111 
‘‘(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) TREATMENT OF UNCLAIMED BENEFITS IN CASES 
NOT INVOLVING TERMINATION OR IN CASES OF CERTAIN 
PLANS.— 
(1) IN GENERAL.—Section 4050 of such Act 
(as amended by subsection (a)) is amended further 
by inserting after subsection (c) the following new 
subsection:
112 
‘‘(d) TREATMENT
OF UNCLAIMED BENEFITS
IN 
CASES NOT INVOLVING TERMINATION OR IN CASES OF 
CERTAIN PLANS.— 
‘‘(1) ELECTIVE TRANSFER OF UNCLAIMED BEN-
EFITS TO THE CORPORATION.—The plan adminis-
trator of a plan described in paragraph (6) may 
elect to transfer unclaimed benefits to the corpora-
tion. 
‘‘(2) INFORMATION
TO
THE
CORPORATION.— 
The corporation may impose such conditions on 
transfers of unclaimed benefits to the corporation as 
the corporation determines are necessary to facilitate 
administration of this subsection and are not incon-
sistent with the purposes of this subsection. Such 
conditions may include requirements that the trans-
ferring plan provide to the corporation specified in-
formation and documentation. 
‘‘(3) PAYMENT TO THE CORPORATION.—With 
respect to any participant, any transfer of an un-
claimed benefit to the corporation shall— 
‘‘(A) in the case of a defined benefit plan, 
be a transfer of the participant’s designated 
benefit, or
113 
‘‘(B) in the case of an individual account 
plan, be a transfer of the participant’s vested 
account balance under the plan. 
‘‘(4) PAYMENT BY THE CORPORATION.—Subject 
to such reasonable restrictions as may be prescribed 
in regulations of the corporation (relating to invest-
ment limitations and otherwise)— 
‘‘(A) unclaimed benefits of a participant or 
beneficiary which are transferred to the cor-
poration pursuant to this subsection shall be 
distributed by the corporation to the participant 
or beneficiary not later than upon application 
filed by the participant or beneficiary with the 
corporation in such form and manner as may 
be prescribed in regulations of the corporation, 
and 
‘‘(B) such benefits shall— 
‘‘(i) in the case of an individual ac-
count plan, be paid in a single sum (plus 
interest) or in such other form as is speci-
fied in regulations of the corporation, or 
‘‘(ii) in the case of a defined benefit 
plan, be paid— 
‘‘(I) in an amount based on the 
designated benefit and the assump-
114 
tions prescribed by the corporation at 
the time that the corporation received 
the benefit, and 
‘‘(II) in a form determined under 
regulations of the corporation. 
‘‘(5) NOTICE.—Any transfer of unclaimed bene-
fits of a participant or beneficiary to the corporation 
pursuant to this subsection may occur only after 
reasonable advance notice of such transfer is pro-
vided by the plan administrator to the participant or 
beneficiary. The plan administrator shall also pro-
vide to the participant or beneficiary notice of any 
such transfer not later than 30 days after the date 
of the transfer. Notice mailed to the last known ad-
dress of the participant or beneficiary shall be treat-
ed as a notice to the participant or beneficiary for 
purposes of this paragraph. Any such notice shall in-
clude information regarding procedures for obtaining 
the distribution of benefits from the corporation in 
accordance with paragraph (4). 
‘‘(6) PLANS DESCRIBED.—A plan is described 
in this paragraph if the plan is a pension plan (with-
in the meaning of section 3(2)— 
‘‘(A)(i) which has neither terminated nor is 
in the process of terminating, or
115 
‘‘(ii) in the case of an unclaimed benefit to 
which section 401(a)(31)(B) of the Internal 
Revenue Code of 1986 applies (other than an 
unclaimed benefit of a missing participant), 
which has terminated or is in the process of ter-
minating, and 
‘‘(B) which is not a plan described in para-
graphs (2) through (11) of section 4021(b). 
‘‘(7) CERTAIN PROVISIONS NOT TO APPLY.— 
Subsection (a) shall not apply to a plan described in 
paragraph (6).’’. 
(2) UNCLAIMED
BENEFIT
DEFINED.—Sub-
section (f) of section 4050 of such Act (as redesig-
nated by subsection (a)(1)) is amended by adding at 
the end the following paragraph: 
‘‘(3) UNCLAIMED
BENEFIT.—The term ‘un-
claimed benefit’ means— 
‘‘(A) any benefit of a participant or bene-
ficiary which is distributable under the terms of 
the plan to the participant or beneficiary, if the 
distribution of the benefit has not commenced 
within 1 year after the later of the date on 
which the benefit first became so distributable 
or the participant’s severance from employment;
116 
‘‘(B) any benefit or other amount of a par-
ticipant or beneficiary which is distributable 
under the terms of the plan with respect to a 
missing participant, or 
‘‘(C) 
any 
benefit 
to 
which 
section 
401(a)(31)(B) of the Internal Revenue Code of 
1986 applies or would apply if subclause (I) of 
section 401(a)(31)(B)(i) of such Code did not 
require the distribution to exceed $1,000. 
A benefit otherwise described in subparagraph (A) 
shall not be treated as an unclaimed benefit under 
subparagraph (A) if the participant or beneficiary 
elects not to have such treatment apply. Any such 
participant or beneficiary shall be given reasonable 
notice of the opportunity to make such an election. 
If the participant or beneficiary fails to make such 
an election within a reasonable period specified in 
the notice, any subsequent election shall not be given 
effect and the benefit shall be treated as an un-
claimed benefit. A notice mailed to the last known 
address of the participant or beneficiary shall be 
treated as a notice to the participant or beneficiary 
for purposes of this paragraph.’’. 
(3) 
CONFORMING
AMENDMENT.—Section 
4021(b) of such Act (29 U.S.C. 1321(b)(1)) is
117 
amended by striking ‘‘This’’ and inserting ‘‘Except 
to the extent provided in subsections (c) and (d) of 
section 4050, this’’. 
(c) TREATMENT OF TRANSFERRED ASSETS.—Sec-
tion 4050 of such Act (as amended by the preceding provi-
sions of this section) is amended further— 
(1) in subsection (a), by striking paragraph (2) 
and redesignating paragraph (3) as paragraph (2); 
and 
(2) by inserting after subsection (d) the fol-
lowing new subsection: 
‘‘(e) TREATMENT
OF TRANSFERRED ASSETS.—A 
transfer to the corporation under this section shall be 
treated as a transfer of assets from a terminated plan to 
the corporation as trustee, and shall be held with assets 
of terminated plans for which the corporation is trustee 
under section 4042, subject to the rules set forth in that 
section.’’. 
(d) ESCHEAT LAWS SUPERSEDED.—Section 514(b) 
of such Act (29 U.S.C. 1144(b)) is amended— 
(1) by redesignating paragraph (9) as para-
graph (10), and 
(2) by inserting after paragraph (8) the fol-
lowing new paragraph:
118 
‘‘(9) Any escheat or similar law of any State 
shall be superseded to the extent inconsistent with 
any transfer or other treatment of unclaimed bene-
fits (as defined in section 4050(e)(3)) permitted 
under section 4050(d).’’. 
(e) EFFECTIVE DATES AND RELATED RULES.— 
(1) IN GENERAL.—The amendments made by 
subsection (a) shall apply to terminations occurring 
after December 31, 2005. the amendments made by 
subsections (b) and (c) shall apply with respect to 
transfers occurring after such date. The amend-
ments made by subsection (d) shall apply with re-
spect to transfers or treatment of unclaimed benefits 
occurring after such date. 
(2) REGULATIONS.—The Pension Benefit Guar-
anty Corporation shall issue regulations necessary to 
carry out the amendments made by this section not 
later than December 31, 2005. 
SEC. 413. FIDUCIARY DUTIES WITH RESPECT TO CHANGES 
IN INVESTMENT OPTIONS. 
(a) IN GENERAL.—Section 404(c) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1104(c)) is amended—
119 
(1) by adjusting the margination of paragraphs 
(2) and (3) so as to align them with paragraph (1); 
and 
(2) by adding at the end the following new 
paragraph: 
‘‘(4) 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 
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. OFFICE OF PENSION PARTICIPANT ADVOCACY. 
(a) IN GENERAL.—Title III of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 3001 et 
seq.) is amended by adding at the end the following:
120 
‘‘Subtitle D—Office of Pension 
Participant Advocacy 
‘‘SEC. 3051. OFFICE OF PENSION PARTICIPANT ADVOCACY. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN GENERAL.—There is established in the 
Department of Labor an office to be known as the 
‘Office of Pension Participant Advocacy’. 
‘‘(2) PENSION
PARTICIPANT
ADVOCATE.—The 
Office of Pension Participant Advocacy shall be 
under the supervision and direction of an official to 
be known as the ‘Pension Participant Advocate’ who 
shall— 
‘‘(A) have demonstrated experience in the 
area of pension participant assistance, and 
‘‘(B) be selected by the Secretary after 
consultation with pension participant advocacy 
organizations. 
The Pension Participant Advocate shall report di-
rectly to the Secretary and shall be entitled to com-
pensation at the same rate as the highest rate of 
basic pay established for the Senior Executive Serv-
ice under section 5382 of title 5, United States 
Code. 
‘‘(b) FUNCTIONS OF OFFICE.—It shall be the func-
tion of the Office of Pension Participant Advocacy to—
121 
‘‘(1) assist participants and beneficiaries in un-
derstanding their rights to benefits under employee 
benefit plans, and, to the extent feasible, assist par-
ticipants in obtaining such benefits, 
‘‘(2) evaluate the efforts of the Federal Govern-
ment, business, and financial, professional, retiree, 
labor, women’s, and other appropriate organizations 
in assisting and protecting pension plan participants, 
including— 
‘‘(A) serving as a focal point for, and ac-
tively seeking out, the receipt of information 
with respect to the policies and activities of the 
Federal Government, business, and such organi-
zations which affect such participants, 
‘‘(B) identifying significant problems for 
pension plan participants and the capabilities of 
the Federal Government, business, and such or-
ganizations to address such problems, and 
‘‘(C) developing proposals for changes in 
such policies and activities to correct such prob-
lems, and communicating such changes to the 
appropriate officials, 
‘‘(3) promote the expansion of pension plan cov-
erage and the receipt of promised benefits by in-
creasing the awareness of the general public of the
122 
value of pension plans and by protecting the rights 
of pension plan participants, including— 
‘‘(A) enlisting the cooperation of the public 
and private sectors in disseminating informa-
tion, and 
‘‘(B) forming private-public partnerships 
and other efforts to assist pension plan partici-
pants in receiving their benefits, 
‘‘(4) advocate for the full attainment of the 
rights of pension plan participants, including by 
making pension plan sponsors and fiduciaries aware 
of their responsibilities, 
‘‘(5) give priority to the special needs of low 
and moderate income participants, and 
‘‘(6) develop needed information with respect to 
pension plans, including information on the types of 
existing pension plans, levels of employer and em-
ployee contributions, vesting status, accumulated 
benefits, benefits received, and forms of benefits. 
‘‘(c) REPORTS.— 
‘‘(1) ANNUAL REPORT.—Not later than Decem-
ber 31 of each calendar year, the Pension Partici-
pant Advocate shall report to the Committees on 
Education and the Workforce and Ways and Means 
of the House of Representatives and the Committees
123 
on Health, Education, Labor, and Pensions and Fi-
nance of the Senate on its activities during the fiscal 
year ending in the calendar year. Such report 
shall— 
‘‘(A) identify significant problems the Ad-
vocate has identified, 
‘‘(B) include specific legislative and regu-
latory changes to address the problems, and 
‘‘(C) identify any actions taken to correct 
problems identified in any previous report. 
The Advocate shall submit a copy of such report to 
the Secretary and any other appropriate official at 
the same time it is submitted to the committees of 
Congress. 
‘‘(2) SPECIFIC REPORTS.—The Pension Partici-
pant Advocate shall report to the Secretary or any 
other appropriate official any time the Advocate 
identifies a problem which may be corrected by the 
Secretary or such official. 
‘‘(3) REPORTS TO BE SUBMITTED DIRECTLY.— 
The report required under paragraph (1) shall be 
provided directly to the committees of Congress 
without any prior review or comment by the Sec-
retary or any other Federal officer or employee. 
‘‘(d) SPECIFIC POWERS.—
124 
‘‘(1) RECEIPT
OF
INFORMATION.—Subject to 
such confidentiality requirements as may be appro-
priate, the Secretary and other Federal officials 
shall, upon request, provide such information (in-
cluding plan documents) as may be necessary to en-
able the Pension Participant Advocate to carry out 
the Advocate’s responsibilities under this section. 
‘‘(2) APPEARANCES.—The Pension Participant 
Advocate may represent the views and interests of 
pension plan participants before any Federal agency, 
including, upon request of a participant, in any pro-
ceeding involving the participant. 
‘‘(3) CONTRACTING
AUTHORITY.—In carrying 
out responsibilities under subsection (b)(5), the Pen-
sion Participant Advocate may, in addition to any 
other authority provided by law— 
‘‘(A) contract with any person to acquire 
statistical information with respect to pension 
plan participants, and 
‘‘(B) conduct direct surveys of pension 
plan participants.’’. 
(b) CONFORMING AMENDMENT.—The table of con-
tents for title III of such Act is amended by adding at 
the end the following:
125 
‘‘Subtitle C—Office of Pension Participant Advocacy 
‘‘3051. Office of Pension Participant Advocacy.’’. 
(c) EFFECTIVE DATE AND TRANSITION RULES.— 
(1) EFFECTIVE DATE.—The amendment made 
by this section shall take effect on January 1, 2005. 
(2) ABOLISHMENT OF THE OFFICE OF PARTICI-
PANT ASSISTANCE AND COMMUNICATIONS AND RE-
LATED
TRANSITION
RULES.—Effective January 1, 
2005, the Office of Participant Assistance and Com-
munications in the Department of Labor is abol-
ished, and the Secretary of Labor shall provide for 
the transfer, as appropriate, of the functions and 
personnel of such Office to the Office of Pension 
Participant Advocacy established under subtitle D of 
title III of the Employee Retirement Income Secu-
rity Act of 1974 (as added by this Act). 
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
126 
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.’’. 
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 105 and 201) is amended further 
by adding at the end the following new subsection: 
‘‘(i) 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—
127 
‘‘(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— 
‘‘(A) which by its terms requires interest 
on the loan to accrue not less frequently than 
monthly, 
‘‘(B) which by its terms requires— 
‘‘(i) repayment to begin not later than 
18 months after the date of the loan, and 
‘‘(ii) repayment in full not later the 
date which is 36 months after the date of 
the loan, and 
‘‘(C) which bears interest from the date of 
the loan at a rate not less than 2 percentage 
points below, and not more than 2 percentage 
points above, the rate for comparable United 
States Treasury obligations on such date. 
‘‘(3) LIMITATION ON AMOUNT OF LOANS.—The 
aggregate amount of borrowings for a plan year 
shall not exceed the sum of the amount of accruals 
(other than contributions) during the plan year prior 
to the plan year in which the loan is made.