[Congressional Record Volume 148, Number 38 (Wednesday, April 10, 2002)]
[House]
[Page H1202]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                               AMENDMENTS

  Under clause 8 of rule XVIII, proposed amendments were submitted as 
follows:

                               H.R. 3762

                         Offered By: Mr. Roemer

       Amendment No. 1: Insert at the appropriate place the 
     following new section:

     SEC. ____. IMMEDIATE WARNING OF EXCESSIVE STOCK HOLDINGS.

       (a) In General.--Section 105 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1025) is amended by 
     adding at the end the following new subsection:
       ``(e)(1) In any case in which the plan administrator of an 
     individual account plan is in receipt of information 
     indicating that the individual account of any participant is 
     excessively invested in such securities, the plan 
     administrator shall periodically, but not less frequently 
     than quarterly, provide to the participant a separate, 
     written statement--
       ``(A) indicating that the participant's account is 
     excessively invested in employer securities,
       ``(B) setting forth an explanation, written in a manner 
     calculated to be understood by the average plan participant, 
     of the importance, for the long-term retirement security of 
     participants and beneficiaries, of a well-balanced and 
     diversified investment portfolio, including a discussion of 
     the risk of holding substantial portions of a portfolio in 
     the security of any one entity, such as employer securities, 
     and
       ``(C) referring the participant to investment education 
     materials which shall be made available by or under the plan.

     The requirement to provide such periodic statement shall not 
     apply during any period for which the plan administrator is 
     made aware that such participant's account is not excessively 
     invested in employer securities.
       ``(2) For purposes of paragraph (1), a participant's 
     account is `excessively invested' in employer securities if 
     at least 25 percent of the balance in such account is 
     invested in employer securities (as defined in section 
     407(d)(1)).''.
       (b) Civil Penalties for Failure To Provide Quarterly 
     Benefit Statements.--Section 502 of such Act (29 U.S.C. 1132) 
     is amended--
       (1) in subsection (a)(6), by striking ``(5), or (6)'' and 
     inserting ``(5), (6), or (7)'';
       (2) by redesignating paragraph (7) of subsection (c) as 
     paragraph (8); and
       (3) by inserting after paragraph (6) of subsection (c) the 
     following new paragraph:
       ``(7) The Secretary may assess a civil penalty against any 
     plan administrator of up to $1,000 a day from the date of 
     such plan administrator's failure or refusal to provide 
     participants or beneficiaries with a separate, written 
     statement on a timely basis under section 105(e).''.
       (c) Model Statements.--The Secretary of Labor shall, not 
     later than January 1, 2003, issue initial guidance and a 
     model benefit statement, written in a manner calculated to be 
     understood by the average plan participant, that may be used 
     by plan administrators in complying with the requirements of 
     section 105(e) of the Employee Retirement Income Security Act 
     of 1974. The Secretary may promulgate such interim final 
     rules as the Secretary determines are appropriate to carry 
     out the amendments made by this section.

                               H.R. 3762

                         Offered By: Mr. Roemer

       Amendment No. 2: Insert at the appropriate place the 
     following new section:

     SEC. ____. CLEAR AND ACCURATE DESCRIPTION OF PENSION PLAN 
                   TERMS AND CONDITIONS.

       Section 104(a) of the Employee Retirement Income Security 
     Act of 1974 (29 U.S.C. 1024(a)) is amended by adding at the 
     end the following new paragraph:
       ``(7) All materials described in this subsection which are 
     required to be furnished to pension plan participants or 
     beneficiaries or which are required to be made available for 
     inspection by such participants and beneficiaries shall be 
     written in clear and accurate language designed to be 
     understood by the average plan participant.''.