The corrective policies and statutory language needed to achieve more effective and less costly administration are much too detailed to be spelled out here. Instead, we offer you and the members of your staff the services of the Society's members, specifically our ERISA Committee, chaired by Mr. Glen Slaughter (President, Glen Slaughter & Associates, 2150 Franklin Street, Oakland, California 94612, (415) 451-8564). Mr. Slaughter and his Committee members would be pleased to work with your staff in a section-by-section analysis directed toward improving the achievement of ERISA's purposes as they apply to the administration of employee benefit plans. We are convinced that a significant number of pragmatic and financial gains are attainable without sacrificing ERISA's great value. We are also certain that there would be widespread support for the types of changes which our Committee would suggest.

We appreciate the opportunity to present our views to you and look forward to working with you in any useful way. Please feel free to call upon us at any time.

We would like to have entered into the record of the Over-
sight Hearings that Sec. 514 of ERISA be amended to give
some latitude to the states which have adopted innovative
laws to give greater pension protection to their people.
For instance, in 1974 the Minnesota Legislature passed a
law establishing portability of pension credits in the con-
struction industry. The language was later clarified by
an amendment in 1976. Essentially the law provides that
for members of the construction trade who by nature of the
job are one of the most mobile in our society, that the
pension credits follow the man. Further it establishes
a basis for reciprocal transfer of credits with other
states. A copy of the law is enclosed for your information
and review.

We feel this act has provided for these construction industry
employees legitimate protection against loss of their pension
credits simply because they work in another jurisdiction or
in another trade of the industry.

The Minnesota Legislature responded to a great need in this area of protecting employees against unfair losses of pension credits. The federal law (ERISA) has not addressed the matter

30-779 O 78 81

of portability and we feel it is essential that the Oversight Committee be aware of this fact. Further, that they take some steps to broaden federal-state cooperation in the area of pension rights by providing an opportunity for the states to develop pension protection legislation in areas much desired and being studied by the Pension Task Force but still not implemented into federal law, such as portability. At least there should be some change in ERISA allowing the states to provide protection for plan participants in areas not covered by ERISA. I do urge your consideration of this factor. Beyond that, it would seem that some time in the future a study should be made of the possible application of state-federal enforcement such as in the minimum wage field. Thank you for this opportunity to submit this statement to the record of the Oversight Hearings by June 15, 1978.

CONSTRUCTION WORKERS INSURANCE BENEFIT FUNDS
PAYMENTS INTO HOME BENEFIT FUND

(As initially provided for in Chapter 50 of the Minnesota Statutes 1974 and amended by Chapter 232 1976 Statutes)

Text of Chapter 50 with 1976 amendment incorporated is as follows:

179.254 CONSTRUCTION WORKERS INSURANCE BENEFIT FUNDS; DEFINITIONS. Subdivision 1. For the purposes of sections 179.254 to 179.256, the following terms shall have the meanings subscribed to them.

Subd. 2. "Benefit fund" means any trust fund established and operated for the purpose of providing medical, hospitalization, and other types of insurance, and other health, welfare and pension benefits for construction workers.

Subd. 3. "Construction worker" means any laborer or tradesman employed in the building or construction industry and engaged in, but not limited to, any of the following occupations: carpenters, electricians, plumbers, bricklayers, masons, steamfitters, pipefitters, iron workers, sheet metal workers, cement finishers, laborers, operating engineers, lathers, plasterers, painters, pipe coverers, and glasiers.

Subd. 4. "Member" means any construction worker who is qualified to receive benefits from a benefit fund under the rules of that fund.

[ 1974 c 50 s 1; 1976 c 232 sl]

179.255 PAYMENTS INTO HOME BENEFIT FUND. Whenever a construction worker who is a member of a benefit fund works temporarily in a location such that contributions are made by or for him into another benefit fund, the trustees of the fund, or their agent, shall pay all such moneys to the trustees of the fund to which the construction worker is a member, except that such payment shall not exceed the rate of contribution to the fund in which the construction worker is a member. Payments may be made by check and shall be made promptly and regularly, at least once every 30 days. Each such payment from the trustees of one fund to the trustees of another shall be accompanied by a written statement including the name, address, and social security number of each construction worker for whom payment is made, the amount being paid for each worker, and the number of hours of work for which payment is being made.

[ 1974 c 50 s 2]

179.256 NOTIFICATION. Whenever a construction worker may qualify for the reimbursement of benefit payments to his home benefit fund as described in section 179.255, the trustees of the benefit fund of which he is a member, or their agent, shall so notify the trustees of the benefit fund to which payments will be made during the temporary period of work. Such notification shall be made promptly in writing and shall include the name, address, and social security number of the construction worker and the starting date of his temporary period of work.

【 1974 c 50 s 3 ]

179.257

APPLICATION. The provisions of sections 179.254 to 179.256 requiring the transfer of payments between benefit funds shall apply only to those benefit funds which are established, located and maintained within this state. However nothing contained herein shall be construed to discourage the legislature of another state or to prohibit the trustees of a benefit fund which is located in another state from providing, in accordance with sections 179.254 to 179.257 and on a wholly reciprocal basis, transfers between such foreign benefit fund or funds and a benefit fund located within the state of Minnesota.

[ 1974 c 50 s 4]

ti

Tolley International Corporation

ADMINISTRATORS and CONSULTING ACTUARIES

2323 N MAYFAIR ROAD, SUITE 504-MILWAUKEE, WISCONSIN 53226

414-257-4150

In response to the request of the Dent Subcommittee on Labor Standards
for public comments regarding the need for ERISA amendments, we would
like to submit a number of recommendations for consideration by the
Subcommittee and its staff.

As a nationwide administrative, consulting and actuarial firm, our Company
serves hundreds of multiemployer welfare and pension plans. As a result,
we are acutely aware of many of the problems which ERISA has created for
multiemployer plans; consequently, we feel, as administrative managers
and consultants, we are in an excellent position to make some constructive
suggestions for dealing with these problems. Our recommendations follow.

A. FURTHER SIMPLIFICATION OF REPORTING AND
DISCLOSURE DESERVES HIGH PRIORITY

The DOL, IRS and PBGC have undertaken a number of steps to
consolidate, reduce, or simplify the paperwork involved in meeting
ERISA's reporting and disclosure requirements including: elimination
of the need to file an amended EBS-1, consolidation of PBGC's
"reportable events" schedule with Form 5500, reduction in the amount
of detailed investment data required on Form 5500, and change of
the PBGC premium payment due date to coincide with the due date for
filing Form 5500.

These are all commendable changes and represent a move in the
right direction. But further efforts towards simplification and
reduction of government reporting should be undertaken. It must
be recognized that the cost of complying with any reporting and
disclosure requirement results in an administrative expense of the