the interests of the participants and their beneficiaries
shall be selected in accordance with regulations of the Sec-
retary. Such regulations may provide for selection of trust-
ees by the employer, but only from individuals who have
been demonstrated to be independent and to have no con-
flict of interest. An individual shall not be treated as ineli-
gible for selection as trustee solely because such individual
is an employee of the plan sponsor, except that the em-
ployee so selected may not be a highly compensated em-
ployee (as defined in section 414(q) of the Internal Rev-
enue Code of 1986).
‘‘(iv) The Secretary shall provide by regulation for
the appointment of a neutral, in accordance with the pro-
cedures under section 203(f) of the Labor Management
Relations Act, 1947 (29 U.S.C. 173(f)), to cast votes as
necessary to resolve tie votes by the trustees.’’.
(b) REGULATIONS.—The Secretary of Labor shall
prescribe the initial regulations necessary to carry out the
provisions of such amendments not later than 90 days
after the date of the enactment of this Act.
SEC. 304. DIVERSIFICATION IN DEFINED CONTRIBUTION
INVESTMENTS.
(a) EFFECTIVE DIRECTION OF INVESTMENT BY PAR-
TICIPANTS AND BENEFICIARIES.—Section 407(d)(3) of
the Employee Retirement Income Security Act of 1974
(29 U.S.C. 1107(d)(3)) is amended by adding at the end
the following:
‘‘(D)(i) The term ‘eligible individual account
plan’ does not include that portion of a profit-shar-
ing plan that consists of employer contributions (in-
cluding elective deferrals (as defined in section
402(g)(3) of the Internal Revenue Code of 1986)
pursuant to a qualified cash or deferred arrange-
ment (as defined in section 401(k) of such Code))
and earnings allocable thereto, if—
‘‘(I) under the documents and instruments
governing the plan, such contributions (or earn-
ings allocable thereto) are required to be in-
vested at the direction of a person other than
the participant on whose behalf such contribu-
tions are made to the plan (or the participant’s
beneficiary), or
‘‘(II) the documents and instruments gov-
erning the plan do not provide for effective im-
plementation of investments directed by such a
participant (or beneficiary) within 3 years after
such direction is made known to the plan.
‘‘(ii) For purposes of subsection (a), such por-
tion shall be treated as a separate plan.
‘‘(iii) This subparagraph shall not apply to an
individual account plan if the fair market value of
the assets of all individual account plans maintained
by the employer equals not more than 10 percent of
the fair market value of the assets of all pension
plans maintained by the employer.
‘‘(iv) This subparagraph shall not apply to an
individual account plan that is an employee stock
ownership plan as defined in section 409(a) or
4975(e)(7) of the Internal Revenue Code or that is
a stock bonus plan.’’.
(b) DIVERSIFICATION OF INVESTMENTS UNDER EM-
PLOYEE STOCK OWNERSHIP PLANS
BY PARTICIPANTS
AND BENEFICIARIES OVER 55 YEARS OF AGE.—Section
206 of such Act (29 U.S.C. 1056) (as amended by sections
104 and 201) is amended further by adding at the end
the following new subsection:
‘‘(i) DIVERSIFICATION OF INVESTMENTS UNDER EM-
PLOYEE STOCK OWNERSHIP PLANS
BY PARTICIPANTS
AND BENEFICIARIES OVER 55 YEARS OF AGE.—
‘‘(1) IN GENERAL.—An employee stock owner-
ship plan shall provide that each qualified partici-
pant may elect within 90 days after the close of each
plan year in the qualified election period to direct
the plan as to the investment of at least 25 percent
of the participant’s account in the plan (to the ex-
tent such portion exceeds the amount to which a
prior election under this subsection applies). In the
case of the election year in which the participant can
make the participant’s last election, the preceding
sentence shall be applied by substituting ‘50 percent’
for ‘25 percent’.
‘‘(2) METHOD OF MEETING REQUIREMENTS.—
A plan shall be treated as meeting the requirements
of paragraph (1) if—
‘‘(A) the portion of the participant’s ac-
count covered by the election under paragraph
(1) is distributed within 90 days after the pe-
riod during which the election may be made, or
‘‘(B) the plan offers at least 3 investment
options (not inconsistent with regulations pre-
scribed by the Secretary of the Treasury) to
each participant making an election under para-
graph (1) and within 90 days after the period
during which the election may be made, the
plan invests the portion of the participant’s ac-
count covered by the election in accordance with
such election.
‘‘(3) DEFINITIONS.—For purposes of this
subsection—
‘‘(A) 
EMPLOYEE
STOCK
OWNERSHIP
PLAN.—The term ‘employee stock ownership
plan’ means a defined contribution plan which
is an employee stock ownership plan (within the
meaning of section 4975(e)(7) of the Internal
Revenue Code of 1986) or which meets the re-
quirements of section 409(a) of such Code.
‘‘(B) QUALIFIED PARTICIPANT.—The term
‘qualified participant’ means any participant
who has completed at least 10 years of partici-
pation under the plan and has attained age 55.
‘‘(C) QUALIFIED ELECTION PERIOD.—The
term ‘qualified election period’ means the 6-
plan-year period beginning with the later of—
‘‘(i) the first plan year in which the
individual first became a qualified partici-
pant, or
‘‘(ii) the first plan year beginning
after December 31, 2001.
For purposes of the preceding sentence, an em-
ployer may elect to treat an individual first be-
coming a qualified participant in the first plan
year beginning in 2002 as having become a par-
ticipant in the first plan year beginning in
2003.’’.
SEC. 305. REMOVAL OF $500,000 CAP ON BONDING REQUIRE-
MENT.
Section 412(a) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1112(a)) is amended, in
the matter following paragraph (2), by striking ‘‘nor more
than $500,000’’ and all that follows through ‘‘preceding
sentence’’.
SEC. 306. DISCLOSURE REGARDING INVESTMENTS AND
VOTING OF PROXIES.
(a) IN GENERAL.—Section 101 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1021)
is amended by inserting after subsection (e) the following
new subsection:
‘‘(f) DISCLOSURE REGARDING INVESTMENTS
AND
VOTING OF PROXIES.—
‘‘(1) IN GENERAL.—Within 30 days after re-
ceipt by the plan administrator of a written request
by a participant or beneficiary for relevant and spe-
cific information regarding—
‘‘(A) the nature or extent of any particular
investment of plan assets occurring on a par-
ticular date specified in the request, or
‘‘(B) the manner in which any right to
vote in connection with such investment has
been exercised by or under the plan,
(c) 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’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to written requests
received after December 31, 2001.
TITLE 
IV—IMPROVEMENTS 
IN
PENSION INFORMATION AND
ENFORCEMENT
SEC. 401. PENSION BENEFIT STATEMENTS.
(a) 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) is amended—
(A) by striking ‘‘shall furnish to any plan
participant or beneficiary who so requests in
writing,’’ and inserting ‘‘shall furnish at least
once every 3 years, in the case of a participant
in a defined benefit plan who has attained age
35, and annually, in the case of a defined con-
tribution plan, to each plan participant, and
shall furnish to any plan participant or bene-
ficiary who so requests,’’, and
(B) by adding at the end the following
flush sentence:
‘‘Information furnished under the preceding sentence to
a participant in a defined benefit plan (other than at the
request of the participant) may be based on reasonable
estimates determined under regulations prescribed by the
Secretary.’’.
(2) RULE FOR MULTIEMPLOYER PLANS.—Sub-
section (d) of section 105 of such Act (29 U.S.C.
1025) is amended to read as follows:
‘‘(d) Each administrator of a plan to which more than
1 unaffiliated employer is required to contribute shall fur-
nish to any plan participant or beneficiary who so requests
in writing, a statement described in subsection (a).’’.
(b) INFORMATION
ON
INVESTMENT
PERFORM-
ANCE.—Section 105(a) of such Act (29 U.S.C. 1025(a))
is amended—
(1) in paragraph (1), by striking ‘‘and’’;
(2) in paragraph (2), by striking the period at
the end and inserting ‘‘, and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(3) 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 partici-
pant, the net return on investment of plan assets for
such year so directed), and, stated separately, the
administrative and transaction fees incurred in con-
nection with such investment.’’.
(c) MODEL STATEMENTS.—The Secretary of Labor
shall develop a model benefit statement to be used by plan
administrators in complying with the requirements of sec-
tion 105(a) of the Employee Retirement Income Security
Act of 1974. Such statement shall include—
(1) the amount of nonforfeitable accrued bene-
fits as of the statement date which is payable at nor-
mal retirement age under the plan,
(2) the amount of accrued benefits which are
forfeitable but which may become nonforfeitable
under the terms of the plan,
(3) the amount or percentage of any reduction
due to integration of the benefit with the partici-
pant’s Social Security benefits or similar govern-
mental benefits,
(4) information on how to contact the Social
Security Administration to obtain a participant’s
personal earnings and benefit estimate statement,
and
(5) information on early retirement benefit and
joint and survivor annuity reductions.
(d) DISCLOSURE OF BENEFIT CALCULATIONS.—
(1) IN GENERAL.—Section 105 of such Act (as
amended by subsections (a) and (b)) is amended
further—
(A) by redesignating subsections (b), (c),
and (d) as subsections (c), (d), and (e), respec-
tively; and
(B) by inserting after subsection (a) the
following new subsection:
‘‘(b)(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
includes—
‘‘(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), (b),
and (d)’’.
(B) Section 105(c) of such Act (as redesig-
nated by paragraph (1)(A) of this subsection) is
amended by inserting ‘‘or (b)’’ after ‘‘subsection
(a)’’.
(C) Section 106(b) of such Act (29 U.S.C.
1026(b)) is amended by striking ‘‘sections
105(a) and 105(c)’’ and inserting ‘‘subsections
(a), (b), and (d) of section 105’’.
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, 2001.
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
amended—
(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 ninety-five (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 institu-
tion or insurance carrier as complete and accurate,
‘‘(II) certify the current value of each asset,
‘‘(III) include a representation that, within the
eighteen month period preceding the date of its cer-
tification, an independent, qualified public account-
ant who has satisfied the requirements of subsection
(D), has issued a report, in accordance with gen-
erally accepted auditing standards, to the bank or
similar institution or insurance carrier, stating that
its internal controls 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 recordkeeping,
are adequate, and
‘‘(IV) are made a part of the annual report.
‘‘(ii) To the extent that the processing of transactions
related to plan or participant recordkeeping is performed
by an entity unaffiliated with the bank or similar institu-
tion or insurance carrier, clause(i) shall not apply unless
the plan has obtained a representation from the entity
that, within the eighteen month period preceding the date
of the opinion, an independent, qualified public accountant
who has satisfied the requirements of subsection (D), has
issued a report, in accordance with generally accepted au-
diting standards, to the entity stating that its internal
controls and procedures, as they pertain to the execution,
maintenance of accountability, recording and processing of
transactions related to plan or participant recordkeeping,
are adequate.
‘‘(iii) For purposes of this subparagraph (C), the
term ‘readily ascertainable market value’ means a value
that can be readily determined on an established securities
market or in accordance with regulations promulgated 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-
countant’s notification made to the plan admin-
istrator on the next business day following such
period.
‘‘(3) IRREGULARITY DEFINED.—
‘‘(A) For purposes of this subsection, the
term ’irregularity’ means--
‘‘(i) a theft, embezzlement, or a viola-
tion of section 664 of title 18, United
States Code (relating to theft or embezzle-
ment from an employee benefit plan);
‘‘(ii) an extortion or a violation of sec-
tion 1951 of title 18, United States Code
(relating to interference with commerce by
threats or violence);
‘‘(iii) a bribery, a kickback, or a viola-
tion of section 1954 of title 18, United
States Code (relating to offer, acceptance,
or solicitation to influence operations of an
employee benefit plan);
‘‘(iv) a violation of section 1027 of
title 18, United States Code (relating to
false statements and concealment of facts
in relation to employer benefit plan
records); or–
‘‘(v) a violation of section 411, 501, or
511 of this title (relating to criminal viola-
tions).
‘‘(B) The term ’irregularity’ does not in-
clude any act or omission described in this
paragraph involving less than $1,000 unless
there is reason to believe that the act or omis-
sion may bear on the integrity of plan manage-
ment.
‘‘(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 under section 103(a)(3)(A)
with respect to an employee benefit plan, the admin-
istrator 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 holiday’
means any Federal legal holiday and any other day ap-
pointed as a holiday by the State in which the person re-
sponsible for making the notification principally conducts
business.
‘‘(d) IMMUNITY FOR GOOD FAITH NOTIFICATION.—
Except as provided in this Act, no accountant or plan ad-
ministrator shall be liable 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 under those subsections, if the find-
ing, conclusion, or statement is made in good faith.’’.
(b) CIVIL PENALTY.—
(1) IN GENERAL.—Section 502(c) (29 U.S.C.
1132(c)) is amended by inserting after paragraph
(6) the following new paragraph:
‘‘(7)(A) The Secretary may assess a civil penalty of
up to $50,000 against any administrator who fails to pro-
vide the Secretary with any notification as required under
section 111.
‘‘(B) The Secretary may assess a civil penalty of up
to $50,000 against any accountant who knowingly and
willfully fails to provide the Secretary with any notification
as required under section 111.’’.
(2) 
CONFORMING
AMENDMENT.—Section
502(a)(6) (29 U.S.C. 1132(a)(6)) as amended by
section 101(e)(2)A)(i) of the Health Insurance Port-
ability and Accountability Act of 1996, is amended
by striking ‘‘or (5)’’ and inserting ‘‘(5), or (7)’’.
(c) CLERICAL AMENDMENTS.—
(1) Section 514(d)(29 U.S.C. 114(d)) is amend-
ed by striking ‘‘111’’ and inserting ‘‘112’’.
(2) The table of contents in section 1 is amend-
ed by striking the item relating to section 111 and
inserting the following new items:
‘‘Sec. 111. Direct reporting of certain events.
‘‘Sec. 112. Repeal and effective date.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to any irregularity or
termination of engagement described in the amendments,
but only if the 5-day period described in the amendments
in connection with the irregularity or termination com-
mences at least 90 days after the date of the enactment
of this Act.
SEC. 407. STUDY OF PENSION TRENDS AND CHARACTERIS-
TICS.
(a) IN GENERAL.—Section 513 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1143)
is amended by adding at the end the following new sub-
section:
‘‘(d) PENSION SURVEYS.—
‘‘(1) IN GENERAL.—The Secretary shall submit
to each House of the Congress, before the close of
the second session of each Congress, a report, based
on a study of current statistical and survey data,
which describes dominant and emerging trends and
characteristics of the private pension system, so as
to ensure that the Congress is provided with periodic
and timely information regarding such system.
‘‘(2) INCLUDED
INFORMATION.—Each report
submitted pursuant to paragraph (1) shall include,
but not be limited to, information relating to exist-
ing pension plans regarding—
‘‘(A) the types of such plans,
‘‘(B) the level of employer and employee
contributions,
‘‘(C) vesting status,
‘‘(D) accrued benefits,
‘‘(E) benefit receipt, and
‘‘(F) form of benefit payments.
Such information shall be presented by category in
connection with cohorts defined on the basis of ap-
propriate attributes of the participants involved, in-
cluding gender, age, race, and income.
‘‘(3) IDENTIFICATION
OF
BARRIERS
TO
PEN-
SION RECEIPT.—Each report submitted pursuant to
paragraph (1) shall also include information which
summarizes the types of problems that plan partici-
pants and beneficiaries experience in connection with
the receipt of promised retirement benefits.’’.
(b) INITIAL REPORT.—The initial report submitted
pursuant to section 513(d) of the Employee Retirement
Income Security Act of 1974 shall be submitted not later
than the close of the second session of the 107th Congress.
SEC. 408. EARLY RESOLUTION PROGRAM FOR PENSION
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
EARLY
RESOLUTION
OF
PENSION
CLAIMS’’;
(2) by inserting ‘‘(a) IN GENERAL.—’’ after
‘‘SEC. 503.’’; and
(3) by adding at the end the following new sub-
section:
‘‘(b) EARLY RESOLUTION PROGRAM FOR PENSION
BENEFIT CLAIMS.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish, in consultation with national bar and arbitra-
tion associations and other interested organizations,
an early resolution program for mediation of dis-
putes regarding claims for benefits which have been
denied under pension plans.
‘‘(2) MEDIATORS.—The program shall provide
for recruitment of mediators to serve under the pro-
gram from individuals who have the requisite exper-
tise for such service. The program shall provide for
ongoing training for all mediators in employee bene-
fits law as determined necessary. Upon submission
of a claim to mediation proceedings under this sub-
section, the program shall provide for appointment
of a mediator, from the roster of mediators serving
under the program, to act as the mediator with re-
gard to the claim. Such appointment shall be
through a random selection procedure which shall be
prescribed in regulations.
‘‘(3) FEES.—The Secretary shall assess fees as
necessary from each party to cover the costs of par-
ticipation in the program. The Secretary may reduce
or waive a fee on the basis of inability to pay.
‘‘(4) INITIATION OF PROCEEDINGS.—A claim-
ant with a dispute which is eligible under the pro-
gram for submission to mediation thereunder may
elect to commence proceedings under the program
by means of filing under the program an election for
mediation of the dispute. An election to commence
mediation proceedings under the program shall be in
such form and manner as the Secretary may pre-
scribe. Any such election shall in all cases be vol-
untary, and any provision of the plan or other ar-
rangement which has the effect of providing for the
commencement of such proceedings other than by
means of voluntary election by the claimant shall be
null and void as a matter of law.
‘‘(5) PARTICIPATION IN PROCEEDINGS.—Upon
receipt of the election to commence proceedings, the
program shall provide for participation by all rel-
evant parties. Each such party shall participate, and
cooperate fully, in the proceedings. The plan admin-
istrator shall ensure that a copy of the written
record of any claims procedure completed by the
plan pursuant to subsection (a) and all relevant plan
documents are presented to the mediator within 30
days after commencement of the proceedings. The
program shall provide for appropriate confidentiality
of the proceedings.
‘‘(6) TIME LIMIT FOR PROCEEDINGS.—The me-
diation proceedings under the program with respect
to the claim in dispute shall be completed within 30
days after compilation of all relevant plan documents
relating to the claim has been achieved.
‘‘(7) PROCESS
NONBINDING.—Findings and
conclusions made in the mediation proceedings
under the program shall be treated as advisory in
nature and nonbinding. Except as provided in para-
graph (8), the rights of the parties under this title
shall not be affected by participation in the medi-
ation proceedings under the program.
‘‘(8) 
RESOLUTION
THROUGH
SETTLEMENT
AGREEMENT.—If a case is settled through participa-
tion in the mediation proceedings under the pro-
gram, the mediator shall assist the parties in draw-
ing up an agreement which shall constitute, upon
signature of the parties, a binding contract between
the parties, which shall be enforceable under section
502 as if the terms of such agreement were terms
of the plan.
‘‘(9) OVERSIGHT.—The Secretary shall provide
for ongoing oversight of the program so as to ensure
that proceedings are conducted equitably and that
mediators meet prescribed standards of performance.
The Secretary shall monitor and record the results
of mediation proceedings conducted under the pro-
gram so as to enable comprehensive evaluation of
the effectiveness of the program as a means of alter-
native dispute resolution.
‘‘(10) NOTICE.—The Secretary shall—
‘‘(A) notify individuals of the program or
other sources of assistance in resolving benefits
claim disputes, and
‘‘(B) provide model information with re-
spect to the program to be included in all sum-
mary plan descriptions and benefit determina-
tions.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to claims arising on
or after December 31, 2001.
SEC. 409. REVIEW OF BENEFIT DETERMINATIONS.
(a) DE NOVO REVIEW.—
(1) INTERNAL
REVIEW.—Section 503 of the
Employee Retirement Income Security Act of 1974
(29 U.S.C. 1133) is amended—
(A) by inserting ‘‘(a)’’ after ‘‘SEC. 503.’’;
(B) by redesignating paragraph (1) and
(2) as subparagraphs (A) and (B), respectively;
and
(C) by adding at the end the following new
paragraph:
‘‘(2) Any review required under paragraph (1)(B)—
‘‘(A) shall be de novo, and
‘‘(B) shall be conducted by an individual who
did not make the initial decision denying the claim
and who is authorized to approve payment of the
claim.’’.
(2) COURT
REVIEW.—Section 502(e) of such
Act (29 U.S.C. 1132(e)) is amended by adding at
the end the following new paragraph:
‘‘(2) Notwithstanding any provision by the plan for
the exercise by a fiduciary of discretionary authority with
respect to any benefit determination, in any action under
paragraph (1)(B) or (3) of subsection (a) or in any other
action under this section to review a final benefit deter-
mination under the plan, the review by the court shall be
de novo, and the court may review all evidence pre-
sented.’’.
(b) APPLICATION OF COMMON LAW PRINCIPLES OF
CONTRACT INTERPRETATION.—Section 502(e) of such
Act (as amended by subsection (a)(2)) is amended further
by adding at the end thereof the following new paragraph:
‘‘(3) In interpreting the terms of an employee benefit
plan under this section, the court shall employ such com-
mon law principles of contract interpretation as are deter-
mined appropriate by the court. Nothing in this title shall
preclude the Federal courts from developing and applying
Federal common law for purposes of this paragraph which
is consistent with the provisions of this title.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to causes of action
arising after December 31, 2001.
SEC. 410. ALLOWABLE RELIEF.
(a) PRE-JUDGMENT INTEREST, ATTORNEY FEES,
AND COSTS OF ACTION.—
(1) PRE-JUDGMENT INTEREST ON UNPAID BEN-
EFITS.—Section 502(a)(1)(B) of the Employee Re-
tirement 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’’.
(2) ATTORNEY FEES AND COSTS OF ACTION.—
Section 502(g) of such Act (29 U.S.C. 1132(g)) is
amended—
(A) in paragraph (1), by inserting ‘‘or (3)’’
after ‘‘paragraph (2)’’; and
(B) 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.’’.
(b) ALLOWANCE
FOR
LEGAL
RELIEF.—Section
502(a) of such Act (29 U.S.C. 1132(a)) is amended, in
paragraphs (3)(B), (5)(B), and (8)(B), by inserting ‘‘legal
or’’ before ‘‘equitable’’ each place it appears.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to causes of action
arising after December 31, 2001.
SEC. 411. ASSESSMENT BY SECRETARY OF LABOR OF PEN-
ALTIES FOR FAILURES TO MEET DISCLOSURE
REQUIREMENTS.
(a) IN GENERAL.—Section 502(c) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1132(c)) is amended to read as follows:
‘‘(c)(1) The Secretary may assess a civil penalty
against any person of up to $1,000 a day from the date
of any failure or refusal by such person described in para-
graph (2).
‘‘(2) A failure or refusal described in this paragraph
is any of the following:
‘‘(A) A failure or refusal by a plan adminis-
trator to comply with a request for any information
which such administrator is required by this title to
furnish to a participant or beneficiary by mailing the
material requested to the last known address of the
requesting participant or beneficiary within 30 days
after such request.
‘‘(B) A failure or refusal by a plan adminis-
trator to file the annual report required to be filed
with the Secretary under section 101(b)(4). For pur-
poses of this subparagraph, an annual report that
has been rejected under section 104(a)(4) for failure
to provide material information shall not be treated
as having been filed with the Secretary.
‘‘(C) A failure or refusal by an employer main-
taining a plan to meet the notice requirement of sec-
tion 101(d) with respect to any participant or bene-
ficiary.
‘‘(D) A failure or refusal by a plan adminis-
trator to meet the requirements of section 101(e)(1)
with respect to a participant or beneficiary.
‘‘(E) A failure or refusal by an employer main-
taining a plan to meet the requirements of section
101(e)(2) with respect to any person.
‘‘(F) A failure or refusal by any person to meet
the requirements of section 101(f)(1).
‘‘(G) A failure or refusal by any person to file
the information required to be filed by such person
with the Secretary under regulations prescribed pur-
suant to section 101(g).
‘‘(H) A failure or refusal by a plan adminis-
trator to furnish documents to the Secretary, as re-
quested by the Secretary under section 104(a)(6),
within 30 days after such a request.
‘‘(I) A failure or refusal by a plan adminis-
trator to meet the requirements of paragraph (1) or
(4) of section 606.
‘‘(3) For purposes of this subsection, each violation
described in paragraph (2) with respect to any single par-
ticipant, beneficiary, or other person shall be treated as
a separate violation.
‘‘(4) In the case of any failure or refusal described
in paragraph subparagraph (A), (C), or (I) of paragraph
(2) by any administrator or employer with respect to any
participant, beneficiary, or other person, such adminis-
trator or employer may, in the court’s discretion, be liable
to such participant, beneficiary, or other person in the
amount of up to $1,000 a day from the date of such fail-
ure or refusal. Any liability under this paragraph shall be
in addition to any liability imposed under paragraph (1).
‘‘(5) In addition to any liability imposed under para-
graph (1) or (4), the court may in its discretion order such
other relief as it deems proper.
‘‘(6) No liability may be imposed on any person under
this subsection for any failure resulting from matters rea-
sonably beyond the control of such person.
‘‘(7) The Secretary and the Secretary of Health and
Human Services shall maintain such ongoing consultation
as may be necessary and appropriate to coordinate en-
forcement under this subsection with enforcement under
section 1144(c)(8) of the Social Security Act.’’.
(b) CONFORMING AMENDMENT.—Section 502(a)(6)
of such Act (29 U.S.C. 1132(a)(6)) is amended by striking
‘‘under paragraph (2), (4), (5), or (6) of subsection (c)
or under subsection (i) or (l)’’ and inserting ‘‘under sub-
section (c), (i), or (l)’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to failures and refus-
als occurring after December 31, 2001.
SEC. 412. MISSING PARTICIPANTS.
(a) IN GENERAL.—Section 4050 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1350)
is amended by redesignating subsection (c) as subsection
(e) and by inserting after subsection (b) the following new
subsections:
‘‘(c) MULTIEMPLOYER
PLANS.—The corporation
shall prescribe rules similar to the rules in subsection (a)
for multiemployer plans covered by this title that termi-
nate under section 4041A.
‘‘(d) PLANS NOT OTHERWISE SUBJECT TO TITLE.—
‘‘(1) TRANSFER TO CORPORATION.—The plan
administrator of a plan described in paragraph (4)
may elect to transfer a missing participant’s benefits
to the corporation upon termination of the plan.
‘‘(2) INFORMATION TO THE CORPORATION.—To
the extent provided in regulations, the plan adminis-
trator of a plan described in paragraph (4) shall,
upon termination of the plan, provide the corpora-
tion information with respect to benefits of a miss-
ing participant if the plan transfers such benefits—
‘‘(A) to the corporation, or
‘‘(B) to an entity other than the corpora-
tion or a plan described in paragraph (4)(B)(ii).
‘‘(3) PAYMENT BY THE CORPORATION.—If ben-
efits of a missing participant were transferred to the
corporation under paragraph (1), the corporation
shall, upon location of the participant or beneficiary,
pay to the participant or beneficiary the amount
transferred (or the appropriate survivor benefit)
either—
‘‘(A) in a single sum (plus interest), or
‘‘(B) in such other form as is specified in
regulations of the corporation.
‘‘(4) PLANS DESCRIBED.—A plan is described
in this paragraph if—
‘‘(A) the plan is a pension plan (within the
meaning of section 3(2))—
‘‘(i) to which the provisions of this
section do not apply (without regard to
this subsection), and
‘‘(ii) which is not a plan described in
paragraphs (2) through (11) of section
4021(b), and
‘‘(B) at the time the assets are to be dis-
tributed upon termination, the plan—
‘‘(i) has missing participants, and
‘‘(ii) has not provided for the transfer
of assets to pay the benefits of all missing
participants to another pension plan (with-
in the meaning of section 3(2)).
‘‘(5) CERTAIN PROVISIONS NOT TO APPLY.—
Subsections (a)(1) and (a)(3) shall not apply to a
plan described in paragraph (4).’’.
(b) CONFORMING AMENDMENTS.—Section 206(f) of
the Employee Retirement Income Security Act of 1974
(29 U.S.C. 1056(f)) is amended—
(1) by striking ‘‘title IV’’ and inserting ‘‘section
4050’’, and
(2) by striking ‘‘the plan shall provide that,’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to distributions made after 1 year
after the date of the enactment of this Act.
SEC. 413. FIDUCIARY DUTIES WITH RESPECT TO CHANGES
IN INVESTMENT OPTIONS.
(a) IN GENERAL.—Section 403(c) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1104(c)) is amended by adding at the end the following
new paragraph:
‘‘(3) For purposes of paragraph (1), in the case of
any pension plan amendment changing investment options
under the plan, the plan shall not be treated as permitting
100
a participant or beneficiary to exercise control over assets
in his or her account unless, under the terms of such
amendment, the participant or beneficiary is permitted to
retain any existing investment option with respect to any
assets in his or her account invested pursuant to such op-
tion until such assets are otherwise invested by the partici-
pant or beneficiary.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply with respect to plan amendments
adopted after the date of the enactment of this Act.
SEC. 414. DEPARTMENT OF LABOR REQUIRED TO PROVIDE
ASSISTANCE.
Section 506 of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1136) is amended by adding
at the end the following new subsection:
‘‘(d) ASSISTANCE PROVIDED BY THE SECRETARY TO
PARTICIPANTS, BENEFICIARIES, AND EMPLOYEE BEN-
EFIT PLANS.—
‘‘(1) IN
GENERAL.—The Secretary of Labor
shall—
‘‘(A) establish a program to assist partici-
pants and beneficiaries in understanding their
rights to benefits under employee benefit plans,
and
101
‘‘(B) to the extent feasible, assist partici-
pants in obtaining such benefits, by means of—
‘‘(i) the program established pursuant
to subparagraph (A), and
‘‘(ii) civil actions under section 502.
‘‘(2) INTERAGENCY PROGRAM.—In addition to
the program established pursuant to paragraph (1),
the Secretary, together with the Secretary of the
Treasury and the heads of such other appropriate
Federal agencies as the Secretary deems appro-
priate, shall establish a program which shall provide
for—
‘‘(A) appropriate coordination of assistance
to participants and beneficiaries in pursuing
benefit claims and obtaining necessary docu-
ments for such purpose, and
‘‘(B) the issuance and publication of co-
ordinated opinions and advice on applicable
Federal law and regulations, and
‘‘(C) the referral of benefit claims to ap-
propriate Internal Revenue Service district of-
fices to promote compliance with applicable
Federal law and regulations and to regional of-
fices of the Department of Labor to promote
protection of individual benefit rights.
102
‘‘(3) OMBUDSMAN.—The Secretary shall des-
ignate an employee to serve as ombudsman in the
Department of Labor for purposes of coordinating
and supervising the program the efforts of the De-
partment in carrying out the provisions of this sub-
section.
‘‘(4) VOLUNARY ASSISTANCE FUND.—
‘‘(A) IN
GENERAL.—The Secretary shall
establish a voluntary assistance fund which
shall consist of voluntary contributions from
employers, employee benefit plans, and other in-
dividuals for the purpose of assisting the De-
partment of Labor in carrying out the provi-
sions of this subsection.
‘‘(B) USE OF FUNDS.—Amounts received
into the fund shall be held in a separate trust
fund and shall be available for the sole purpose
of carrying out the provisions of this subsection.
‘‘(5) ANNUAL REPORTS.—Not later than De-
cember 31, 2001, and annually thereafter, the Sec-
retary shall report to each House of the Congress
on—
‘‘(A) progress made in carrying out the
provisions of this subsection, and
103
‘‘(B) the receipts and disbursements of the
voluntary assistance fund for the preceding fis-
cal year.
The report shall include any recommendations of the
Secretary for improving the programs established
under this subsection and with respect to the feasi-
bility and appropriateness of requiring mandatory
contributions to the fund.’’.
SEC. 415. EXCLUSIVITY OF POWERS AND PROCEDURES AP-
PLICABLE TO RIGHTS OR CLAIMS.
Section 502 of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1132) is amended by adding
at the end the following new subsection:
‘‘(n) Notwithstanding any Federal statute of general
applicability that would modify any of the powers and pro-
cedures expressly applicable to a right or claim arising
under this title and that is not expressly incorporated by
a provision of this title, such powers and procedures shall
be the exclusive powers and procedures applicable to such
right or such claim unless after such right or such claim
arises the claimant voluntarily enters into an agreement
to resolve such right or such claim through arbitration or
another procedure.’’.
104
TITLE 
V—IMPROVED 
PENSION
PROTECTIONS 
FOR 
THE
CHANGING WORKFORCE
SEC. 501. LOANS FROM RETIREMENT PLANS FOR HEALTH
INSURANCE AND JOB TRAINING EXPENSES.
(a) IN GENERAL.—Section 206 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1056)
(as amended by sections 104, 201, and 308) is amended
further by adding at the end the following new subsection:
‘‘(j) LOANS FROM RETIREMENT PLANS FOR HEALTH
INSURANCE AND JOB TRAINING EXPENSES.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this subsection, a pension plan shall
provide that a participant or beneficiary who is in-
voluntarily separated from employment may, on the
date of such separation, obtain a loan from the plan
the proceeds of which are to be used within 6
months after the date of such loan—
‘‘(A) for payments for insurance which
constitutes medical care for the participant and
the participant’s spouse and dependents, or
‘‘(B) for job training expenses.
‘‘(2) QUALIFIED LOAN.—For purposes of this
subsection, the term ‘qualified loan’ means a loan—
106
any plan year which is not paid at the time required
to be paid, and any amount remaining unpaid as of
the beginning of the plan year beginning after the
period described in paragraph (2)(B)(ii), shall be
treated as distributed during such plan year to the
participant or beneficiary.’’.
(b) PROHIBITED TRANSACTION EXEMPTION.—Sec-
tion 408(b) of such Act (29 U.S.C. 1108(b)) is amended
by adding at the end the following new paragraph:
‘‘(14) Any loan made by the plan to a disquali-
fied person who is a participant or beneficiary of the
plan if such loan—
‘‘(A) is for the payment of health insur-
ance premiums or job training expenses, and
‘‘(B) meets the requirements of section
206(j).’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to loans made after the effective
date specified in section 601.
SEC. 502. AUTOMATIC ROLLOVER UPON MANDATORY DIS-
TRIBUTION IN EXCESS OF $1,000.
Section 206 of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1056) (as amended by sec-
tions 104, 201, 308, and 501) is amended further by add-
ing at the end the following new subsection:
107
‘‘(k) DIRECT TRANSFERS OF MANDATORY DISTRIBU-
TIONS IN EXCESS OF $1,000—
‘‘(1) IN GENERAL.—A pension plan shall pro-
vide that if—
‘‘(A) a distribution described in paragraph
(2) is made, and
‘‘(B) the distributee does not elect to have
such distribution paid directly to an eligible re-
tirement plan and does not elect to receive the
distribution directly,
the plan administrator shall make such transfer to
an individual retirement plan of a designated trustee
or issuer and shall notify the distributee in writing
(either separately or as part of a notice required
under section 402(f) of the Internal Revenue Code
of 1986) that the distribution may be transferred to
another individual retirement plan.
‘‘(2) DISTRIBUTION
DESCRIBED.—A distribu-
tion from a plan is described in this paragraph if
such distribution is an immediate distribution of the
entire nonforfeitable accrued benefit of the partici-
pant and is in excess of $1,000.
‘‘(3) DEFINITIONS.—For purposes of this
subsection—
108
‘‘(A) ELIGIBLE RETIREMENT PLAN.—The
term ‘eligible retirement plan’ has the meaning
given such term by section 402(c)(8)(B) of the
Internal Revenue Code of 1986, except that a
qualified trust under section 401(a) of such
Code shall be considered an eligible retirement
plan only if it is a defined contribution plan,
the terms of which permit the acceptance of
rollover distributions.
‘‘(B) INDIVIDUAL
RETIREMENT
PLAN.—
The term ‘individual retirement plan’ has the
meaning 
given 
such 
term 
by 
section
7701(a)(37) of the Internal Revenue Code of
1986.’’.
SEC. 503. PROMPT DISTRIBUTION FROM DEFINED CON-
TRIBUTION PLANS UPON TERMINATION OF
PARTICIPANT’S COVERED EMPLOYMENT.
Section 206(a) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1056(a)) is amended—
(1) by redesignating paragraphs (1), (2), and
(3) as subparagraphs (A), (B), and (C), respectively,
and by inserting ‘‘(1)’’ after ‘‘(a)’’;
(2) in the first sentence, by striking ‘‘pension
plan’’ and inserting ‘‘defined benefit plan’’;
109
(3) in the second sentence, by striking ‘‘In the
case of a plan’’ and inserting ‘‘In the case of a de-
fined benefit plan’’; and
(4) by adding at the end the following new
paragraph:
‘‘(2)(A) Except as provided in subparagraph (B),
each defined contribution plan shall provide that, unless
the participant otherwise elects—
‘‘(i) the payment of benefits under the plan to
the participant will begin not later than the 60th
day after the close of the plan year in which occurs
the date on which the participant attains the earlier
of age 65 or the normal retirement age specified
under the plan, and
‘‘(ii) in any case in which the participant termi-
nates his service with the employer prior to the date
described in clause (i), the participant’s accrued ben-
efit shall be distributed, in the form of one or more
rollover 
contributions 
under 
section 
402(c),
403(a)(4), or 403(b)(8) of the Internal Revenue
Code of 1986, clause (ii), (iii), or (iv) of section
408(d)(3)(A) of such Code, section 411(a)(12) of
such Code, or section 457(e)(16) of such Code, not
later than the 60th day after the date of the partici-
pant’s termination of such service.
110
‘‘(B) In any case in which immediate valuation of the
participant’s accrued benefit is not practicable, the plan
may provide for a period of more than 60 days in lieu
of the 60-day period described in clauses (i) and (ii) of
subparagraph (A), except that any such longer period pro-
vided by the plan may not extend beyond 60 days after
the applicable valuation date under the plan.’’.
SEC. 504. EXTENDED PERIOD FOR RECOUPMENT OF OVER-
PAYMENTS.
Section 206 of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1056) (as amended by sec-
tions 104, 201, 308, 501(a), and 502) is amended further
by adding at the end the following new subsection:
‘‘(l) RECOUPMENT OF BENEFIT OVERPAYMENTS.—
‘‘(1) MINIMUM
PERIOD
FOR
RECOUPMENT.—
Any minimum period specified by an employee pen-
sion benefit plan during which an overpayment of
benefits under the plan must be repaid to the plan
may not be less than the 5-year period beginning on
the date of the overpayment.
‘‘(2) WAIVER
PERMITTED.—Nothing in this
title shall be construed to preclude the waiver by any
fiduciary on behalf of the plan of any overpayment
of benefits to a participant or beneficiary in any case
in which such participant or beneficiary is without
111
fault if recovery of the overpayment would defeat the
purpose of this title or would be against equity and
good conscience, and any such waiver may not be
precluded under the terms of the plan. In making
for purposes of this subsection any determination of
whether any participant or beneficiary is without
fault, the fiduciary shall specifically take into ac-
count any physical, mental, educational, or linguistic
limitation such participant or beneficiary may have
(including any lack of facility with the English lan-
guage).’’.
TITLE VI—GENERAL
PROVISIONS
SEC. 601. GENERAL EFFECTIVE DATE.
(a) IN GENERAL.—Except as otherwise provided in
this Act, and subject to subsection (b), the amendments
made by this Act shall apply with respect to plan years
beginning on or after January 1, 2002.
(b) SPECIAL RULE FOR COLLECTIVELY BARGAINED
PLANS.—In the case of a plan maintained pursuant to 1
or more collective bargaining agreements between em-
ployee representatives and 1 or more employers ratified
on or before the date of the enactment of this Act, sub-
section (a) shall be applied to benefits pursuant to, and
individuals covered by, any such agreement by substituting
112
for ‘‘January 1, 2002’’ the date of the commencement of
the first plan year beginning on or after the earlier of—
(1) the later of—
(A) January 1, 2003, or
(B) the date on which the last of such col-
lective bargaining agreements terminates (de-
termined without regard to any extension there-
of after the date of the enactment of this Act),
or
(2) January 1, 2004.
SEC. 602. PLAN AMENDMENTS.
If any amendment made by this Act requires an
amendment to any plan, such plan amendment shall not
be required to be made before the first plan year beginning
on or after January 1, 2004, if—
(1) during the period after such amendment
made by this Act takes effect and before such first
plan year, the plan is operated in accordance with
the requirements of such amendment made by this
Act, and
(2) such plan amendment applies retroactively
to the period after such amendment made by this
Act takes effect and such first plan year.
Æ