OVERSIGHT ON ERISA, 1978 WEDNESDAY, MAY 17, 1978 U.S. HOUSE OF REPRESENTATIVES, PENSION TASK FORCE, SUBCOMMITTEE ON LABOR STANDARDS, Washington, D.C. The subcommittee met, pursuant to notice, at 1:40 p.m. in room 2261, Rayburn House Office Building, Hon. John H. Dent (chairman of the subcommittee) presiding. Members present: Representatives Dent, Zeferetti, and Erlenborn. Staff present: S. Howard Kline, Pension Task Force counsel; Russell J. Mueller, Pension Task Force actuary and minority legislative associate. [Text of Public Law 93-406 and the Joint explanatory statement of the Committee of Conference follows:] (1) Sec. 104. Filing with Secretary and furnishing information to participants. Sec. 105. Reporting of participant's benefit rights. Sec. 106. Reports made public information. Sec. 107. Retention of records. Sec. 108. Reliance on administrative interpretations. Sec. 202. Minimum participation standards. Sec. 203. Minimum vesting standards. Sec. 204. Benefit accrual requirements. Sec. 205. Joint and survivor annuity requirement. Sec. 206. Other provisions relating to form and payment of benefits. Sec. 207. Temporary variances from certain vesting requirements. Sec. 208. Mergers and consolidations of plans or transfers of plan assets. Sec. 209. Recordkeeping and reporting requirements. Sec. 210. Plans maintained by more than one employer, predecessor plans, and TITLE I-PROTECTION OF EMPLOYEE BENEFIT RIGHTS Continued PART 4-FIDOIARY RESPONSIBILITY-Continued Sec. 408. Exemptions from prohibited transactions. Sec. 409. Liability for breach of fiduciary duty. Sec. 410. Exculpatory provisions; insurance. Sec. 411. Prohibition against certain persons holding certain positions. Sec. 504. Investigative authority. Sec. 506. Other agencies and departments. Sec. 509. Separability provisions. Sec. 510. Interference with rights protected under Act. Sec. 511. Coercive interference. Sec. 1021. Additional plan requirements. Sec. 1022. Miscellaneous provisions. TITLE II-AMENDMENTS TO THE INTERNAL REVENUE CODE RELATING TO RETIREMENT PLANS-Continued Subtitle B-Other Amendments to the Internal Revenue Code Relating to Sec. 2001. Contributions on behalf of self-employed individuals and shareholder- Sec. 2002. Deduction for retirement savings. Sec. 2003. Prohibited transactions. Sec. 2004. Limitations on benefits and contributions. Sec. 2005. Taxation of certain lump sum distributions. Sec. 2006. Salary reduction regulations. TITLE III-JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT Subtitle A-Jurisdiction, Administration, and Enforcement Sec. 3001. Procedures in connection with the issuance of certain determination letters by the Secretary of the Treasury. Sec. 3002. Procedures with respect to continued compliance with requirements Sec. 3003. Procedures in connection with prohibited transactions. Sec. 3004. Coordination between the Department of the Treasury and the De- Subtitle C-Enrollment of Actuaries Sec. 3041. Establishment of Joint Board for the enrollment of actuaries. Sec. 4002. Pension Benefit Guaranty Corporation. Sec. 4003. Investigatory authority; cooperation with other agencies; civil 29 USC 1001, Sec. 4061. Amounts payable by the corporation. Sec. 4062. Liability of employer. Sec. 4063. Liability of substantial employer for withdrawal. Sec. 4064. Liability of employers on termination of plan maintained by more than one employer. Sec. 4065. Annual report of plan administrator. Sec. 4066. Annual notification to substantial employers. Sec. 4067. Recovery of employer liability for plan termination. Sec. 4068. Lien for liability of employer. Subtitle E-Amendments to Internal Revenue Code of 1954; Effective Dates Sec. 4081. Amendments to Internal Revenue Code of 1954. Sec. 4082. Effective date; special rules. TITLE I-PROTECTION OF EMPLOYEE BENEFIT RIGHTS SUBTITLE A-GENERAL PROVISIONS FINDINGS AND DECLARATION OF POLICY SEC. 2. (a) 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 is 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 |