An Act to amend the Welfare and Pension Plans Disclosure Act with respect to the method of enforcement and to provide certain additional sanctions, and for other purposes
PL 87-420 (H.R.8723), enacted 03/20/1962

76 STAT. ] 
PUBLIC LAW 87-420-MAR. 20, 1962 
35 
SEC. 2. Section 15 of the Revised Organic Act of the Virgin Islands 
(68 Stat. 497, 504; 48 U.S.C. 15%) is amended by adding the follow-
ing at the end thereof: "The Governor or Acting Governor may from 
time to time designate an officer or employee of the executive depart-
ment of the government of the Virgin Islands to act as government 
secretary for the Virgin Islands in case of a vacancy in the office of 
the government secretary or the disability or temporary absence of 
the government secretary or while said government secretary is acting 
as Governor, and the person so designated shall have all the powere 
of government secretary so long as such condition continues, except 
for the power set forth in section 14 of this Act. No additional com- 
48 use 1595. 
pensation shall be paid to any person acting as Governor or as 
secretary under this Act." 
Approved March 16, 1962. 
Public Law 87-420 
^^ ^^^ 
March 20, 1962 
To amend the Welfare and Pension Plans Disclosure Act with respect to the 
[H- R- 8723] 
method of enforcement and to provide certain additional sanctions, and for 
other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That this Act may welfare andPen-
be cited as the "Welfare and Pension Plans Disclosure Act Amend- sure^A^^t Amend-
ments of 1962". 
•"*"*« °^ 1962. 
SEC. 2. The first line of section 3 of the Welfare and Pension Plans 
Disclosure Act is amended by striking out" (a)". 
72 stat. 997. 
SEC. 3. Paragraph (1) of section 3 of such Act is amended by 
^^ "^^ ^°^" 
striking out the word "to" after the word "communicated". 
SEC. 4. Paragraph (9) of section 3 of such Act is amended to read 
as follows: 
"(9) The term 'State' includes any State of the United States, the 
Definitions. 
District of Columbia, Puerto Rico, the Virgin Islands, American 
Samoa, Guam, Wake Island, the Canal Zone, and Outer Continental 
Shelf lands defined in the Outer Continental Shelf Lands Act (43 
U.S.C. 1331-1343)." 
67 Stat. 462. 
SEC. 5. Section 3 of such Act is further amended by striking out 
paragraph (11) and adding the following new paragraphs (11), 
(12), and (13): 
"(11) The term 'industry or activity affecting commerce' means 
any activity, business, or industry in commerce or in which a labor 
dispute would hinder or obstruct commerce or the free flow of com-
merce and includes any activity or industry 'affecting commerce' 
within the meaning of the Labor-Management Relations Act, 1947, ei stat. 136. 
as amended, or the Railway Labor Act, as amended. 
29 use 141. 
"(12) The term 'Secretary' means the Secretary of Labor. 
45 use ill.' 
"(13) The term 'party in interest' means any administrator, officer, 
trustee, custodian, counsel, or employee of any employee welfare bene-
fit plan or employee pension benefit plan, or a person providing benefit 
plan services to any such plan, or an employer any of whose employees 
are covered by such a plan or officer or employee or agent of such em-
ployer, or an officer or agent or employee of an employee organization 
having members covered by such plan." 
SEC. 6. Paragraphs (3) and (4) of subsection (b) of section 4 of 
29 use 303. 
such Act are amended to read as follows: 
"(3) such plan is administered by an organization which is 
exempt from taxation under the provisions of section 501(a) of 
the Internal Revenue Code of 1954 and is administered as a corol- 
26 use 501. 
36 
PUBLIC LAW 87-420-MAR. 20, 1962 
[76 STAT. 
lary to membersliip in a fraternal benefit society described inj 
section 501(c) (8) of such Code or by organizations described inj 
sections 501(c) (3) and 501(c) (4) of such Code: Provided^ That 
the provisions of this paragraph shall not exempt any plan ad-
ministered by a fraternal benefit society or organization which 
represents its members for purposes of collective bargaining; or 
" (4) such plan covers not more than twenty-five participants." 
29 use 304. 
SEC. 7. Subsection (a) of section 5 of such Act is amended by strik-
ing out the last sentence thereof and inserting in lieu thereof the follow-
ing: "Such description and such report shall contain the information 
29 use 305,306. required by sections 6 and 7 of this Act in such form and detail as the 
Secretary shall by regulations prescribe and copies thereof shall be 
executed, published, and filed in accordance with the provisions of 
this Act and the Secretary's regulations thereunder. No regulation 
shall be issued under the preceding sentence, which relieves any ad-
ministrator of the obligation to include in such description or report, 
any information relative to his plan which is required by section 6 
or 7. Notwithstanding the foregoing, if the Secretary finds, on the 
record after giving interested persons an opportunity to be heard, i 
that specific information on plans of certain kinds or on any class or \ 
29 use 302. 
classes of benefits described in section 3 (1) and (2) which are pro-i 
vided by such plans cannot, in the normal method of operation of such 
plans, be practicably ascertained or made available for publication in 
the manner or for the period prescribed in any provision of this Act, 
or that the information if published in such manner or for such period 
would be duplicative or uninformative, the Secretary may by regula-
tions prescribe such other manner or such other period for the publica- '\ 
tion of such information as he may determine to be necessary and 
appropriate to carry out the purposes of this Act." 
29 use 305. 
SEC. 8. Subsection (b) of section 6 of such Act is amended by 
adding at the end thereof the following new sentence: "Any change 
in the information required by this subsection shall be reported to 
the Secretary within sixty days after the change has been effectuated." 
29 use 306. 
SEC. 9. (a) Section 7(a) of such Act is amended by inserting after 
the word "plan" the second time it appears the following: "if it covers 
one hundred or more participants. However, the Secretary, after in-
vestigation, mav require the administrator of any plan otherwise 
covered by the Act to publish such report when necessary and appro-
priate to carry out the purposes of the Act", and by striking out 
"twenty" both times it appears and inserting in lieu thereof "fifty". 
Report: contents. 
(b) Section 7(b) of sudi Act is amended by striking out the first 
s'entence of the second paragraph and inserting in lieu thereof the I 
following: "The amount contributed by each employer; the amount 
contributed by the employees; the amount of benefits paid or other-
wise furnished; the number of employees covered; a statement of 
assets specifying the total amount in each of the following types of 
assets: cash. Government bonds, non-Government bonds and deben-
tures, common stocks, preferred stocks, common trust funds, real 
estate loans and mortgages, operated real estate, other real estate, and 
other assets; a statement of liabilities, receipts, and disbursements of 
the plan; a detailed statement of the salaries and fees and commissions 
charged to the plan, to whom paid, in what amount, and for whatj 
purposes. The Secretary, when he has determined that an investiga-
29 use 308. 
tion is necessary in accordance with section 9(d) of this Act, may 
require the filing, of supporting-schedules of assets and liabilities.'' 
76 STAT. ] 
PUBLIC LAW 87-420-MAR. 20, 1962 
37 
(c) Section 7(b) is further amended by adding at the end thereof 
the following new sentence: "In the case of reports sworn to, but not 
certified, the Secretary, when he determines that it may be necessary 
to investigate the plan in accordance with section 9(d) of this Act, 
shall, prior to investigation by the Department of Labor, require 
certification of the report by an independent certified or licensed public 
accountant." 
SEC. 10. Subparagraph (B) of paragraph (1) of subsection (f) of 
section T of such Act is amended by strikmg out "summary" and by 
striking out "broken down by types, such as cash investments in 
governmental obligations, investments in nongovernmental bonds, and 
investments in corporate stocks" and inserting in lieu thereof the 
following: "as required by section 7(b)". 
SEC. 11. Subparagraph (C) of paragraph (1) of subsection (f) of 
section 7 of such Act is amended by striking out "total fund" and 
inserting "total funds", by striking out "by reason of being an officer, 
trustee, or employee of such fund", and by striking out "listed at 
their aggregate cost or present value, whichever is lower" and inserting 
in lieu thereof "valued as provided in subparagraph (B)". 
SEC. 12. Subparagraph {!)) of paragraph (1) of subsection (f) of 
section 7 of such Act is amended by striking out the words "by reason 
29 use 306. 
of being an officer, trustee, or employee of such fund". 
SEC. 13. Section 7 of such Act is amended by adding thereto the 
following new subsections (g) and (h): 
"(g) If some or all of the benefits under the plan are provided by 
an insurance carrier or service or other organization, sucli carrier or 
organization shall certify to the administrator of such plan, within 
one hundred and twenty days after the end of each calendar, policy, 
or other fiscal year, as the case may be, such reasonable information 
determined by the Secretary to be necessary to enable such adminis-
trator to comply with the requirements of this Act. 
"(h) The Secretary shall prescribe by general rule simplified reports 
simp uf i e d re-
for plans which he finds that by virtue of their size or otherwise a '"''*'• 
detailed report would be unduly burdensome, but the Secretary may 
revoke such provisions for simplified forms for any plan if the pur-
poses of the Act would be served thereby." 
SEC. 14. Section 8(a) (2) of such Act is amended by striking out 
29 use 307. 
"a summary" and inserting in lieu thereof "an adequate summary". 
SEC. 15. (a) Section 9(a) of such Act is amended by striking out "of 
29 use 308. 
sections 5 or 8", and inserting before the period the words ", or both". 
Enforcement. 
(b) Section 9 of such Act is amended by striking out subsections (d) 
and (e) and inserting in lieu thereof the following new subsections: 
"(d) The Secretary may, after first requiring certification in accord-
ance with section 7(b), upon complaint of violation not satisfied by 
such certification, or on his own motion, w^hen he continues to have 
reasonable cause to believe investigation may disclose violations of this 
Act, make such investigations as he deems necessary, and may require 
or permit any person to file with him a statement in writing, under 
oath or otherwise, as to all the facts and circumstances concerning the 
matter to be investigated. 
"(e) For the purposes of any investigation provided for in this Act, 
the provisions of sections 9 and 10 (relating to the attendance of 
29 use aos, 309. 
witnesses and the production of books, records, and documents) of the 
Federal Trade Commission Act of September 16, 1914, as amended 
(15 U.S.C. 49, 50), are hereby made applicable to the jurisdiction, 
38 stat. 7:17. 
powers, and duties of the Secretary or any officers designated by him. 
S8 
PUBLIC LAW 87-420-MAR. 20, 1962 
[76 STAT. 
Jurisdiction. 
Restriction. 
Information to 
Attorney General. 
29 u s e 309, 301 
notes. 
"(f) Whenever it shall appear to the Secretary that any person is 
engaged in any violation of the provisions of this Act, he may in his 
discretion bring an action in the proper district court of the United 
States or United States court of any place subject to the jurisdiction 
of the United States, to enjoin such acts or practices, and upon a 
proper showing a permanent or temporary injunction or restraining 
order shall be granted. 
" (g) The United States district courts and the United States courts 
of any place subject to the jurisdiction of the United States shall have 
jurisdiction, for cause shown, to restrain violations of this Act. 
"(h) Nothing contained in this Act shall be so construed or applied 
as to authorize the Secretary to regulate, or interfere in the manage-
ment of, any employee welfare or pension benefit plan, except that 
the Secretary may inquire into the existence and amount of invest-
ments, actuarial assumptions, or accounting practices only when it has 
been detei'mined that investigation is required in accordance with sec-
tion 9(d) of this Act. 
" (i) The Secretary shall immediately forward to the Attorney Gen-
eral or his representative any information coming to his attention 
in the course of the administration of this Act which may warrant 
consideration for criminal prosecution under the provisions of this 
Act or other Federal law." 
SEC. 16. (a) Such Act is further amended by renumbering sections 
10,11, and 12 as sections 16,17, and 18, respectively, and by adding the 
following new sections to the Act: 
(( 
REPORTS MADE PUBLIC INFORMATION 
"SEC. 10. The contents of the descriptions and regular annual re-
ports filed with the Secretary pursuant to this Act shall be public in-
formation, and the Secretary, where to do so would protect the inter-
ests of participants or beneficiaries of a plan, may publish any such 
information and data. The Secretary may use the information and 
data for statistical and research purposes, and compile and publish 
such studies, analyses, reports, and surveys based thereon as he may 
deem appropriate. 
"RETENTION OF RECORDS 
"SEC. 11. Every person required to file any description or report 
or to certify any information therefor under this Act shall maintain 
records on the matters of which disclosure is required which will pro-
vide in sufficient detail the necessary basic information and data from 
which the documents thus required may be verified, explained, or 
clarified, and checked for accuracy and completeness, and shall in-
clude vouchers, worksheets, receipts, and applicable resolutions, and 
shall keep such records available for examination for a period of not 
less than five years after the filing of the documents based on the infor-
mation which they contain. 
"RELIANCE ON ADMINISTRATIVE INTERPRETATIONS AND FORMS 
"SEC. 12. In any action or proceeding based on any act or omission 
in alleged violation of this Act, no person shall be subject to any 
liability or punishment for or on account of the failure of such person 
to (1) comply with any provision of this Act if he pleads and proves 
that the act or omission complained of was in good faith, in conformity 
with, and in reliance on any written interpretation or opinion of the 
Secretary, or (2) publish and file any information required by any 
provision of this Act if he pleads and proves that he published and 
76 STAT. ] 
PUBLIC LAW 87-420-MAR. 20, 1962 
39 
filed such information in good faith, on the description and annual 
report forms prepared by the Secretary and in conformity with the 
instructions of the Secretary issued under this Act regarding the 
filing of such forms. Such a defense, if established, shall be a bar to 
the action or proceeding, notwithstanding that (A) after such act or 
omission, such interpretation or opinion is modified or rescinded or is 
determined by judicial authority to be invalid or of no legal effect, or 
(B) after publishing or filing the description and annual reports, 
such publication or filing is determined by judicial authority not to 
be in conformity with the requirements of this Act. 
"BONDING 
"SEC. 13. (a) Every administrator, officer, and employee of any em-
ployee welfare benefit plan or of any employee pension benefit plan sub-
ject to this Act who handles funds or other property of such plan shall 
be bonded as herein provided; except that, where such plan is one 
under which the only assets from which benefits are paid are the gen-
eral assets of a union or of an employer, the administrator, officers and 
employees of such plan shall be exempt from the bonding requirements 
of this section. 
The amount of such bond shall be fixed at the begin-
ning of each calendar, policy, or other fiscal year, as the case may be, 
which constitutes the reporting year of such plan. 
Such amount 
shall be not less than 10 per centum of the amount of funds handled, 
determined as herein provided, except that any such bond shall be in 
at least the amount of $1,000 and no such bond shall be required in an 
amount in excess of $500,000: Provided^ That the Secretary, after due 
notice and opportunity for hearing to all interested parties, and after 
consideration of the record, may prescribe an amount in extess of 
$500,000, which in no event shall exceed 10 per centum of the funds 
handled. 
For purposes of fixing the amount of such bond, the amount 
> ., 
of funds handled shall be determined by the funds handled by the 
person, group, or class to be covered by such bond and by their prede-
cessor or predecessors, if any, during the preceding reporting year, or 
if the plan has no preceding reporting year, the amount of funds to be 
handled duringthe current reporting year by such person, group, or 
class, estimated as provided in regulations of the Secretary. 
Such 
bond shall provide protection to the plan against loss by reason of acts 
of fraud or dishonesty on the part of such administrator, officer, or 
employee, directly or through connivance -with others. Any bond 
shall have as surety thereon a corporate surety company which is an 
acceptable surety on Federal bonds under authority granted by the 
Secretary of the Treasury pursuant to the Act of July 30, 1947 (6 
U.S.C. 6-13). 
Any bond shall be in a form or of a type approved by 
ei stat. 648. 
the Secretary, including individual bonds or schedule or blanket forms 
of bonds which cover a group or class. 
" (b) It shall be unlawful for any administrator, officer, or employee 
to whom subsection (a) applies, to receive, handle, disburse, or other-
wise exercise custody or control of any of the funds or other property 
of any employee welfare benefit plan or employee pension benefit plan, 
without being bonded as required by subsection (a) and it shall,be un-
lawful for any administrator, officer, or employee of such plan, or any 
tc . ? 
other person having authority to direct the performance of such func-
tions, to permit such functions, or any of them, to be performed by any 
such person, with respect to whom the requirements of subsection (a) 
have not been met. 
"(c) It shall be unlawful for any person to procure any bond re-
quired by subsection (a) from any surety or other company or through 
40 
PUBLIC LAW 87-420-MAR. 20, 1962 
[76 STAT. 
Regulations. 
any agent or broker in whose business operations such plan or any 
party in interest in such plan has any significant control or financial 
interest, direct or indirect. 
" (d) Nothing in any other provision of law shall require any person, 
required to be bonded as provided in subsection (a) because he handles 
funds or other property of an employee welfare benefit plan or of an 
employee pension benefit plan, to be bonded insofar as the handling by 
such person of the funds or other property of such plan is concernedf 
"(e) The Secretary shall from time to time issue such regulations 
as may be necessary to carry out the provisions of this section. 
When, 
in the opinion of the Secretary, the administrator of a plan offers ade-
quate evidence of the financial responsibility of the plan, or that other 
bonding arrangements would provide adequate protection of the bene-
ficiaries and participants, he may exempt such plan from the require-
ments of this section. 
Appointm e n t of 
members. 
Report 
gress. 
t o Con-
60 Stat. 808: 
75 Stat. 339, 340. 
C o n f l i c t of 
interest. 
62 Stat. 697, 793. 
(( 
ADVISORY COUNCIL 
"SEC. 14. (a) There is hereby established an Advisory Council on 
Employee Welfare and Pension Benefit Plans (hereinafter referred to 
as the 'Council') which shall consist of thirteen members to be 
appointed in the following manner: One from the insurance field, one 
from the corporate trust field, two from management, four from labor, 
and two from other interested groups, all appointed by the Secretary 
from among persons recommended by organizations in the respective 
groups; and three representatives oi the general pubKc appointed by 
the Secretary. 
"(b) It shall be the duty of the Council to advise the Secretary with 
respect to the carrying out of his functions under this Act, and to sub-
mit to the Secretary recommendations with respect thereto. 
Th^ 
Council shall meet at least twice each year and at such other times as 
the Secretary requests. At the beginning of each regular session of 
the Congress, the Secretary shall transmit to the Senate and House 
of Representatives each'recommendation which he has received from 
the Council during the preceding calendar year and a report covering 
his activities under the Act for such preceding calendar year, including 
full information as to the number of plans and their size, the results of 
any studies he may have made of such plans and the Act's operation 
and such other information and data as he may deem desirable in con-
nection with employee welfare and pension benefit plans. 
"(c) The Secretary shall furnish to the Council an executive secre-
tary and such secretarial, clerical, and other services as are deemed 
necessary to the conduct of its business. The Secretary may call upon 
other agencies of the Government for statistical data, reports, and 
other information which will assist the Council in the performance of 
its duties. 
"(d) Appointed members of the Council shall be paid compensation 
at the rate of $50 per diem when engaged in the work of the Council, 
including travel time, and shall be allowed travel expenses and per 
diem in lieu of subsistence as authorized by law (5 U.S.C. T3b-2) for 
persons in the Government service employed intermittently and receiv-
ing compensation on a per diem, when actually employed, basis. 
"(e) (1) Any member of the Council is hereby exempted, with re-
spect to such appointment, from the operation of sections 281, 283, 
and 1914 of title 18 of the United States Code, and section 190 of the 
Revised Statutes (5 U.S.C. 99), except as otherwise specified in para-
graph (2) of this subsection. 
76 STAT. ] 
PUBLIC L
A
W 87-420-MAR. 20, 1962 
41 
"(2) The exemption granted by paragraph (1) of this subsection 
shall not extend— 
" (A) to the receipt or payment of salary in connection with the 
appointee's Government service from any source other than the 
private employer of the appointee at the time of his appointment, 
or 
"(B) during the period of such appointment, to the prosecution 
or participation in the prosecution, hj any person so appointed, of 
any claim against the Government involving any matter with 
which such person, during such period, is or was directly con-
nected by reason of such appointment. 
<
( 
ADMINISTRATION 
"SEC. 15. (a) The provisions of the Administrative Procedure Act 
shall be applicable to this Act. 
"(b) No employee of the Department of Labor shall administer or 
enforce this Act with respect to any employee organization of which 
he is a member or employer organization in which he has an interest. 
"(c) No more than 260 employees shall be employed by the Depart-
ment of Labor to administer or enforce this Act for the first two years 
after the enactment of the Welfare and Pension Plans Disclosure Act 
Amendments of 1962. 
"(d) Not more than two million two hundred thousand dollars per 
year is authorized to be appropriated for the administration and en-
forcement of this Act, for the first two years after the enactment of 
the Welfare and Pension Plans Disclosure Act Amendments of 1962." 
(b) Subsection (b) of the section renumbered as section 16 by this 
Act, is amended by inserting after "of this section" the following: 
"and section 13". 
(c) The table of contents of the first section of such Act is amended 
by striking out the last three lines and inserting in lieu thereof the 
following: 
"Sec. 10. Reports made public information. 
"Sec. 11. Retention of records. 
"Sec, 12. Reliance on administrative interpretations and forms. 
"Sec. 13. Bonding. 
"Sec. 14. Advisory Council. 
"Sec. 15. Administration. 
"Sec. 16. Effect of other laws, 
"Sec. 17. Separability of provisions. 
"Sec. 18, Effective date." 
SEC. 17. (a) Chapter 31 of title 18, United States Code, as amended, 
is amended by adding a new section captioned and reading as follows: 
'*§ 664. Theft or embezzlement from employee benefit plan 
"Any person who embezzles, steals, or unlawfully and willfully 
abstracts or converts to his own use or to the use of another, any of 
the moneys, funds, securities, premiums, credits, property, or other 
assets of any employee welfare benefit plan or employee pension 
benefit plan, or of any fund connected therewith, shall be fined not 
more than $10,000, or imprisoned not more than five years, or both. 
"As used in this section, the term 'any employee welfare benefit 
plan or employee pension benefit plan' means any such plan subject 
to the provisions of the Welfare and Pension Plans Disclosure Act." 
60 Stat. 237. 
5 u s e 1001 note. 
Applicability, 
Enforcement. 
Appropriation. 
Ante, p. 38. 
72 Stat. 997. 
29 u s e 301 note. 
18 u s e 641-663. 
1026 
29 use 301 note. 
1026 
42 
PUBUC LAW 87-420-MAR. 20, 1962 
[76 STAT. 
(b) The analysis of chapter 31, title 18, United States Code, im-
mediately preceding section 641 thereof, is amended by adding at the 
end thereof the following new item: 
"664. Theft or embezzlement from employee benefit plan." 
1
8 u s c 1001- 
(c) Chapter 47 of title 18, United States Code, as amended, is 
amended by adding a new section captioned and reading as follows: 
*
^
§ 1027. False statements and concealment of facts in relation to 
documents required by the Welfare and Pension Plans 
Disclosure Act 
"Whoever, in any document required by the Welfare and Pension 
72 Stat. 997. 
Plaus Disclosurc Act (as amended from time to time) to be published, 
"" ""'"'"' ""*" or kept as part of the records of any employee welfare benefit plan or 
employee pension benefit plan, or certified to the administrator of any 
such plan, makes any false statement or representation of fact, know-
ing it to be false, or knowingly conceals, covers up, or fails to disclose 
any fact the disclosure of which is required by such Act or is necessary 
to verify, explain, clarify or check for accuracy and completeness any 
report required by such Act to be published or any information re-
quired by such Act to be certified, shall be fined not more than $10,000, 
or imprisoned not more than five years, or both." 
18 u s c 1001- 
(d) The analysis of chapter 47, title 18, United States Code, im-
mediately preceding section 1001, is amended by adding at the end 
thereof the following new item: 
"1027. False statements and concealment of facts in relation to documents 
required by the Welfare and Pension Plans Disclosure Act." 
18 u s c 1951- 
(e) Chapter 95 of title 18, United States Code, as amended, is 
^^^^- 
amended by adding a new section captioned and reading as follows: 
"§ 1954. Offer, acceptance, or solicitation to influence operations of 
employee benefit plan 
"(a) Whoever being— 
" (1) an administrator, officer, trustee, custodian, counsel, agent, 
or employee of any employee welfare benefit plan or employee 
pension benefit plan; or 
" (2) an officer, counsel, agent, or employee of an employer or an 
employer any of whose employees are covered by such plan; or 
"(3) an officer, counsel, agent, or employee of an employee 
organization any of whose members are covered by such plan; or 
(4) a person who, or an officer, counsel, agent, or employee of 
an organization which, provides benefit plan services to such plan 
receives or agrees to receive or solicits any fee, kickback, commission, 
gift, loan, money, or thing of value because of or with intent to be 
influenced with respect to, any of his actions, decisions, or other duties 
relating to any question or matter concerning such plan or any person 
who directly or indirectly gives or offers, or promises to give or offer, 
any fee, kickback, commission, gift, loan, money, or thmg of value 
prohibited by this section, shall be fined not more than $10,000 or 
imprisoned not more than three years, or both: Provided^ That this 
section shall not prohibit the payment to or acceptance by any person 
of bona fide salary, compensation, or other payments made for goods 
or facilities actually furnished or for services actually performed in 
the regular course of his duties as such person, administrator, officer, 
trustee, custodian, counsel, agent, or employee of such plan, employer, 
employee organization, or organization providing benefit plan services 
to such plan. 
76 STAT. ] 
PUBLIC LAW 87-421-MAR. 20, 1962 
43 
"As used in this section, the term (a) 'any employee welfare benefit 
plan' or 'employee pension benefit plan' means any such p^an subject to 
the provisions of the Welfare and Pension Plans Disclosure Act, as 
amended, and (b) 'employee organization' and 'administrator' as de-
fined respectively in sections 3(3) and 5(b) (1) and (2) of the 
Welfare and Pension Plans Disclosure Act, as amended. 
"(b) Whenever in the judgment of a United States attorney ttie 
testimony of any witness, or the production of books, papers, or other 
evidence by any witness, in any case or proceeding before any grand 
jury or court of the United States involving any violation of this 
section, or any conspiracy to violate such section, is necessary to the 
public interest, he, upon the approval of the Attorney General, shall 
make application to the court that the witness shall be instructed to 
testify or produce evidence subject to the provisions of this subsection, 
and upon order of the court such witness shall not be excused from 
testifying or from producing books, papers, or other evidence on the 
ground that the testimony or evidence required of him may tend to 
incriminate him or subject him to a penalty or forfeiture. But no such 
witness shall be prosecuted or subjected to any penalty or forfeiture 
for or on account of any transaction, matter, or thing concerning 
which he is compelled, after having claimed his privilege against self-
incrimination, to testify or produce evidence, nor shall testimony so 
compelled be used as evidence in any criminal proceeding (except 
prosecution described in the next sentence) against him in any court. 
iVo witness shall be exempt under this subsection from prosecution 
for perjury or contempt committed while giving testimony or pro-
ducing evidence under compulsion as provided in this subsection." 
(f) The analysis of chapter 95, title 18, United States Code, im-
mediately preceding section 1951 thereof, is amended by adding at 
the end thereof the following new item: 
"1954. Offer, acceptance, or solicitation to influence operations of employee benefit 
plan." 
SEC. 18. The Welfare and Pension Plans Disclosure Act is further 
amended by substituting the term "Secretary" for the term "Secretary 
of Labor" wherever the latter term appears in such Act. 
SEC. 19. The amendments made by this Act shall take effect ninety 
days after the enactment of this Act, except that section 13 of the 
Welfare and Pension Plans Disclosure Act shall take effect one hun-
dred eighty days after such date of enactment. 
Approved March 20, 1962, 10:15 a.m. 
72 Stat. 997. 
29 u s e 301 note. 
29 
304. 
u s e 
302, 
18 U S C 1951-
1953. 
Effective date. 
Ante, p. 39. 
Public Law 87-421 
AN ACT 
To amend section 17(a) of the Revised Organic Act of the Virgin Islands per-
taining to the salary of the government comptroller. 
March 20,1962 
[H. R. 7665] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That subsection (a) 
of section 17 of the Revised Organic Act of the Virgin Islands, as 
amended (48 U.S.C, sec. 1599(a)), is amended by striking out the 
first sentence of said subsection and inserting in lieu thereof the 
following: "The Secretary of the Interior shall appoint a government 
comptroller who shall receive an annual salary at a rate established 
in accordance with the standards provided by the Classification Act 
of 1949, as amended." 
Approved March 20, 1962. 
Virgin Islands. 
G o V e r n m e n t 
comptroller, 
s a l -
ary. 
68 Stat. 504.