I
107TH CONGRESS
2D SESSION
H. R. 4778
To amend title I of the Employee Retirement Income Security Act of 1974
to provide for more effective enforcement by the Department of Labor
of the requirements of such title relating to participation, vesting, benefit
accrual, and funding.
IN THE HOUSE OF REPRESENTATIVES
MAY 20, 2002
Mr. SANDERS (for himself, Mr. HINCHEY, Mr. GUTKNECHT, Ms. MCKINNEY,
Ms. DELAURO, Ms. WOOLSEY, Mr. OWENS, Mr. FRANK, Ms.
SCHAKOWSKY, Mr. BORSKI, Mr. KENNEDY of Rhode Island, and Mr.
KILDEE) introduced the following bill; which was referred to the Com-
mittee on Education and the Workforce
A BILL
To amend title I of the Employee Retirement Income Secu-
rity Act of 1974 to provide for more effective enforce-
ment by the Department of Labor of the requirements
of such title relating to participation, vesting, benefit
accrual, and funding.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Pension Protection Act
of 2002’’.
SEC. 2. ENFORCEMENT OF ERISA REQUIREMENTS RELAT-
ING TO PENSION PLANS.
(a) IN GENERAL.—Section 502(b) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1132(b)) is amended by striking paragraph (1) and by re-
designating paragraphs (2) and (3) as paragraphs (1) and
(2), respectively. Notwithstanding Reorganization Plan
No. 4 of 1978 (5 U.S.C. app.; 29 U.S.C. 1001 note), the
Secretary of Labor shall undertake enforcement under sec-
tion 502 of such Act with respect to violations of the re-
quirements of parts 2 and 3 of subtitle B of title I of
such Act.
(b) ENFORCEMENT ACTIONS IN RESPONSE TO IN-
SPECTOR GENERAL’S REPORT.—As soon as practicable
after the date of the enactment of this Act, the Secretary
of Labor shall commence appropriate enforcement of the
requirements of sections 203 and 205 of the Employee Re-
tirement Income Security Act of 1974 in connection with
the 13 plans referred to in the report of the Office of In-
spector General, Department of Labor, issued on March
29, 2002, entitled ‘‘PWBA Needs to Improve Oversight
of Cash Balance Plan Lump Sum Distributions’’ (Report
No. 09–02–001–12–121) and identified by such Office in
the audit referred to in such report as having forfeitures.
SEC. 3. GUIDANCE BY THE SECRETARY OF LABOR FOR AD-
MINISTRATORS OF CERTAIN DEFINED BEN-
EFIT PLANS.
As soon as practicable after the date of the enactment
of this Act, the Secretary of Labor, in conjunction with
the Secretary of the Treasury, shall undertake to develop
improved guidance for administrators of defined benefit
plans with respect to the requirements of parts 2 and 3
of subtitle B of title I of the Employee Retirement Income
Security Act of 1974 in connection with defined benefit
plans which express accrued benefits in the form of an
account balance. Such guidance shall include further as-
sistance with respect to all factors involved in determining
lump sum distributions of accrued benefits under such
plans.
SEC. 4. EFFECTIVE DATE.
The amendments made by this Act shall take effect
on the date of the enactment of this Act and shall apply
with respect to violations occurring before, on, or after
such date.
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