Title: To direct the Secretary of Labor to modify regulations to allow the use of performance benchmarks in the case of designated investment alternatives, and for other purposes.
Policy area: Labor and Employment

Summary:
This bill permits administrators of employee health or retirement plans to use a blend of different broad-based stock indices (e.g., the Dow Jones Industrial Average) to meet the performance benchmarking requirements for designated investment alternatives if certain conditions are met.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8660 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 8660

To direct the Secretary of Labor to modify regulations to allow the use 
    of performance benchmarks in the case of designated investment 
                 alternatives, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 23, 2020

  Mr. Evans introduced the following bill; which was referred to the 
                    Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
To direct the Secretary of Labor to modify regulations to allow the use 
    of performance benchmarks in the case of designated investment 
                 alternatives, 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. PERFORMANCE BENCHMARKS FOR ASSET ALLOCATION FUNDS.

    (a) In General.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary of Labor (or the Secretary's 
delegate) shall modify the regulations under section 404 of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104) to 
provide that, in the case of a designated investment alternative which 
contains a mix of asset classes, a plan administrator may, but is not 
required to, use a benchmark which is a blend of different broad-based 
securities market indices if--
            (1) the blend is reasonably representative of the asset 
        class holdings of the designated investment alternative;
            (2) for purposes of determining the blend's returns for 1-, 
        5-, and 10-calendar-year periods (or for the life of the 
        alternative, if shorter), the blend is modified at least once 
        per year to reflect changes in the asset class holdings of the 
        designated investment alternative;
            (3) the blend is furnished to participants and 
        beneficiaries in a manner that is reasonably designed to be 
        understandable and helpful; and
            (4) each securities market index which is used for an 
        associated asset class would separately satisfy the 
        requirements of such regulations for such asset class.
    (b) Study.--Not later than December 31, 2021, the Secretary of 
Labor (or the Secretary's delegate) shall deliver a report to the 
Committees on Ways and Means and Education and Labor of the House of 
Representatives and the Committees on Finance and Health, Education, 
Labor, and Pensions of the Senate regarding the effectiveness of the 
benchmarking requirements under section 2550.404a-5 of title 29, Code 
of Federal Regulations.
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