[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2832 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2832

To amend title I of the Employee Retirement Income Security Act of 1974 
     to require clear and concise notification to participants and 
beneficiaries under a group health plan of the right of the employer to 
  terminate such plan and to otherwise revise the type and amount of 
 benefits provided thereunder, and to provide for civil enforcement of 
                           such requirement.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 2, 1993

Ms. Shepherd (for herself, Mr. Brown of Ohio, Mr. Miller of California, 
  Mrs. Lowey, Mr. Hughes, Mr. Frost, Mr. Filner, Ms. Norton, and Ms. 
    Eshoo) introduced the following bill; which was referred to the 
                    Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
To amend title I of the Employee Retirement Income Security Act of 1974 
     to require clear and concise notification to participants and 
beneficiaries under a group health plan of the right of the employer to 
  terminate such plan and to otherwise revise the type and amount of 
 benefits provided thereunder, and to provide for civil enforcement of 
                           such requirement.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. NOTIFICATION OF PARTICIPANTS AND BENEFICIARIES UNDER GROUP 
              HEALTH PLANS OF EMPLOYER'S RIGHT TO TERMINATE THE PLAN.

    (a) In General.--Section 102(b) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1022(b)) is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) In the case of an employee benefit plan which constitutes a 
group health plan (as defined in section 607(1)), the summary plan 
description shall contain, in addition to the information described in 
paragraph (1), a clear and concise statement describing any right 
reserved by the employer under the plan to terminate the plan or to 
otherwise revise the type and amount of benefits provided 
thereunder.''.
    (b) Notification Requirement Ineligible for Waiver.--Section 
104(a)(3) of such Act (29 U.S.C. 1024(a)(3)) is amended by adding at 
the end the following new sentence: ``The preceding sentence shall not 
apply with respect to the requirements of section 102(b)(2).''.
    (c) Penalty for Failure to Provide Notification.--Section 502(c)(4) 
of such Act (29 U.S.C. 1132(c)(4)) is amended by adding at the end the 
following new paragraph:
    ``(4) In any case in which, at the time a summary plan description 
relating to a group health plan (as defined in section 607(1)) is 
furnished to a participant or beneficiary as provided in section 
104(b), the requirements of section 102(b)(2) are not met with respect 
to such summary plan description, the employer may in the court's 
discretion be liable to such participant or beneficiary in the amount 
of up to $100 a day from the date of such failure until the date on 
which the employer corrects such failure by means of furnishing to such 
participant or beneficiary a summary plan description meeting such 
requirements, and the court may in its discretion order such other 
relief as it deems proper.''.

SEC. 2. EFFECTIVE DATE.

    The amendments made by section 1 shall apply with respect to 
summary plan descriptions furnished to plan participants and 
beneficiaries on or after January 1, 1994.

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