I 
114TH CONGRESS 
1ST SESSION H. R. 4294 
To amend the Internal Revenue Code of 1986 to ensure that retirement 
investors receive advice in their best interests, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 18, 2015 
Mr. ROSKAM (for himself, Mr. NEAL, Mr. ROE of Tennessee, Mr. LARSON of 
Connecticut, Mr. REED, and Ms. MICHELLE LUJAN GRISHAM of New 
Mexico) introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on Edu-
cation and the Workforce, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to ensure 
that retirement investors receive advice in their best in-
terests, and for other purposes. 
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 ‘‘Strengthening Access 
to Valuable Education and Retirement Support Act of 
2015’’ or the ‘‘SAVERS Act of 2015’’. 
VerDate Sep 11 2014 
03:59 Dec 24, 2015
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4294.IH
H4294
SSpencer on DSK4SPTVN1PROD with BILLS
SEC. 2. PURPOSE. 
The purpose of this Act is to provide that advisors 
who— 
(1) provide advice that is impermissible under 
the prohibited transaction provisions under section 
4975 of the Internal Revenue Code of 1986, or 
(2) breach the best interest standard for the 
provision of investment advice, 
are subject to liability under the Internal Revenue Code 
of 1986. 
SEC. 3. RULES RELATING TO THE PROVISION OF INVEST-
MENT ADVICE. 
(a) AMENDMENTS
TO
THE INTERNAL REVENUE 
CODE OF 1986.— 
(1) EXEMPTION
FOR
INVESTMENT
ADVICE 
WHICH IS BEST INTEREST RECOMMENDATION.—Sec-
tion 4975(d) of the Internal Revenue Code of 1986 
is amended by striking ‘‘or’’ at the end of paragraph 
(22), by striking the period at the end of paragraph 
(23) and inserting ‘‘, or’’, and by inserting after 
paragraph (23) the following: 
‘‘(24) provision of investment advice by a fidu-
ciary to a plan, plan participant, or beneficiary with 
respect to the plan, which is a best interest rec-
ommendation.’’. 
VerDate Sep 11 2014 
03:59 Dec 24, 2015
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4294.IH
H4294
SSpencer on DSK4SPTVN1PROD with BILLS
(2) INVESTMENT ADVICE; BEST INTEREST REC-
OMMENDATION.—Section 4975(e) of such Code is 
amended by adding at the end the following: 
‘‘(10) INVESTMENT ADVICE.— 
‘‘(A) IN GENERAL.—For purposes of this 
section, the term ‘investment advice’ means a 
recommendation that— 
‘‘(i) relates to— 
‘‘(I) the advisability of acquiring, 
holding, disposing, or exchanging any 
moneys or other property of a plan by 
the plan, plan participants, or plan 
beneficiaries, 
including 
any 
rec-
ommendation whether to take a dis-
tribution of benefits from such plan or 
any recommendation relating to the 
investment of any moneys or other 
property of such plan to be rolled over 
or otherwise distributed from such 
plan; 
‘‘(II) the management of moneys 
or other property of such plan, includ-
ing recommendations relating to the 
management of moneys or other prop-
VerDate Sep 11 2014 
03:59 Dec 24, 2015
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4294.IH
H4294
SSpencer on DSK4SPTVN1PROD with BILLS
erty to be rolled over or otherwise dis-
tributed from such plan; or 
‘‘(III) the advisability of retain-
ing or ceasing to retain a person who 
would receive a fee or other com-
pensation for providing any of the 
types of advice described in this sub-
clause; and 
‘‘(ii) is rendered pursuant to— 
‘‘(I) a written acknowledgment 
that the person is a fiduciary with re-
spect to the provision of such rec-
ommendation; or 
‘‘(II) a mutual agreement, ar-
rangement, or understanding which 
may include limitations on scope, tim-
ing, and responsibility to provide on-
going monitoring or advice services, 
between the person making such rec-
ommendation and the plan, plan par-
ticipant, or beneficiary that such rec-
ommendation is individualized to the 
plan, plan participant, or beneficiary 
and such plan, plan participant, or 
beneficiary intends to materially rely 
VerDate Sep 11 2014 
03:59 Dec 24, 2015
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4294.IH
H4294
SSpencer on DSK4SPTVN1PROD with BILLS
on such recommendation in making 
investment or management decisions 
with respect to any moneys or other 
property of such plan. 
‘‘(B) DISCLAIMER OF A MUTUAL AGREE-
MENT, ARRANGEMENT, OR UNDERSTANDING.— 
For purposes of subparagraph (A)(ii)(II), any 
disclaimer of a mutual agreement, arrangement, 
or understanding shall only state the following: 
‘This information is not individualized to you, 
and there is no intent for you to materially rely 
on this information in making investment or 
management decisions.’. Such disclaimer shall 
not be effective unless such disclaimer is in 
writing and is communicated in a clear and 
prominent manner and an objective person 
would reasonably conclude that, based on all 
the facts and circumstances, there was not a 
mutual agreement, arrangement, or under-
standing. 
‘‘(C) WHEN RECOMMENDATION TREATED 
AS
MADE
PURSUANT
TO
A
MUTUAL
AGREE-
MENT, ARRANGEMENT, OR UNDERSTANDING.— 
For purposes of subparagraph (A)(ii)(II), infor-
mation shall not be treated as a recommenda-
VerDate Sep 11 2014 
03:59 Dec 24, 2015
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4294.IH
H4294
SSpencer on DSK4SPTVN1PROD with BILLS
tion made pursuant to a mutual agreement, ar-
rangement, or understanding, and such infor-
mation shall contain the disclaimer required by 
subparagraph (B), if— 
‘‘(i) SELLER’S EXCEPTION.—The in-
formation is provided in conjunction with 
full and fair disclosure in writing to a plan, 
plan participant, or beneficiary that the 
person providing the information is doing 
so in its marketing or sales capacity, in-
cluding any information regarding the 
terms and conditions of the engagement of 
the person providing the information, and 
that the person is not intending to provide 
investment advice within the meaning of 
this subparagraph or to otherwise act as a 
fiduciary to the plan or under the obliga-
tions of a best interest recommendation. 
‘‘(ii) SWAP
AND
SECURITY-BASED 
SWAP
TRANSACTION.—The person pro-
viding the information is a counterparty or 
service provider to the plan in connection 
with any transaction based on the informa-
tion (including a service arrangement, sale, 
purchase, loan, bilateral contract, swap (as 
VerDate Sep 11 2014 
03:59 Dec 24, 2015
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4294.IH
H4294
SSpencer on DSK4SPTVN1PROD with BILLS
‘‘(iii) EMPLOYEES OF A PLAN SPON-
SOR.—The person providing the informa-
tion is an employee of any sponsoring em-
ployer or employee organization who pro-
vides the information to the plan for no fee 
or other compensation other than the em-
ployee’s normal compensation. 
‘‘(iv) PLATFORM
PROVIDERS
SELEC-
TION AND MONITORING ASSISTANCE.—The 
person providing the information discloses 
in writing to the plan fiduciary that the 
person is not undertaking to provide in-
vestment advice as a fiduciary (within the 
meaning of this paragraph) or under the 
obligations of a best interest recommenda-
tion and the information consists solely 
of— 
‘‘(I) making available to the plan, 
plan 
participants, 
or 
plan 
bene-
ficiaries, without regard to the indi-
vidualized needs of the plan, plan par-
ticipants, or plan beneficiaries, securi-
ties or other property through a plat-
form or similar mechanism from 
which a plan fiduciary may select or 
VerDate Sep 11 2014 
03:59 Dec 24, 2015
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H4294.IH
H4294
SSpencer on DSK4SPTVN1PROD with BILLS
monitor investment alternatives, in-
cluding qualified default investment 
alternatives, into which plan partici-
pants or beneficiaries may direct the 
investment of assets held in, or con-
tributed to, their individual accounts, 
or 
‘‘(II) in connection with a plat-
form or similar mechanism described 
in subclause (I)— 
‘‘(aa) identifying investment 
alternatives that meet objective 
criteria specified by the plan, 
such as criteria concerning ex-
pense ratios, fund sizes, types of 
asset, or credit quality, or 
‘‘(bb) providing objective fi-
nancial data and comparisons 
with independent benchmarks to 
the plan. 
‘‘(v) VALUATION.—The information 
consists solely of valuation information. 
‘‘(vi) FINANCIAL
EDUCATION.—The 
information consists solely of— 
VerDate Sep 11 2014 
03:59 Dec 24, 2015
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H4294.IH
H4294
SSpencer on DSK4SPTVN1PROD with BILLS
‘‘(I) information described in De-
partment of Labor Interpretive Bul-
letin 96–1 (29 C.F.R. 2509.96–1, as 
in effect on January 1, 2015), regard-
less of whether such education is pro-
vided to a plan or plan fiduciary or a 
participant or beneficiary, 
‘‘(II) information provided to 
participants or beneficiaries regarding 
the factors to consider in deciding 
whether to elect to receive a distribu-
tion from a plan and whether to roll 
over such distribution to a plan, so 
long as any examples of different dis-
tribution and rollover alternatives are 
accompanied by all material facts and 
assumptions on which the examples 
are based, or 
‘‘(III) any additional information 
treated as education by the Secretary. 
‘‘(11) BEST
INTEREST
RECOMMENDATION.— 
For purposes of this subsection— 
‘‘(A) IN GENERAL.—The term ‘best inter-
est recommendation’ means a recommenda-
tion— 
VerDate Sep 11 2014 
03:59 Dec 24, 2015
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H4294.IH
H4294
SSpencer on DSK4SPTVN1PROD with BILLS
‘‘(i) for which no more than reason-
able compensation is paid (as determined 
under subsection (d)(2)), 
‘‘(ii) provided by a person acting with 
the care, skill, prudence, and diligence 
under the circumstances then prevailing 
that a prudent person would exercise based 
on— 
‘‘(I) the information obtained 
through the reasonable diligence of 
the person regarding factors such as 
the advice recipient’s age, and 
‘‘(II) any other information that 
the advice recipient discloses to the 
person in connection with receiving 
such recommendation, and 
‘‘(iii) where the person places the in-
terests of the plan or advice recipient 
above its own. 
‘‘(B) INVESTMENT
OPTIONS; 
VARIABLE 
COMPENSATION.—A best interest recommenda-
tion may include a recommendation that— 
‘‘(i) is based on a limited range of in-
vestment options (which may consist, in 
whole or in part, of proprietary products), 
VerDate Sep 11 2014 
03:59 Dec 24, 2015
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H4294.IH
H4294
SSpencer on DSK4SPTVN1PROD with BILLS
but only if any such limitations, including 
a clearly-stated notice that the same or 
similar investments may be available at a 
different cost (greater or lesser) from other 
sources, are clearly disclosed to the advice 
recipient prior to any transaction based on 
the recommendation, or 
‘‘(ii) may result in variable compensa-
tion to the person providing the rec-
ommendation (or any affiliate of such per-
son), but only if the receipt of such com-
pensation, including a clearly-stated notice 
that the same or similar investments may 
be available at a different cost (greater or 
lesser) from other sources, is clearly dis-
closed to the advice recipient prior to any 
transaction based on the recommendation. 
The notices provided pursuant to clauses (i) 
and (ii) shall only state the following: ‘The 
same or similar investments may be available at 
a different cost (greater or lesser) from other 
sources.’. 
‘‘(C) CLEAR
DISCLOSURE
OF
VARIABLE 
COMPENSATION.—For purposes of subpara-
graph (B)(ii), variable compensation is clearly 
VerDate Sep 11 2014 
03:59 Dec 24, 2015
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H4294.IH
H4294
SSpencer on DSK4SPTVN1PROD with BILLS
disclosed if notification is provided at any time 
prior to a transaction based on the person’s rec-
ommendation, in a manner calculated to be un-
derstood by the average individual, of the fol-
lowing: 
‘‘(i) A notice in writing, including a 
clearly-stated notice that the same or simi-
lar investments may be available at a dif-
ferent cost (greater or lesser) from other 
sources, that the person providing the rec-
ommendation (or its affiliate) may receive 
varying amounts of fees or other com-
pensation with respect to such transaction. 
‘‘(ii) A description of any fee or other 
compensation that is directly payable to 
the person (or its affiliate) from the advice 
recipient with respect to such transaction 
(expressed as an amount, formula, percent-
age of assets, per capita charge, or esti-
mate or range of such compensation). 
‘‘(iii) A description of the types and 
ranges of any indirect compensation that 
may be paid to the person (or its affiliate) 
by any third party in connection with such 
transaction (expressed as an amount, for-
VerDate Sep 11 2014 
03:59 Dec 24, 2015
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H4294.IH
H4294
SSpencer on DSK4SPTVN1PROD with BILLS
mula, percentage of assets, per capita 
charge, or estimate of such ranges of com-
pensation). 
‘‘(iv) Upon request of the advice re-
cipient, 
a 
disclosure 
of 
the 
specific 
amounts of compensation described in 
clause (iii) that the person will receive in 
connection with the particular transaction 
(expressed as an amount, formula, percent-
age of assets, per capita charge, or esti-
mate of such compensation). 
‘‘(D) DEFINITION
OF
AFFILIATE.—For 
purposes of this paragraph, the term ‘affiliate’ 
has 
the 
meaning 
given 
in 
subsection 
(f)(8)(J)(ii). 
‘‘(E) CORRECTION
OF
CERTAIN
ERRORS 
AND OMISSIONS.—A recommendation shall not 
fail to be a best interest recommendation solely 
because a person who, acting in good faith and 
with reasonable diligence, makes an error or 
omission in disclosing the information specified 
in subparagraph (B), if the person discloses the 
correct information to the advice recipient as 
soon as practicable but not later than 30 days 
VerDate Sep 11 2014 
03:59 Dec 24, 2015
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H4294.IH
H4294
SSpencer on DSK4SPTVN1PROD with BILLS
from the date on which the person knows of 
such error or omission.’’. 
(3) FAILURES
RELATING
TO
BEST
INTEREST 
RECOMMENDATION.— 
(A) CORRECTION.—Section 4975(f)(5) of 
such Code is amended— 
(i) by striking ‘‘(5) CORRECTION.— 
The terms’’ and inserting: 
‘‘(5) CORRECTION.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the terms’’, and 
(ii) by adding at the end the fol-
lowing: 
‘‘(B) DETERMINATION
OF ‘CORRECTION’ 
AND ‘CORRECT’ WITH RESPECT TO BEST INTER-
EST ADVICE RECOMMENDATIONS.—In the case 
of a prohibited advice transaction arising by the 
failure of investment advice to be a best interest 
recommendation, the terms ‘correction’ and 
‘correct’ mean the payment to, or reimburse-
ment of, actual damages of the plan, plan par-
ticipants, or plan beneficiaries resulting directly 
from the plan’s, plan participant’s, or plan 
beneficiary’s reliance on such investment advice, 
if any, that have not otherwise been paid or re-
VerDate Sep 11 2014 
03:59 Dec 24, 2015
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H4294.IH
H4294
SSpencer on DSK4SPTVN1PROD with BILLS
imbursed to the plan, plan participants, or plan 
beneficiaries, including payments and reim-
bursements made pursuant to subparagraph 
(A).’’. 
(B) AMOUNT INVOLVED FOR PURPOSES OF 
EXCISE
TAX.—The first sentence of section 
4975(f)(4) of such Code is amended by striking 
‘‘excess compensation.’’ and inserting ‘‘excess 
compensation, and in the case of a prohibited 
transaction arising by the failure of investment 
advice to be a best interest recommendation, 
the amount involved shall be the amount paid 
to the person providing the advice (or its affil-
iate, as defined in paragraph (8)(J)(ii)) that 
has not been paid or reimbursed to the plan, 
plan participants, or plan beneficiaries, includ-
ing payments and reimbursements made pursu-
ant to paragraph (5).’’. 
(4) EXEMPTION RELATING TO INVESTMENT AD-
VICE
WITH
RESPECT
TO
CERTAIN
FEE
ARRANGE-
MENTS.—Section 4975(d) of such Code (as amended 
by paragraph (1)) is amended by striking ‘‘or’’ at 
the end of paragraph (23), by striking the period at 
the end of paragraph (24) and inserting ‘‘, or’’, and 
by adding after paragraph (24) the following: 
VerDate Sep 11 2014 
03:59 Dec 24, 2015
Jkt 059200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H4294.IH
H4294
SSpencer on DSK4SPTVN1PROD with BILLS
‘‘(25) any transaction, including a contract for 
service, between a person providing investment ad-
vice described in subsection (e)(3)(B) and the advice 
recipient in connection with such investment advice, 
if— 
‘‘(A) no more than reasonable compensa-
tion is paid (as determined under section 
4975(d)(2)) for such investment advice, 
‘‘(B) in a case in which the investment ad-
vice is based on a limited range of investment 
options (which may consist, in whole or in part, 
of proprietary products), such limitations, in-
cluding a clearly-stated notice that the same or 
similar investments may be available at a dif-
ferent cost (greater or lesser) from other 
sources), shall be clearly disclosed to the advice 
recipient prior to any transaction based on the 
investment advice, 
‘‘(C) in a case in which the investment ad-
vice may result in variable compensation to the 
person providing the investment advice (or any 
affiliate of such person), the receipt of such 
compensation, including a clearly-stated notice 
that the same or similar investments may be 
available at a different cost (greater or lesser) 
VerDate Sep 11 2014 
03:59 Dec 24, 2015
Jkt 059200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H4294.IH
H4294
SSpencer on DSK4SPTVN1PROD with BILLS
from other sources, shall be clearly disclosed to 
the advice recipient (within the meaning of sub-
section (e)(11)(C)), and 
‘‘(D) in any case in which a person who, 
acting in good faith and with reasonable dili-
gence, makes an error or omission in disclosing 
the information specified in subparagraphs (B) 
or (C), the person discloses the correct informa-
tion to the advice recipient as soon as prac-
ticable but not later than 30 days from the date 
on which the person knows of such error or 
omission.’’. 
(b) EFFECTIVE DATE.— 
(1) MODIFICATION
OF
CERTAIN
RULES, AND 
RULES
AND
ADMINISTRATIVE
POSITIONS
PROMUL-
GATED BEFORE ENACTMENT BUT NOT EFFECTIVE 
ON
JANUARY
1, 2015, PROHIBITED.—The Depart-
ment of Labor is prohibited from amending any 
rules or administrative positions promulgated under 
section 3(21) of the Employee Retirement Security 
Act of 1974 and section 4975(e)(3) of the Internal 
Revenue Code of 1986 (including Department of 
Labor Interpretive Bulletin 96–1 (29 C.F.R. 
2509.96–1) and Department of Labor Advisory 
Opinion 2005–23A), and no such rule or administra-
VerDate Sep 11 2014 
03:59 Dec 24, 2015
Jkt 059200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H4294.IH
H4294
SSpencer on DSK4SPTVN1PROD with BILLS
tive position promulgated by the Department of 
Labor prior to the date of the enactment of this Act 
but not effective on January 1, 2015, may become 
effective unless a bill or joint resolution referred to 
in paragraph (3) is enacted as described in such 
paragraph not later than 60 days after the date of 
the enactment of this Act. 
(2) GENERAL
EFFECTIVE
DATE
OF
AMEND-
MENTS.—Except as provided in paragraph (3), the 
amendments made by subsection (a) of this section 
shall take effect on the 61st day after the date of 
the enactment of this Act and shall apply with re-
spect to information provided or recommendations 
made on or after 2 years after the date of the enact-
ment of this Act. 
(3) EXCEPTION.—If a bill or joint resolution is 
enacted prior to the 61st day after the date of the 
enactment of this Act that specifically approves any 
rules or administrative positions promulgated under 
section 3(21) of the Employee Retirement Security 
Act of 1974 and section 4975(e)(3) of the Internal 
Revenue Code of 1986 that is not in effect on Janu-
ary 1, 2015, the amendments made by subsection 
(a) of this section shall not take effect. 
VerDate Sep 11 2014 
03:59 Dec 24, 2015
Jkt 059200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H4294.IH
H4294
SSpencer on DSK4SPTVN1PROD with BILLS
(c) GRANDFATHERED TRANSACTIONS
AND SERV-
ICES.—The amendments made by subsection (a) shall not 
apply to any service or transaction rendered, entered into, 
or for which a person has been compensated prior to the 
date on which the amendments made by subsection (a) 
of this Act become effective under subsection (b)(2). 
(d) TRANSITION.—If the amendments made by sub-
section (a) of this section take effect, then nothing in this 
section shall be construed to prohibit the issuance of guid-
ance to carry out such amendments so long as such guid-
ance is necessary to implement such amendments. Until 
such time as regulations or other guidance are issued to 
carry out such amendments, a plan and a fiduciary shall 
be treated as meeting the requirements of such amend-
ments if the plan or fiduciary, as the case may be, makes 
a good faith effort to comply with such requirements. 
Æ 
VerDate Sep 11 2014 
03:59 Dec 24, 2015
Jkt 059200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6301
E:\BILLS\H4294.IH
H4294
SSpencer on DSK4SPTVN1PROD with BILLS