A bill to provide information and advice to pension plan participants to assist them in making decisions regarding the investment of their pension plan assets, and for other purposes.

SECTION 1. NOTICE OF HIGH CONCENTRATION OF PENSION ASSETS IN EMPLOYER 
              SECURITIES.

    (a) In General.--Section 105 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1025) in amended by adding at the end 
of the following new subsection:
    ``(e) Notice of High Concentration of Plan Assets In Employer 
Securities.--
            ``(1) In general.--In the case of an individual account 
        plan to which this subsection applies, if the percentage of 
        assets in the individual account that consists of employer 
        securities and employer real property exceeds 50 percent of the 
        total account, the plan administrator shall include with the 
        account statement a notice that the account may be overinvested 
        in employer securities and employer real property. Any 
        determination under this paragraph shall be made as of the most 
        recent valuation date under the plan.
            ``(2) Exclusion of assets held through pooled investment 
        vehicles.--Employer securities and employer real property held 
        through an investment option of the plan which is not designed 
        to invest primarily in employer securities or employer real 
        property shall not be taken under paragraph (1) is determining 
        the percentage of assets that consist of employer securities 
        and employer real property.
            ``(3) Application.--
                    ``(A) In general.--This subsection shall apply to 
                any individual account plan which--
                            ``(i) holds employer securities which are 
                        readily tradable on an established securities 
                        market, and
                            ``(ii) permits a participant or beneficiary 
                        to exercise control over assets in the 
                        individual's account.
                    ``(B) Exception for esops.--This subsection shall 
                not apply to an employee stock ownership plan (as 
                defined in section 4795(e)(7)) of the Internal Revenue 
                Code of 1986) if the plan has no contributions which 
                are subject to section 401 (k) or (m) of such Code.
            ``(4) Employer securities and real property.--For purposes 
        of this subsection, the terms `employer securities' and 
        `employer real property' have the meanings given such terms by 
        paragraphs (1) and (2) of section 407(d), respectively.''
    (b) Penalty.--Section 502 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1132) is amended--
            (1) in subsection (a)(6), by striking ``(6), or (7)'' and 
        inserting ``(6), (7), or (8)'',
            (2) by redesignating paragraph (8) of subsection (c) as 
        paragraph (9), and
            (3) by inserting after paragraph (7) the following new 
        paragraph:
            ``(8) The Secretary may assess a civil penalty against a 
        plan administrator of up to $100 a day from the date of the 
        plan administrator's failure or refusal to provide notice to 
        participants and beneficiaries in accordance with section 
        105(e). For purposes of this paragraph, each violation with 
        respect to any single participant or beneficiary shall be 
        treated as a separate violation.''
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2002.

SEC. 2. TREATMENT OF QUALIFIED RETIREMENT PLANNING SERVICES.

    (a) In General.--Subsection (m) of section 132 of the Internal 
Revenue Code of 1986 (defining qualified retirement services) is 
amended by redesignating paragraphs (2) and (3) as paragraphs (5) and 
(6), respectively, and by inserting after paragraph (1) the following:
            ``(2) Limitations.--
                    ``(A) Dollar limitation.--The aggregate amount 
                which may be excluded with respect to qualified 
                retirement planning services provided to any individual 
                during a taxable year shall not exceed $1,500.
                    ``(B) Adjusted gross income.--No amount may be 
                excluded with respect to qualified retirement planning 
                services provided during a taxable year if the modified 
                adjusted gross income of the taxpayer for such taxable 
                year exceeds $100,000 ($200,000 in the case of married 
                individuals filing a joint return). For purposes of 
                this subparagraph, the term `modified adjusted gross 
                income' means adjusted gross income, determined without 
                regard to this section and sections 911, 931, and 933.
            ``(3) Cash reimbursements.--For purposes of this subsection 
        the term `qualified retirement planning services' includes a 
        cash reimbursement by an employer to an employee for a benefit 
        described in paragraph (1).
            ``(4) No constructive receipt.--No amount shall be included 
        in the gross income of any employee solely because the employee 
        may choose between any qualified retirement planning services 
        provided by a qualified investment advisor and compensation 
        which would otherwise be includible in the gross income of such 
        employee. The preceding sentence shall apply to highly 
        compensated employees only if the choice described in such 
        sentence is available on substantially the same terms to each 
        member of the group of employees normally provided education 
        and information regarding the employer's qualified employer 
        plan.''
    (b) Conforming Amendments.--
            (1) Section 403(b)(3)(B) of such Code is amended by 
        inserting ``132(m)(4),'' after ``132(f)(4),''.
            (2) Section 414(s)(2) of such Code is amended by inserting 
        ``132(m)(4),'' after ``132(f)(4),''.
            (3) Section 415(c)(3)(D)(ii) of such Code is amended by 
        inserting ``132(m)(4),'' after ``132(f)(4),''.
    (c) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2002.

Summary: Amends the Employee Retirement Income Security Act of 1974 (ERISA) to provide for information and advice to assist pension plan participants in making decisions regarding the investment of their pension plan assets under defined contribution plans that are individual account plans (IAPs) (401(k) and similar plans) which hold regularly tradable employment securities and permit participants or beneficiaries to exercise control over assets in the account.Requires the plan administrator to include in the account statement a notice that the account may be overinvested in employer securities and real property, whenever assets consisting of employer securities and real property exceed 50 percent of total IAP assets. Excludes from such notice requirement: (1) assets held through pooled investment vehicles; and (2) employee stock ownership plans (ESOPs) that have no contributions subject to section 401 (k) or (m) of the Internal Revenue Code (IRC).Amends IRC to limit to$1,500 the aggregate amount which may be excluded from gross income with respect to qualified retirement planning services (QRPS) provided to any individual during a taxable year. Prohibits exclusion of any such amount if the modified adjusted gross income of the taxpayer exceeds $100,000 ($200,000 for married individuals filing a joint return). Provides that no amount (constructive receipt) shall be included in the gross income of any employee solely because the employee may choose between any QRPS provided by a qualified investment advisor, and compensation which would otherwise be includible in the employee's gross income. Applies such provision to highly compensated employees only if such choice is available on substantially the same terms to each member of the group of employees normally provided education and information regarding the employer's qualified employer plan.