Notes on 29 U.S.C. § 1001 : US Code - Notes

Search Notes on 29 U.S.C. § 1001 : US Code - Notes

(Pub. L. 93-406, title I, Sec. 2, Sept. 2, 1974, 88 Stat. 832.)
REFERENCES IN TEXT
This chapter, referred to in subsecs. (b) and (c), was in the
original "this Act", meaning Pub. L. 93-406, known as the Employee
Retirement Income Security Act of 1974. Titles I, III, and IV of
such Act are classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title note set
out below and Tables.
EFFECTIVE DATE OF 1984 AMENDMENTS; TRANSITIONAL RULES
Pub. L. 98-397, title III, Secs. 302, 303, Aug. 23, 1984, 98
Stat. 1451, 1452, as amended by Pub. L. 99-514, Sec. 2, title XI,
Sec. 1145(c), title XVIII, Sec. 1898(g), (h)(1)(A), (2), (3), Oct.
22, 1986, 100 Stat. 2095, 2491, 2956, 2957; Pub. L. 101-239, title
VII, Sec. 7861(d)(1), Dec. 19, 1989, 103 Stat. 2431, provided that:
"SEC. 302. GENERAL EFFECTIVE DATES.
"(a) In General. - Except as otherwise provided in this section
or section 303, the amendments made by this Act [see Short Title of
1984 Amendments note below] shall apply to plan years beginning
after December 31, 1984.
"(b) Special Rule for Collective Bargaining Agreements. - In the
case of a plan maintained pursuant to 1 or more collective
bargaining agreements between employee representatives and 1 or
more employers ratified before the date of the enactment of this
Act [Aug. 23, 1984], except as provided in subsection (d) or
section 303, the amendments made by this Act shall not apply to
plan years beginning before the earlier of -
"(1) the date on which the last of the collective bargaining
agreements relating to the plan terminates (determined without
regard to any extension thereof agreed to after the date of the
enactment of this Act [Aug. 23, 1984]), or
"(2) July 1, 1988.
For purposes of paragraph (1), any plan amendment made pursuant to
a collective bargaining agreement relating to the plan which amends
the plan solely to conform to any requirement added by title I or
II [of Pub. L. 98-397] shall not be treated as a termination of
such collective bargaining agreement.
"(c) Notice Requirement. - The amendments made by section 207
[amending sections 402 and 6652 of Title 26, Internal Revenue Code]
shall apply to distributions after December 31, 1984.
"(d) Special Rules for Treatment of Plan Amendments. -
"(1) In general. - Except as provided in paragraph (2), the
amendments made by section 301 [amending section 1054 of this
title and sections 401 and 411 of Title 26] shall apply to plan
amendments made after July 30, 1984.
"(2) Special rule for collective bargaining agreements. - In
the case of a plan maintained pursuant to 1 or more collective
bargaining agreements entered into before January 1, 1985, which
are -
"(A) between employee representatives and 1 or more
employers, and
"(B) successor agreements to 1 or more collective bargaining
agreements which terminate after July 30, 1984, and before
January 1, 1985,
the amendments made by section 301 shall not apply to plan
amendments adopted before April 1, 1985, pursuant to such
successor agreements (without regard to any modification or
reopening after December 31, 1984).
"SEC. 303. TRANSITIONAL RULES.
"(a) Amendments Relating to Vesting Rules; Breaks in Service;
Maternity or Paternity Leave. -
"(1) Minimum age for vesting. - The amendments made by sections
102(b) and 202(b) [amending section 1053 of this title and
section 411 of Title 26, Internal Revenue Code] shall apply in
the case of participants who have at least 1 hour of service
under the plan on or after the first day of the first plan year
to which the amendments made by this Act [see Short Title of 1984
Amendments note below] apply.
"(2) Break in service rules. - If, as of the day before the
first day of the first plan year to which the amendments made by
this Act apply, section 202(a) or (b) or 203(b) of the Employee
Retirement Income Security Act of 1974 [section 1052(a) or (b) or
section 1053(b) of this title] or section 410(a) or 411(a) of the
Internal Revenue Code of 1986 [section 410(a) or section 411(a)
of Title 26] (as in effect on the day before the date of the
enactment of this Act [Aug. 23, 1984]) would not require any
service to be taken into account, nothing in the amendments made
by subsections (c) and (d) of section 102 of this Act [amending
sections 1052 and 1053 of this title] and subsections (c) and (d)
of section 202 of this Act [amending sections 410 and 411 of
Title 26] shall be construed as requiring such service to be
taken into account under such section 202(a) or (b), 203(b),
410(a), or 411(a); as the case may be.
"(3) Maternity or paternity leave. - The amendments made by
sections 102(e) and 202(e) [amending sections 1052 to 1054 of
this title and sections 410 and 411 of Title 26] shall apply in
the case of absences from work which begin on or after the first
day of the first plan year to which the amendments made by this
Act apply.
"(b) Special Rule for Amendments Relating to Maternity or
Paternity Absences. - If a plan is administered in a manner which
would meet the amendments made by sections 102(e) and 202(e)
[amending sections 1052 to 1054 of this title and sections 410 and
411 of Title 26] (relating to certain maternity or paternity
absences not treated as breaks in service), such plan need not be
amended to meet such requirements until the earlier of -
"(1) the date on which such plan is first otherwise amended
after the date of the enactment of this Act [Aug. 23, 1984], or
"(2) the beginning of the first plan year beginning after
December 31, 1986.
"(c) Requirement of Joint and Survivor Annuity and Preretirement
Survivor Annuity. -
"(1) Requirement that participant have at least 1 hour of
service or paid leave on or after date of enactment. - The
amendments made by sections 103 and 203 [amending section 1055 of
this title and section 401 of Title 26 and enacting section 417
of Title 26] shall apply only in the case of participants who
have at least 1 hour of service under the plan on or after the
date of the enactment of this Act [Aug. 23, 1984] or have at
least 1 hour of paid leave on or after such date of enactment.
"(2) Requirement that preretirement survivor annuity be
provided in case of certain participants dying on or after date
of enactment. - In the case of any participant -
"(A) who has at least 1 hour of service under the plan on or
after the date of the enactment of this Act [Aug. 23, 1984] or
has at least 1 hour of paid leave on or after such date of
enactment,
"(B) who dies before the annuity starting date, and
"(C) who dies on or after the date of the enactment of this
Act [Aug. 23, 1984] and before the first day of the first plan
year to which the amendments made by this Act apply,
the amendments made by sections 103 and 203 shall be treated as
in effect as of the time of such participant's death. In the case
of a profit-sharing or stock bonus plan to which this paragraph
applies, the plan shall be treated as meeting the requirements of
the amendments made by sections 103 and 203 with respect to any
participant if the plan made a distribution in a form other than
a life annuity to the surviving spouse of the participant of such
participant's nonforfeitable benefit.
"(3) Spousal consent required for certain elections after
december 31, 1984. - Any election after December 31, 1984, and
before the first day of the first plan year to which the
amendments made by this Act apply not to take a joint and
survivor annuity shall not be effective unless the requirements
of section 205(c)(2) of the Employee Retirement Income Security
Act of 1974 [section 1055(c)(2) of this title] (as amended by
section 103 of this Act) and section 417(a)(2) of the Internal
Revenue Code of 1986 [section 417(a)(2) of Title 26] (as added by
section 203 of this Act) are met with respect to such election.
"(4) Elimination of double death benefits. -
"(A) In general. - In the case of a participant described in
paragraph (2), death benefits (other than a qualified joint and
survivor annuity or a qualified preretirement survivor annuity)
payable to any beneficiary shall be reduced by the amount
payable to the surviving spouse of such participant by reason
of paragraph (2). The reduction under the preceding sentence
shall be made on the basis of the respective present values (as
of the date of the participant's death) of such death benefits
and the amount so payable to the surviving spouse.
"(B) Spouse may waive provisions of paragraph (2). - In the
case of any participant described in paragraph (2), the
surviving spouse of such participant may waive the provisions
of paragraph (2). Such waiver shall be made on or before the
close of the second plan year to which the amendments made by
section 103 of this Act [amending section 1055 of this title]
apply. Such a waiver shall not be treated as a transfer of
property for purposes of chapter 12 of the Internal Revenue
Code of 1986 and shall not be treated as an assignment or
alienation for purposes of section 401(a)(13) of the Internal
Revenue Code of 1986 [section 401(a)(13) of Title 26] or
section 206(d) of the Employee Retirement Income Security Act
of 1974 [section 1056 of this title].
"(d) Amendments Relating to Assignments in Divorce, Etc.,
Proceedings. - The amendments made by sections 104 and 204
[amending sections 1056 and 1144 of this title and sections 72,
401, 402 and 414 of Title 26] shall take effect on January 1, 1985,
except that in the case of a domestic relations order entered
before such date, the plan administrator -
"(1) shall treat such order as a qualified domestic relations
order if such administrator is paying benefits pursuant to such
order on such date, and
"(2) may treat any other such order entered before such date as
a qualified domestic relations order even if such order does not
meet the requirements of such amendments.
"(e) Treatment of Certain Participants Who Separate From Service
Before Date of Enactment. -
"(1) Joint and survivor annuity provisions of employee
retirement income security act of 1974 apply to certain
participants. - If -
"(A) a participant had at least 1 hour of service under the
plan on or after September 2, 1974,
"(B) section 205 of the Employee Retirement Income Security
Act of 1974 [section 1055 of this title] and section 401(a)(11)
of the Internal Revenue Code of 1986 [section 401(a)(11) of
Title 26] (as in effect on the day before the date of the
enactment of this Act [Aug. 23, 1984]) would not (but for this
paragraph) apply to such participant,
"(C) the amendments made by sections 103 and 203 [amending
section 1055 of this title and section 401 of Title 26 and
enacting section 417 of Title 26] of this Act do not apply to
such participant, and
"(D) as of the date of the enactment of this Act [Aug. 23,
1984], the participant's annuity starting date has not occurred
and the participant is alive,
then such participant may elect to have section 205 of the
Employee Retirement Income Security Act of 1974 [section 1055 of
this title] and section 401(a)(11) of the Internal Revenue Code
of 1986 [section 401(a)(11) of Title 26] (as in effect on the day
before the date of the enactment of this Act) apply.
"(2) Treatment of certain participants who perform service on
or after january 1, 1976. - If -
"(A) a participant had at least 1 hour of service in any plan
year beginning on or after January 1, 1976,
"(B) the amendments made by sections 103 and 203 [amending
section 1055 of this title and section 401 of Title 26 and
enacting section 417 of Title 26] would not (but for this
paragraph) apply to such participant,
"(C) when such participant separated from service, such
participant had at least 10 years of service under the plan and
had a nonforfeitable right to all (or any portion) of such
participant's accrued benefit derived from employer
contributions, and
"(D) as of the date of the enactment of this Act [Aug. 23,
1984], such participant's annuity starting date has not
occurred and such participant is alive,
then such participant may elect to have the qualified
preretirement survivor annuity requirements of the amendments
made by sections 103 and 203 apply.
"(3) Period during which election may be made. - An election
under paragraph (1) or (2) may be made by any participant during
the period -
"(A) beginning on the date of the enactment of this Act [Aug.
23, 1984], and
"(B) ending on the earlier of the participant's annuity
starting date or the date of the participant's death.
"(4) Requirement of notice. -
"(A) In general. -
"(i) Time and manner. - Every plan shall give notice of the
provisions of this subsection at such time or times and in
such manner or manners as the Secretary of the Treasury may
prescribe.
"(ii) Penalty. - If any plan fails to meet the requirements
of clause (i), such plan shall pay a civil penalty to the
Secretary of the Treasury equal to $1 per participant for
each day during the period beginning with the first day on
which such failure occurs and ending on the day before notice
is given by the plan; except that the amount of such penalty
imposed on any plan shall not exceed $2,500.
"(B) Responsibilities of secretary of labor. - The Secretary
of Labor shall take such steps (by public announcements and
otherwise) as may be necessary or appropriate to bring to
public attention the provisions of this subsection.
"(f) The amendments made by section 301 of this Act [amending
section 1054 of this title and sections 401 and 411 of Title 26]
shall not apply to the termination of a defined benefit plan if
such termination -
"(1) is pursuant to a resolution directing the termination of
such plan which was adopted by the Board of Directors of a
corporation on July 17, 1984, and
"(2) occurred on November 30, 1984."
[Amendment by section 1145(c) of Pub. L. 99-514 applicable as if
included in the amendments made by the Retirement Equity Act of
1984, Pub. L. 98-397, see section 1145(d) of Pub. L. 99-514, set
out as a note under section 401 of Title 26.]
[Amendment by section 1898(g), (h)(1)(A), (2), (3) of Pub. L. 99-
514 effective as if included in the provision of the Retirement
Equity Act of 1984, Pub. L. 98-397, to which such amendment
relates, except as otherwise provided, see section 1898(j) of Pub.
L. 99-514, set out as a note under section 401 of Title 26.]
SHORT TITLE OF 2004 AMENDMENT
Pub. L. 108-218, Sec. 1, Apr. 10, 2004, 118 Stat. 596, provided
that: "This Act [see Tables for classification] may be cited as the
'Pension Funding Equity Act of 2004'."
SHORT TITLE OF 1997 AMENDMENT
Pub. L. 105-92, Sec. 1, Nov. 19, 1997, 111 Stat. 2139, provided
that: "This Act [enacting sections 1146 and 1147 of this title and
provisions set out as a note under section 1146 of this title] may
be cited as the 'Savings Are Vital to Everyone's Retirement Act of
1997'."
SHORT TITLE OF 1994 AMENDMENT
Pub. L. 103-401, Sec. 1, Oct. 22, 1994, 108 Stat. 4172, provided
that: "This Act [amending section 1132 of this title and enacting
provisions set out as notes under section 1132 of this title] may
be cited as the 'Pension Annuitants Protection Act of 1994'."
SHORT TITLE OF 1991 AMENDMENT
Pub. L. 102-89, Sec. 1, Aug. 14, 1991, 105 Stat. 446, provided
that: "This Act [amending section 1002 of this title and enacting
provisions set out as a note under section 1002 of this title] may
be cited as the 'Rural Telephone Cooperative Associations ERISA
Amendments Act of 1991'."
SHORT TITLE OF 1986 AMENDMENT
Pub. L. 99-272, title XI, Sec. 11001, Apr. 7, 1986, 100 Stat.
237, provided that: "This title [enacting sections 1001b, 1085a,
1143a, 1349, 1369, and 1370 of this title, amending sections 1002,
1023, 1024, 1054, 1061, 1083, 1084, 1086, 1301, 1303, 1305, 1306,
1322, 1322a, 1341, 1342, 1344, 1347, 1348, 1362 to 1364, and 1366
to 1368 of this title, and sections 402, 404, 412, and 501 of Title
26, Internal Revenue Code, repealing section 1304 of this title,
and enacting provisions set out as notes under sections 1023, 1054,
1085a, 1135, 1143a, 1303, 1306, 1341, 1362, and 1369 of this title
and section 404 of Title 26] may be cited as 'Single-Employer
Pension Plan Amendments Act of 1986'."
SHORT TITLE OF 1984 AMENDMENT
Pub. L. 98-397, Sec. 1, Aug. 23, 1984, 98 Stat. 1426, provided
that: "This Act [enacting section 417 of Title 26, Internal Revenue
Code, amending sections 1025, 1052 to 1056, and 1144 of this title
and sections 72, 401, 402, 410, 411, 414, 6057, and 6652 of Title
26, and enacting provisions set out as notes under this section]
may be cited as the 'Retirement Equity Act of 1984'."
SHORT TITLE OF 1980 AMENDMENT
Pub. L. 96-364, Sec. 1, Sept. 26, 1980, 94 Stat. 1208, provided
that: "This Act [enacting sections 1001a, 1145, 1322a, 1322b, 1323,
1341a, 1381 to 1405, 1411 to 1415, 1421 to 1426, 1431, 1441, and
1451 to 1453 of this title and sections 418 to 418E of Title 26,
Internal Revenue Code, amending sections 1002, 1023, 1051, 1053,
1058, 1081, 1082, 1103, 1104, 1108, 1132, 1202, 1301 to 1303, 1305
to 1307, 1321, 1322, 1341, 1342, 1344, 1346, 1348, 1361 to 1366,
and 1461 of this title, section 8521 of Title 5, Government
Organization and Employees, and sections 194, 401, 404, 411 to 414,
501, 3304, 4971 and 4975 of Title 26, repealing former section 1323
of this title, and enacting provisions set out as notes under this
section, sections 1001a, 1302, 1306, 1381, 1385, 1426 and 1461 of
this title, section 8521 of Title 5, and sections 401, 404, 414,
418, and 3304 of Title 26] may be cited as the 'Multiemployer
Pension Plan Amendments Act of 1980'."
SHORT TITLE
Section 1 of Pub. L. 93-406 provided that: "This Act [enacting
this chapter, sections 408 to 415, 4971 to 4975, 6057 to 6059,
6692, and 6693 of Title 26, Internal Revenue Code, section 1037 of
former Title 31, Money and Finance, and section 1320b-1 of Title
42, The Public Health and Welfare, amending section 441 of this
title, sections 5108 and 5109 of Title 5, Government Organization
and Employees, sections 664, 1027, and 1954 of Title 18, Crimes and
Criminal Procedure, sections 37, 46, 56, 62, 72, 101, 122, 219,
220, 275, 401, 402, 403, 404, 405, 406, 407, 503, 801, 805, 871,
901, 1304, 1348, 1379, 2039, 3401, 6033, 6047, 6051, 6103, 6104,
6161, 6201, 6204, 6211, 6212, 6213, 6214, 6344, 6501, 6503, 6511,
6512, 6601, 6652, 6653, 6659, 6676, 6677, 6679, 6682, 6688, 6690,
6861, 6862, 7422, 7451, 7459, 7482, 7701, and 7802, of Title 26,
and section 846 of former Title 31, repealing sections 301 to 309
of this title, and enacting provisions set out as notes under
sections 72, 122, 219, 401, 402, 403, 404, 410, 411, 412, 415, 501,
4973, 4975, 6057, 6059, 6103, 6104, 7476, and 7802 of Title 26] may
be cited as the 'Employee Retirement Income Security Act of 1974'."
COORDINATION OF INTERNAL REVENUE CODE OF 1986 WITH EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974
This subchapter and subchapter III of this chapter not applicable
in interpreting Internal Revenue Code of 1986, except to the extent
specifically provided in such Code, or as determined by the
Secretary of the Treasury, see section 9343(a) of Pub. L. 100-203,
set out as a note under section 401 of Title 26, Internal Revenue
Code.
STUDY BY COMPTROLLER GENERAL OF THE UNITED STATES OF EFFECT OF
PENSION RULES ON WOMEN
Pub. L. 98-397, title III, Sec. 304, Aug. 23, 1984, 98 Stat.
1454, directed Comptroller General to conduct detailed study of
effect on women of participation, vesting, funding, integration,
survivorship features, and other relevant plan and Federal pension
rules and, not later than Jan. 1, 1990, submit a report on the
study to Congress.
STUDY BY GENERAL ACCOUNTING OFFICE REGARDING RESULTS OF
MULTIEMPLOYER PENSION PLAN AMENDMENTS ACT OF 1980; PROCEDURES
APPLICABLE
Pub. L. 96-364, title IV, Sec. 413, Sept. 26, 1980, 94 Stat.
1309, directed Comptroller General to conduct a study of effects of
amendments made by Pub. L. 99-364 on: participants, beneficiaries,
employers, employee organizations, and other parties, and the self-
sufficiency of the fund established under section 1305 of this
title with respect to benefits guaranteed under section 1322a of
this title, taking into account financial conditions of
multiemployer plans and employers and to report to Congress no
later than June 30, 1985, results of study including his
recommendations with respect thereto.
PRESIDENT'S COMMISSION ON PENSION POLICY; EXTENSION OF TERM;
CONTINUATION OF EFFORT
Pub. L. 96-14, May 24, 1979, 93 Stat. 29, known as the Pension
Policy Commission Act, authorized the President's Commission on
Pension Policy established by Ex. Ord. No. 12071 to continue in
operation for two years following May 24, 1979, and set forth
membership, compensation, implementation, and reporting
requirements, with the Commission to cease to exist ninety days
after submission of the final report.
REORGANIZATION PLAN NO. 4 OF 1978
43 F.R. 47713, 92 STAT. 3790
Prepared by the President and transmitted to the Senate and the
House of Representatives in Congress assembled, August 10, 1978,
pursuant to the provisions of Chapter 9 of Title 5 of the United
States Code.(!1)
EMPLOYEE RETIREMENT INCOME SECURITY ACT TRANSFERS
SECTION 101. TRANSFER TO THE SECRETARY OF THE TREASURY
Except as otherwise provided in Sections 104 and 106 of this
Plan, all authority of the Secretary of Labor to issue the
following described documents pursuant to the statutes hereinafter
specified is hereby transferred to the Secretary of the Treasury:
(a) regulations, rulings, opinions, variances and waivers under
Parts 2 [29 U.S.C. 1051 et seq.] and 3 [29 U.S.C. 1081 et seq.] of
Subtitle B of Title I and subsection 1012(c) [set out as a note
under 26 U.S.C. 411] of Title II of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1001 note) (hereinafter referred to
as "ERISA").
EXCEPT for sections and subsections 201, 203(a)(3)(B), 209, and
301(a) of ERISA; [29 U.S.C. 1051, 1053(a)(3)(B), 1059, and
1081(a)];
(b) such regulations, rulings, and opinions which are granted to
the Secretary of Labor under Sections 404, 410, 411, 412, and 413
of the Internal Revenue Code of 1954, as amended [26 U.S.C. 404,
410, 411, 412, and 413], (hereinafter referred to as the "Code").
EXCEPT for subsection 411(a)(3)(B) of the Code [26 U.S.C.
411(a)(3)(B)] and the definitions of "collectively bargained
plan" and "collective bargaining agreement" contained in
subsections 404 (a)(1)(B) and (a)(1)(C), 410 (b)(2)(A) and
(b)(2)(B), and 413(a)(1) of the Code [26 U.S.C. 404(a)(1)(B) and
(a)(1)(C), 410 (b)(2)(A) and (b)(2)(B), and 413(a)(1)]; and
(c) regulations, rulings, and opinions under subsections 3(19),
3(22), 3(23), 3(24), 3(25), 3(27), 3(28), 3(29), 3(30), and 3(31)
of Subtitle A of Title I of ERISA [29 U.S.C. 1002(19), (22), (23),
(24), (25), (27), (28), (29), (30), and (31)].
SEC. 102. TRANSFER TO THE SECRETARY OF LABOR
Except as otherwise provided in Section 105 of this Plan, all
authority of the Secretary of the Treasury to issue the following
described documents pursuant to the statutes hereinafter specified
is hereby transferred to the Secretary of Labor;
(a) regulations, rulings, opinions, and exemptions under section
4975 of the Code [26 U.S.C. 4975],
EXCEPT for (i) subsections 4975(a), (b), (c)(3), (d)(3),
(c)(1), and (e)(7) of the Code [26 U.S.C. 4975(a), (b), (c)(3),
(d)(3), (e)(1), and (e)(7)]; (ii) to the extent necessary for the
continued enforcement of subsections 4975(a) and (b) [26 U.S.C.
4975(a) and (b)] by the Secretary of the Treasury, subsections
4975(f)(1), (f)(2), (f)(4), (f)(5) and (f)(6) of the Code [26
U.S.C. 4975(f)(1), (f)(2), (f)(4), (f)(5) and (f)(6)]; and (iii)
exemptions with respect to transactions that are exempted by
subsection 404(c) of ERISA [29 U.S.C. 1104(c)] from the
provisions of Part 4 of Subtitle B of Title I of ERISA [29 U.S.C.
1101 et seq.]; and
(b) regulations, rulings, and opinions under subsection 2003(c)
of ERISA [set out as a note under 29 U.S.C. 4975].
EXCEPT for subsection 2003(c)(1)(B) [set out in the note under
26 U.S.C. 4975].
SEC. 103. COORDINATION CONCERNING CERTAIN FIDUCIARY ACTIONS
In the case of fiduciary actions which are subject to Part 4 of
Subtitle B of Title I of ERISA [29 U.S.C. 1101 et seq.], the
Secretary of the Treasury shall notify the Secretary of Labor prior
to the time of commencing any proceeding to determine whether the
action violates the exclusive benefit rule of subsection 401(a) of
the Code [26 U.S.C. 401(a)], but not later than prior to issuing a
preliminary notice of intent to disqualify under that rule, and the
Secretary of the Treasury shall not issue a determination that a
plan or trust does not satisfy the requirements of subsection
401(a) by reason of the exclusive benefit rule of subsection
401(a), unless within 90 days after the date on which the Secretary
of the Treasury notifies the Secretary of Labor of pending action,
the Secretary of Labor certifies that he has no objection to the
disqualification or the Secretary of Labor fails to respond to the
Secretary of the Treasury. The requirements of this paragraph do
not apply in the case of any termination or jeopardy assessment
under sections 6851 or 6861 of the Code [26 U.S.C. 6851 or 6861]
that has been approved in advance by the Commissioner of Internal
Revenue, or, as delegated, the Assistant Commissioner for Employee
Plans and Exempt Organizations.
SEC. 104. ENFORCEMENT BY THE SECRETARY OF LABOR
The transfers provided for in Section 101 of this Plan shall not
affect the ability of the Secretary of Labor, subject to the
provisions of Title III of ERISA [29 U.S.C. 1201 et seq.] relating
to jurisdiction, administration, and enforcement, to engage in
enforcement under Section 502 of ERISA [29 U.S.C. 1132] or to
exercise the authority set forth under Title III of ERISA,
including the ability to make interpretations necessary to engage
in such enforcement or to exercise such authority. However, in
bringing such actions and in exercising such authority with respect
to Parts 2 [29 U.S.C. 1051 et seq.] and 3 [29 U.S.C. 1081 et seq.]
of Subtitle B of Title I of ERISA and any definitions for which the
authority of the Secretary of Labor is transferred to the Secretary
of the Treasury as provided in Section 101 of this Plan, the
Secretary of Labor shall be bound by the regulations, rulings,
opinions, variances, and waivers issued by the Secretary of the
Treasury.
SEC. 105. ENFORCEMENT BY THE SECRETARY OF THE TREASURY
The transfers provided for in Section 102 of this Plan shall not
affect the ability of the Secretary of the Treasury, subject to the
provisions of Title III of ERISA [29 U.S.C. 1201 et seq.] relating
to jurisdiction, administration, and enforcement, (a) to audit
plans and employers and to enforce the excise tax provisions of
subsections 4975(a) and 4975(b) of the Code [26 U.S.C. 4975(a) and
(b)], to exercise the authority set forth in subsections 502(b)(1)
and 502(h) of ERISA [29 U.S.C. 1132(b)(1) and (h)], or to exercise
the authority set forth in Title III of ERISA, including the
ability to make interpretations necessary to audit, to enforce such
taxes, and to exercise such authority; and (b) consistent with the
coordination requirements under Section 103 of this Plan, to
disqualify, under section 401 of the Code [26 U.S.C. 401], a plan
subject to Part 4 of Subtitle B of Title I of ERISA [29 U.S.C. 1101
et seq.], including the ability to make the interpretations
necessary to make such disqualification. However, in enforcing such
excise taxes and, to the extent applicable, in disqualifying such
plans the Secretary of the Treasury shall be bound by the
regulations, rulings, opinions, and exemptions issued by the
Secretary of Labor pursuant to the authority transferred to the
Secretary of Labor as provided in Section 102 of this Plan.
SEC. 106. COORDINATION FOR SECTION 101 TRANSFER
(a) The Secretary of the Treasury shall not exercise the
functions transferred pursuant to Section 101 of this Plan to issue
in proposed or final form any of the documents described in
subsection (b) of this Section in any case in which such documents
would significantly impact on or substantially affect collectively
bargained plans unless, within 100 calendar days after the
Secretary of the Treasury notifies the Secretary of Labor of such
proposed action, the Secretary of Labor certifies that he has no
objection or he fails to respond to the Secretary of the Treasury.
The fact of such a notification, except for such notification for
documents described in subsection (b)(iv) of this Section, from the
Secretary of the Treasury to the Secretary of Labor shall be
announced by the Secretary of Labor to the public within ten days
following the date of receipt of the notification by the Secretary
of Labor.
(b) The documents to which this Section applies are:
(i) amendments to regulations issued pursuant to subsections
202(a)(3), 203(b)(2) and (3)(A), 204(b)(3)(A), (C), and (E), and
210(a)(2) of ERISA [29 U.S.C. 1052(a)(3), 1053(b)(2) and (3)(A),
1054(b)(3)(A), (C), and (E), and 1060(a)(2)], and subsections
410(a)(3) and 411(a)(5), (6)(A), and (b)(3)(A), (C), and (E),
413(b)(4) and (c)(3) and 414(f) of the Code [26 U.S.C. 410(a)(3)
and 411(a)(5), (6)(A), and (b)(3)(A), (C), and (E), 413 (b)(4) and
(c)(3) and 414(f)];
(ii) regulations issued pursuant to subsections 204(b)(3)(D),
302(c)(8), and 304(a) and (b)(2)(A) of ERISA [29 U.S.C.
1054(b)(3)(D), 1082(c)(8), and 1084(a) and (b)(2)(A)], and
subsections 411(b)(3)(D), 412(c)(8), (e), and (f)(2)(A) of the Code
[26 U.S.C. 411(b)(3)(D), 412(c)(8), (e), and (f)(2)(A)]; and
(iii) revenue rulings (within the meaning of 26 CFR Section
601.201(a)(6)), revenue procedures, and similar publications, if
the rulings, procedures and publications are issued under one of
the statutory provisions listed in (i) and (ii) of this subsection;
and
(iv) rulings (within the meaning of 26 CFR Section 601.201(a)(2))
issued prior to the issuance of a published regulation under one of
the statutory provisions listed in (i) and (ii) of this subsection
and not issued under a published Revenue Ruling.
(c) For those documents described in subsections (b)(i), (b)(ii)
and (b)(iii) of this Section, the Secretary of Labor may request
the Secretary of the Treasury to initiate the actions described in
this Section 106 of this Plan.
SEC. 107. EVALUATION
On or before January 31, 1980, the President will submit to both
Houses of the Congress an evaluation of the extent to which this
Reorganization Plan has alleviated the problems associated with the
present administrative structure under ERISA, accompanied by
specific legislative recommendations for a long-term administrative
structure under ERISA.
SEC. 108. INCIDENTAL TRANSFERS
So much of the personnel, property, records, and unexpended
balances of appropriations, allocations and other funds employed,
used, held, available, or to be made available in connection with
the functions transferred under this Plan, as the Director of the
Office of Management and Budget shall determine, shall be
transferred to the appropriate agency, or component at such time or
times as the Director of the Office of Management and Budget shall
provide, except that no such unexpended balances transferred shall
be used for purposes other than those for which the appropriation
was originally made. The Director of the Office of Management and
Budget shall provide for terminating the affairs of any agencies
abolished herein and for such further measures and dispositions as
such Director deems necessary to effectuate the purposes of this
Reorganization Plan.
SEC. 109. EFFECTIVE DATE
The provisions of this Reorganization Plan shall become effective
at such time or times, on or before April 30, 1979, as the
President shall specify, but not sooner than the earliest time
allowable under Section 906 of Title 5, United States Code.
MESSAGE OF THE PRESIDENT
To the Congress of the United States:
Today I am submitting to the Congress my fourth Reorganization
Plan for 1978. This proposal is designed to simplify and improve
the unnecessarily complex administrative requirements of the
Employee Retirement Income Security Act of 1974 (ERISA) [see Short
Title note set out under this section]. The new plan will eliminate
overlap and duplication in the administration of ERISA and help us
achieve our goal of well regulated private pension plans.
ERISA was an essential step in the protection of worker pension
rights. Its administrative provisions, however, have resulted in
bureaucratic confusion and have been justifiably criticized by
employers and unions alike. The biggest problem has been
overlapping jurisdictional authority. Under current ERISA
provisions, the Departments of Treasury and Labor both have
authority to issue regulations and decisions.
This dual jurisdiction has delayed a good many important rulings
and, more importantly, produced bureaucratic runarounds and
burdensome reporting requirements.
The new plan will significantly reduce these problems. In
addition, both Departments are trying to cut red tape and
paperwork, to eliminate unnecessary reporting requirements, and to
streamline forms wherever possible.
Both Departments have already made considerable progress, and
both will continue the effort to simplify their rules and their
forms.
The Reorganization Plan is the most significant result of their
joint effort to modify and simplify ERISA. It will eliminate most
of the jurisdictional overlap between Treasury and Labor by making
the following changes:
1) Treasury will have statutory authority for minimum standards.
The new plan puts all responsibility for funding, participation,
and vesting of benefit rights in the Department of Treasury. These
standards are necessary to ensure that employee benefit plans are
adequately funded and that all beneficiary rights are protected.
Treasury is the most appropriate Department to administer these
provisions; however, Labor will continue to have veto power over
Treasury decisions that significantly affect collectively bargained
plans.
2) Labor will have statutory authority for fiduciary obligations.
ERISA prohibits transactions in which self-interest or conflict of
interest could occur, but allows certain exemptions from these
prohibitions. Labor will be responsible for overseeing fiduciary
conduct under these provisions.
3) Both Departments will retain enforcement powers. The
Reorganization Plan will continue Treasury's authority to audit
plans and levy tax penalties for any deviation from standards. The
plan will also continue Labor's authority to bring civil action
against plans and fiduciaries. These provisions are retained in
order to keep the special expertise of each Department available.
New coordination between the Departments will eliminate duplicative
investigations of alleged violations.
This reorganization will make an immediate improvement in ERISA's
administration. It will eliminate almost all of the dual and
overlapping authority in the two departments and dramatically cut
the time required to process applications for exemptions from
prohibited transactions.
This plan is an interim arrangement. After the Departments have
had a chance to administer ERISA under this new plan, the Office of
Management and Budget and the Departments will jointly evaluate
that experience. Based on that evaluation, early in 1980, the
Administration will make appropriate legislative proposals to
establish a long-term administrative structure for ERISA.
Each provision in this reorganization will accomplish one or more
of the purposes in Title 5 of U.S.C. 901(a). There will be no
change in expenditure or personnel levels, although a small number
of people will be transferred from the Department of Treasury to
the Department of Labor.
We all recognize that the administration of ERISA has been unduly
burdensome. I am confident that this reorganization will
significantly relieve much of that burden.
This plan is the culmination of our effort to streamline ERISA.
It provides an administrative arrangement that will work.
ERISA has been a symbol of unnecessarily complex government
regulation. I hope this new step will become equally symbolic of my
Administration's commitment to making government more effective and
less intrusive in the lives of our people.
Jimmy Carter.
The White House, August 10, 1978.
EXECUTIVE ORDER NO. 12071
Ex. Ord. No. 12071, July 12, 1978, 43 F.R. 30259, which
established the President's Commission on Pension Policy and
provided for its membership, functions, etc., was revoked by Ex.
Ord. No. 12379, Sec. 1, Aug. 17, 1982, 47 F.R. 36099, set out as a
note under section 14 of the Federal Advisory Committee Act in the
Appendix to Title 5, Government Organization and Employees.
EX. ORD. NO. 12108. EFFECTIVE DATE OF ERISA TRANSFERS
Ex. Ord. No. 12108, Dec. 28, 1978, 44 F.R. 1065, provided:
By the authority vested in me as President of the United States
of America by Section 109 of Reorganization Plan No. 4 of 1978 (43
F.R. 47713) [set out above], it is hereby ordered that the
provisions of Reorganization Plan No. 4 of 1978 shall be effective
on Sunday, December 31, 1978.
Jimmy Carter.
EXECUTIVE ORDER NO. 12262
Ex. Ord. No. 12262, Jan. 7, 1981, 46 F.R. 2313, which established
the Interagency Employee Benefit Council and provided for its
membership, functions, etc., was revoked by Ex. Ord. No. 12379,
Sec. 9, Aug. 17, 1982, 47 F.R. 36099, set out as a note under
section 14 of the Federal Advisory Committee Act in the Appendix to
Title 5, Government Organization and Employees.
(!1) As amended September 20, 1978.