[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2320 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2320

To amend the Employee Retirement Income Security Act of 1974 to clarify 
   that an individual account plan shall not be treated as requiring 
   investment in employer securities if an employee can withdraw an 
                    equivalent amount from the plan.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 16, 1998

 Mr. Hollings (for himself and Mr. Thurmond) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Employee Retirement Income Security Act of 1974 to clarify 
   that an individual account plan shall not be treated as requiring 
   investment in employer securities if an employee can withdraw an 
                    equivalent amount from the plan.

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

SECTION 1. CLARIFICATION OF SECTION 401(K) PLAN DIVERSIFICATION 
              REQUIREMENT.

    (a) In General.--Section 407(b)(2)(B) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1107(b)(2)(B)) is amended by 
adding at the end the following new clause:
                            ``(v) For purposes of clause (i), a plan 
                        shall not be treated as requiring applicable 
                        elective deferrals to be invested in qualifying 
                        employer securities or qualifying employer real 
                        property if, under the terms of the plan--
                                    ``(I) the deferrals are so 
                                invested, but
                                    ``(II) a participant or beneficiary 
                                is allowed no less frequently than 
                                quarterly to withdraw an amount equal 
                                to the deferrals made to the plan on 
                                the participant's behalf.
                        A plan shall be treated as meeting the 
                        requirements of subclause (II) if the 
                        withdrawal is made from contributions other 
                        than the deferrals.''
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the amendments made by section 1524 of the Tax 
Relief Act of 1997.
                                 <all>