I
107TH CONGRESS
1ST SESSION
H. R. 3446
To amend the Internal Revenue Code of 1986 to improve the retirement
security of American families.
IN THE HOUSE OF REPRESENTATIVES
DECEMBER 11, 2001
Mr. ANDREWS (for himself, Mr. GEORGE MILLER of California, Mr. KILDEE,
Mr. OWENS, Mr. PAYNE, Mrs. MINK of Hawaii, Mr. SCOTT, Ms. WOOL-
SEY, Ms. RIVERS, Mr. HINOJOSA, Mr. TIERNEY, Mr. KIND, Ms.
SANCHEZ, Mr. FORD, Mr. KUCINICH, Mr. HOLT, Ms. SOLIS, and Ms.
MCCOLLUM) introduced the following bill; which was referred to the Com-
mittee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to improve
the retirement security of American families.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Retirement Enhancement Revenue Act of 2001’’.
(b) TABLE OF CONTENTS.—The table of contents is
as follows:
Sec. 1. Short title and table of contents.
TITLE I—PUBLIC EMPLOYEE PENSION PLANS
Sec. 101. New qualification requirements for public employee pension plans.
TITLE II—PENSION IMPROVEMENTS
Sec. 201. Automatic enrollment of all employees in 401(k) plans.
Sec. 202. Improvements in simplified employee pensions.
Sec. 203. Pension integration rules.
Sec. 204. Increase to age 75 for beginning mandatory distributions.
Sec. 205. Restrictions on exclusion of unionized employees from participation in
401(k) plans.
Sec. 206. Removal of $5,000 limit on plans subject to automatic rollover upon
mandatory distribution.
TITLE III—TAX CREDITS TO PROMOTE PENSION COVERAGE
Sec. 301. Refundable credit to certain individuals for elective deferrals and IRA
contributions.
Sec. 302. Credit for qualified pension plan contributions of small employers.
Sec. 303. Notice.
TITLE IV—ADDITIONAL AMENDMENTS
Sec. 401. Statutory exemption from prohibited transaction rules for emergent
transactions.
Sec. 402. Loans from retirement plans for health insurance and job training ex-
penses.
Sec. 403. Missing participants.
Sec. 404. Income averaging of corrected civil service annuity benefit payments.
Sec. 405. Prohibited transaction exemption for the provision of investment ad-
vice.
TITLE V—GENERAL PROVISIONS
Sec. 501. General effective date.
Sec. 502. Plan amendments.
TITLE I—PUBLIC EMPLOYEE
PENSION PLANS
SEC. 101. NEW QUALIFICATION REQUIREMENTS FOR PUB-
LIC EMPLOYEE PENSION PLANS.
(a) IN GENERAL.—Subsection (a) of section 401 of
the Internal Revenue Code of 1986 (relating to require-
ments for qualification) is amended by inserting after
paragraph (34) the following new paragraph:
‘‘(35) PUBLIC EMPLOYEE PENSION PLANS.—A
trust forming a part of a public employee pension
plan (as defined in section 420C(a)(9)) shall not
constitute a qualified trust under this section unless
the requirements of subpart F of this part are met
in connection with such plan.’’
(b) REQUIREMENTS.—Part I of subchapter D of
chapter 1 of such Code (relating to pension, profit-shar-
ing, stock bonus plans, etc.) is amended by inserting after
subpart E the following new subpart:
‘‘Subpart F—Public Employee Pension Plans
‘‘Sec. 420A. Reporting and disclosure requirements.
‘‘Sec. 420B. Review by qualified review boards of changes in em-
ployer contributions.
‘‘Sec. 420C. Definitions and coverage.
‘‘SEC. 420A. REPORTING AND DISCLOSURE REQUIREMENTS.
‘‘(a) IN GENERAL.—A public employee pension plan
does not meet the requirements of section 401(a)(35) un-
less the terms of the plan include the requirements of this
section.
‘‘(b) REQUIRED DISCLOSURES.—The plan shall pro-
vide that, within 210 days after the close of each plan
year, the administrator of the plan shall furnish to each
participant, and to each beneficiary receiving benefits
under the plan—
‘‘(1) a statement of the assets and liabilities of
the plan aggregated by categories and valued at
their current value, and the same data displayed in
comparative form for the end of the previous plan
year,
‘‘(2) a statement of receipts and disbursements
during the preceding 12-month period aggregated by
general sources and applications,
‘‘(3) a report containing—
‘‘(A) a description of all investments and
assets of the plan, including their value,
‘‘(B) the names and positions of all of the
trustees of the plan, and the time remaining be-
fore the expiration of their term,
‘‘(C) a description of the method of trustee
selection,
‘‘(D) a description of any changes in in-
vestment policy of the plan during the fiscal
year,
‘‘(E) an evaluation of the long-term sol-
vency of the plan, including the number of par-
ticipants and beneficiaries and a summary of
their benefits, and a projection of the amount
of benefits expected to be paid for the fifth,
tenth, and fifteenth plan year following the date
of the publication of the report, and