Savvy Saver Act
Bill: S.4361 | Sponsor: Sen. Lujan, Ben Ray (D-NM)
Policy area: Labor and Employment

Summary:
Savvy Saver Act
This bill requires the Department of Labor and other agencies to study and report on the disclosure requirements for participant-directed retirement accounts, including ways to improve participants' understanding of the fees and expenses related to defined contribution plans.

To require reports to Congress on reporting and disclosure requirements 
          related to retirement plans, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Savvy Saver Act''.

SEC. 2. DEFINED CONTRIBUTION PLAN FEE DISCLOSURE IMPROVEMENTS.

    Not later than 3 years after the date of enactment of this Act, the 
Secretary of Labor shall--
            (1) review section 2550.404a-5 of title 29, Code of Federal 
        Regulations;
            (2) study, through a public request for information or 
        otherwise, how the content and design of the disclosures 
        described in such section may be improved to enhance 
        participants' understanding of fees and expenses related to a 
        defined contribution plan (as defined in section 3 of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1002)) as well as the cumulative effect of fees and expenses on 
        retirement savings over time; and
            (3) submit a report to the Committee on Health, Education, 
        Labor, and Pensions of the Senate and the Committee on 
        Education and Labor of the House of Representatives on the 
        findings of the study described in paragraph (2), including 
        beneficial education for consumers on financial literacy 
        concepts as related to retirement plan fees, and 
        recommendations for legislative changes needed to address such 
        findings.

SEC. 3. REVIEW AND REPORT TO CONGRESS RELATING TO REPORTING AND 
              DISCLOSURE REQUIREMENTS.

    (a) Study.--As soon as practicable after the date of enactment of 
this Act, the Secretary of Labor, the Secretary of the Treasury, and 
the Director of the Pension Benefit Guaranty Corporation shall review 
the reporting and disclosure requirements as applicable to each such 
agency head, of--
            (1) the Employee Retirement Income Security Act of 1974 
        applicable to pension plans (as defined in section 3(2) of such 
        Act (29 U.S.C. 1002(2)); and
            (2) the Internal Revenue Code of 1986 applicable to 
        qualified retirement plans (as defined in section 4974(c) of 
        such Code, without regard to paragraphs (4) and (5) of such 
        section).
    (b) Report.--
            (1) In general.--Not later than 3 years after the date of 
        enactment of this Act, the Secretary of Labor, the Secretary of 
        the Treasury, and the Director of the Pension Benefit Guaranty 
        Corporation, jointly, and after consultation with a balanced 
        group of participant and employer representatives, shall with 
        respect to plans referenced in subsection (a) report on the 
        effectiveness of the applicable reporting and disclosure 
        requirements and make such recommendations as may be 
        appropriate to the Committee on Education and Labor and the 
        Committee on Ways and Means of the House of Representatives and 
        the Committee on Health, Education, Labor, and Pensions and the 
        Committee on Finance of the Senate to consolidate, simplify, 
        standardize, and improve such requirements so as to simplify 
        reporting for such plans and ensure that plans can furnish and 
        participants and beneficiaries timely receive and better 
        understand the information they need to monitor their plans, 
        plan for retirement, and obtain the benefits they have earned.
            (2) Analysis of effectiveness.--To assess the effectiveness 
        of the applicable reporting and disclosure requirements, the 
        report shall include an analysis, based on plan data, of how 
        participants and beneficiaries are providing preferred contact 
        information, the methods by which plan sponsors and plans are 
        furnishing disclosures, and the rate at which participants and 
        beneficiaries (grouped by key demographics) are receiving, 
        accessing, understanding, and retaining disclosures.
            (3) Collection of information.--The agencies shall conduct 
        appropriate surveys and data collection to obtain any needed 
        information.
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