
section
103(a)(3)(A), within 5 business days after the
accountant first has reason to believe in connec-
tion with such engagement that an irregularity
may have occurred with respect to the plan, the
accountant shall—
‘‘(i) notify the plan administrator of
the irregularity in writing, or
‘‘(ii) if the accountant has reason to
believe that the irregularity may have in-
volved an individual who is the plan admin-
istrator or who is a senior official of the
plan administrator, notify the Secretary of
the irregularity in writing.
‘‘(B) NOTIFICATION
UPON
FAILURE
OF
PLAN ADMINISTATOR TO NOTIFY.—In any case
in which an accountant who has provided notifi-
cation to the plan administrator pursuant to
subparagraph (A)(i) with respect to any irregu-
larity has not received a copy of the administra-
tor’s notification to the Secretary with respect
to such irregularity within the 5-business-day
period specified under paragraph (1)(B), the
accountant shall furnish to the Secretary a copy
of the accountant’s notification made to the
plan administrator within the next business day
following such 5-business-day period.
‘‘(3) IRREGULARITY
DEFINED.—For purposes
of this subsection, the term ‘irregularity’ means an
indication of—
‘‘(A) theft, embezzlement, or a violation of
section 664 of title 18, United States Code (re-
lating to theft or embezzlement from employee
benefit plan),
‘‘(B) extortion or a violation of section
1951 of such title 18 (relating to interference
with commerce by threats or violence),
‘‘(C) bribery, a kickback, or a violation of
section 1954 of such title 18 (relating to offer,
acceptance, or solicitation to influence oper-
ations of employee benefit plan),
‘‘(D) a violation of section 411, 501, or
511 of this title (relating to criminal violations),
or
‘‘(E) any intentional misstatement or omis-
sion of an amount or disclosure in a financial
statement, accounting record, or supporting
document undertaken to mislead,
except that such term shall not include any act or
omission described in this paragraph involving less
than $1,000 unless there is reason to believe that
the act or omission may bear on the integrity of plan
management.
‘‘(b) NOTIFICATION UPON TERMINATION
OF EN-
GAGEMENT OF ACCOUNTANT.—
‘‘(1) 
NOTIFICATION
BY
PLAN
ADMINIS-
TRATOR.—Within 5 business days after the termi-
nation of an engagement for auditing services under
section 103(a)(3)(A) with respect to an employee
benefit plan, the administrator of such plan shall—
‘‘(A) notify the Secretary in writing of
such termination, giving the reasons for such
termination, and
‘‘(B) furnish the accountant whose engage-
ment was terminated with a copy of the notifi-
cation sent to the Secretary.
‘‘(2) NOTIFICATION BY ACCOUNTANT.—If the
accountant referred to in paragraph (1)(B) has not
received a copy of the administrator’s notification to
the Secretary as required under paragraph (1)(B),
or if the accountant disagrees with the reasons given
in the notification of termination of the engagement
for auditing services, the accountant shall notify the
Secretary in writing of the termination, giving the
reasons for the termination, within 10 business days
after the termination of the engagement.
‘‘(c) DETERMINATION OF PERIODS REQUIRED FOR
NOTIFICATION.—In determining whether a notification re-
quired under this section with respect to any act or omis-
sion has been made within the required number of busi-
ness days—
‘‘(1) the day on which such act or omission be-
gins shall not be included; and
‘‘(2) Saturdays, Sundays, and legal holidays
shall not be included.
For purposes of this subsection, the term ‘legal holidays’
means the Federal legal holidays of New Year’s Day,
Birthday of Martin Luther King, Washington’s Birthday,
Memorial Day, Independence Day, Labor Day, Columbus
Day, Veterans Day, Thanksgiving Day, Christmas Day,
and any other day appointed as a holiday by the President
or the Congress of the United States, or by the State in
which the person responsible for making the notification
principally conducts his business.
‘‘(d) IMMUNITY FOR GOOD FAITH NOTIFICATION.—
Except as provided in this Act, no accountant shall be lia-
ble to any person for any finding, conclusion, or statement
made in any notification made pursuant to subsections
(a)(2) or (b)(2), or pursuant to any regulations issued
thereunder, if such finding, conclusion, or statement is
made in good faith.’’.
(b) CIVIL PENALTY.—
(1) IN GENERAL.—Section 502(c) of such Act
(29 U.S.C. 1132(c)) is amended by adding at the
end the following new paragraph:
‘‘(5) The Secretary may assess a civil penalty of up
to $100,000 against any administrator and against any
accountant who fails to provide the Secretary with any no-
tification as required under section 111.’’.