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.

Bill: 116-hr-8660
Sponsor: full_name: Rep. Evans, Dwight [D-PA-3]
Introduced: 2020-10-23
Policy area: Labor and Employment
Subjects: Administrative law and regulatory procedures

Congressional oversight

Department of Labor

Employee benefits and pensions

Financial services and investments
Latest action: action_date: 2020-10-23
text: Referred to the House Committee on Education and Labor.

Summaries:
action_date: 2020-10-23
action_desc: Introduced in House
text: <p>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.</p>

tv_txt: I 116th CONGRESS 2d Session H. R. 8660 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.

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.