[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3688 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3688

   To require that 401(k)-type pension plans be subject to the same 
prohibited transaction rules that apply to traditional defined benefit 
                             pension plans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 20, 1996

  Mr. Condit introduced the following bill; which was referred to the 
          Committee on Economic and Educational Opportunities

_______________________________________________________________________

                                 A BILL


 
   To require that 401(k)-type pension plans be subject to the same 
prohibited transaction rules that apply to traditional defined benefit 
                             pension plans.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``401(k) Pension Protection Act of 
1996''.

SEC. 2. CERTAIN PROHIBITED TRANSACTIONS APPLIED TO 401(k) PLANS.

    (a) In General.--Paragraph (3) of section 407(d) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1107(d)) is amended 
by adding at the end the following new sentence: ``Such term also 
excludes an individual account plan that includes a qualified cash or 
deferred arrangement described in section 401(k) of the Internal 
Revenue Code of 1986, if such plan, together with all other individual 
account plans maintained by the employer, owns more than 10 percent of 
the assets owned by all pension plans maintained by the employer. For 
purposes of the preceding sentence, the assets of such plan subject to 
participant control (within the meaning of section 404(c)) shall not be 
taken into account.''.
    (b) Effective Date; Transition Rule.--
            (1) Effective date.--Except as provided in paragraph (2), 
        the amendment made by this section shall apply to plans on and 
        after the date of the enactment of this Act.
            (2) Transition rule for plans holding excess securities or 
        property.--In the case of a plan which on the date of the 
        enactment of this Act has holdings of employer securities and 
        employer real property (as defined in section 407(d) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1107(d)) in excess of the amount specified in such section 407, 
        the amendment made by this section shall apply to any 
        acquisition of such securities and property on or after such 
        date of enactment, but shall not apply to the specific holdings 
        which constitute such excess during the period of such excess.
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