§ 1001. — Congressional findings and declaration of policy.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 29USC1001]
TITLE 29--LABOR
CHAPTER 18--EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
SUBCHAPTER I--PROTECTION OF EMPLOYEE BENEFIT RIGHTS
Subtitle A--General Provisions
Sec. 1001. Congressional findings and declaration of policy
(a) Benefit plans as affecting interstate commerce and the Federal
taxing power
The Congress finds that the growth in size, scope, and numbers of
employee benefit plans in recent years has been rapid and substantial;
that the operational scope and economic impact of such plans is
increasingly interstate; that the continued well-being and security of
millions of employees and their dependents are directly affected by
these plans; that they are affected with a national public interest;
that they have become an important factor affecting the stability of
employment and the successful development of industrial relations; that
they have become an important factor in commerce because of the
interstate character of their activities, and of the activities of their
participants, and the employers, employee organizations, and other
entities by which they are established or maintained; that a large
volume of the activities of such plans are carried on by means of the
mails and instrumentalities of interstate commerce; that owing to the
lack of employee information and adequate safeguards concerning their
operation, it is desirable in the interests of employees and their
beneficiaries, and to provide for the general welfare and the free flow
of commerce, that disclosure be made and safeguards be provided with
respect to the establishment, operation, and administration of such
plans; that they substantially affect the revenues of the United States
because they are afforded preferential Federal tax treatment; that
despite the enormous growth in such plans many employees with long years
of employment are losing anticipated retirement benefits owing to the
lack of vesting provisions in such plans; that owing to the inadequacy
of current minimum standards, the soundness and stability of plans with
respect to adequate funds to pay promised benefits may be endangered;
that owing to the termination of plans before requisite funds have been
accumulated, employees and their beneficiaries have been deprived of
anticipated benefits; and that it is therefore desirable in the
interests of employees and their beneficiaries, for the protection of
the revenue of the United States, and to provide for the free flow of
commerce, that minimum standards be provided assuring the equitable
character of such plans and their financial soundness.
(b) Protection of interstate commerce and beneficiaries by requiring
disclosure and reporting, setting standards of conduct, etc.,
for fiduciaries
It is hereby declared to be the policy of this chapter to protect
interstate commerce and the interests of participants in employee
benefit plans and their beneficiaries, by requiring the disclosure and
reporting to participants and beneficiaries of financial and other
information with respect thereto, by establishing standards of conduct,
responsibility, and obligation for fiduciaries of employee benefit
plans, and by providing for appropriate remedies, sanctions, and ready
access to the Federal courts.
(c) Protection of interstate commerce, the Federal taxing power, and
beneficiaries by vesting of accrued benefits, setting minimum
standards of funding, requiring termination insurance
It is hereby further declared to be the policy of this chapter to
protect interstate commerce, the Federal taxing power, and the interests
of participants in private pension plans and their beneficiaries by
improving the equitable character and the soundness of such plans by
requiring them to vest the accrued benefits of employees with
significant periods of service, to meet minimum standards of funding,
and by requiring plan termination insurance.
(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 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\
---------------------------------------------------------------------------
\1\ As amended September 20, 1978.
---------------------------------------------------------------------------
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.
