I 
111TH CONGRESS 
1ST SESSION H. R. 1984 
To amend title I of the Employee Retirement Income Security Act of 1974 
to provide special reporting and disclosure rules for individual account 
plans and to provide a minimum investment option requirement for 
such plans. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 21, 2009 
Mr. GEORGE MILLER of California (for himself, Mr. ANDREWS, Ms. WOOL-
SEY, Mr. SABLAN, Mr. GRIJALVA, Ms. HIRONO, Ms. CLARKE, Mr. HARE, 
Mrs. DAVIS of California, and Mr. KILDEE) introduced the following bill; 
which was referred to the Committee on Education and Labor 
A BILL 
To amend title I of the Employee Retirement Income Secu-
rity Act of 1974 to provide special reporting and disclo-
sure rules for individual account plans and to provide 
a minimum investment option requirement for such 
plans. 
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 ‘‘401(k) Fair Disclosure 
for Retirement Security Act of 2009’’. 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
SEC. 2. SPECIAL REPORTING AND DISCLOSURE RULES FOR 
INDIVIDUAL ACCOUNT PLANS. 
(a) ADDITIONAL
REPORTING
AND
DISCLOSURE 
RULES.—Part 1 of subtitle B of title I of the Employee 
Retirement Income Security Act of 1974 is amended— 
(1) by redesignating section 111 (29 U.S.C. 
1031) as section 112; and 
(2) by inserting after section 110 (29 U.S.C. 
1030) the following new section: 
‘‘SEC. 111. SPECIAL REPORTING AND DISCLOSURE RULES 
FOR INDIVIDUAL ACCOUNT PLANS. 
‘‘(a) DISCLOSURE TO EMPLOYERS SPONSORING INDI-
VIDUAL ACCOUNT PLANS REGARDING SERVICES NEC-
ESSARY
FOR
ESTABLISHMENT
OR
OPERATION
OF 
PLANS.— 
‘‘(1) SERVICE DISCLOSURE STATEMENT.—The 
plan administrator of an individual account plan (or 
any other plan official with contracting authority 
under the terms of the plan) and any other person 
may not enter into a contract for services to the 
plan (including, for purposes of this section, the of-
fering of any investment option to the plan) unless 
such plan administrator or other official has re-
ceived, not less than 10 business days in advance of 
entering into the contract, a single written statement 
from such person which— 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
‘‘(A) describes such services for the plan 
that will be provided in connection with the con-
tract, and 
‘‘(B) provides the expected total annual 
charges for such services for the plan that will 
be provided in connection with the contract, in-
cluding a reasonable allocation of such total an-
nual charges among all relevant component 
charges specified in paragraph (2) (regardless 
of how the charges are actually assessed). 
The description of the services and the charges for 
the services shall be displayed prominently in the 
written statement and shall be presented in a format 
which is understandable to the typical plan adminis-
trator. 
‘‘(2) MINIMUM ALLOCATION REQUIREMENTS.— 
The allocation required under paragraph (1)(B) in 
connection with the services provided under each 
contract shall specify component charges (to the ex-
tent such services for the plan are provided under 
the contract) as follows: 
‘‘(A) charges for administration and rec-
ordkeeping, 
‘‘(B) transaction-based charges, 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
‘‘(C) charges for investment management, 
and 
‘‘(D) all such charges not described in sub-
paragraph (A), (B), or (C) as may be specified 
by the Secretary. 
‘‘(3) PRESENTATION OF CHARGES.—The total 
charges described in paragraph (2)(A) and the total 
charges described in paragraph (2)(C) shall each be 
presented in the written statement as an aggregate 
total dollar amount, and, in addition, each of such 
total charges may also be presented as a percentage 
of assets. The charges described in paragraph (2)(B) 
shall be itemized separately as dollar amounts or as 
percentages of the applicable base amounts. 
‘‘(4) ESTIMATIONS.—For purposes of providing 
the statement required under this subsection in con-
nection with any service, the service provider may 
provide a reasonable and representative estimate of 
the charges required to be disclosed under para-
graph (1)(B) and shall indicate any such estimate as 
being such an estimate. Any such estimate shall be 
based on the previous year’s experience of the plan 
or, in the case of a new plan, the previous year’s ex-
perience of a comparable plan with participants and 
beneficiaries of similar demographics. 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
‘‘(5) RELIANCE.—To the extent any of the in-
formation required to be disclosed by a service pro-
vider under this subsection is given to the service 
provider by an unaffiliated person which is regulated 
by the Federal Government or a State, the service 
provider may rely on the completeness and accuracy 
of such information unless the service provider— 
‘‘(A) knows that the information is inac-
curate or incomplete, 
‘‘(B) has reason to know that the informa-
tion is inaccurate or incomplete, or 
‘‘(C) has notice of facts or information 
that would prompt a reasonable service provider 
to inquire into the accuracy or completeness of 
the information. 
‘‘(6) DISCLOSURE
OF
FINANCIAL
RELATION-
SHIPS.— 
‘‘(A) IN
GENERAL.—The statement re-
quired under paragraph (1) shall include a writ-
ten disclosure of— 
‘‘(i) any payment provided (or the 
amount representing the value of any serv-
ices provided) to the service provider (or 
any affiliate thereof) pursuant to, or in 
connection with, the contract described in 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
‘‘(ii) the investment objectives and 
principal investment strategies of the op-
tion, 
‘‘(iii) the risk level associated with the 
option, 
‘‘(iv) whether the option is diversified 
among various classes of assets so as to 
minimize the risk of large losses or should 
be combined with other options so as to 
obtain such diversification, 
‘‘(v) whether the investment option is 
actively managed or passively managed in 
relation to an index and the difference be-
tween active management and passive 
management, 
‘‘(vi) where, and the manner in which, 
additional 
plan-specific, 
option-specific, 
and generally available investment infor-
mation regarding the option may be ob-
tained, and 
‘‘(vii) a statement explaining that in-
vestment options should not be evaluated 
solely on the basis of the charges for each 
option but should also be based on careful 
consideration of other key factors, includ-
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
ing the risk level of the option, the invest-
ment objectives of the option, the principal 
investment strategies of the option, and 
historical returns derived by the option, 
and 
‘‘(C) include a plan fee comparison chart, 
relating to the charges described in paragraph 
(3) in connection with all investment options 
available under the plan, as provided in para-
graph (3). 
‘‘(3) PLAN FEE COMPARISON CHART.— 
‘‘(A) IN GENERAL.— 
‘‘(i) IN
GENERAL.—The notice pro-
vided under this subsection shall include a 
plan fee comparison chart consisting of a 
comparison of actual service and invest-
ment charges (including, for purposes of 
this clause, charges for the offering of an 
investment option) that will or could be as-
sessed against the account of the partici-
pant or beneficiary with respect to the plan 
year. The plan fee comparison chart shall 
be presented in a manner which is easily 
understood by the typical participant and 
include such information as the Secretary 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
determines necessary to permit partici-
pants and beneficiaries to assess the serv-
ices for which charges will or could be as-
sessed against the account. 
‘‘(ii) FORM.—For purposes of this 
paragraph, the potential service charges 
shall be provided in the form of a dollar 
amount and may also be provided, in addi-
tion, as a percentage of assets. The form 
of the potential service charges shall be 
presented in a manner which is easily un-
derstandable by the typical participant, in-
cluding examples that demonstrate how the 
charges will be assessed against the ac-
count of the participant or beneficiary. 
‘‘(B) CATEGORIZATION OF CHARGES.—The 
plan fee comparison chart shall provide infor-
mation in relation to 4 categories of charges 
that will or could be assessed against the ac-
count of the participant or beneficiary, as fol-
lows: 
‘‘(i) ASSET-BASED CHARGES SPECIFIC 
TO INVESTMENT.—Charges that vary de-
pending on the investment options selected 
by the participant or beneficiary, including 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
expense 
ratios 
and 
investment-specific 
asset-based charges. The information relat-
ing to such charges shall include a state-
ment noting any charges for 1 or more in-
vestment options which pay for services 
other than investment management. 
‘‘(ii) ASSET-BASED
CHARGES
NOT 
SPECIFIC TO INVESTMENT.—Charges that 
are assessed as a percentage of the total 
assets in the account of the participant or 
beneficiary, regardless of the investment 
option selected. 
‘‘(iii) ADMINISTRATIVE
AND
TRANS-
ACTION-BASED
CHARGES.—Administration 
and transaction-based charges, including 
fees charged to participants to cover plan 
administration, compliance, and record-
keeping costs, plan loan origination fees, 
possible redemption fees, and possible sur-
render charges, that are not assessed as a 
percentage of the total assets in the ac-
count and are either automatically de-
ducted each year or result from certain 
transactions engaged in by the participant 
or beneficiary. 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
‘‘(iv) OTHER
CHARGES.—Any other 
charges which may be deducted from par-
ticipants’ or beneficiaries’ accounts and 
which are not described in clauses (i), (ii), 
and (iii). 
‘‘(C) DESCRIPTION
OF
PURPOSE
FOR 
CHARGES.—The notice shall indicate the extent 
to which each charge is for investment manage-
ment, transactions, plan administration and 
recordkeeping, or other identified services. 
‘‘(D) FEES AND HISTORICAL RETURNS.— 
In connection with each investment option listed 
in the plan fee comparison chart, the chart 
shall include the amounts of the fees assessed 
in connection with such option and a history of 
the returns derived net of fees and expenses. 
Any such history shall be for the previous year, 
5 years, and 10 years (or since inception if 
later). 
‘‘(4) MODEL NOTICE.—The Secretary shall pre-
scribe a model notice that may be used for purposes 
of satisfying the requirements of this subsection, in-
cluding a model plan fee comparison chart. 
‘‘(5) ESTIMATIONS.—For purposes of providing 
the notice required under this subsection, the plan 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
administrator may provide a reasonable and rep-
resentative estimate for any charges or percentages 
disclosed under paragraph (2) or (3) and shall indi-
cate any such estimate as being such an estimate. 
Any such estimate shall be based on the previous 
year’s experience or, in the case of a new plan, the 
previous year’s experience of a comparable plan with 
participants and beneficiaries of similar demo-
graphics. 
‘‘(c) ELECTRONIC MEDIA.—Any disclosure required 
under this section may be provided through an electronic 
medium under rules prescribed by the Secretary. Such 
rules shall be similar to those applicable under the Inter-
nal Revenue Code of 1986 with respect to notices to par-
ticipants in pension plans. The Secretary shall have the 
authority to modify such rules as appropriate to take into 
account new developments, including new forms of elec-
tronic media. The rules prescribed by the Secretary pursu-
ant to this subsection shall provide for a method for the 
typical participant or beneficiary to obtain without undue 
burden any such disclosure in writing on paper in lieu of 
receipt through an electronic medium. 
‘‘(d) REGULATIONS REGARDING CERTAIN PROD-
UCTS.—The Secretary shall prescribe regulations identi-
fying (and establishing separate rules, if necessary, to 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
identify) any investment options that provide a guaranteed 
rate of return and that do not identify specific fees. 
‘‘(e) DEFINITIONS.—For purposes of this section— 
‘‘(1) CHARGE.—The term ‘charge’ means, in 
connection with any service provided to a plan or 
any financial product provided to the plan in which 
plan assets are to be invested, any fee, credit, or 
other compensation charged or paid for such service 
or product, including money and any other thing of 
monetary value to be received by the provider of the 
service or product, or its affiliate, in connection with 
the service or product. 
‘‘(2) SERVICE.—The term ‘service’ means, in 
connection with a plan, a service provided directly or 
indirectly to, or with respect to, the plan or a service 
provided directly or indirectly in connection with a 
financial product in which plan assets are to be in-
vested. 
‘‘(3) CONTRACT.—The term ‘contract’ means, 
in connection with any 2 or more parties, any con-
tract or arrangement entered into between or among 
such parties, and any extension or renewal thereof. 
‘‘(4) SERVICE PROVIDER.—The terms ‘service 
provider’ and ‘provider’ mean, in connection with a 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
service, a person directly or indirectly providing such 
service. 
‘‘(5) REGULATIONS.—The Secretary shall pro-
vide by regulation definitions of other terms used in 
this section.’’. 
(b) QUARTERLY BENEFIT STATEMENTS.—Section 
105 of such Act (29 U.S.C. 1025) is amended— 
(1) in subsection (a)(2)— 
(A) by redesignating subparagraph (C) as 
subparagraph (H); 
(B) in subparagraph (B)(ii)— 
(i) in subclause (II), by striking ‘‘di-
versified, and’’ and inserting ‘‘diversified,’’; 
(ii) in subclause (III), by striking the 
period and inserting ‘‘, and’’; and 
(iii) by adding after subclause (III) 
the following new subclause: 
‘‘(IV) with respect to the portion of a 
participant’s account for which the partici-
pant has the right to direct the investment 
of assets, the information described in sub-
paragraph (C).’’; and 
(C) by inserting after subparagraph (B) 
the following new subparagraphs: 
VerDate Nov 24 2008 
01:46 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
‘‘(C) PERIODIC
ACCOUNT
INFORMATION 
FOR PARTICIPANTS AND BENEFICIARIES.—For 
purposes of subparagraph (B)(ii)(IV), the infor-
mation described in this subparagraph consists 
of the following, indicating the portion of each 
amount described in clauses (i) though (vii) at-
tributable to each investment option elected in 
connection with the participant’s account: 
‘‘(i) the starting balance of the par-
ticipant’s account, 
‘‘(ii) contributions made during the 
quarter, itemizing separately totals for em-
ployer and totals for employee contribu-
tions, 
‘‘(iii) investment earnings or losses on 
the account balance during the quarter (if 
any), 
‘‘(iv) actual or estimated charges 
(within the meaning of section 111(e)(1)) 
which reduce the account during the quar-
ter, expressed in dollars or, if estimated, 
such estimated dollar charges as derived 
from an expense ratio (which may be ex-
pressed as a specific date estimate based 
on the previous year’s expense ratio), 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
‘‘(v) any other charges to the partici-
pant or beneficiary in connection with the 
participant’s account, 
‘‘(vi) the ending balance of the ac-
count, 
‘‘(vii) the participant’s asset allocation 
to each investment option, including the 
net return, expressed as an amount and as 
a percentage, and 
‘‘(viii) how to obtain the most recently 
updated version of the plan fee comparison 
chart prepared for purposes of section 
111(b)(3). 
‘‘(D) OTHER INFORMATION.—The plan ad-
ministrator may include in the quarterly pen-
sion benefit statement information relating to 
the historical return and risk of each invest-
ment option and the estimated amount that the 
participant needs to contribute each month or 
year so as to retire at retirement age (as de-
fined in section 216(l) of the Social Security 
Act). 
‘‘(E) 
ESTIMATIONS.—For 
purposes 
of 
making the disclosure of actual charges or per-
centages as required under this paragraph, the 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
plan administrator may provide a reasonable 
and representative estimate of such charges or 
percentages and shall indicate any such esti-
mate as being such an estimate. Any such esti-
mate shall be based on the previous year’s expe-
rience. 
‘‘(F) MODEL STATEMENT.—The Secretary 
shall prescribe a model pension benefit state-
ment that may be used for purposes of satis-
fying the requirements of this subparagraph 
and subparagraph (B)(ii). 
‘‘(G) ANNUAL
COMPLIANCE
FOR
SMALL 
PLANS AND WITH RESPECT TO CERTAIN INFOR-
MATION.—In the case of a plan providing for 
investment 
as 
described 
in 
paragraph 
(1)(A)(i)— 
‘‘(i) if the plan has 100 or fewer par-
ticipants and beneficiaries, the plan may 
provide the pension benefit statement 
under paragraph (1) on an annual rather 
than a quarterly basis, and 
‘‘(ii) the plan may comply with the re-
quirements of subparagraph (B)(ii)(IV) on 
an annual rather than a quarterly basis.’’; 
and 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
(2) by adding at the end the following new sub-
sections: 
‘‘(d) ASSISTANCE TO SMALL EMPLOYERS.—The Sec-
retary shall make available to employers with 100 or fewer 
employees— 
‘‘(1) educational and compliance materials de-
signed to assist such employers in selecting and 
monitoring service providers for individual account 
plans which permit a participant or beneficiary to 
exercise control over the assets in the account of the 
participant or beneficiary, investment options under 
such plans, and charges relating to such options, 
and 
‘‘(2) services designed to assist such employers 
in finding and understanding affordable investment 
options for such plans and in comparing the invest-
ment performance of, and charges for, such options 
on an ongoing basis against appropriate benchmarks 
or other appropriate measures. 
‘‘(e) ASSISTANCE TO PLAN SPONSORS AND PLAN 
PARTICIPANTS AND BENEFICIARIES.—The Secretary shall 
provide assistance to plan sponsors of individual account 
plans and participants and beneficiaries under such plans 
with any questions or problems regarding compliance with 
the requirements of this section. 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
‘‘(f) ELECTRONIC MEDIA.—Any disclosure required 
under this section may be provided through an electronic 
medium under rules prescribed by the Secretary. Such 
rules shall be similar to those applicable under the Inter-
nal Revenue Code of 1986 with respect to notices to par-
ticipants in pension plans. The Secretary shall have the 
authority to modify such rules as appropriate to take into 
account new developments, including new forms of elec-
tronic media. The rules prescribed by the Secretary pursu-
ant to this subsection shall provide for a method for the 
typical participant or beneficiary to obtain without undue 
burden any such disclosure in writing on paper in lieu of 
receipt through an electronic medium.’’. 
(c) ENFORCEMENT.—Section 502(c)(7) of such Act 
(29 U.S.C. 1132(c)(7)) is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(7)’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(B)(i) In the case of any violation of section 111(a) 
by a service provider (as defined in section 111(e)(4)) with 
respect to one or more participants and beneficiaries, the 
service provider shall be assessed by the Secretary a civil 
penalty of up to $1,000 a day with respect to each such 
participant or beneficiary from the date of the initial viola-
tion until the date on which such violation is corrected, 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
subject to a total maximum penalty of 10 percent of the 
amount involved. 
‘‘(ii) Any plan administrator or other person who is 
a service provider with respect to the plan who fails or 
refuses to provide a statement to participants and bene-
ficiaries in accordance with section 105(a)(2)(B)(ii) or 
111(b) shall be assessed by the Secretary a civil penalty 
of up to $100 a day from the date of the failure or refusal 
to the date on which such statement or notice is so pro-
vided. 
‘‘(iii) For purposes of this subparagraph, each viola-
tion with respect to any single participant, beneficiary, or 
plan administrator shall be treated as a separate violation. 
The Secretary may compromise, modify, or remit any civil 
penalty imposed on any person under this subparagraph 
if the Secretary determines— 
‘‘(I) that the person acted reasonably and in 
good faith or that severe financial hardship would 
otherwise occur to the plan sponsor, and 
‘‘(II) that such compromise, modification, or re-
mission is in the interests of participants and bene-
ficiaries.’’. 
(d) CONFORMING AMENDMENT.—The table of con-
tents in section 1 of such Act, as amended by section 2, 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
is amended by striking the item relating to section 111 
and inserting the following new items: 
‘‘Sec. 111. Special reporting and disclosure rules for individual account plans. 
‘‘Sec. 112. Repeal and effective date.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contracts for services entered 
into in plan years beginning after one year after the date 
of the enactment of this Act. 
SEC. 3. MINIMUM INVESTMENT OPTION REQUIREMENT 
FOR INDIVIDUAL ACCOUNT PLANS. 
(a) IN GENERAL.—Section 404(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: 
‘‘(6) MINIMUM INVESTMENT OPTION REQUIRE-
MENT
FOR
INDIVIDUAL
ACCOUNT
PLANS.—Para-
graph (1)(A)(ii) shall not apply in connection with 
any individual account plan which permits a partici-
pant or beneficiary to exercise control over the as-
sets in the account of the participant or beneficiary 
unless the plan includes at least one investment op-
tion— 
‘‘(A) which is an unmanaged or passively 
managed mutual fund with a portfolio of securi-
ties designed to substantially match the per-
formance of the entire United States equity 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
market or the entire United States bond mar-
ket, or a combination thereof, 
‘‘(B) which offers a combination of histor-
ical returns, risk, and charges (within the 
meaning of section 111(e)(1)) that is likely to 
meet retirement income needs at adequate lev-
els of contribution, and 
‘‘(C) which is described in the terms of the 
plan as offered without any endorsement of the 
Government or the plan sponsor.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
404(c)(1)(A)(ii) of such Act (29 U.S.C. 1104(c)(1)(A)(ii)) 
is amended by inserting ‘‘except as provided in section 
404(c)(6) and’’ after ‘‘exercise of control,’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to plan years begin-
ning after one year after the date of the enactment of this 
Act. 
SEC. 4. ENFORCEMENT COORDINATION AND REVIEW BY 
THE DEPARTMENT OF LABOR. 
(a) IN GENERAL.—Section 502 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1132) 
is amended by adding at the end the following new sub-
section: 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
‘‘(n) ENFORCEMENT COORDINATION
OF CERTAIN 
DISCLOSURE REQUIREMENTS AND REVIEW BY THE DE-
PARTMENT OF LABOR.— 
‘‘(1) IN GENERAL.— 
‘‘(A) NOTIFICATION
AND
ACTION.—The 
Secretary shall notify the applicable regulatory 
authority in any case in which the Secretary de-
termines that a service provider is engaged in 
a pattern or practice that precludes compliance 
by plan administrators with section 111. The 
Secretary shall, in consultation with the appli-
cable authority, take such timely enforcement 
action under this title as is necessary to assure 
that such pattern or practice ceases and desists 
and assess any appropriate penalties. 
‘‘(B) 
DISSEMINATION.—The 
Secretary 
shall widely disseminate to employee pension 
benefit plans covered by this title and their par-
ticipants and beneficiaries the identity of any 
service providers with respect to such plans 
found to be engaged in any pattern or practice 
described in subparagraph (A) with the intent 
to preclude compliance by plan administrators 
with section 111 and the particulars of such 
pattern or practice. Prior to the dissemination 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
of the identity of any service providers identi-
fied and determined by the Secretary to be en-
gaged in such a pattern or practice, such serv-
ice provider shall receive a notice of intent to 
disseminate, an opportunity to request an ad-
ministrative hearing, and a timely appeal to the 
Secretary. 
‘‘(2) ANNUAL AUDIT OF REPRESENTATIVE SAM-
PLING OF INDIVIDUAL ACCOUNT PLANS.—The Sec-
retary shall annually audit a representative sampling 
of individual account plans covered by this title to 
determine compliance with the requirements of sec-
tion 111. The Secretary shall annually report the re-
sults of such audit and any related recommendations 
of the Secretary to the Committee on Education and 
Labor of the House of Representatives and the Com-
mittee on Health, Education, Labor, and Pensions 
of the Senate.’’. 
(b) REVIEW AND REPORT TO THE CONGRESS BY 
SECRETARY OF LABOR RELATING TO REPORTING AND 
DISCLOSURE REQUIREMENTS.— 
(1) STUDY.—As soon as practicable after the 
date of the enactment of this Act, the Secretary of 
Labor shall review the reporting and disclosure re-
quirements of part 1 of subtitle B of title I of the 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS
Employee Retirement Income Security Act of 1974 
and related provisions of the Pension Protection Act 
of 2006. 
(2) REPORT.—Not later than 18 months after 
the date of the enactment of this Act, the Secretary 
of Labor, in consultation with the Secretary of the 
Treasury, shall make such recommendations as the 
Secretary of Labor considers appropriate to the ap-
propriate committees of the Congress to consolidate, 
simplify, standardize, and improve the applicable re-
porting and disclosure requirements so as to simplify 
reporting for employee pension benefit plans and en-
sure that needed understandable information is pro-
vided to participants and beneficiaries of such plans. 
Æ 
VerDate Nov 24 2008 
22:34 Apr 22, 2009
Jkt 079200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6301
E:\BILLS\H1984.IH
H1984
mstockstill on PROD1PC66 with BILLS