[Congressional Record Volume 142, Number 135 (Thursday, September 26, 1996)]
[Senate]
[Pages S11426-S11431]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

       By Ms. MOSELEY-BRAUN:
  S. 2132. A bill to amend the Internal Revenue Code of 1986 to provide 
comprehensive pension protection for women; to the Committee on 
Finance.


                 The Women's Pension Equity Act of 1996

  Ms. MOSELEY-BRAUN. Mr. President, this legislation brings together 
some of the best ideas on women's pension legislation that have come 
before the House or the Senate. The legislation contains three new 
proposals to increase the security, the equity and the accessibility of 
our pension system. As the first permanent woman of the Senate Finance 
Committee, I have undertaken work in this area precisely because 
retirement security is so vitally important to all Americans, but 
especially to America's women.
  Many of America's women face retirement without economic security. 
The majority of the elderly are women, and the retirement system in our 
country is, unfortunately, failing them. Younger women are not earning 
the pension benefits they think they are, and older women are losing 
the pension benefits they thought they had. To make certain that the 
``golden years'' are not the ``disposable years,'' women need to take 
charge of their own retirement.
  Last year, I introduced, and many of my colleagues cosponsored, the 
Women's Pension Equity Act of 1996 to begin to address one of the 
leading causes of poverty for the elderly--little or no pension 
benefits. Less than a third of all female retirees have pensions, and 
the majority of those who do earn less than $5,000 a year from them. 
The lack of pension benefits for many women means the difference 
between a comfortable retirement and a difficult one. Three of the six 
provisions of that bill, the Women's Pension Equity Act, are now law.
  Today we have introduced the Comprehensive Women's Pension Protection 
Act to put Congress on notice that we will continue to push for pension 
reforms that enable women to achieve a secure retirement. Congress 
should expect to hear from American women in the coming months about 
the need for pension policy that allows women to retire with dignity. 
We are here today, and we will be back in the beginning of the 105th 
Congress, because addressing pension issues is an integral part of the 
solution to women's economic insecurity.
  In addition, pension issues are critical to our Nation as a whole. In 
light of the demographic trends facing America, retirement security is 
increasingly important to the quality of life for all of our citizens. 
With regard to women's pensions, specifically, though, I believe the 
first step is for women to take charge of their own retirement.
  Women should create their own pension checklist to prepare for 
economic security when their working days are over. There are eight 
items that should be on any such checklist. Women should, first, find 
out if they are earning now or if they have ever earned a pension; 
second, learn if their employer has a pension plan and how to be 
eligible for that plan; third, contribute to a pension plan if they 
have the chance; fourth, not spend pension earnings if given a one-time 
payment when leaving a job, which is very important, also; fifth, if 
married, find out if their husband has a pension; sixth, not sign away 
a future right to their husband's pension if he dies; seventh, during a 
divorce, if that unfortunately happens, consider the pension to be a 
valuable, jointly earned asset to be divided; and eighth, find out 
about their pension rights and fight for them.

[[Page S11427]]

  Even when women take charge of their own retirement, however, and if 
they have gone through the steps, they often face a brick wall of 
pension law that prevent women from investing enough for the future.
  The pension laws, when they were originally written, were not written 
to reflect the patterns of women's work or, frankly, women's lives. 
Women are more likely than not to move in and out of the work force, to 
work at home, to earn less for the work that they do, and to work in 
low-paying industries. These factors limit our ability to access or 
accrue pension benefits. Women are also more likely to be widowed, to 
divorce, to live alone, and to live longer in their retirement years 
without having adequate coverage for retirement.
  The bill that we have introduced today, which is also being 
introduced in the House of Representatives by Congresswoman Kennelly, a 
long-time champion of women pension rights, addresses the range of 
concerns that women face as they consider retirement.
  This legislation preserves women's pensions by ending the practice of 
integration by the year 2000, the practice whereby pension benefits are 
reduced by a portion of Social Security benefits. It provides for the 
automatic division of pensions upon divorce if the divorce decree is 
silent on pension benefits. It allows a widow or divorced widow to 
collect her husband's civil service pension if he leaves his job and 
dies before collecting benefits. And it continues the payment of court 
ordered tier II railroad retirement benefits to a divorced widow.
  This legislation protects women's pensions by prohibiting 401(k) 
plans, the fastest growing type of plans in the country, from investing 
in collectibles or the companies own stock. It requires annual benefits 
statements for plan participants. And it applies spousal consent rules 
governing pension fund withdrawals to 401(k) plans.
  This legislation helps prepare women for retirement by creating a 
women's pension hotline, creating a real opportunity for women to get 
answers to their questions. Since introducing the Women's Pension 
Equity Act of 1996, my office has received hundreds of letters and 
calls from women just wanting information. The hotline is sorely 
needed.
  By preserving and protecting women's pensions and preparing women for 
retirement, we in Congress can provide women with the tools they need 
to prepare for their own retirement. By introducing legislation today 
and again at the beginning of 1997, we are giving notice that pension 
policy will be at the top of the agenda for the 105th Congress.
  Pension policy decisions will determine, in no small part, the kind 
of life Americans will live in their older years. With a baby boomer 
turning 50 every 9 seconds, we cannot ignore the problems facing people 
as they grow older. Now, more than ever all Americans need to consider 
the role that pensions play in determining they kind of life every 
American will lead.
  In closing, Mr. President, I would like to add that pension policy 
retirement security has often been likened to a three-legged stool. 
There are three constituent parts of retirement security, one being 
Social Security, another being private savings, and the third being 
pensions.
  First, with regard to Social Security, we are taking up in the 
Finance Committee and in this body a number of issues going to the 
protection of Social Security to make certain that that system remains 
viable.
  Second, with regard to private savings, we are looking at the issue 
pertaining to encouraging people to save, particularly for their 
retirement, and making their savings plans more accessible to working 
people.
  Third, with regard to the pensions specifically, this is an area in 
which there are a range of concerns which are being taken up. But, 
suffice it to say, I think it is vitally important that we begin the 
dialog now on the importance of retirement savings and the importance 
for retirement security. The graying of America will mean Americans 
will need more than ever to have in place the kind of protection for 
their retirement so we do not have a declining standard of living for 
retirees, but, as much to the point, so we do not have a diminished 
standard of living for all Americans.
  So it is for those reasons that we have introduced this bill today in 
arguably the last week of the session of the 104th Congress. But it is 
done really as a place marker; that this is an area in which we intend 
to be active and in which we intend to spread the gospel of retirement 
security and that we intend to work in this Congress collaboratively.
  I look forward to a bipartisan effort in this regard. I look forward 
to working with my colleagues on the Finance Committee as well as in 
this body--generally both in the House and in the Senate--so that we 
can put in place pension protections and the pension policy decisions 
that will allow people, in the first instance, to access pensions, to 
hold onto the pension rights they have, and not to alienate them, and 
to allow them to have pension protection that is real for them and that 
is actually there for them when they retire, avoiding retirement 
poverty.
  I think this is a major aspect of policy that we need to look at 
given the demographic trends in this country, and I look forward very 
much to working with my colleagues in the Senate as well as in the 
House in behalf of the retirement security for Americans.
  Mr. President, I ask unanimous consent that a summary of the bill, 
and a copy of the legislation be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2132

       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 1996''.
       (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.
Sec. 204. Prevention of circumvention of court order by waiver of 
              retired pay to enhance civil service retirement annuity.

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

Sec. 301. 401(k) plans prohibited from investing in collectibles.
Sec. 302. Requirement of annual, detailed investment reports applied to 
              certain 401(k) plans.
Sec. 303. 10-percent limitation on acquisition and holding of employer 
              securities and employer real property applied to 401(k) 
              plans.

   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--ANNUAL PENSION BENEFITS STATEMENTS

Sec. 701. Annual pension benefits statements.
                        TITLE I--PENSION REFORM

     SEC. 101. PENSION INTEGRATION RULES.

       (a) Applicability of New Integration Rules Extended to All 
     Existing Accrued

[[Page S11428]]

     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, 1996.
       (c) Eventual Repeal of Integration Rules.--Effective for 
     plan years beginning on or after January 1, 2003--
       (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.--Subsection (a) of section 401 of the 
     Internal Revenue Code of 1986 (relating to requirements for 
     qualification) is amended--
       (A) by inserting after paragraph (31) the following new 
     paragraph:
       ``(32) Division of pension benefits upon divorce.--
       ``(A) In general.--In the case of a divorce of a 
     participant in a pension plan from a spouse who is, 
     immediately before the divorce, a beneficiary under the plan, 
     a trust forming a part of such plan shall not constitute a 
     qualified trust under this section unless the plan provides 
     that at least 50 percent of the marital share of the accrued 
     benefit of the participant under the plan ceases to be an 
     accrued benefit of such participant and becomes an accrued 
     benefit of such divorced spouse, determined and payable upon 
     the earlier of the retirement of the participant, the 
     participant's death, or the termination of the plan, except 
     to the extent that a qualified domestic relations order in 
     connection with such divorce provides otherwise.
       ``(B) Limitation.--Subparagraph (A) shall not be 
     construed--
       ``(i) to require a plan to provide any type or form of 
     benefit, or any option, not otherwise provided under the 
     plan,
       ``(ii) to require the plan to provide increased benefits 
     (determined on the basis of actuarial value),
       ``(iii) to require the payment of benefits to the divorced 
     spouse which are required to be paid to another individual in 
     accordance with this paragraph or pursuant to a domestic 
     relations order previously determined to be a qualified 
     domestic relations order, or
       ``(iv) to require payment of benefits to the divorced 
     spouse in the form of a qualified joint and survivor annuity 
     to the divorced spouse and his or her subsequent spouse.
       ``(C) Definitions.--For purposes of this paragraph--
       ``(i) Domestic relations order; qualified domestic 
     relations order.--The terms `domestic relations order' and 
     `qualified domestic relations order' shall have the meanings 
     provided in section 414(p).
       ``(ii) Marital share.--The term `marital share' means, in 
     connection with an accrued benefit under a pension plan, the 
     product derived by multiplying--

       ``(I) the actuarial present value of the accrued benefit, 
     by
       ``(II) a fraction, 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 the denominator of 
     which is the total period of time which constitutes 
     creditable service by the participant under the plan.

       ``(iii) Qualified joint and survivor annuity.--The term 
     `qualified joint and survivor annuity' has the meaning 
     provided in section 417(b).
       ``(D) Regulations.--In prescribing regulations under this 
     paragraph, the Secretary shall consult with the Secretary of 
     Labor.''; and
       (B) in the last sentence, by striking ``and (20)'' and 
     inserting ``(20), and (32)''.
       (2) Conforming amendments.--
       (A) Subparagraph (B) of section 401(a)(13) of such Code 
     (relating to special rules for domestic relations orders) is 
     amended by inserting ``or if such creation, assignment, or 
     recognition pursuant to such order is necessary for 
     compliance with the requirements of paragraph (32)'' before 
     the period.
       (B) Subsection (p) of section 414 of such Code (defining 
     qualified domestic relations orders) is amended--
       (i) in paragraph (3)(C), by inserting ``or to a divorced 
     spouse of the participant in connection with a previously 
     occurring divorce as required under section 401(a)(32)'' 
     before the period; and
       (ii) in paragraph (7)(C), by striking ``if there had been 
     no order'' and inserting ``in accordance with section 
     401(a)(32) as if there had been no qualified domestic 
     relations order''.
       (b) Amendments to the Employee Retirement Income Security 
     Act of 1974.--
       (1) In general.--Section 206 of Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1056) is amended by adding at 
     the end the following new subsection:
       ``(e)(1) In the case of a divorce of a participant in a 
     pension plan from a spouse who is, immediately before the 
     divorce, a beneficiary under the plan, the plan shall provide 
     that at least 50 percent of the marital share of the accrued 
     benefit of the participant under the plan ceases to be an 
     accrued benefit of such participant and becomes an accrued 
     benefit of such divorced spouse, determined and payable upon 
     the earlier of the retirement of the participant, the 
     participant's death, or the termination of the plan, except 
     to the extent that a qualified domestic relations order in 
     connection with such divorce provides otherwise.
       ``(2) Paragraph (1) shall not be construed--
       ``(A) to require a plan to provide any type or form of 
     benefit, or any option, not otherwise provided under the 
     plan,
       ``(B) to require the plan to provide increased benefits 
     (determined on the basis of actuarial value),
       ``(C) to require the payment of benefits to the divorced 
     spouse which are required to be paid to another individual in 
     accordance with this subsection or pursuant to a domestic 
     relation order previously determined to be a qualified 
     domestic relations order, or
       ``(D) to require payment of benefits to the divorced spouse 
     in the form of a joint and survivor annuity to the divorced 
     spouse and his or her subsequent spouse.
       ``(3) For purposes of this subsection--
       ``(A) The terms `domestic relations order' and `qualified 
     domestic relations order' shall have the meanings provided in 
     subsection (d)(3)(B).
       ``(B) The term `marital share' means, in connection with an 
     accrued benefit under a pension plan, the product derived by 
     multiplying--
       ``(i) the actuarial present value of the accrued benefit, 
     by
       ``(ii) 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.
       ``(C) The term `qualified joint and survivor annuity' shall 
     have the meaning provided in section 205(d).
       ``(4) In prescribing regulations under this subsection, the 
     Secretary shall consult with the Secretary of the 
     Treasury.''.
       (2) Conforming amendments.--Section 206(d) of such Act (29 
     U.S.C. 1056(d)) is amended--
       (A) in the first sentence of paragraph (3)(A), by inserting 
     ``or if such creation, assignment, or recognition pursuant to 
     such order is necessary for compliance with the requirements 
     of subsection (e)'' before the period;
       (B) in paragraph (3)(D)(iii), by inserting ``or to a 
     divorced spouse of the participant in connection with a 
     previously occurring divorce as required under subsection 
     (e)'' before the period; and
       (C) in paragraph (3)(H)(iii), by striking ``if there had 
     been no order'' and inserting ``in accordance with subsection 
     (e) as if there had been no qualified domestic relations 
     order''.

     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--

[[Page S11429]]

       (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, 1996, 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, 1996'' the date of 
     the commencement of the first plan year beginning on or after 
     the earlier of--
       (1) the later of--
       (A) January 1, 1996, 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, 1999.
       (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, 1996, 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.

[[Page S11430]]

     SEC. 204. PREVENTION OF CIRCUMVENTION OF COURT ORDER BY 
                   WAIVER OF RETIRED PAY TO ENHANCE CIVIL SERVICE 
                   RETIREMENT ANNUITY.

       (a) Civil Service Retirement and Disability System.--
       (1) In general.--Subsection (c) of section 8332 of title 5, 
     United States Code, is amended by adding at the end the 
     following:
       ``(4) If an employee or Member waives retired pay that is 
     subject to a court order for which there has been effective 
     service on the Secretary concerned for purposes of section 
     1408 of title 10, the military service on which the retired 
     pay is based may be credited as service for purposes of this 
     subchapter only if, in accordance with regulations prescribed 
     by the Director of the Office of Personnel Management, the 
     employee or Member authorizes the Director to deduct and 
     withhold from the annuity payable to the employee or Member 
     under this subchapter, and to pay to the former spouse 
     covered by the court order, the same amount that would have 
     been deducted and withheld from the employee's or Member's 
     retired pay and paid to that former spouse under such section 
     1408.''.
       (2) Conforming amendment.--Paragraph (1) of such subsection 
     is amended by striking out ``Except as provided in paragraph 
     (2)'' and inserting ``Except as provided in paragraphs (2) 
     and (4)''.
       (b) Federal Employees' Retirement System.--
       (1) In general.--Subsection (c) of section 8411 of title 5, 
     United States Code, is amended by adding at the end the 
     following:
       ``(5) If an employee or Member waives retired pay that is 
     subject to a court order for which there has been effective 
     service on the Secretary concerned for purposes of section 
     1408 of title 10, the military service on which the retired 
     pay is based may be credited as service for purposes of this 
     chapter only if, in accordance with regulations prescribed by 
     the Director of the Office of Personnel Management, the 
     employee or Member authorizes the Director to deduct and 
     withhold from the annuity payable to the employee or Member 
     under this subchapter, and to pay to the former spouse 
     covered by the court order, the same amount that would have 
     been deducted and withheld from the employee's or Member's 
     retired pay and paid to that former spouse under such section 
     1408.''.
       (2) Conforming amendment.--Paragraph (1) of such subsection 
     is amended by striking out ``Except as provided in paragraph 
     (2) or (3)'' and inserting ``Except as provided in paragraphs 
     (2), (3), and (5)''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 1997.
               TITLE III--REFORMS RELATED TO 401(K) PLANS

     SEC. 301. 401(k) PLANS PROHIBITED FROM INVESTING IN 
                   COLLECTIBLES.

       (a) In General.--Paragraph (4) of section 401(k) of the 
     Internal Revenue Code of 1986 (relating to cash or deferred 
     arrangements) is amended by adding at the end the following 
     new subparagraph:
       ``(D) Investment in collectibles treated as 
     distributions.--The rules of section 408(m) shall apply to a 
     cash or deferred arrangement of any employer.''
       (b) 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. REQUIREMENT OF ANNUAL, DETAILED INVESTMENT REPORTS 
                   APPLIED TO CERTAIN 401(k) PLANS.

       (a) In General.--Paragraph (4) of section 401(k) of the 
     Internal Revenue Code of 1986 (relating to cash or deferred 
     arrangements), as amended by section 1, is amended by adding 
     at the end the following new subparagraph:
       ``(E) Annual, detailed investment reports required.--
       ``(i) In general.--A cash or deferred arrangement of any 
     employer with less than 100 participants shall not be treated 
     as a qualified cash or deferred arrangement unless the plan 
     of which it is a part provides to each participant an annual 
     investment report detailing the name of each investment 
     acquired during such plan year and the date and cost of such 
     acquisition, the name of each investment sold during such 
     year and the date and net proceeds of such sale, and the 
     overall rate of return for all investments for such year.
       ``(ii) Exception.--Clause (i) shall not apply with respect 
     to any participant described in section 404(c) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1104(c)).''
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to plan years beginning after the date of the 
     enactment of this Act.

     SEC. 303. 10-PERCENT LIMITATION ON ACQUISITION AND HOLDING OF 
                   EMPLOYER SECURITIES AND EMPLOYER REAL PROPERTY 
                   APPLIED TO 401(K) PLANS.

       (a) In General.--Subparagraph (A) of section 407(d)(3) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1107(d)(3)) is amended by adding at the end the 
     following new sentence: ``Such term also excludes an 
     individual account plan that includes a qualified cash or 
     deferred arrangement described in section 401(k) of the 
     Internal Revenue Code of 1986, if such plan, together with 
     all other individual account plans maintained by the 
     employer, owns more than 10 percent of the assets owned by 
     all pension plans maintained by the employer. For purposes of 
     the preceding sentence, the assets of such plan subject to 
     participant control (within the meaning of section 404(c)) 
     shall not be taken into account.''.
       (b) Effective Date; Transition Rule.--
       (1) Effective date.--Except as provided in paragraph (2), 
     the amendment made by this section shall apply to plans on 
     and after the date of the enactment of this Act.
       (2) Transition rule for plans holding excess securities or 
     property.--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 shall apply to any 
     acquisition of such securities and property on or after such 
     date of enactment, but shall not apply to the specific 
     holdings which constitute such excess during the period of 
     such excess.
   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 two-thirds 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 two-thirds 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 
     the surviving individual (either the participant or the 
     spouse) equal to 66\2/3\ 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 two-thirds 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 two-thirds 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 Two-thirds Survivor 
     Annuity.--For purposes of this section and section 
     401(a)(11), the term ``qualified joint and two-thirds 
     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 
     the surviving individual (either the participant or the 
     spouse) equal to 66\2/3\ 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 two-thirds 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 after December 31, 1996.
       (2) Special rule for collectively bargained plans.--In the 
     case of a plan maintained pursuant to one or more collective 
     bargaining agreements between employee representatives and 
     one or more employers

[[Page S11431]]

     ratified on or before the date of the 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, 1997, 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 the enactment of 
     this Act), or
       (B) January 1, 1998.
       (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, 1998, 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 after 
     December 31, 1996.
            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 
     1997, 1998, 1999, and 2000 to carry out subsection (a).
             TITLE VII--ANNUAL PENSION BENEFITS STATEMENTS

     SEC. 701. ANNUAL PENSION BENEFITS STATEMENTS.

       (a) In General.--Subsection (a) of section 105 of 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 annually furnish to any plan participant and shall 
     furnish to any plan beneficiary who so requests,''.
       (b) Conforming Amendment.--Subsection (a) of section 105 of 
     such Act (29 U.S.C. 1025) is amended by striking 
     ``participant or''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 1996.
                                                                    ____


          Comprehensive Women's Pension Protection Act of 1996


                                title i

       Ends Social Security integration by the year 2000.
       Divides pensions not divided at the time of divorce 
     pursuant to a court order (effectively making the Retirement 
     Equity Act retroactive).
       Clarifies integration with regard to Simplified Employee 
     Pensions (SEPs).
       Provides for the division of pensions in divorce unless 
     otherwise provided in a qualified domestic relations order.


                                title ii

       Allows a widow or divorced widow to collect her husband's 
     civil service pensions if he leaves his job and dies before 
     collecting benefits.
       Allows a court that awards a women part of her husband's 
     civil service pension upon divorce, to extend that award to 
     any lump sum payment made if the husband dies before 
     collecting benefits.
       Allows a spouse to continue receiving Tier II railroad 
     retirement benefits awarded upon divorce upon the death of 
     her husband.


                               title iii

       Prohibits 401(k) plans from investing in collectibles.
       Requires annual detailed investment reports of 401(k) 
     plans.
       Prevents employers from forcing employees to keep 401(k) 
     contributions in stock of the employer.


                                title iv

       Provides equal survivor annuities to both husbands and 
     wives.


                                title v

       Applies spousal consent rules to Retirement Equity Act to 
     401(k) plans, thereby requiring a spousal signature before 
     401(k) money could be withdrawn.


                                title vi

       Gives Labor Department authority to set up a women's 
     pension hotline.
       Authorizes appropriations of up to $500,000 in each of the 
     next four years.


                               title vii

       Requires pension plans to provide participants with annual 
     benefit statements.
                                 ______