1.This Act may be cited as the
Employees’ Pension Security Act of
2009
.
<enum>I</enum><header>Trusteeship of
single-employer plans</header>
<section id="H5DBFD16202424170B787B7E69DE67979"><enum>101.</enum><header>Requirements
relating to trusteeship of single-employer plans</header>
<subsection id="H029CA74653FA4837AEC0F799747CC5EF"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 403(a) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1103(a)) is
amended—</text>
<paragraph id="H507291A6DA5241BE839B0C492337DB08"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;</text>
</paragraph><paragraph id="H3697D2AC146F47CFBB2543749D45799A"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting ‘‘(1)’’ after ‘‘(a)’’; and</text>
</paragraph><paragraph id="H2466F2DB39F14AE4B4CC9E20A879D5D1"><enum>(3)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H65805734EA8243539E432D03840748E0" style="traditional">
<paragraph id="H3F12875F98024240852834C6924FD76F" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HB9B50CA219374D6DABAC441B7B5CB985"><enum>(A)</enum><text>The assets of a pension
plan which is a single-employer plan 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.</text>
</subparagraph><subparagraph id="H2C47B0A8EC3F4BD1AC5C11B98AA48B46" indent="up1"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H99B5B07F2E4848E08B85AF77F0279EC9"><enum>(i)</enum><text display-inline="yes-display-inline">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 pursuant to subparagraph (A) shall be designated by such
employee organizations.</text>
</clause><clause id="H65179830CDB143DE87B795AE11B9D0C7" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">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).</text>
</clause><clause id="H2CDE0099CD7649959DFC44F82C4D6D80" indent="up1"><enum>(iii)</enum><text display-inline="yes-display-inline">In any case in which clause (i) does not
apply with respect to a pension plan which is 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 consist of one or more participants
under the plan elected to serve as such in accordance with this clause. The
Secretary shall provide by regulation for a secret ballot of the participants
under the plan for purposes of such election, and for certification of the
results thereof to the participants (and any employee organization referred to
in clause (ii)) and to the
employer.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HDA8465EA182D4668B57FAD498001D587"><enum>(b)</enum><header>Conforming
amendments</header><text display-inline="yes-display-inline">Section 403(a)(1)
of such Act (as redesignated under subsection (a)) is amended—</text>
<paragraph id="HADC39DCFAFA2445AA11E689CEAA5CAE9"><enum>(1)</enum><text display-inline="yes-display-inline">by striking ‘‘Such trustee or trustees’’
and inserting ‘‘Except as provided in paragraph (2), such trustee or
trustees’’;</text>
</paragraph><paragraph id="H939CE100C50C40FA81E5E544B591B0F4"><enum>(2)</enum><text>by striking
‘‘fiduciary, and upon acceptance’’ and inserting ‘‘fiduciary. Upon
acceptance’’; and</text>
</paragraph><paragraph id="HB69D90E410EB44CEBCAF78FD00BAE51C"><enum>(3)</enum><text>in subparagraph
(A) (as so redesignated), by striking ‘‘the plan’’ the first place it appears
and inserting ‘‘in the case of a plan other than a pension plan which is a
single-employer plan, the plan’’.</text>
</paragraph></subsection></section><section id="H0F944CFE54BC4DC7ABC0EEDF30E0457C"><enum>102.</enum><header>Effective
date</header><text display-inline="no-display-inline">The amendments made by
this title shall apply with respect to plan years beginning after 180 days
after the date of the enactment of this Act. The Secretary of Labor shall
prescribe the initial regulations necessary to carry out the provisions of such
amendments not later than 90 days after the date of the enactment of this
Act.</text>
</section><enum>II</enum><header>Investment
Information</header>
<section id="H0E29C9594ED54FFDAABD98A5A373321F"><enum>201.</enum><header>Provision to
participants and beneficiaries of material investment information in accurate
form</header>
<subsection id="H2D6BCD44BABF4BB6BC74FF8F55F680EC"><enum>(a)</enum><header>In
general</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="H8AC3F821487E457F880F6229CE53A456" style="OLC">
<paragraph id="H869A42CEB06142D08E888634C561A0DA"><enum>(6)</enum><header>Provision of
accurate material investment advice</header><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H4D551C60DA8042E3B815996C357F82BE"><enum>(b)</enum><header>Enforcement</header>
<paragraph id="HDF79106B74B74CE9ABE059A448658145"><enum>(1)</enum><header>In
general</header><text>Section 502(c) of such Act (29 U.S.C. 1132(c)) is
amended—</text>
<subparagraph id="HAFC05A604AB248A59C80694AA8A4F97E"><enum>(A)</enum><text>by redesignating
the second paragraph (10) (relating to ongoing consultation between the
Secretary of Labor and the Secretary of Health and Human Services) as paragraph
(12); and</text>
</subparagraph><subparagraph id="H4ED67072110B4617996B26B57E097550"><enum>(B)</enum><text>by inserting after
the first paragraph (10) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HCD6122A884E94A5C909A75CA15E7E1D7" style="OLC">
<paragraph id="H3FCA31D6A8E542E3BE60BCA05ED9C5E3"><enum>(11)</enum><header>Secretarial
enforcement authority relating to provision of accurate material investment
advice</header><text>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)(6) until such failure or
refusal is
corrected.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HC7593DD6562141DBAAFD3A7920089BE3"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 502(a)(6) of such Act (29 U.S.C. 1132(a)(6)) is
amended by striking <quote>(8), or (9)</quote> and inserting <quote>(8), (9),
(10), or (11)</quote>.</text>
</paragraph></subsection></section><section id="HA16AE4FC17004BB2BF27587A37DC48B1"><enum>202.</enum><header>Effective date
of title</header><text display-inline="no-display-inline">The amendments made
by this title shall apply with respect to investments made on or after the date
of the enactment of this Act.</text>
</section><enum>III</enum><header>Strengthened
protections against abuse of the bankruptcy and termination process</header>
<section id="HAE38397092B34982B4CA93088D38BD35"><enum>301.</enum><header>Additional
requirements for termination</header>
<subsection id="H36669CF0782A46B594D9CD3BB14C78DE"><enum>(a)</enum><header>Additional
requirements for distress termination</header><text display-inline="yes-display-inline">Section 4041(c)(2) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1341(c)(2)) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H2F5ECF2BC20842578F89212E5062B0BC" style="OLC">
<subparagraph id="H031D2B835E084DAF8F03477AF1890DCB"><enum>(E)</enum><header>Additional
requirements</header><text display-inline="yes-display-inline">Notwithstanding
any other provision of this section, unless the corporation or the court, in
the case of a distress termination pursuant to subparagraph (B)(ii), has
determined that reasonable efforts to consider available alternatives to
termination (including, but not limited to, alternatives described in section
4042(c)(4)) have been undertaken by such person (and, in the case of a plan
maintained pursuant to a collective bargaining agreement, have been undertaken
by the bargaining parties in good faith bargaining), the plan may not be
terminated. A participant or beneficiary of the plan or an employee
organization representing such participants or beneficiaries may bring an
action in the appropriate court to challenge such determination by the
corporation and seek equitable relief or must be afforded an opportunity to be
heard by the appropriate court if a court is making such
determination.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE1A7B53BB0C5481DA8ACB7515FDD5EC0"><enum>(b)</enum><header>Additional
requirements for court decrees</header><text display-inline="yes-display-inline">Section 4042(c)(1) of such Act (29 U.S.C.
1342(c)(1)) is amended—</text>
<paragraph id="H288C675C2BE04FD3B081492BC3CAE3D2"><enum>(1)</enum><text>by inserting after
the first sentence the following new sentences: ‘‘The court may not enter such
a decree unless that court has found that reasonable efforts to consider
available alternatives to termination (including, but not limited to,
alternatives described in paragraph (4)) have been undertaken by the plan
sponsor (and, in the case of a plan maintained pursuant to a collective
bargaining agreement, have been undertaken by the bargaining parties in good
faith bargaining). There is a presumption that a plan need not be terminated if
the plan sponsor can continue in business, outside a case under title 11,
United States Code (or under any similar law of a State or a political
subdivision of a State) in which reorganization is sought, without terminating
the plan.’’; and</text>
</paragraph><paragraph id="H4F2F0D858D6B4531B144F56EAF63A55C"><enum>(2)</enum><text>in the sentence
following the sentences inserted by paragraph (1), by striking <quote>the
preceding sentence</quote> and inserting <quote>the first sentence of this
paragraph,</quote>.</text>
</paragraph></subsection><subsection id="HC377304EC2B54CE78B94FCF94CE203CF"><enum>(c)</enum><header>Right To
intervene To challenge court decree</header><text display-inline="yes-display-inline">Section 4042(c) of such Act (as amended by
subsection (b)) is further amended by inserting after the fourth sentence the
following new sentence: ‘‘If any party consisting of the plan sponsor, a plan
participant, or (in the case of a plan maintained pursuant to a collective
bargaining agreement) the employee organization representing plan participants
for purposes of collective bargaining disagrees with any such determination by
the corporation, such party may intervene in the proceeding to challenge the
determinations of the corporation.’’.</text>
</subsection><subsection id="HA36A7E3E1D7A4523A2257A35C72D1513"><enum>(d)</enum><header>Consideration of
alternatives by corporation and plan sponsor</header><text display-inline="yes-display-inline">Section 4042(c) of such Act (as amended by
the preceding provisions of this section) is further amended by adding after
the seventh sentence the following: ‘‘The corporation and the plan
administrator may proceed with such an agreement only if they have made
reasonable efforts to consider available alternatives to termination
(including, but not limited to, alternatives described in paragraph (4) of this
subsection) and the plan participants and beneficiaries have been provided with
at least 60 days notice before such agreement is given effect. During such
60-day period, a participant or beneficiary of the plan or an employee
organization representing such participants or beneficiaries may bring an
action in the appropriate court to seek appropriate equitable relief if such
reasonable efforts have not been made.’’.</text>
</subsection><subsection id="H0FB573E00E3D4CFCA88D71DAA2482BEC"><enum>(e)</enum><header>Efforts by the
corporation at consultation with parties</header><text display-inline="yes-display-inline">Section 4042(c) of such Act is amended by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HDAD157F8F2664C0A88F2302D6450A4E2" style="OLC">
<paragraph id="H66671683F798406C938B197CE1161480"><enum>(4)</enum><header>Consultation
regarding reasonable available alternatives to termination</header>
<subparagraph display-inline="no-display-inline" id="H2A1A49B21D4A47D2BF79CD502E61E4E6"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Prior to making any
determination referred to in the preceding provisions of this subsection, the
corporation shall consult with the plan participants and (in the case of a plan
maintained pursuant to a collective bargaining agreement) the employee
organization representing plan participants for purposes of collective
bargaining to determine whether there are any reasonable available alternatives
to termination (including, but not limited to, alternatives described in
subparagraph (B)).</text>
</subparagraph><subparagraph id="H9CF974AD3D924B538EB090C826B8D03D"><enum>(B)</enum><header>Reasonable
alternatives to termination</header><text display-inline="yes-display-inline">The reasonable alternatives to termination
referred to in subparagraph (A) consist of measures which are in the best
interest of plan participants and which include (but are not limited to) the
following:—</text>
<clause id="HA01D3D6D258D485F8C8074461663AA21"><enum>(i)</enum><text display-inline="yes-display-inline">Financing or loans sought by any member of
the plan sponsor’s controlled group, with or without assistance from the
corporation, in order to obtain plan financing, including back-up guarantees to
any such financing which the corporation is hereby authorized to provide for
such purpose.</text>
</clause><clause id="H80536B5758184018BF59376384284109"><enum>(ii)</enum><text display-inline="yes-display-inline">New plan structures agreed to by the
parties, such as transfer of plan liabilities to multiemployer plans, new
benefit formulas for new hires or non-vested participants, or other plan
restructuring alternatives agreed to by the parties.</text>
</clause><clause id="H106F675A5CB74FE48003FC36C73BBE8F"><enum>(iii)</enum><text display-inline="yes-display-inline">Reinsurance which the corporation is hereby
authorized to obtain for the plan.</text>
</clause><clause id="H04833EA0CD3542E7B6CF7C268B874EFA"><enum>(iv)</enum><text display-inline="yes-display-inline">An agreement by the parties authorizing
alternative funding schedules, approved by the corporation, which would modify
plan funding, subject to the minimum funding requirements for the plan under
part 3 of subtitle B of title I.</text>
</clause><clause id="H7BFD3D4EA52F4C118A4E6E051835F20A"><enum>(v)</enum><text display-inline="yes-display-inline">Purchase by the plan sponsor of an annuity
contract to cover liabilities of the plan, which the corporation is hereby
authorized to guarantee as necessary to secure such a
contract.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HEBE13ED2F9F74C5885370A933D09BBA1"><enum>(f)</enum><header>Notice of right
To challenge determinations relating to plan termination</header>
<paragraph id="HD3927B8A0CD54C4FB3E1EE033866DB1E"><enum>(1)</enum><header>Procedure for
standard terminations</header><text display-inline="yes-display-inline">Section
4041(b)(2)(B) of such Act (29 U.S.C. 1341(b)(2)(B)) is amended in clause (i) by
striking ‘‘and’’ at the end, in clause (ii)(V) by striking ‘‘require.’’ and
inserting ‘‘require, and’’, and by inserting after clause (ii) the following
new clause:</text>
<quoted-block display-inline="no-display-inline" id="HFCB3875FA22B447BAB4B48A00FA93FEB" style="OLC">
<clause id="H2A4CEF5148064555860B98B3793B0095"><enum>(iii)</enum><text display-inline="yes-display-inline">describing the right of participants and
beneficiaries to challenge determinations under this
section.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6F83325BB57F4EB1BCE2C7E1BECE7A68"><enum>(2)</enum><header>Termination
proceedings for distress terminations and terminations commenced by the
PBGC</header><text display-inline="yes-display-inline">Section 4042(a) of such
Act (29 U.S.C. 1342(a)) is amended by adding at the end the following new
sentence: ‘‘Prior to commencing proceedings under this section with respect to
any plan, the corporation shall provide notice to plan participants and
beneficiaries of the right to challenge determinations under this section,
written in a manner likely to be understood by the participant or
beneficiary.’’.</text>
</paragraph></subsection></section><section id="H6AE4617C09144378B555359A0B707AFB"><enum>302.</enum><header>Effective date
of title</header><text display-inline="no-display-inline">The amendments made
by this title shall apply with respect to any plans undergoing termination
proceedings pursuant to section 4041 or 4042 of the Employee Retirement Income
Security Act of 1974 which are pending on or after the date of the enactment of
this Act.</text>
</section><enum>IV</enum><header>Recovery of
benefit liabilities which are not guaranteed</header>
<section display-inline="no-display-inline" id="H4661F9E419A04465A01F9A13302396FB" section-type="subsequent-section"><enum>401.</enum><header>Amendment to title
11 of the United States Code</header><text display-inline="no-display-inline">Section 507(a)(1) of title 11, United States
Code, is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H5AD5A3AB87864D5AAB98BBE862AEE479" style="OLC">
<subparagraph id="H8BA6E77283544F99B48A8F7A5E79D45F"><enum>(D)</enum><text display-inline="yes-display-inline">Subject to subparagraphs (A), (B), and (C),
allowed unsecured claims for benefit liabilities to participants and
beneficiaries under a single-employer plan (as defined in section 4001(a)(15)
of the Employee Retirement Income Security Act of 1974) in connection with the
termination of the plan, in excess of the benefits payable to the participants
and beneficiaries by the Pension Benefit Guaranty Corporation under section
4022 of the Employee Retirement Income Security Act of 1974 in connection with
such
termination.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H7BFCC1B32489454E950F45A4B752C1A7"><enum>402.</enum><header>Effective date;
application of amendment</header>
<subsection id="HC9D4739EF9B741E4AFEA86C7E813136C"><enum>(a)</enum><header>Effective
date</header><text>Except as provided in subsection (b), section 401 and the
amendment made by such section shall take effect on the date of the enactment
of this Act.</text>
</subsection><subsection id="H6A83C479F8844AFF834A7C44F9754E4E"><enum>(b)</enum><header>Application of
amendment</header><text>The amendment made by section 401 shall not apply with
respect to cases commenced under title 11 of the United States Code before the
date of the enactment of this Act.</text>
</subsection></section>