[Congressional Record Volume 149, Number 168 (Wednesday, November 19, 2003)]
[Senate]
[Page S15190]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAYH:
  S. 1892. A bill to provide information and advice to pension plan 
participants to assist them in making decisions regarding the 
investment of their pension plan assets, and for other purposes; to the 
Committee on Finance.
  Mr. BAYH. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the Bill was ordered to be printed in the 
Record, as follows:

                                S. 1892

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

     SECTION 1. NOTICE OF HIGH CONCENTRATION OF PENSION ASSETS IN 
                   EMPLOYER SECURITIES.

       (a) In General.--Section 105 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1025) in amended by 
     adding at the end of the following new subsection:
       ``(e) Notice of High Concentration of Plan Assets In 
     Employer Securities.--
       ``(1) In general.--In the case of an individual account 
     plan to which this subsection applies, if the percentage of 
     assets in the individual account that consists of employer 
     securities and employer real property exceeds 50 percent of 
     the total account, the plan administrator shall include with 
     the account statement a notice that the account may be 
     overinvested in employer securities and employer real 
     property. Any determination under this paragraph shall be 
     made as of the most recent valuation date under the plan.
       ``(2) Exclusion of assets held through pooled investment 
     vehicles.--Employer securities and employer real property 
     held through an investment option of the plan which is not 
     designed to invest primarily in employer securities or 
     employer real property shall not be taken under paragraph (1) 
     is determining the percentage of assets that consist of 
     employer securities and employer real property.
       ``(3) Application.--
       ``(A) In general.--This subsection shall apply to any 
     individual account plan which--
       ``(i) holds employer securities which are readily tradable 
     on an established securities market, and
       ``(ii) permits a participant or beneficiary to exercise 
     control over assets in the individual's account.
       ``(B) Exception for esops.--This subsection shall not apply 
     to an employee stock ownership plan (as defined in section 
     4795(e)(7)) of the Internal Revenue Code of 1986) if the plan 
     has no contributions which are subject to section 401 (k) or 
     (m) of such Code.
       ``(4) Employer securities and real property.--For purposes 
     of this subsection, the terms `employer securities' and 
     `employer real property' have the meanings given such terms 
     by paragraphs (1) and (2) of section 407(d), respectively.''
       (b) Penalty.--Section 502 of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1132) is amended--
       (1) in subsection (a)(6), by striking ``(6), or (7)'' and 
     inserting ``(6), (7), or (8)'',
       (2) by redesignating paragraph (8) of subsection (c) as 
     paragraph (9), and
       (3) by inserting after paragraph (7) the following new 
     paragraph:
       ``(8) The Secretary may assess a civil penalty against a 
     plan administrator of up to $100 a day from the date of the 
     plan administrator's failure or refusal to provide notice to 
     participants and beneficiaries in accordance with section 
     105(e). For purposes of this paragraph, each violation with 
     respect to any single participant or beneficiary shall be 
     treated as a separate violation.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2003.

     SEC. 2. TREATMENT OF QUALIFIED RETIREMENT PLANNING SERVICES.

       (a) In General.--Subsection (m) of section 132 of the 
     Internal Revenue Code of 1986 (defining qualified retirement 
     services) is amended by redesignating paragraphs (2) and (3) 
     as paragraphs (5) and (6), respectively, and by inserting 
     after paragraph (1) the following:
       ``(2) Limitations.--
       ``(A) Dollar limitation.--The aggregate amount which may be 
     excluded with respect to qualified retirement planning 
     services provided to any individual during a taxable year 
     shall not exceed $1,500.
       ``(B) Adjusted gross income.--No amount may be excluded 
     with respect to qualified retirement planning services 
     provided during a taxable year if the modified adjusted gross 
     income of the taxpayer for such taxable year exceeds $100,000 
     ($200,000 in the case of married individuals filing a joint 
     return). For purposes of this subparagraph, the term 
     `modified adjusted gross income' means adjusted gross income, 
     determined without regard to this section and sections 911, 
     931, and 933.
       ``(3) Cash reimbursements.--For purposes of this 
     subsection, the term `qualified retirement planning services' 
     includes a cash reimbursement by an employer to an employee 
     for a benefit described in paragraph (1).
       ``(4) No constructive receipt.--No amount shall be included 
     in the gross income of any employee solely because the 
     employee may choose between any qualified retirement planning 
     services provided by a qualified investment advisor and 
     compensation which would otherwise be includible in the gross 
     income of such employee. The preceding sentence shall apply 
     to highly compensated employees only if the choice described 
     in such sentence is available on substantially the same terms 
     to each member of the group of employees normally provided 
     education and information regarding the employer's qualified 
     employer plan.''
       (b) Conforming Amendments.--
       (1) Section 403(b)(3)(B) of such Code is amended by 
     inserting ``132(m)(4),'' after ``132(f)(4),''.
       (2) Section 414(s)(2) of such Code is amended by inserting 
     ``132(m)(4),'' after ``132(f)(4),''.
       (3) Section 415(c)(3)(D)(ii) of such Code is amended by 
     inserting ``132(m)(4),'' after ``132(f)(4),''.
       (c) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2003.
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