[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2922 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 2922

 To create a Pension Reform and Simplification Commission to evaluate 
 and suggest ways to enhance access to the private pension plan system.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 26, 2000

 Mr. Bingaman introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
 To create a Pension Reform and Simplification Commission to evaluate 
 and suggest ways to enhance access to the private pension plan system.

    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 ``Pension Reform and Simplification 
Commission Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The creation and implementation of an affordable, 
        accessible, equitable, efficient, cost-effective, and easy to 
        understand system is essential to the continuity and viability 
        of the current private pension plan system in the United 
        States.
            (2) There is a near universal recognition in the United 
        States that the laws that regulate our pension system have 
        become unwieldy, complex, and burdensome, a condition that 
        hinders the achievement of increased saving and economic growth 
        and cannot be fixed by ad hoc improvements to ERISA and the 
        Internal Revenue Code of 1986.
            (3) Significant and effective improvement of laws can only 
        be accomplished through a coordinated, comprehensive, and 
        sustained effort to revise and simplify current laws by a high-
        level body of pension experts, whose recommendations are then 
        transmitted to Congress.
            (4) In recent years, the adoption of narrowly focused and 
        increasingly complex statutes through amendment of the Employee 
        Retirement Income Security Act of 1974 (in this Act referred to 
        as ``ERISA'') and the Internal Revenue Code of 1986 has impeded 
        the efforts of employers and employees to save for their 
        retirement and imposed significant challenges for businesses 
        which consider establishing pension plans for their workforce.
            (5) A high national savings rate can contribute 
        significantly to the economic security of the Nation as it adds 
        to available investment capital, fuels economic growth, and 
        enhances productivity, competitiveness, and prosperity.
            (6) The Federal Government can potentially increase the 
        national savings rate through the implementation of policies 
        that create an effective framework for the spread of voluntary 
        retirement plans and the protection of the private assets held 
        in those plans.
            (7) Private pension plans have been, and remain, the single 
        largest repository of private capital in the world and 
        potentially act as a significant inducement for personal saving 
        and investment.
            (8) Pensions represent the only hope that most working 
        Americans have an adequate supplement to social security 
        benefits, and while the private pension system has been greatly 
        improved since the establishment of ERISA, many inequities 
        remain, and many workers are still not covered by the system.
            (9) It is essential that all Americans, no matter what 
        their income security level, have the opportunity to achieve 
        income security in their retirement years. Currently, many tax 
        and retirement incentives for private pension plans, while 
        benefiting higher income employees who can often save 
        adequately for their retirement, do not serve sufficiently the 
        needs of low and moderate income workers.
            (10) The current pensions rules have tended to produce 
        disparate coverage rates for low and moderate income workers.
            (11) The failure of the Government to modify current 
        pension policies will mean that many workers will be deprived 
        of the options needed to save for their retirement and will, 
        consequently, have their retirement expectations minimized or 
        eliminated.
            (12) The failure of the Government to redress the burdens 
        imposed by over-regulation and complexity on employer-sponsored 
        pension plans will harm employees and their families.
            (13) The failure of the Government to redress the problems 
        related to private pension plans may erode the ability of 
        United States companies to compete effectively in the 
        international market and result in a decrease in the economic 
        health of the Nation.

SEC. 3. ESTABLISHMENT OF COMMISSION.

    There is established a commission to be known as the Pension Reform 
and Simplification Commission (in this Act referred to as the 
``Commission'').

SEC. 4. DUTIES.

    (a) In General.--The Commission shall--
            (1) study the strengths, weaknesses, and challenges 
        involved in the regulation of the current private pension 
        system;
            (2) review and assess Federal statutes relating to the 
        regulation of the current private pension system; and
            (3) recommend changes in the law regarding the regulation 
        of the current private pension system to mitigate the problems 
        identified under subsection (b), with the goal of making the 
        system more affordable, accessible, efficient, less costly, 
        less complex, and, in general, to expand pension coverage.
    (b) Issues To Be Studied.--The Commission shall include in the 
study under subsection (a) a consideration of--
            (1) the manner in which the current rules impact private 
        pension coverage, how such coverage has changed over the last 
        25 years (since the enactment of ERISA), and reasons for such 
        change;
            (2) the primary burdens placed on small and medium business 
        in the United States regarding administration of pension plans, 
        especially how such burdens affect the tenuous position 
        occupied by these organizations in the competitive market;
            (3) the simplification of existing pension rules in order 
        to eliminate undue costs on employers while providing 
        retirement security protection to employees;
            (4) the primary obstacles to employees in gaining optimum 
        advantages from the current pension system, with particular 
        attention to the small and medium business sector and low and 
        moderate income employees, including minorities and women;
            (5) the feasibility of providing innovative design options 
        to enable small and medium businesses to be relieved of complex 
        and costly legislative and regulatory burdens in matters of 
        adoption, operation, administration, and reporting of pension 
        plans, in order to increase affordable and effective coverage 
        in that sector, for low and moderate income employees, with 
        emphasis on minorities and women;
            (6) the means of leveling distribution of private pension 
        plan coverage between high wage earners and low and moderate 
        income workers;
            (7) the feasibility of forward-looking reforms that 
        anticipate the needs of small and medium businesses in the 
        United States given the obstacles and opportunities of the new 
        global economy, in particular issues related to the mobility 
        and retention of skilled workers;
            (8) how pension plan benefits can be made more portable;
            (9) the means of achieving the expansion and adoption of 
        pension plans by United States businesses, especially those 
        employing low and moderate income workers who currently lack 
        access to such plans;
            (10) the impact of expanding individual retirement account 
        contribution limits and income limits on private pension plan 
        coverage;
            (11) the provision of innovative incentives that encourage 
        more employers to use existing private pension plans;
            (12) the impact of qualified plan contribution and benefit 
        limits on coverage; and
            (13) any proposals for major simplification of Federal 
        legislation and regulation regarding qualified pension plans, 
        in order to address and mitigate problem areas identified under 
        this subsection, with the goal of--
                    (A) strengthening the private pension system;
                    (B) expanding the availability, adoption, and 
                retention of tax-favored savings plans by all 
                Americans;
                    (C) eliminating rules that burden the pension 
                system beyond the benefits they provide, for low and 
                moderate income workers, including minorities and 
                women, with specific emphasis on--
                            (i) eligibility and coverage;
                            (ii) contributions and benefits;
                            (iii) minimum distributions, withdrawals, 
                        and loans;
                            (iv) spousal and beneficiary benefits;
                            (v) portability between plans;
                            (vi) asset recapture;
                            (vii) plan compliance and termination;
                            (viii) income and excise taxation; and
                            (ix) reporting, disclosure, and penalties; 
                        and
                    (D) identification of the trade-offs involved in 
                simplification under subparagraph (C).
    (c) Report.--
            (1) In general.--Not later than 24 months after the 
        designation of the chairperson under section 5(d), the 
        Commission shall transmit to the President and Congress a 
        report containing--
                    (A) the issues studied under subsection (b);
                    (B) the results of such study;
                    (C) draft legislation and commentary under 
                paragraph (2); and
                    (D) any other recommendations based on such study.
            (2) Legislative recommendations.--The Commission shall 
        develop draft legislation and associated explanations and 
        commentary to achieve major simplification of Federal 
        legislation regarding regulation of pension plans (including 
        ERISA and the Internal Revenue Code of 1986) to implement any 
        findings or recommendations of the study conducted under 
        subsection (b).
            (3) Recommendations.--Any official findings or 
        recommendations of the Commission shall be adopted by \2/3\ of 
        the members of the Commission.
            (4) Minority views.--All findings and recommendations of 
        the Commission formally proposed by any member of the 
        Commission and not adopted under paragraph (3) shall also be 
        included in the report.

SEC. 5. MEMBERSHIP OF THE COMMISSION; RULES; POWERS.

    (a) Composition.--
            (1) Number.--The Commission shall be composed of 15 
        members, appointed not later than 45 days after the date of 
        enactment of this Act.
            (2) Appointments.--The membership of the Commission shall 
        be as follows:
                    (A) 3 individuals appointed by the President, after 
                consultation with the Secretary of Labor and the 
                Secretary of the Treasury, or their respective 
                designees.
                    (B) 3 individuals appointed by the majority leader 
                of the Senate.
                    (C) 3 individuals appointed by the minority leader 
                of the Senate.
                    (D) 3 individuals appointed by the Speaker of the 
                House of Representatives.
                    (E) 3 individuals appointed by the minority leader 
                of the House of Representatives.
    (b) Qualifications of Members.--
            (1) In general.--Individuals appointed under subsection 
        (a)(2) shall be individuals who--
                    (A) have experience in actuarial disciplines, law, 
                economics, public policy, human relations, business, 
                manufacturing, labor, multiemployer pension plan 
                administration, single employer pension plan 
                administration, or academia, or have other distinctive 
                and pertinent qualifications or experience in 
                retirement policy;
                    (B) are not officers or employees of the United 
                States; and
                    (C) are selected without regard to political 
                affiliation or past partisan activity.
            (2) Other considerations.--In the appointment of members 
        under subsection (a), every effort shall be made to ensure that 
        the individuals, as a group--
                    (A) are representatives of a broad cross-section of 
                perspectives on private pension plans within the United 
                States;
                    (B) have the capacity to provide significant 
                analytical insight into existing obstacles and 
                opportunities of private pension plans; and
                    (C) represent all of the areas of experience under 
                paragraph (1)(A).
    (c) Terms; Vacancies.--
            (1) Terms.--Each member shall be appointed for the life of 
        the Commission.
            (2) Vacancies.--Any vacancy in the Commission shall not 
        affect its powers and shall be filled in the same manner as the 
        appointment of the member causing the vacancy.
    (d) Chairperson; Vice Chairperson.--Not later than 60 days after 
the date of enactment of this Act, the President shall designate a 
chairperson and vice chairperson of the Commission from the individuals 
appointed under subsection (a)(2).
    (e) Compensation.--
            (1) Prohibition of pay.--Except as provided in subparagraph 
        (B), members of the Commission shall serve without pay.
            (2) Travel expenses.--Each member of the Commission may 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with sections 5702 and 5703 of title 
        5, United States Code, while away from their homes or regular 
        place of business in the performance of services for the 
        Commission.
    (f) Rules of the Commission.--
            (1) Quorum.--Eight members of the Commission shall 
        constitute a quorum for conducting the business of the 
        Commission, except 5 members of the Commission may hold 
        hearings, take testimony, or receive evidence.
            (2) Notice.--Any meetings held by the Commission shall be 
        duly noticed in the Federal Register at least 14 days prior to 
        such meeting and shall be open to the public.
            (3) Opportunities to testify.--The Commission shall provide 
        opportunities for representatives of the general public, 
        taxpayer groups, consumer groups, think tanks, and State and 
        local government officials to testify.
            (4) Meetings.--The Commission shall meet at the call of the 
        chairperson of the Commission.
            (5) Other rules.--The Commission shall adopt such other 
        rules as necessary.
    (g) Powers of the Commission.--
            (1) Information from federal agencies.--
                    (A) In general.--The Commission may secure directly 
                from any Federal department or agency such materials, 
                resources, data, and other information as the 
                Commission considers necessary to carry out the 
                provisions of this section. Upon request of the 
                chairperson of the Commission, the head of such 
                department or agency shall furnish such materials, 
                resources, data, and other information to the 
                Commission.
                    (B) Coordination of research information.--The 
                Commission shall ensure effective use of such 
                materials, resources, data, and other information and 
                avoid duplicative research by coordinating and 
                consulting with the head of the appropriate research 
                department of--
                            (i) the Pension and Welfare Benefits 
                        Administration of the Department of Labor;
                            (ii) the Department of the Treasury;
                            (iii) the Social Security Administration;
                            (iv) the Small Business Administration;
                            (v) the Pension Benefit Guaranty 
                        Corporation;
                            (vi) the National Institute on Aging; and
                            (vii) private organizations which have 
                        conducted research in the pension area.
            (2) Mails.--The Commission may use the United States mails 
        in the same manner and under the same conditions as any other 
        Federal agency.
            (3) Acceptance of services; gifts; and grants.--The 
        Commission may accept, use, and dispose of gifts or grants of 
        services or property, both real and personal, for purposes of 
        aiding or facilitating the work of the Commission. Gifts or 
        grants not used at the expiration of the Commission shall be 
        returned to the donor or grantor.
            (4) Contract and procurement authority.--The Commission may 
        make purchases, and may contract with and compensate government 
        and private agencies or persons for property or services, 
        without regard to--
                    (A) section 3709 of the Revised Statutes (41 U.S.C. 
                5); and
                    (B) title III of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 251 et 
                seq.).
            (5) Volunteer services.--Notwithstanding section 1342 of 
        title 31, United States Code, the Commission may accept and use 
        voluntary and uncompensated services as the Commission 
        determines necessary.

SEC. 6. STAFF AND SUPPORT SERVICES.

    (a) Executive Director; Staff.--
            (1) In general.--The chairperson of the Commission may, 
        without regard to civil service laws and regulations and after 
        consultation with the Commission, appoint an executive director 
        of the Commission and such other additional personnel as may be 
        necessary to enable the Commission to perform its duties.
            (2) Compensation.--The chairperson of the Commission may 
        fix the compensation of the executive director and other 
        personnel without regard to the provisions of chapter 51 and 
        subchapter III of chapter 53 of title 5, United States Code, 
        relating to classification of positions and General Schedule 
        pay rates, except that the rate of pay for the executive 
        director and other personnel may not exceed the rate payable 
        for level IV of the Executive Schedule under section 5315 of 
        such title.
    (b) Staff of Federal Agencies.--Upon request by the chairperson of 
the Commission, the head of any Federal department or agency may 
detail, on a nonreimbursable basis, any of the personnel of the 
department or agency to the Commission to assist the Commission to 
carry out its duties under this Act and such detail shall be without 
interruption or loss of civil service status or privilege.
    (c) Administrative Support Services.--The Administrator of General 
Services shall provide to the Commission, on a reimbursable basis, any 
administrative support services that are necessary to enable the 
Commission to carry out this Act.

SEC. 7. TERMINATION.

    The Commission shall terminate not later than 26 months after the 
date of enactment of this Act.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to carry out the provisions of this Act.
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