[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 320 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 320

  To amend the Internal Revenue Code of 1986 to provide comprehensive 
                     pension protection for women.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 13, 1997

    Ms. Moseley-Braun (for herself and Mrs. Murray) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to provide comprehensive 
                     pension protection for women.

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

SECTION 1. SHORT TITLE.

    (a) Short Title.--This Act may be cited as the ``Comprehensive 
Women's Pension Protection Act of 1997''.
    (b) Table of Contents.--

Sec. 1. Short title.
                        TITLE I--PENSION REFORM

Sec. 101. Pension integration rules.
Sec. 102. Application of minimum coverage requirements with respect to 
                            separate lines of business.
Sec. 103. Division of pension benefits upon divorce.
Sec. 104. Clarification of continued availability of remedies relating 
                            to matters treated in domestic relations 
                            orders entered before 1985.
Sec. 105. Entitlement of divorced spouses to railroad retirement 
                            annuities independent of actual entitlement 
                            of employee.
Sec. 106. Effective dates.
 TITLE II--PROTECTION OF RIGHTS OF FORMER SPOUSES TO PENSION BENEFITS 
 UNDER CERTAIN GOVERNMENT AND GOVERNMENT-SPONSORED RETIREMENT PROGRAMS

Sec. 201. Extension of tier II railroad retirement benefits to 
                            surviving former spouses pursuant to 
                            divorce agreements.
Sec. 202. Survivor annuities for widows, widowers, and former spouses 
                            of Federal employees who die before 
                            attaining age for deferred annuity under 
                            civil service retirement system.
Sec. 203. Court orders relating to Federal retirement benefits for 
                            former spouses of Federal employees.
               TITLE III--REFORMS RELATED TO 401(K) PLANS

Sec. 301. Requirement of annual, detailed investment reports applied to 
                            certain 401(k) plans.
Sec. 302. Section 401(k) investment protection.
   TITLE IV--MODIFICATIONS OF JOINT AND SURVIVOR ANNUITY REQUIREMENTS

Sec. 401. Modifications of joint and survivor annuity requirements.
TITLE V--SPOUSAL CONSENT REQUIRED FOR DISTRIBUTIONS FROM SECTION 401(K) 
                                 PLANS

Sec. 501. Spousal consent required for distributions from section 
                            401(k) plans.
            TITLE VI--WOMEN'S PENSION TOLL-FREE PHONE NUMBER

Sec. 601. Women's pension toll-free phone number.
            TITLE VII--PERIODIC PENSION BENEFITS STATEMENTS

Sec. 701. Periodic pension benefits statements.

                        TITLE I--PENSION REFORM

SEC. 101. PENSION INTEGRATION RULES.

    (a) Applicability of New Integration Rules Extended to All Existing 
Accrued Benefits.--Notwithstanding subsection (c)(1) of section 1111 of 
the Tax Reform Act of 1986 (relating to effective date of application 
of nondiscrimination rules to integrated plans) (100 Stat. 2440), 
effective for plan years beginning after the date of the enactment of 
this Act, the amendments made by subsection (a) of such section 1111 
shall also apply to benefits attributable to plan years beginning on or 
before December 31, 1988.
    (b) Integration Disallowed for Simplified Employee Pensions.--
            (1) In general.--Subparagraph (D) of section 408(k)(3) of 
        the Internal Revenue Code of 1986 (relating to permitted 
        disparity under rules limiting discrimination under simplified 
        employee pensions) is repealed.
            (2) Conforming amendment.--Subparagraph (C) of such section 
        408(k)(3) is amended by striking ``and except as provided in 
        subparagraph (D),''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply with respect to taxable years beginning on or after 
        January 1, 1998.
    (c) Eventual Repeal of Integration Rules.--Effective for plan years 
beginning on or after January 1, 2004--
            (1) subparagraphs (C) and (D) of section 401(a)(5) of the 
        Internal Revenue Code of 1986 (relating to pension integration 
        exceptions under nondiscrimination requirements for 
        qualification) are repealed, and subparagraph (E) of such 
        section 401(a)(5) is redesignated as subparagraph (C); and
            (2) subsection (l) of section 401 of such Code (relating to 
        nondiscriminatory coordination of defined contribution plans 
        with OASDI) is repealed.

SEC. 102. APPLICATION OF MINIMUM COVERAGE REQUIREMENTS WITH RESPECT TO 
              SEPARATE LINES OF BUSINESS.

    (a) In General.--Subsection (b) of section 410 of the Internal 
Revenue Code of 1986 (relating to minimum coverage requirements) is 
amended--
            (1) in paragraph (1), by striking ``A trust'' and inserting 
        ``In any case in which the employer with respect to a plan is 
        treated, under section 414(r), as operating separate lines of 
        business for a plan year, a trust'', and by inserting ``for 
        such plan year'' after ``requirements''; and
            (2) by redesignating paragraphs (3) through (6) as 
        paragraphs (4) through (7), respectively and by inserting after 
        paragraph (2) the following new paragraph:
            ``(3) Special rule where employer operates single line of 
        business.--In any case in which the employer with respect to a 
        plan is not treated, under section 414(r), as operating 
separate lines of business for a plan year, a trust shall not 
constitute a qualified trust under section 401(a) unless such trust is 
designated by the employer as part of a plan which benefits all 
employees of the employer.''.
    (b) Limitation on Line of Business Exception.--Paragraph (6) of 
section 410(b) of such Code (as redesignated by subsection (a)(2) of 
this section) is amended by inserting ``other than paragraph (1)(A)'' 
after ``this subsection''.

SEC. 103. DIVISION OF PENSION BENEFITS UPON DIVORCE.

    (a) Amendments to the Internal Revenue Code of 1986.--
            (1) In general.--Paragraph (1) of section 414(p) of the 
        Internal Revenue Code of 1986 (relating to qualified domestic 
        relations order defined) is amended by adding at the end the 
        following new subparagraph:
                    ``(C) Deemed domestic relations order upon 
                divorce.--
                            ``(i) In general.--Except as provided in 
                        clause (iv), a domestic relations order with 
                        respect to a marriage of at least 5 years 
                        duration between the participant and the former 
                        spouse (including an annulment or other order 
                        of marital dissolution) shall, if the former 
                        spouse, within 60 days after the receipt of 
                        notice under paragraph (6)(B)(i)(II), so 
                        elects, be deemed by the plan to be a domestic 
                        relations order that specifies that 50 percent 
                        of the marital share of the participant's 
                        accrued benefit is to be provided to such 
                        former spouse.
                            ``(ii) Marital share.--The marital share 
                        shall be the accrued benefit of the participant 
                        under the plan as of the date of the first 
                        payment under the plan (to the extent such 
                        accrued benefit is vested at the date of the 
                        divorce or any later date) multiplied by a 
                        fraction, the numerator of which is the period 
                        of participation by the participant under the 
                        plan starting with the date of marriage and 
                        ending with the date of divorce, and the 
                        denominator of which is the total period of 
                        participation by the participant under the 
                        plan.
                            ``(iii) Interpretation as qualified 
                        domestic relations order.--Each plan shall 
                        establish reasonable rules for determining how 
                        any such deemed domestic relations order is to 
                        be interpreted under the plan so as to 
                        constitute a qualified domestic relations order 
                        that satisfies paragraphs (2) through (4) (and 
                        a copy of such rules shall be provided to such 
                        former spouse promptly after delivery of the 
                        divorce decree). Such rules--
                                    ``(I) may delay the effect of such 
                                an order until the earlier of the date 
                                the participant is fully vested or has 
                                terminated employment,
                                    ``(II) may allow the former spouse 
                                to be paid out immediately,
                                    ``(III) shall permit the former 
                                spouse to be paid not later than the 
                                earliest retirement age under the plan 
                                or the participant's death,
                                    ``(IV) may require the submitter of 
                                the divorce decree to present a 
                                marriage certificate or other evidence 
                                of the marriage date to assist in 
                                benefit calculations, and
                                    ``(V) may conform to the rules 
                                applicable to qualified domestic 
                                relations orders regarding form or type 
                                of benefit.
                            ``(iv) Application.--This subparagraph 
                        shall not apply--
                                    ``(I) if the domestic relations 
                                order states that pension benefits were 
                                considered by the parties and no 
                                division is intended, or
                                    ``(II) to the extent that a 
                                qualified domestic relations order 
                                issued in connection with such divorce 
                                provides otherwise.''.
            (2) Notification procedures.--Section 414(p)(6) of such 
        Code (relating to plan procedures with respect to orders) is 
        amended by striking subparagraph (A), by redesignating 
        subparagraph (B) as subparagraph (C), and by inserting before 
        subparagraph (C) (as so redesignated) the following new 
        subparagraphs:
                    ``(A) Notice and determination by administrator.--
                In the case of any domestic relations order received by 
                a plan, including such an order received under 
                subparagraph (B) or section 4980B(f)(6)(C)--
                            ``(i) within 14 days after receipt of such 
                        order, the plan administrator shall--
                                    ``(I) notify the participant and 
                                each alternate payee of the receipt of 
                                such order and the plan's procedures 
                                for determining the qualified status of 
                                domestic relation orders, and
                                    ``(II) notify the former spouse of 
                                such former spouse's rights under 
                                paragraph (1)(C), and
                            ``(ii) within a reasonable period after 
                        receipt of such order, the plan administrator 
                        shall determine whether such order is a 
                        qualified domestic relations order and notify 
                        the participant and each alternate payee of 
                        such determination.
                    ``(B) Notification of plan administrator.--In the 
                case of a domestic relations order which is not a 
                qualified domestic relations order, each plan--
                            ``(i) shall require that each participant 
                        is responsible for notifying the plan 
                        administrator of the occurrence of a divorce of 
                        the participant from the former spouse and for 
                        delivery to the plan administrator of the 
                        domestic relations order along with the 
                        information required by paragraph (2)(A) within 
                        60 days after the date of the divorce, and
                            ``(ii) shall allow a former spouse to so 
                        notify the plan administrator and deliver to 
                        the plan administrator the domestic relations 
                        order within 60 days after the date of the 
                        divorce.''.
    (b) Amendments to the Employee Retirement Income Security Act of 
1974.--
            (1) In general.--Subsection (d)(3)(B) of section 206 of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1056) is amended--
                    (A) by striking ``this paragraph--'' and inserting 
                ``this paragraph:'',
                    (B) in clause (i)--
                            (i) by striking ``the term'' and inserting 
                        ``The term'', and
                            (ii) by striking ``met, and'' and inserting 
                        ``met.'',
                    (C) in clause (ii), by striking ``the term'' and 
                inserting ``The term'', and
                    (D) by adding at the end the following new clause:
            ``(iii)(I) Except as provided on subclause (IV), a domestic 
        relations order with respect to a marriage of at least 5 years 
        duration between the participant and the former spouse 
        (including an annulment or other order of marital dissolution) 
        shall, if the former spouse, within 60 days after the receipt 
        of notice under subparagraph (G)(ii)(I)(bb), so elects, be 
        deemed by the plan to be a domestic relations order that 
        specifies that 50 percent of the marital share of the 
        participant's accrued benefit is to be provided to such former 
        spouse.
            ``(II) The marital share shall be the accrued benefit of 
        the participant under the plan as of the date of the first 
        payment under the plan (to the extent such accrued benefit is 
        vested at the date of the divorce or any later date) multiplied 
        by a fraction, the numerator of which is the period of 
        participation by the participant under the plan starting with 
        the date of marriage and ending with the date of divorce, and 
        the denominator of which is the total period of participation 
        by the participant under the plan.
            ``(III) Each plan shall establish reasonable rules for 
        determining how any such deemed domestic relations order is to 
        be interpreted under the plan so as to constitute a qualified 
        domestic relations order that satisfies subparagraphs (C) 
        through (E) (and a copy of such rules shall be provided to such 
        former spouse promptly after delivery of the divorce decree). 
        Such rules--
                    ``(aa) may delay the effect of such an order until 
                the earlier of the date the participant is fully vested 
                or has terminated employment,
                    ``(bb) may allow the former spouse to be paid out 
                immediately,
                    ``(cc) shall permit the spouse to be paid not later 
                than the earliest retirement age under the plan or the 
                participant's death,
                    ``(dd) may require the submitter of the divorce 
                decree to present a marriage certificate or other 
                evidence of the marriage date to assist in benefit 
                calculations, and
                    ``(ee) may conform to the rules applicable to 
                qualified domestic relations orders regarding form or 
                type of benefit.
            ``(IV) This clause shall not apply--
                    ``(aa) if the domestic relations order states that 
                pension benefits were considered by the parties and no 
                division is intended, or
                    ``(bb) to the extent that a qualified domestic 
                relations order issued in connection with such divorce 
                provides otherwise.''.
            (2) Notification procedures.--Section 206(d)(3)(G) of such 
        Act (29 U.S.C. 1056(d)(3)(G)) is amended by striking all matter 
        before clause (ii), by redesignating clause (ii) as clause 
        (iii), and by inserting before clause (iii) (as so 
        redesignated) the following:
    ``(G)(i) In the case of any domestic relations order received by a 
plan, including such an order received under clause (ii) or section 
606(a)(3)--
            ``(I) within 14 days after receipt of such order, the plan 
        administrator shall--
                    ``(aa) notify the participant and each alternate 
                payee of the receipt of such order and the plan's 
                procedures for determining the qualified status of 
                domestic relation orders, and
                    ``(bb) notify the former spouse of such former 
                spouse's rights under subparagraph (B)(iii), and
            ``(II) within a reasonable period after receipt of such 
        order, the plan administrator shall determine whether such 
        order is a qualified domestic relations order and notify the 
        participant and each alternate payee of such determination.
    ``(ii) In the case of a domestic relations order which is not a 
qualified domestic relations order, each plan--
            ``(I) shall require that each participant is responsible 
        for notifying the plan administrator of the occurrence of a 
        divorce of the participant from the former spouse and for 
        delivery to the plan administrator of the domestic relations 
        order along with the information required by subparagraph 
        (C)(i) within 60 days after the date of the divorce, and
            ``(II) shall allow a former spouse to so notify the plan 
        administrator and deliver to the plan administrator the 
        domestic relations order within 60 days after the date of the 
        divorce.''.

SEC. 104. CLARIFICATION OF CONTINUED AVAILABILITY OF REMEDIES RELATING 
              TO MATTERS TREATED IN DOMESTIC RELATIONS ORDERS ENTERED 
              BEFORE 1985.

    (a) In General.--In any case in which--
            (1) under a prior domestic relations order entered before 
        January 1, 1985, in an action for divorce--
                    (A) the right of a spouse under a pension plan to 
                an accrued benefit under such plan was not divided 
                between spouses,
                    (B) any right of a spouse with respect to such an 
                accrued benefit was waived without the informed consent 
                of such spouse, or
                    (C) the right of a spouse as a participant under a 
                pension plan to an accrued benefit under such plan was 
                divided so that the other spouse received less than 
                such other spouse's pro rata share of the accrued 
                benefit under the plan, or
            (2) a court of competent jurisdiction determines that any 
        further action is appropriate with respect to any matter to 
        which a prior domestic relations order entered before such date 
        applies,
nothing in the provisions of section 104, 204, or 303 of the Retirement 
Equity Act of 1984 (Public Law 98-397) or the amendments made thereby 
shall be construed to require or permit the treatment, for purposes of 
such provisions, of a domestic relations order, which is entered on or 
after the date of the enactment of this Act and which supersedes, 
amends the terms of, or otherwise affects such prior domestic relations 
order, as other than a qualified domestic relations order solely 
because such prior domestic relations order was entered before January 
1, 1985.
    (b) Definitions.--For purposes of this section--
            (1) In general.--Terms used in this section which are 
        defined in section 3 of the Employee Retirement Income Security 
        Act of 1974 (29 U.S.C. 1002) shall have the meanings provided 
        such terms by such section.
            (2) Pro rata share.--The term ``pro rata share'' of a 
        spouse means, in connection with an accrued benefit under a 
        pension plan, 50 percent of the product derived by 
        multiplying--
                    (A) the actuarial present value of the accrued 
                benefit, by
                    (B) a fraction--
                            (i) the numerator of which is the period of 
                        time, during the marriage between the spouse 
                        and the participant in the plan, which 
                        constitutes creditable service by the 
                        participant under the plan, and
                            (ii) the denominator of which is the total 
                        period of time which constitutes creditable 
                        service by the participant under the plan.
            (3) Plan.--All pension plans in which a person has been a 
        participant shall be treated as one plan with respect to such 
        person.

SEC. 105. ENTITLEMENT OF DIVORCED SPOUSES TO RAILROAD RETIREMENT 
              ANNUITIES INDEPENDENT OF ACTUAL ENTITLEMENT OF EMPLOYEE.

    Section 2 of the Railroad Retirement Act of 1974 (45 U.S.C. 231a) 
is amended--
            (1) in subsection (c)(4)(i), by striking ``(A) is entitled 
        to an annuity under subsection (a)(1) and (B)''; and
            (2) in subsection (e)(5), by striking ``or divorced wife'' 
        the second place it appears.

SEC. 106. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this title, other than section 101, shall apply with 
respect to plan years beginning on or after January 1, 1998, and the 
amendments made by section 103 shall apply only with respect to 
divorces becoming final in such plan years.
    (b) Special Rule for Collectively Bargained Plans.--In the case of 
a plan maintained pursuant to 1 or more collective bargaining 
agreements between employee representatives and 1 or more employers 
ratified on or before the date of the enactment of this Act, subsection 
(a) shall be applied to benefits pursuant to, and individuals covered 
by, any such agreement by substituting for ``January 1, 1998'' the date 
of the commencement of the first plan year beginning on or after the 
earlier of--
            (1) the later of--
                    (A) January 1, 1999, or
                    (B) the date on which the last of such collective 
                bargaining agreements terminates (determined without 
                regard to any extension thereof after the date of the 
                enactment of this Act), or
            (2) January 1, 2000.
    (c) Plan Amendments.--If any amendment made by this title requires 
an amendment to any plan, such plan amendment shall not be required to 
be made before the first plan year beginning on or after January 1, 
2000, if--
            (1) during the period after such amendment made by this 
        title takes effect and before such first plan year, the plan is 
        operated in accordance with the requirements of such amendment 
        made by this title, and
            (2) such plan amendment applies retroactively to the period 
        after such amendment made by this title takes effect and such 
        first plan year.
A plan shall not be treated as failing to provide definitely 
determinable benefits or contributions, or to be operated in accordance 
with the provisions of the plan, merely because it operates in 
accordance with this subsection.

 TITLE II--PROTECTION OF RIGHTS OF FORMER SPOUSES TO PENSION BENEFITS 
 UNDER CERTAIN GOVERNMENT AND GOVERNMENT-SPONSORED RETIREMENT PROGRAMS

SEC. 201. EXTENSION OF TIER II RAILROAD RETIREMENT BENEFITS TO 
              SURVIVING FORMER SPOUSES PURSUANT TO DIVORCE AGREEMENTS.

    (a) In General.--Section 5 of the Railroad Retirement Act of 1974 
(45 U.S.C. 231d) is amended by adding at the end the following new 
subsection:
    ``(d) Notwithstanding any other provision of law, the payment of 
any portion of an annuity computed under section 3(b) to a surviving 
former spouse in accordance with a court decree of divorce, annulment, 
or legal separation or the terms of any court-approved property 
settlement incident to any such court decree shall not be terminated 
upon the death of the individual who performed the service with respect 
to which such annuity is so computed unless such termination is 
otherwise required by the terms of such court decree.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 202. SURVIVOR ANNUITIES FOR WIDOWS, WIDOWERS, AND FORMER SPOUSES 
              OF FEDERAL EMPLOYEES WHO DIE BEFORE ATTAINING AGE FOR 
              DEFERRED ANNUITY UNDER CIVIL SERVICE RETIREMENT SYSTEM.

    (a) Benefits for Widow or Widower.--Section 8341(f) of title 5, 
United States Code, is amended--
            (1) in the matter preceding paragraph (1) by--
                    (A) by inserting ``a former employee separated from 
                the service with title to deferred annuity from the 
                Fund dies before having established a valid claim for 
                annuity and is survived by a spouse, or if'' before ``a 
                Member''; and
                    (B) by inserting ``of such former employee or 
                Member'' after ``the surviving spouse'';
            (2) in paragraph (1)--
                    (A) by inserting ``former employee or'' before 
                ``Member commencing''; and
                    (B) by inserting ``former employee or'' before 
                ``Member dies''; and
            (3) in the undesignated sentence following paragraph (2)--
                    (A) in the matter preceding subparagraph (A) by 
                inserting ``former employee or'' before ``Member''; and
                    (B) in subparagraph (B) by inserting ``former 
                employee or'' before ``Member''.
    (b) Benefits for Former Spouse.--Section 8341(h) of title 5, United 
States Code, is amended--
            (1) in paragraph (1) by adding after the first sentence 
        ``Subject to paragraphs (2) through (5) of this subsection, a 
        former spouse of a former employee who dies after having 
        separated from the service with title to a deferred annuity 
        under section 8338(a) but before having established a valid 
        claim for annuity is entitled to a survivor annuity under this 
        subsection, if and to the extent expressly provided for in an 
        election under section 8339(j)(3) of this title, or in the 
        terms of any decree of divorce or annulment or any court order 
        or court-approved property settlement agreement incident to 
        such decree.''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A)(ii) by striking ``or 
                annuitant,'' and inserting ``annuitant, or former 
                employee''; and
                    (B) in subparagraph (B)(iii) by inserting ``former 
                employee or'' before ``Member''.
    (c) Protection of Survivor Benefit Rights.--Section 8339(j)(3) of 
title 5, United States Code, is amended by inserting at the end the 
following:
    ``The Office shall provide by regulation for the application of 
this subsection to the widow, widower, or surviving former spouse of a 
former employee who dies after having separated from the service with 
title to a deferred annuity under section 8338(a) but before having 
established a valid claim for annuity.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply only in 
the case of a former employee who dies on or after such date.

SEC. 203. COURT ORDERS RELATING TO FEDERAL RETIREMENT BENEFITS FOR 
              FORMER SPOUSES OF FEDERAL EMPLOYEES.

    (a) Civil Service Retirement System.--
            (1) In general.--Section 8345(j) of title 5, United States 
        Code, is amended--
                    (A) by redesignating paragraph (3) as paragraph 
                (4); and
                    (B) by inserting after paragraph (2) the following 
                new paragraph:
    ``(3) Payment to a person under a court decree, court order, 
property settlement, or similar process referred to under paragraph (1) 
shall include payment to a former spouse of the employee, Member, or 
annuitant.''.
            (2) Lump-sum benefits.--Section 8342 of title 5, United 
        States Code, is amended--
                    (A) in subsection (c) by striking ``Lump-sum 
                benefits'' and inserting ``Subject to subsection (j), 
                lump-sum benefits''; and
                    (B) in subsection (j)(1) by striking ``the lump-sum 
                credit under subsection (a) of this section'' and 
                inserting ``any lump-sum credit or lump-sum benefit 
                under this section''.
    (b) Federal Employees Retirement System.--Section 8467 of title 5, 
United States Code, is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Payment to a person under a court decree, court order, 
property settlement, or similar process referred to under subsection 
(a) shall include payment to a former spouse of the employee, Member, 
or annuitant.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

               TITLE III--REFORMS RELATED TO 401(K) PLANS

SEC. 301. REQUIREMENT OF ANNUAL, DETAILED INVESTMENT REPORTS APPLIED TO 
              CERTAIN 401(k) PLANS.

    (a) In General.--Section 104(b)(3) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1024(b)(3)) is amended--
            (1) by inserting ``(A)'' after ``(3)''; and
            (2) by adding at the end the following new subparagraph:
            ``(B)(i) If a plan includes a qualified cash or deferred 
        arrangement (as defined in section 401(k)(2) of the Internal 
        Revenue Code of 1986) and is maintained by an employer with 
        less than 100 participants, the administrators shall furnish to 
        each participant and to each beneficiary receiving benefits 
        under the plan an annual investment report detailing such 
        information as the Secretary by regulation shall require.
            ``(ii) Clause (i) shall not apply with respect to any 
        participant described in section 404(c).''.
    (b) Regulations.--
            (1) In general.--The Secretary of Labor, in prescribing 
        regulations required under section 104(b)(3)(B)(i) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1023(b)(3)(B)(i)), as added by subsection (a), shall consider 
        including in the information required in an annual investment 
        report the following:
                    (A) Total plan assets and liabilities as of the 
                beginning and ending of the plan year.
                    (B) Plan income and expenses and contributions made 
                and benefits paid for the plan year.
                    (C) Any transaction between the plan and the 
                employer, any fiduciary, or any 10-percent owner during 
                the plan year, including the acquisition of any 
                employer security or employer real property.
                    (D) Any noncash contributions made to or purchases 
                of nonpublicly traded securities made by the plan 
                during the plan year without an appraisal by an 
                independent third party.
            (2) Electronic transfer.--The Secretary of Labor in 
        prescribing such regulations shall also make provision for the 
        electronic transfer of the required annual investment report by 
        a plan administrator to plan participants and beneficiaries.
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply to plan years beginning after the date of the enactment of this 
Act.

SEC. 302. SECTION 401(k) INVESTMENT PROTECTION.

    (a) Limitations on Investment in Employer Securities and Employer 
Real Property by Cash or Deferred Arrangements.--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 
subparagraph:
            ``(D) The term `eligible individual account plan' does not 
        include that portion of an individual account plan that 
        consists of elective deferrals (as defined in section 402(g)(3) 
        of the Internal Revenue Code of 1986) pursuant to a qualified 
        cash or deferred arrangement as defined in section 401(k) of 
        the Internal Revenue Code of 1986 (and earnings thereon), if 
        such elective deferrals (or earnings thereon) are required to 
        be invested in qualifying employer securities or qualifying 
        employer real property or both pursuant to the documents and 
        instruments governing the plan or at the direction of a person 
        other than the participant (or the participant's beneficiary) 
        on whose behalf such elective deferrals are made to the plan. 
        For the purposes of subsection (a), such portion shall be 
        treated as a separate plan. This subparagraph shall not apply 
        to an individual account plan if the fair market value of the 
        assets of all individual account plans maintained by the 
        employer equals not more than 10 percent of the fair market 
        value of the assets of all pension plans maintained by the 
        employer.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date of the enactment of this Act.
            (2) Transition rule for plans holding excess securities or 
        property.--
                    (A) In general.--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 applies to any acquisition of such 
securities and property on or after such date, but does not apply to 
the specific holdings which constitute such excess during the period of 
such excess.
                    (B) Special rule for certain acquisitions.--
                Employer securities and employer real property acquired 
                pursuant to a binding written contract to acquire such 
                securities and real property entered into and in effect 
                on the date of the enactment of this Act, shall be 
                treated as acquired immediately before such date.

   TITLE IV--MODIFICATIONS OF JOINT AND SURVIVOR ANNUITY REQUIREMENTS

SEC. 401. MODIFICATIONS OF JOINT AND SURVIVOR ANNUITY REQUIREMENTS.

    (a) Amendments to ERISA.--
            (1) Amount of annuity.--
                    (A) In general.--Paragraph (1) of section 205(a) of 
                the Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1055(a)) is amended by inserting ``or, at the 
                election of the participant, shall be provided in the 
                form of a qualified joint and \2/3\ survivor annuity'' 
                after ``survivor annuity,''.
                    (B) Definition.--Subsection (d) of section 205 of 
                such Act (29 U.S.C. 1055) is amended--
                            (i) by redesignating paragraphs (1) and (2) 
                        as subparagraphs (A) and (B), respectively,
                            (ii) by inserting ``(1)'' after ``(d)'', 
                        and
                            (iii) by adding at the end the following 
                        new paragraph:
    ``(2) For purposes of this section, the term ``qualified joint and 
\2/3\ survivor annuity'' means an annuity--
            ``(A) for the participant while both the participant and 
        the spouse are alive with a survivor annuity for the life of 
        surviving individual (either the participant or the spouse) 
        equal to 67 percent of the amount of the annuity which is 
        payable to the participant while both the participant and the 
        spouse are alive,
            ``(B) which is the actuarial equivalent of a single annuity 
        for the life of the participant, and
            ``(C) which, for all other purposes of this Act, is treated 
        as a qualified joint and survivor annuity.''.
            (2) Illustration requirement.--Clause (i) of section 
        205(c)(3)(A) of such Act (29 U.S.C. 1055(c)(3)(A)) is amended 
        to read as follows:
            ``(i) the terms and conditions of each qualified joint and 
        survivor annuity and qualified joint and \2/3\ survivor annuity 
        offered, accompanied by an illustration of the benefits under 
        each such annuity for the particular participant and spouse and 
        an acknowledgement form to be signed by the participant and the 
        spouse that they have read and considered the illustration 
        before any form of retirement benefit is chosen,''.
    (b) Amendments to Internal Revenue Code.--
            (1) Amount of annuity.--
                    (A) In general.--Clause (i) of section 
                401(a)(11)(A) of the Internal Revenue Code of 1986 
                (relating to requirement of joint and survivor annuity 
                and preretirement survivor annuity) is amended by 
                inserting ``or, at the election of the participant, 
                shall be provided in the form of a qualified joint and 
                \2/3\ survivor annuity'' after ``survivor annuity,''.
                    (B) Definition.--Section 417 of such Code (relating 
                to definitions and special rules for purposes of 
                minimum survivor annuity requirements) is amended by 
                redesignating subsection (f) as subsection (g) and by 
                inserting after subsection (e) the following new 
                subsection:
    ``(f) Definition of Qualified Joint and \2/3\ Survivor Annuity.--
For purposes of this section and section 401(a)(11), the term 
``qualified joint and \2/3\ survivor annuity'' means an annuity--
            ``(1) for the participant while both the participant and 
        the spouse are alive with a survivor annuity for the life of 
        surviving individual (either the participant or the spouse) 
        equal to 67 percent of the amount of the annuity which is 
        payable to the participant while both the participant and the 
        spouse are alive,
            ``(2) which is the actuarial equivalent of a single annuity 
        for the life of the participant, and
            ``(3) which, for all other purposes of this title, is 
        treated as a qualified joint and survivor annuity.''.
            (2) Illustration requirement.--Clause (i) of section 
        417(a)(3)(A) of such Code (relating to explanation of joint and 
        survivor annuity) is amended to read as follows:
                            ``(i) the terms and conditions of each 
                        qualified joint and survivor annuity 
and qualified joint and \2/3\ survivor annuity offered, accompanied by 
an illustration of the benefits under each such annuity for the 
particular participant and spouse and an acknowledgement form to be 
signed by the participant and the spouse that they have read and 
considered the illustration before any form of retirement benefit is 
chosen,''.
    (c) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply to plan years beginning on or after January 1, 1998.
            (2) Special rule for collectively bargained plans.--In the 
        case of a plan maintained pursuant to 1 or more collective 
        bargaining agreements between employee representatives and 1 or 
        more employers ratified on or before the date of enactment of 
        this Act, the amendments made by this section shall apply to 
        the first plan year beginning on or after the earlier of--
                    (A) the later of--
                            (i) January 1, 1999, or
                            (ii) the date on which the last of such 
                        collective bargaining agreements terminates 
                        (determined without regard to any extension 
                        thereof after the date of enactment of this 
                        Act), or
                    (B) January 1, 2000.
            (3) Plan amendments.--If any amendment made by this section 
        requires an amendment to any plan, such plan amendment shall 
        not be required to be made before the first plan year beginning 
        on or after January 1, 2000, if--
                    (A) during the period after such amendment made by 
                this section takes effect and before such first plan 
                year, the plan is operated in accordance with the 
                requirements of such amendment made by this section, 
                and
                    (B) such plan amendment applies retroactively to 
                the period after such amendment made by this section 
                takes effect and such first plan year.
        A plan shall not be treated as failing to provide definitely 
        determinable benefits or contributions, or to be operated in 
        accordance with the provisions of the plan, merely because it 
        operates in accordance with this paragraph.

TITLE V--SPOUSAL CONSENT REQUIRED FOR DISTRIBUTIONS FROM SECTION 401(k) 
                                 PLANS

SEC. 501. SPOUSAL CONSENT REQUIRED FOR DISTRIBUTIONS FROM SECTION 
              401(k) PLANS.

    (a) In General.--Paragraph (2) of section 401(k) of the Internal 
Revenue Code of 1986 (defining qualified cash or deferred arrangement) 
is amended by striking ``and'' at the end of subparagraph (C), by 
striking the period at the end of subparagraph (D) and inserting ``, 
and'', and by adding at the end the following new subparagraph:
                    ``(E) which provides that no distribution may be 
                made unless--
                            ``(i) the spouse of the employee (if any) 
                        consents in writing (during the 90-day period 
                        ending on the date of the distribution) to such 
                        distribution, and
                            ``(ii) requirements comparable to the 
                        requirements of section 417(a)(2) are met with 
                        respect to such consent.''
    (b) Effective Date.--The amendments made by this section shall 
apply to distributions in plan years beginning on or after January 1, 
1998.

            TITLE VI--WOMEN'S PENSION TOLL-FREE PHONE NUMBER

SEC. 601. WOMEN'S PENSION TOLL-FREE PHONE NUMBER.

    (a) In General.--The Secretary of Labor shall contract with an 
independent organization to create a women's pension toll-free 
telephone number and contact to serve as--
            (1) a resource for women on pension questions and issues;
            (2) a source for referrals to appropriate agencies; and
            (3) a source for printed information.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated $500,000 for each of the fiscal years 1998, 1999, 2000, 
and 2001 to carry out subsection (a).

            TITLE VII--PERIODIC PENSION BENEFITS STATEMENTS

SEC. 701. PERIODIC PENSION BENEFITS STATEMENTS.

    (a) In General.--Subsection (a) of section 105 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1025) is amended by 
striking ``shall furnish to any plan participant or beneficiary who so 
requests in writing,'' and inserting ``shall furnish at least once 
every 3 years, in the case of a defined benefit plan, and annually, in 
the case of a defined contribution plan, to each plan participant, and 
shall furnish to any plan participant or beneficiary who so 
requests,''.
    (b) Rule for Multiemployer Plans.--Subsection (d) of section 105 of 
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1025) is 
amended to read as follows:
    ``(d) Each administrator of a plan to which more than 1 
unaffiliated employer is required to contribute shall furnish to any 
plan participant or beneficiary who so requests in writing, a statement 
described in subsection (a).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after the earlier of--
            (1) the date of issuance by the Secretary of Labor of 
        regulations providing guidance for simplifying defined benefit 
        plan calculations with respect to the information required 
        under section 105 of the Employee Retirement Income Security 
        Act of 1974 (29 U.S.C. 1025), or
            (2) December 31, 1997.
                                 <all>