[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1892 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 1892
To provide information and advice to pension plan participants to
assist them in making decisions regarding the investment of their
pension plan assets, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 19, 2003
Mr. Bayh introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To provide information and advice to pension plan participants to
assist them in making decisions regarding the investment of their
pension plan assets, 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. NOTICE OF HIGH CONCENTRATION OF PENSION ASSETS IN EMPLOYER
SECURITIES.
(a) In General.--Section 105 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1025) is amended by adding at the end
of the following new subsection:
``(e) Notice of High Concentration of Plan Assets in Employer
Securities.--
``(1) In general.--In the case of an individual account
plan to which this subsection applies, if the percentage of
assets in the individual account that consists of employer
securities and employer real property exceeds 50 percent of the
total account, the plan administrator shall include with the
account statement a notice that the account may be overinvested
in employer securities and employer real property. Any
determination under this paragraph shall be made as of the most
recent valuation date under the plan.
``(2) Exclusion of assets held through pooled investment
vehicles.--Employer securities and employer real property held
through an investment option of the plan which is not designed
to invest primarily in employer securities or employer real
property shall not be taken under paragraph (1) in determining
the percentage of assets that consist of employer securities
and employer real property.
``(3) Application.--
``(A) In general.--This subsection shall apply to
any individual account plan which--
``(i) holds employer securities which are
readily tradable on an established securities
market, and
``(ii) permits a participant or beneficiary
to exercise control over assets in the
individual's account.
``(B) Exception for esops.--This subsection shall
not apply to an employee stock ownership plan (as
defined in section 4795(e)(7)) of the Internal Revenue
Code of 1986) if the plan has no contributions which
are subject to section 401 (k) or (m) of such Code.
``(4) Employer securities and real property.--For purposes
of this subsection, the terms `employer securities' and
`employer real property' have the meanings given such terms by
paragraphs (1) and (2) of section 407(d), respectively.''
(b) Penalty.--Section 502 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1132) is amended--
(1) in subsection (a)(6), by striking ``(6), or (7)'' and
inserting ``(6), (7), or (8)'',
(2) by redesignating paragraph (8) of subsection (c) as
paragraph (9), and
(3) by inserting after paragraph (7) the following new
paragraph:
``(8) The Secretary may assess a civil penalty against a
plan administrator of up to $100 a day from the date of the
plan administrator's failure or refusal to provide notice to
participants and beneficiaries in accordance with section
105(e). For purposes of this paragraph, each violation with
respect to any single participant or beneficiary shall be
treated as a separate violation.''
(c) Effective Date.--The amendments made by this section shall
apply to plan years beginning after December 31, 2003.
SEC. 2. TREATMENT OF QUALIFIED RETIREMENT PLANNING SERVICES.
(a) In General.--Subsection (m) of section 132 of the Internal
Revenue Code of 1986 (defining qualified retirement services) is
amended by redesignating paragraphs (2) and (3) as paragraphs (5) and
(6), respectively, and by inserting after paragraph (1) the following:
``(2) Limitations.--
``(A) Dollar limitation.--The aggregate amount
which may be excluded with respect to qualified
retirement planning services provided to any individual
during a taxable year shall not exceed $1,500.
``(B) Adjusted gross income.--No amount may be
excluded with respect to qualified retirement planning
services provided during a taxable year if the modified
adjusted gross income of the taxpayer for such taxable
year exceeds $100,000 ($200,000 in the case of married
individuals filing a joint return). For purposes of
this subparagraph, the term `modified adjusted gross
income' means adjusted gross income, determined without
regard to this section and sections 911, 931, and 933.
``(3) Cash reimbursements.--For purposes of this
subsection, the term `qualified retirement planning services'
includes a cash reimbursement by an employer to an employee for
a benefit described in paragraph (1).
``(4) No constructive receipt.--No amount shall be included
in the gross income of any employee solely because the employee
may choose between any qualified retirement planning services
provided by a qualified investment advisor and compensation
which would otherwise be includible in the gross income of such
employee. The preceding sentence shall apply to highly
compensated employees only if the choice described in such
sentence is available on substantially the same terms to each
member of the group of employees normally provided education
and information regarding the employer's qualified employer
plan.''
(b) Conforming Amendments.--
(1) Section 403(b)(3)(B) of such Code is amended by
inserting ``132(m)(4),'' after ``132(f)(4),''.
(2) Section 414(s)(2) of such Code is amended by inserting
``132(m)(4),'' after ``132(f)(4),''.
(3) Section 415(c)(3)(D)(ii) of such Code is amended by
inserting ``132(m)(4),'' after ``132(f)(4),''.
(c) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2003.
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