Home > 106th Congressional Bills > H.R. 5399 (ih) To authorize the Secretary of the Interior to study the suitability and feasibility of designating the Abel and Mary Nicholson House located in Elsinboro Township, Salem County, New Jersey, as a unit of the National Park System, and for oth...H.R. 5399 (ih) To authorize the Secretary of the Interior to study the suitability and feasibility of designating the Abel and Mary Nicholson House located in Elsinboro Township, Salem County, New Jersey, as a unit of the National Park System, and for oth...
108th CONGRESS
2d Session
H. R. 5398
To amend the Internal Revenue Code of 1986 to improve the retirement
security of American families.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 19, 2004
Mr. Andrews introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to improve the retirement
security of American families.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Retirement
Enhancement Revenue Act of 2004''.
(b) Table of Contents.--The table of contents is as follows:
Sec. 1. Short title and table of contents.
TITLE I--PUBLIC EMPLOYEE PENSION PLANS
Sec. 101. New qualification requirements for public employee pension
plans.
TITLE II--PENSION IMPROVEMENTS
Sec. 201. Automatic enrollment of all employees in 401(k) plans.
Sec. 202. Diversification requirements for defined contribution plans
that hold employer securities.
Sec. 203. Improvements in simplified employee pensions.
Sec. 204. Pension integration rules.
Sec. 205. Increase to age 75 for beginning mandatory distributions.
Sec. 206. Restrictions on exclusion of unionized employees from
participation in 401(k) plans.
Sec. 207. Removal of $5,000 limit on plans subject to automatic
rollover upon mandatory distribution.
TITLE III--TAX CREDITS TO PROMOTE PENSION COVERAGE
Sec. 301. Savers credit made refundable and permanent.
Sec. 302. Credit for qualified pension plan contributions of small
employers.
Sec. 303. Notice.
TITLE IV--IMPROVED PENSION PROTECTIONS FOR WOMEN
Sec. 401. Modifications of joint and survivor annuity requirements.
Sec. 402. Entitlement of divorced spouses to railroad retirement
annuities independent of actual entitlement
of employee.
Sec. 403. Extension of tier II railroad retirement benefits to
surviving former spouses pursuant to
divorce agreements.
TITLE V--DEFINED BENEFIT PLANS WHICH INCLUDE QUALIFIED CASH OR DEFERRED
ARRANGEMENTS
Sec. 501. Defined benefit plan with deferred compensation arrangement
in a single plan.
Sec. 502. Defined benefit accruals satisfy 401(k) safe harbor.
Sec. 503. Additional accruals under defined benefit plan provided as
matching contributions.
Sec. 504. Limitation on deductions where combination of defined
contribution plan and defined benefit plan.
Sec. 505. Conforming amendments to the Employee Retirement Income
Security Act of 1974.
TITLE VI--ADDITIONAL AMENDMENTS
Sec. 601. Exemption from prohibited transaction rules for certain
aborted emergent transactions.
Sec. 602. Loans from retirement plans for health insurance and job
training expenses.
Sec. 603. Treatment of unclaimed benefits.
Sec. 604. Income averaging of corrected civil service annuity benefit
payments.
Sec. 605. Prohibited transaction exemption for the provision of
investment advice.
Sec. 606. Increase in deductible contributions to single-employer
defined benefit plan upon payment of
increased premium to the Pension Benefit
Guaranty Corporation.
Sec. 607. Exemption from prohibited transaction rules for certain
aborted emergent transactions.
Sec. 608. Pension benefit information.
Sec. 609. Permanency of transition rule in Retirement Protection Act of
1994.
TITLE VII--GENERAL PROVISIONS
Sec. 701. General effective date.
Sec. 702. Plan amendments.
TITLE I--PUBLIC EMPLOYEE PENSION PLANS
SEC. 101. NEW QUALIFICATION REQUIREMENTS FOR PUBLIC EMPLOYEE PENSION
PLANS.
(a) In General.--Subsection (a) of section 401 of the Internal
Revenue Code of 1986 (relating to requirements for qualification) is
amended by inserting after paragraph (34) the following new paragraph:
``(35) Public employee pension plans.--A trust forming a
part of a public employee pension plan (as defined in section
420C(a)(9)) shall not constitute a qualified trust under this
section unless the requirements of subpart F of this part are
met in connection with such plan.
(b) Requirements.--Part I of subchapter D of chapter 1 of such Code
(relating to pension, profit-sharing, stock bonus plans, etc.) is
amended by inserting after subpart E the following new subpart:
``Subpart F--Public Employee Pension Plans
``Sec. 420A. Reporting and disclosure requirements.
``Sec. 420B. Review by qualified review boards of changes in employer
contributions.
``Sec. 420C. Definitions and coverage.
``SEC. 420A. REPORTING AND DISCLOSURE REQUIREMENTS.
``(a) In General.--A public employee pension plan does not meet the
requirements of section 401(a)(35) unless the terms of the plan include
the requirements of this section.
``(b) Required Disclosures.--The plan shall provide that, within
210 days after the close of each plan year, the administrator of the
plan shall furnish to each participant, and to each beneficiary
receiving benefits under the plan--
``(1) a statement of the assets and liabilities of the plan
aggregated by categories and valued at their current value, and
the same data displayed in comparative form for the end of the
previous plan year,
``(2) a statement of receipts and disbursements during the
preceding 12-month period aggregated by general sources and
applications,
``(3) a report containing--
``(A) a description of all investments and assets
of the plan, including their value,
``(B) the names and positions of all of the
trustees of the plan, and the time remaining before the
expiration of their term,
``(C) a description of the method of trustee
selection,
``(D) a description of any changes in investment
policy of the plan during the fiscal year,
``(E) an evaluation of the long-term solvency of
the plan, including the number of participants and
beneficiaries and a summary of their benefits, and a
projection of the amount of benefits expected to be
paid for the fifth, tenth, and fifteenth plan year
following the date of the publication of the report,
and
``(F) the percentage which the current value of the
assets of the plan is of the current liability under
the plan, and
``(4) any other material as is necessary to fairly
summarize the latest annual report.
Such information shall be written and calculated to be understood by
the average plan participant, and shall be sufficiently accurate and
comprehensive to reasonably apprise such participants and beneficiaries
of their rights and obligations under the plan.
``(c) Availability of Plan Documents for Examination.--The plan
shall provide that the administrator shall make copies of the plan
description and the latest annual report and the bargaining agreement,
trust agreement, contract, or other instruments under which the plan
was established or is operated available for examination by any plan
participant or beneficiary in the principal office of the administrator
and in such other places as may be necessary to make available all
pertinent information to all participants (including such places as the
Secretary may prescribe by regulations).
``(d) Availability of Information Upon Request.--The plan shall
provide that the administrator shall, upon written request of any
participant or beneficiary, furnish a copy of the latest annual report,
any terminal report, the bargaining agreement, trust agreement,
contract, or other instruments under which the plan is established or
operated. The administrator may make a reasonable charge to cover the
cost of furnishing such complete copies. The Secretary may by
regulation prescribe the maximum amount which will constitute a
reasonable charge under the preceding sentence.
``SEC. 420B. REVIEW BY QUALIFIED REVIEW BOARDS OF CHANGES IN EMPLOYER
CONTRIBUTIONS.
``(a) In General.--A public employee pension plan does not meet the
requirements of section 401(a)(35) unless, under the plan, changes in
employer contributions are subject to review by a qualified review
board established for the plan as provided in this section. For
purposes of this section, the term `qualified review board' means a
board--
``(1) whose membership is determined under the law of the
principal State in accordance with subsection (b), and
``(2) whose powers are determined under the law of the
principal State in accordance with subsection (c).
``(b) Membership.--
``(1) In general.--The membership of a qualified review
board established for a plan shall consist of 3 members
selected from among individuals who, by means of their
education and experience, have demonstrated expertise in the
area of pension fund management, as follows:
``(A) one member is appointed by the Governor of
the State,
``(B) one member is selected by the participants in
the plan, by means of an election held in such form and
manner as shall be prescribed in regulations of the
Secretary, and
``(C) one member is selected jointly by the
Governor and by a representative of participants in the
plan (from a certified list of pension experts
established in accordance with paragraph (2)).
Each member of the board shall have 1 vote. Members of the
board shall serve for such equivalent terms as shall be
prescribed under the law of the principal State.
``(2) Certified list of experts.--The Governor of the State
shall, for purposes of paragraph (1)(C), establish and maintain
with respect to each public employee pension plan (for which
such State is the principal State) a certified list of pension
experts meeting the requirements for membership on the
qualified review board. Individuals may be included on such
list only by agreement between the Governor of the State and a
representative elected by participants in the plan, entered
into by means of collective bargaining in such form and manner
as shall be prescribed in regulations of the Secretary.
``(c) Powers.--The board shall be treated as a qualified review
board for purposes of this section with respect to any public employee
pension plan (for which such State is the principal State) only if the
powers of such board under the law of the principal State include
review by the board, for approval or disapproval by the board, of any
change in the terms of such plan, as a necessary prerequisite for such
change to take effect, if--
``(1) such change would have the effect of changing levels
of employer contributions to the plan, and
``(2) such review is requested, in such form and manner as
shall be prescribed in regulations of the Secretary, by--
``(A) at least one-third of the total number of
trustees of any trust fund forming a part of the plan,
or
``(B) the head of any employee organization
representing at least 20 percent of the total number of
active participants in the plan.
The board may be treated as a qualified review board for purposes of
this section only if, under the law of the principal State, any such
change submitted to such review by the board may take effect only upon
approval of the change by the board.
``SEC. 420C. DEFINITIONS AND COVERAGE.
``(a) Definitions.--For purposes of this subpart--
``(1) Administrator.--The term `administrator' means--
``(A) the board of trustees, retirement board, or
similar person with administrative responsibilities in
connection with a plan, or any other person
specifically so designated in connection with any
requirement of this subpart by the terms of the
instrument or instruments under which the plan is
operated, including but not limited to the law of any
State or of any political subdivision of any State, or
``(B) in any case in which there is no person
described in subparagraph (A) in connection with the
plan, the plan sponsor.
``(2) Beneficiary.--The term `beneficiary' means a person
designated by a participant, or by the terms of a public
employee pension plan, who is or may become entitled to a
benefit thereunder.
``(3) Current liability.--The term `current liability' has
the meaning provided in section 302(d)(7) of the Employee
Retirement Income Security Act of 1974.
``(4) Employee.--The term `employee' means any individual
employed by an employer, employer representative, or other
person required to make employer contributions under the plan.
``(5) Employee organization.--The term `employee
organization' means any labor union or any organization of any
kind, or any agency or employee representation committee,
association, group, or plan, in which employees participate and
which exists for the purpose, in whole or in part, of dealing
with employers or employer representatives concerning a public
employee pension plan or other matters incidental to employment
relationships; or any employees' beneficiary association
organized for the purpose, in whole or in part, of establishing
such a plan.
``(6) Employer.--The term `employer' means--
``(A) the government of any State or of any
political subdivision of a State,
``(B) any agency or instrumentality of a government
referred to in subparagraph (A), or
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