[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2032 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2032

To amend the Employee Retirement Income Security Act of 1974 to provide 
     for improved disclosure, diversification, account access, and 
             accountability under individual account plans.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 19, 2002

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

_______________________________________________________________________

                                 A BILL


 
To amend the Employee Retirement Income Security Act of 1974 to provide 
     for improved disclosure, diversification, account access, and 
             accountability under individual account plans.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Investor-Employees 
Need Financial Facts and Options for Responsible Retirement Plan 
Management Act of 2002'' or the ``INFORM Act of 2002''.
    (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title and table of contents.
                  TITLE I--IMPROVEMENTS IN DISCLOSURE

Sec. 101. Pension benefit information.
Sec. 102. Provision to participants and beneficiaries of material 
                            investment information in accurate form.
                       TITLE II--DIVERSIFICATION

Sec. 201. Participant risk acknowledgement forms.
Sec. 202. Study relating to caps on investment of individual account 
                            plan assets in employer securities.
          TITLE III--APPROPRIATE ACCESS TO INDIVIDUAL ACCOUNTS

Sec. 301. Additional fiduciary protections relating to lockdowns.
Sec. 302. Employers liable for any excessive losses on employer 
                            securities during lockdowns.
                   TITLE IV--INCREASED ACCOUNTABILITY

Sec. 401. Bonding or insurance adequate to protect interest of 
                            participants and beneficiaries.
Sec. 402. Participation of participants in trusteeship of individual 
                            account plans.
Sec. 403. Liability for breach of fiduciary duty.
Sec. 404. Preservation of rights or claims.
Sec. 405. Office of Pension Participant Advocacy.
Sec. 406. Study regarding insurance system for individual account 
                            plans.
                      TITLE V--GENERAL PROVISIONS

Sec. 501. General effective date.
Sec. 502. Plan amendments.

                  TITLE I--IMPROVEMENTS IN DISCLOSURE

SEC. 101. PENSION BENEFIT INFORMATION.

    (a) Pension Benefit Statements Required on Periodic Basis.--
            (1) In general.--Subsection (a) of section 105 of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1025) is amended--
                    (A) 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 participant in a 
                defined benefit plan who has attained age 35, and 
                annually, in the case of an individual account plan, to 
                each plan participant, and shall furnish to any plan 
                participant or beneficiary who so requests,'', and
                    (B) by adding at the end the following flush 
                sentence:
``Information furnished under the preceding sentence to a participant 
in a defined benefit plan (other than at the request of the 
participant) may be based on reasonable estimates determined under 
regulations prescribed by the Secretary.''.
            (2) Model statement.--Section 105 of such Act (29 U.S.C. 
        1025) is amended by adding at the end the following new 
        subsection:
    ``(e) The Secretary of Labor shall develop a model benefit 
statement which shall be used by plan administrators in complying with 
the requirements of subsection (a). Such statement shall include--
            ``(1) the amount of nonforfeitable accrued benefits as of 
        the statement date which is payable at normal retirement age 
        under the plan,
            ``(2) the amount of accrued benefits which are forfeitable 
        but which may become nonforfeitable under the terms of the 
        plan,
            ``(3) the amount or percentage of any reduction due to 
        integration of the benefit with the participant's Social 
        Security benefits or similar governmental benefits,
            ``(4) the percentage of the net return on investment of 
        plan assets for the preceding plan year (or, with respect to 
        investments directed by the participant, the net return on 
        investment of plan assets for such year so directed), and, 
        stated separately, the administrative and transaction fees 
        incurred in connection with such investment,
            ``(5) in the case of an individual account plan, the 
        percentage of assets in the individual account that consists of 
        employer securities and employer real property (as defined in 
        paragraphs (1) and (2), respectively, of section 407(d)), as 
        determined as of the most recent valuation date of the plan,
            ``(6) information on how to contact the Social Security 
        Administration to obtain a participant's personal earnings and 
        benefit estimate statement,
            ``(7) information on early retirement benefit and joint and 
        survivor annuity reductions, and
            ``(8) a notice advising participants and beneficiaries of 
        the importance of diversifying the investment of the assets in 
        their accounts.''.
            (3) Rule for multiemployer plans.--Subsection (d) of 
        section 105 of such Act (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 a 
statement described in subsection (a) to any plan participant or 
beneficiary upon written request of the participant or beneficiary.''.
    (b) Disclosure of Benefit Calculations.--
            (1) In general.--Section 105 of such Act (as amended by 
        subsection (a)) is amended--
                    (A) by redesignating subsections (b), (c), (d), and 
                (e) as subsections (c), (d), (e), and (f), 
                respectively; and
                    (B) by inserting after subsection (a) the following 
                new subsection:
    ``(b)(1) In the case of a participant or beneficiary who is 
entitled to a distribution of a benefit under an employee pension 
benefit plan, the administrator of such plan shall provide to the 
participant or beneficiary the information described in paragraph (2) 
upon written request of the participant or beneficiary.
    ``(2) The information described in this paragraph includes--
            ``(A) a worksheet explaining how the amount of the 
        distribution was calculated and stating the assumptions used 
        for such calculation,
            ``(B) upon written request of the participant or 
        beneficiary, any documents relating to the calculation (if 
        available), and
            ``(C) such other information as the Secretary may 
        prescribe.
Any information provided under this paragraph shall be in a form 
calculated to be understood by the average plan participant.''.
            (2) Conforming amendments.--
                    (A) Section 101(a)(2) of such Act (29 U.S.C. 
                1021(a)(2)) is amended by striking ``105(a) and (c)'' 
                and inserting ``105(a), (b), and (d)''.
                    (B) Section 105(c) of such Act (as redesignated by 
                paragraph (1)(A) of this subsection) is amended by 
                inserting ``or (b)'' after ``subsection (a)''.
                    (C) Section 106(b) of such Act (29 U.S.C. 1026(b)) 
                is amended by striking ``sections 105(a) and 105(c)'' 
                and inserting ``subsections (a), (b), and (d) of 
                section 105''.

SEC. 102. PROVISION TO PARTICIPANTS AND BENEFICIARIES OF MATERIAL 
              INVESTMENT INFORMATION IN ACCURATE FORM.

    (a) In General.--Section 404(c) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1104(c)) is amended by adding at the 
end the following new paragraph:
    ``(4) The plan sponsor and plan administrator of a pension plan 
described in paragraph (1) shall have a fiduciary duty to ensure that 
each participant and beneficiary under the plan, in connection with the 
investment by the participant or beneficiary of plan assets in the 
exercise of his or her control over assets in his account, is provided 
with all material investment information regarding investment of such 
assets to the extent that the provision of such information is 
generally required to be disclosed by the plan sponsor to investors in 
connection with such an investment under applicable securities laws. 
The provision by the plan sponsor or plan administrator of any 
misleading investment information shall be treated as a violation of 
this paragraph.''.
    (b) Enforcement.--
            (1) In general.--Section 502(c) of such Act (29 U.S.C. 
        1132(c)) is amended--
                    (A) by redesignating paragraph (7) as paragraph 
                (8); and
                    (B) by inserting after paragraph (6) the following 
                new paragraph:
    ``(7) The Secretary may assess a civil penalty against any person 
of up to $1,000 a day from the date of the person's failure or refusal 
to comply with the requirements of section 404(c)(4) until such failure 
or refusal is corrected.''.
            (2) Conforming amendment.--Section 502(a)(6) of such Act 
        (29 U.S.C. 1132(a)(6)) is amended by striking ``(5), or (6)'' 
        and inserting ``(5), (6), or (7)''.

                       TITLE II--DIVERSIFICATION

SEC. 201. PARTICIPANT RISK ACKNOWLEDGEMENT FORMS.

    Section 404(c) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1104(c)), as amended by section 102, is amended by 
adding at the end the following new paragraph:
            ``(5)(A) Paragraph (1) shall not apply to a pension plan 
        unless the plan provides that if the percentage of assets in 
        the individual account of a participant or beneficiary that 
        consists of employer securities and employer real property 
        exceeds 30 percent of the total assets in the account, then--
                    ``(i) the plan shall notify the participant or 
                beneficiary of the percentage, and
                    ``(ii) the plan shall provide that no employer 
                contributions (or earnings thereon) may be invested in 
                employer securities or employer real property after 
                such notice unless the participant or beneficiary files 
                with the plan a form provided by the plan which is 
                signed by the participant or beneficiary and which 
                acknowledges the potential risks of not diversifying 
                the investment of retirement assets.
            ``(B) The determination of any percentage under 
        subparagraph (A) shall be made as of the most recent valuation 
        date of the plan.
            ``(C) In this paragraph:
                    ``(i) An employer contribution shall not include 
                any elective deferral (within the meaning of section 
                402(g)(3) of the Internal Revenue Code of 1986).
                    ``(ii) The terms `employer securities' and 
                `employer real property' have the meanings given such 
                terms by sections 407(d) (1) and (2), respectively.''

SEC. 202. STUDY RELATING TO CAPS ON INVESTMENT OF INDIVIDUAL ACCOUNT 
              PLAN ASSETS IN EMPLOYER SECURITIES.

    (a) In General.--As soon as practicable after the date of the 
enactment of this Act, the Secretary of Labor, in consultation with the 
Secretary of the Treasury and the Securities and Exchange Commission, 
shall undertake a study relating to investment of plan assets of 
individual account plans in stock or other securities issued by the 
employer.
    (b) Matters To Be Studied.--In conducting the study pursuant to 
subsection (a), the Secretary shall--
            (1) consider the feasibility of statutory limits on the 
        extent to which plan assets under individual account plans may 
        be invested in stock or other securities issued by the 
        employer, and
            (2) analyze such feasibility with respect to a range of 
        possible statutory limits.
    (c) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall submit a report to each 
House of the Congress setting forth the results of the study required 
under subsection (a). Such report shall include such recommendations 
for statutory or administrative changes as the Secretary of Labor, in 
consultation with the Secretary of the Treasury and the Securities and 
Exchange Commission, has determined to be appropriate.

          TITLE III--APPROPRIATE ACCESS TO INDIVIDUAL ACCOUNTS

SEC. 301. ADDITIONAL FIDUCIARY PROTECTIONS RELATING TO LOCKDOWNS.

    (a) In General.--Section 404 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1104) is amended by adding at the end 
the following new subsection:
    ``(e)(1) Except as provided in paragraph (2), in the case of any 
eligible individual account plan (as defined in section 407(d)(3))--
            ``(A) no lockdown may take effect until at least 60 days 
        after written notice of such lockdown is provided by the plan 
        administrator to all participants or beneficiaries and to the 
        Secretary, and
            ``(B) any lockdown may not continue for a period in excess 
        of 10 consecutive business days.
    ``(2)(A) The Secretary may delay the beginning of any lockdown if 
the Secretary notifies the plan administrator of the delay at least 48 
hours before the lockdown was scheduled to begin.
    ``(B) The Secretary shall prescribe procedures under which--
            ``(i) in the case of a lockdown outside of the control of a 
        plan sponsor or administrator, the requirement of paragraph 
        (1)(A) shall be treated as met if notice is provided as soon as 
        reasonably possible under the circumstances, and
            ``(ii) the Secretary may extend the 10-day period under 
        paragraph (1)(B) for good cause shown.
    ``(3) For purposes of this subsection, the term `lockdown' means 
any temporary lockdown, blackout, or freeze with respect to, suspension 
of, or similar limitation on the ability of a participant or 
beneficiary (who has met minimum participation requirements applicable 
in accordance with section 202) to exercise control over the assets in 
his or her account as otherwise generally provided under the plan (as 
determined under regulations of the Secretary).''.
    (b) Enforcement.--
            (1) In general.--Section 502(c) of such Act (29 U.S.C. 
        1132(c)), as amended by section 102(b), is amended--
                    (A) by redesignating paragraph (8) as paragraph 
                (9); and
                    (B) by inserting after paragraph (7) the following 
                new paragraph:
    ``(8) In the case of 1 or more failures by a person to provide 
notice under section 404(e)(1)(A) to any participant or beneficiary, 
the Secretary may assess a civil penalty against such person of up to 
$100 a day for each such failure from the date of the failure until 
such failure or refusal is corrected.''
            (2) Conforming amendment.--Section 502(a)(6) of such Act 
        (29 U.S.C. 1132(a)(6)) is amended by striking ``(6), or (7)'' 
        and inserting ``(6), (7), or (8)''.

SEC. 302. EMPLOYERS LIABLE FOR ANY EXCESSIVE LOSSES ON EMPLOYER 
              SECURITIES DURING LOCKDOWNS.

    Section 404 of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1104), as amended by section 301, is amended by adding at 
the end the following new subsection:
    ``(f)(1) If--
            ``(A) there is a lockdown of an eligible individual account 
        plan which holds employer securities readily tradable on an 
        established securities market, and
            ``(B)(i) there is a reduction in the fair market value of 
        the securities during the period beginning on the first day of 
        the lockdown and ending on the first day after the lockdown a 
        participant or beneficiary is able to divest his or her account 
        of the securities, and
            ``(ii) the reduction in the value of such securities is, 
        with respect to any period during which there was also a 
        reduction in the Standard and Poor's 500 Stock Index, at least 
        10 percent greater than the reduction in such stock index,
then the plan sponsor shall be liable for payment of the amount 
determined under paragraph (2) to a participant or beneficiary who, as 
of such first day after the lockdown, divests his or her account of any 
portion of the employer securities held immediately before the 
lockdown.
    ``(2) The amount determined under this paragraph with respect to 
any employer securities is the excess (if any) of the fair market value 
of such securities immediately before the lockdown over the fair market 
value of such securities when divested by the participant or 
beneficiary.
    ``(3) In this subsection:
            ``(A) The term `eligible individual account plan' has the 
        meaning given such term by section 407(d)(3).
            ``(B) The terms `employer securities' and `employer real 
        property' has the meanings given such terms by sections 407(d) 
        (1) and (2), respectively.''

                   TITLE IV--INCREASED ACCOUNTABILITY

SEC. 401. BONDING OR INSURANCE ADEQUATE TO PROTECT INTEREST OF 
              PARTICIPANTS AND BENEFICIARIES.

    Section 412 of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1112) is amended by adding at the end the following new 
subsection:
    ``(f) Notwithstanding the preceding provisions of this section, 
each fiduciary of an individual account plan shall be bonded or 
insured, in accordance with regulations which shall be prescribed by 
the Secretary, in an amount sufficient to ensure coverage by the bond 
or insurance of financial losses due to any failure to meet the 
requirements of this part.''.

SEC. 402. PARTICIPATION OF PARTICIPANTS IN TRUSTEESHIP OF INDIVIDUAL 
              ACCOUNT PLANS.

    (a) In General.--Section 403(a) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1103(a)) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (2) by inserting ``(1)'' after ``(a)''; and
            (3) by adding at the end the following new paragraph:
    ``(2)(A) Subject to subparagraph (B), the assets of a single-
employer plan which is an individual account plan and under which some 
or all of the assets are derived from employee contributions shall be 
held in trust by a joint board of trustees, which shall consist of two 
or more trustees representing on an equal basis the interests of the 
employer or employers maintaining the plan and the interests of the 
participants and their beneficiaries.
    ``(B) This paragraph shall apply for any plan year only if a 
majority of the participants of the individual account plan indicates 
to the plan administrator, in such form and manner as shall be 
prescribed in regulations of the Secretary, its intention to have this 
paragraph so apply.
    ``(C)(i) Except as provided in clause (ii), in any case in which 
the plan is maintained pursuant to one or more collective bargaining 
agreements between one or more employee organizations and one or more 
employers, the trustees representing the interests of the participants 
and their beneficiaries shall be designated by such employee 
organizations.
    ``(ii) Clause (i) shall not apply with respect to a plan described 
in such clause if the employee organization (or all employee 
organizations, if more than one) referred to in such clause file with 
the Secretary, in such form and manner as shall be prescribed in 
regulations of the Secretary, a written waiver of their rights under 
clause (i).
    ``(iii) In any case in which clause (i) does not apply with respect 
to a single-employer plan because the plan is not described in clause 
(i) or because of a waiver filed pursuant to clause (ii), the trustee 
or trustees representing the interests of the participants and their 
beneficiaries shall be selected in accordance with regulations of the 
Secretary. Such regulations may provide for selection of trustees by 
the employer, but only from individuals who have been demonstrated to 
be independent and to have no conflict of interest. An individual shall 
not be treated as ineligible for selection as trustee solely because 
such individual is an employee of the plan sponsor, except that the 
employee so selected may not be a highly compensated employee (as 
defined in section 414(q) of the Internal Revenue Code of 1986).
    ``(iv) The Secretary shall provide by regulation for the 
appointment of a neutral, in accordance with the procedures under 
section 203(f) of the Labor Management Relations Act, 1947 (29 U.S.C. 
173(f)), to cast votes as necessary to resolve tie votes by the 
trustees.''.
    (b) Regulations.--The Secretary of Labor shall prescribe the 
initial regulations necessary to carry out the provisions of the 
amendments made by this section not later than 90 days after the date 
of the enactment of this Act.

SEC. 403. LIABILITY FOR BREACH OF FIDUCIARY DUTY.

    (a) Liability for Participating in or Concealing Fiduciary 
Breach.--
            (1) In general.--Section 409(a) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1109(a)) is amended--
                    (A) by inserting ``, or any other person who, with 
                notice of the facts constituting the breach, 
                participates in or undertakes to conceal such breach,'' 
                after ``duties imposed upon fiduciaries by this 
                title'';
                    (B) by inserting ``and to each participant and 
                beneficiary of the plan'' after ``plan'' the second 
place it appears, and by inserting ``or such participant or 
beneficiary'' after ``plan'' the third place it appears;
                    (C) by inserting ``or such other person'' after 
                ``profits of such fiduciary'' and ``by the fiduciary''; 
                and
                    (D) by inserting ``or entry of an order prohibiting 
                such fiduciary or such other person from dealing with 
                employee benefit plans'' after ``removal of such 
                fiduciary''.
            (2) Conforming amendment.--Section 409(b) of such Act (29 
        U.S.C. 1109(b)) is amended by inserting before the period the 
        following: ``, unless his liability arises out of his role as a 
        person who, with notice of facts constituting such breach, 
        participates in or undertakes to conceal such breach (as 
        described in subsection (a))''.
    (b) Maintenance of Fiduciary Liability.--Section 404(c)(1)(B) of 
such Act (29 U.S.C. 1104(c)(1)(B)) is amended by inserting before the 
period the following: ``, except that this subparagraph shall not be 
construed to exempt any fiduciary from liability for any violation of 
subsection (e) or (f)''.
    (c) Expansion of Available Remedies.--Paragraphs (3) and (5) of 
section 502(a) of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1132(a)(3), (5)) are each amended by inserting after 
``equitable relief'' the following: ``and such additional relief as a 
court of equity might have awarded in a case involving the enforcement 
or administration of a trust''.

SEC. 404. PRESERVATION OF RIGHTS OR CLAIMS.

    Section 502 of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1132) is amended by adding at the end the following new 
subsection:
    ``(n)(1) The rights under this title (including the right to 
maintain a civil action) may not be waived, deferred, or lost pursuant 
to any agreement not authorized under this title with specific 
reference to this subsection.
    ``(2) Paragraph (1) shall not apply to an agreement providing for 
arbitration or participation in any other nonjudicial procedure to 
resolve a dispute if the agreement is entered into knowingly and 
voluntarily by the parties involved after the dispute has arisen or is 
pursuant to the terms of a collective bargaining agreement.''.

SEC. 405. OFFICE OF PENSION PARTICIPANT ADVOCACY.

    (a) In General.--Title III of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 3001 et seq.) is amended by adding at 
the end the following:
            ``(1) In general.--There is established in the Department 
        of Labor an office to be known as the `Office of Pension 
        Participant Advocacy'.
            ``(2) Pension participant advocate.--The Office of Pension 
        Participant Advocacy shall be under the supervision and 
        direction of an official to be known as the `Pension 
        Participant Advocate' who shall--
                    ``(A) have demonstrated experience in the area of 
                pension participant assistance, and
                    ``(B) be selected by the Secretary after 
                consultation with pension participant advocacy 
                organizations.
        The Pension Participant Advocate shall report directly to the 
        Secretary and shall be entitled to compensation at the same 
        rate as the highest rate of basic pay established for the 
        Senior Executive Service under section 5382 of title 5, United 
        States Code.
    ``(b) Functions of Office.--It shall be the function of the Office 
of Pension Participant Advocacy to--
            ``(1) evaluate the efforts of the Federal Government, 
        business, and financial, professional, retiree, labor, women's, 
        and other appropriate organizations in assisting and protecting 
        pension plan participants, including--
                    ``(A) serving as a focal point for, and actively 
                seeking out, the receipt of information with respect to 
                the policies and activities of the Federal Government, 
                business, and such organizations which affect such 
                participants,
                    ``(B) identifying significant problems for pension 
                plan participants and the capabilities of the Federal 
                Government, business, and such organizations to address 
                such problems, and
                    ``(C) developing proposals for changes in such 
                policies and activities to correct such problems, and 
                communicating such changes to the appropriate 
                officials,
            ``(2) promote the expansion of pension plan coverage and 
        the receipt of promised benefits by increasing the awareness of 
        the general public of the value of pension plans and by 
        protecting the rights of pension plan participants, including--
                    ``(A) enlisting the cooperation of the public and 
                private sectors in disseminating information, and
                    ``(B) forming private-public partnerships and other 
                efforts to assist pension plan participants in 
                receiving their benefits,
            ``(3) advocating for the full attainment of the rights of 
        pension plan participants, including by making pension plan 
        sponsors and fiduciaries aware of their responsibilities,
            ``(4) giving priority to the special needs of low and 
        moderate income participants,
            ``(5) developing needed information with respect to pension 
        plans, including information on the types of existing pension 
        plans, levels of employer and employee contributions, vesting 
        status, accumulated benefits, benefits received, and forms of 
        benefits, and
            ``(6) pursuing claims on behalf of participants and 
        beneficiaries and providing appropriate assistance in the 
        resolution of disputes between participants and beneficiaries 
        and pension plans, including assistance in obtaining settlement 
        agreements.
    ``(c) Reports.--
            ``(1) Annual report.--Not later than December 31 of each 
        calendar year, the Pension Participant Advocate shall report to 
        the Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions of the Senate on its activities during the fiscal 
        year ending in the calendar year. Such report shall--
                    ``(A) identify significant problems the Advocate 
                has identified,
                    ``(B) include specific legislative and regulatory 
                changes to address the problems, and
                    ``(C) identify any actions taken to correct 
                problems identified in any previous report.
        The Advocate shall submit a copy of such report to the 
        Secretary and any other appropriate official at the same time 
        it is submitted to the committees of Congress.
            ``(2) Specific reports.--The Pension Participant Advocate 
        shall report to the Secretary or any other appropriate official 
        any time the Advocate identifies a problem which may be 
        corrected by the Secretary or such official.
            ``(3) Reports to be submitted directly.--The report 
        required under paragraph (1) shall be provided directly to the 
        committees of Congress without any prior review or comment than 
        the Secretary or any other Federal officer or employee.
    ``(d) Specific Powers.--
            ``(1) Receipt of information.--Subject to such 
        confidentiality requirements as may be appropriate, the 
        Secretary and other Federal officials shall, upon request, 
        provide such information (including plan documents) as may be 
        necessary to enable the Pension Participant Advocate to carry 
        out the Advocate's responsibilities under this section.
            ``(2) Appearances.--The Pension Participant Advocate may 
        represent the views and interests of pension plan participants 
        before any Federal agency, including, upon request of a 
        participant, in any proceeding involving the participant.
            ``(3) Contracting authority.--In carrying out 
        responsibilities under subsection (b)(5), the Pension 
        Participant Advocate may, in addition to any other authority 
        provided by law--
                    ``(A) contract with any person to acquire 
                statistical information with respect to pension plan 
                participants, and
                    ``(B) conduct direct surveys of pension plan 
                participants.''
    (b) Conforming Amendment.--The table of contents for title III of 
such Act is amended by adding at the end the following:

          ``Subtitle C--Office of Pension Participant Advocacy

``Sec. 3051. Office of Pension Participant Advocacy.''.
    (c) Effective Date.--The amendment made by this section shall take 
effect on January 1, 2003.

SEC. 406. STUDY REGARDING INSURANCE SYSTEM FOR INDIVIDUAL ACCOUNT 
              PLANS.

    (a) Study.--As soon as practicable after the date of the enactment 
of this Act, the Pension Benefit Guaranty Corporation shall undertake a 
study relating to the establishment of an insurance system for 
individual account plans. In conducting such study, the Corporation 
shall consider--
            (1) the feasibility of such a system, and
            (2) options for developing such a system.
    (b) Report.--Not later than 3 years after the date of the enactment 
of this Act, the Corporation shall report the results of its study, 
together with any recommendations for legislative changes, to the 
Committee on Education and the Workforce of the House of 
Representatives and the Committee on Health, Education, Labor, and 
Pensions of the Senate.

                      TITLE V--GENERAL PROVISIONS

SEC. 501. GENERAL EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this Act, the 
amendments made by this Act shall apply with respect to plan years 
beginning on or after January 1, 2003.
    (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, 2003'' the date 
of the commencement of the first plan year beginning on or after the 
earlier of--
            (1) the later of--
                    (A) January 1, 2004, 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, 2005.

SEC. 502. PLAN AMENDMENTS.

    If any amendment made by this Act 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 the effective date specified in 
section 501, if--
            (1) during the period after such amendment made by this Act 
        takes effect and before such first plan year, the plan is 
        operated in accordance with the requirements of such amendment 
        made by this Act, and
            (2) such plan amendment applies retroactively to the period 
        after such amendment made by this Act takes effect and before 
        such first plan year.
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