[Congressional Record Volume 151, Number 124 (Thursday, September 29, 2005)]
[Senate]
[Page S10759]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ENZI:
  S. 1802. All to provide for appropriate waivers, suspensions, or 
exemptions from provisions of title I of the Employee Retirement Income 
Security Act of 1974 with respect to individual account plans affected 
by Hurricane Katrina or Rita; read the first time.
  Mr. ENZI. Mr. President I rise to introduce the Pension Flexibility 
in Natural Disasters Act of 2005. The bill provides appropriate 
waivers, suspensions or exemptions from the provisions of title I of 
the Employee Retirement Income Security Act of 1974, as amended, with 
respect to individual account plans affected by Hurricane Katrina or 
Rita.
  Hurricanes Katrina and Rita have brought terrible devastation in the 
gulf coast. Not only have so many homes in Louisiana, Mississippi, 
Alabama and Texas been destroyed but many businesses have been 
destroyed as well.
  Any business that maintains a pension or retirement plan for their 
workers is subject to certain reporting, disclosure and fiduciary 
provisions of ERISA as well as being subject to the pertinent 
provisions of the Internal Revenue Code. ERISA sets up many 
requirements and deadlines that businesses simply cannot meet due to 
the devastation of their businesses and the destruction of all of their 
records.
  This bill postpones reporting requirements for businesses that have 
been adversely affected by storms in these presidentially-declared 
disaster areas. It also will facilitate getting individuals access to 
their retirement savings in the form of hardship loans or distributions 
by allowing plan fiduciaries flexibility in making those distributions 
in view of these terrible disasters.
  I hope my colleague will join me in supporting this important bill.
  Mr. President, I ask unanimous consent that the text of this bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1802

       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 ``Pension Flexibility in 
     Natural Disasters Act of 2005''.

     SEC. 2. AUTHORITY TO THE SECRETARY OF LABOR, SECRETARY OF THE 
                   TREASURY, AND THE PENSION BENEFIT GUARANTY 
                   CORPORATION.

       The Secretary of Labor, the Secretary of the Treasury, and 
     the Executive Director of the Pension Benefit Guaranty 
     Corporation shall exercise their authority under section 518 
     of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1148) and section 7508A of the Internal Revenue Code 
     of 1986 to postpone certain deadlines by reason of the 
     Presidentially declared disaster areas in Louisiana, 
     Mississippi, Alabama, Texas, and elsewhere, due to the effect 
     of Hurricane Katrina or Rita. The Secretaries and the 
     Executive Director of the Corporation shall issue guidance as 
     soon as is practicable to plan sponsors and participants 
     regarding extension of deadlines and rules applicable to 
     these extraordinary circumstances. Nothing in this section 
     shall be construed to relieve any plan sponsor from any 
     requirement to pay benefits or make contributions under the 
     plan of the sponsor.

     SEC. 3. AUTHORITY TO PRESCRIBE GUIDANCE BY REASON OF THE 
                   PRESIDENTIALLY DECLARED DISASTER CAUSED BY 
                   HURRICANE KATRINA OR RITA.

       (a) Waivers, Suspensions, or Exemptions.--In the case of 
     any pension plan which is an individual account plan, or any 
     participant or beneficiary, plan sponsor, administrator, 
     fiduciary, service provider, or other person with respect to 
     such plan, affected by Hurricane Katrina or Rita, or any 
     service provider or other person dealing with such plan, the 
     Secretary of Labor may, notwithstanding any provision of 
     title I of the Employee Retirement Income Security Act of 
     1974, prescribe, by notice or otherwise, a waiver, 
     suspension, or exemption from any provision of such title 
     which is under the regulatory authority of such Secretary, or 
     from regulations issued under any such provision, that such 
     Secretary determines appropriate to facilitate the 
     distribution or loan of assets from such plan to participants 
     and beneficiaries of such plan.
       (b) Exemption From Liability for Acts or Omissions Covered 
     by Waiver, Suspension, or Exemption.--No person shall be 
     liable for any violation of title I of the Employee 
     Retirement Income Security Act of 1974, or of any regulations 
     issued under such title, based upon any act or omission 
     covered by a waiver, suspension, or exemption issued under 
     subsection (a) if such act or omission is in compliance with 
     the terms of the waiver, suspension, or exemption.
       (c) Plan Terms Subject to Waiver, Suspension, or 
     Exemption.--Notwithstanding any provision of the plan to the 
     contrary and to the extent provided in any waiver, 
     suspension, or exemption issued by the Secretary of Labor 
     pursuant to subsection (a), no plan shall be treated as 
     failing to be operated in accordance with its terms solely as 
     a result of acts or omissions which are consistent with such 
     waiver, suspension, or exemption.
       (d) Expiration of Authority.--This section shall apply only 
     with respect to waivers, suspensions, or exemptions issued by 
     the Secretary of Labor during the 1-year period following the 
     date of the enactment of this Act.
       (e) Definitions.--Terms used in this section shall have the 
     meanings provided such terms in section 3 of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1002).

     SEC. 4. AUTHORITY IN THE EVENT OF PRESIDENTIALLY DECLARED 
                   DISASTER OR TERRORISTIC OR MILITARY ACTIONS.

       Section 518 of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1148) is amended by inserting ``, under 
     any regulation issued thereunder, or under any plan 
     provision'' after ``under this Act''.

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