[Congressional Record Volume 143, Number 21 (Tuesday, February 25, 1997)]
[Extensions of Remarks]
[Page E306]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                SMALL 401(K) PENSION PLAN DISCLOSURE ACT

                                 ______
                                 

                          HON. GARY A. CONDIT

                             of california

                    in the house of representatives

                       Tuesday, February 25, 1997

  Mr. CONDIT. Mr. Speaker, I have today introduced the Small 401(k) 
Pension Plan Disclosure Act of 1997. This legislation is of importance 
to millions of working Americans savings for their retirement.
  Current law requires that pension plans file detailed investment 
reports with the Department of the Treasury and make the reports 
available to any participant. Small pension plans, those with fewer 
than 100 participants and active beneficiaries, are exempted from this 
requirement.
  Firms that sponsor traditional, defined benefit pension plans 
guarantee that investments will provide the promised question and the 
Pension Benefit Guaranty Corporation insures the plan. Neither applies 
to 401(k)'s. Participants assume the risk of poor investment return of 
a 401(k). It is only fair that participants in small 401(k) plans be 
told how their contributions are invested.
  The Small 401(k) Pension Plan Disclosure Act of 1997 would require 
that the Secretary of Labor issue regulations requiring that small 
401(k)'s provide each participant with an investment report once a 
year. The details of the report are left up to the Secretary. The bill 
also encourages the Secretary to provide for delivery of the reports 
through company e-mail to bring down costs. Participant-directed 401(k) 
plans are exempted because those participants already receive 
investment reports.
  Mr. Speaker, I would urge our colleagues to examine this legislation 
and to cosponsor this bill of great importance to hard-working American 
families.

                                 H.R.--

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Small 401(k) Pension 
     Disclosure Act of 1997''.

     SEC. 2. REQUIREMENT OF ANNUAL, DETAILED INVESTMENT REPORTS 
                   APPLIED TO CERTAIN 401(K) PLANS.

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

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