September 2, 1974 - 65 Pub. Law 93-406 88 STAT. 893 apply to a transaction with respect to a plan described in section 4975 (e) (1) of such Code. (j) In all civil actions under this title, attorneys appointed by the Secretary may represent the Secretary (except as provided in section 518 (a) of title 28, United States Code), but all such litigation shall be subject to the direction and control of the Attorney General. (k) Suits by an administrator, fiduciary, participant, or beneficiary of an employee benefit plan to review a final order of the Secretary, to restrain the Secretary from taking any action contrary to the provisions of this Act, or to compel him to take action required under this title, may be brought in the district court of the United States for the district where the plan has its principal office, or in the United States District Court for the District of Columbia. CLAIMS PROCEDURE Post, p. 974. SEC. 503. In accordance with regulations of the Secretary, every 29 USC 1133. employee benefit plan shall (1) provide adequate notice in writing to any participant or beneficiary whose claim for benefits under the plan has been denied, setting forth the specific reasons for such denial, written in a manner calculated to be understood by the participant, and (2) afford a reasonable opportunity to any participant whose claim for benefits has been denied for a full and fair review by the appropriate named fiduciary of the decision denying the claim. INVESTIGATIVE AUTHORITY SEC. 504. (a) The Secretary shall have the power, in order to deter-29 USC 1134. mine whether any person has violated or is about to violate any provision of this title or any regulation or order thereunder (1) to make an investigation, and in connection therewith to require the submission of reports, books, and records, and the filing of data in support of any information required to be filed with the Secretary under this title, and (2) to enter such places, inspect such books and records and question such persons as he may deem necessary to enable him to determine the facts relative to such investigation, if he has reasonable cause to believe there may exist a violation of this title or any rule or regulation issued thereunder or if the entry is pursuant to an agreement with the plan. The Secretary may make available to any person actually affected by any matter which is the subject of an investigation under this section, and to any department or agency of the United States, information concerning any matter which may be the subject of such investigation; except that any information obtained by the Secretary pursuant to section 6103(g) of the Internal Revenue Code of 1954 Post, p. 941. › shall be made available only in accordance with regulations prescribed by the Secretary of the Treasury. (b) The Secretary may not under the authority of this section Books or require any plan to submit to the Secretary any books or records of records, accesthe plan more than once in any 12 month period, unless the Secretary sability. has reasonable cause to believe there may exist a violation of this title or any regulation or order thereunder. (c) For the purposes of any investigation provided for in this title, the provisions of sections 9 and 10 (relating to the attendance of witnesses and the production of books, records, and documents) of the Federal Trade Commission Act (15 U.S.C. 49, 50) are hereby made applicable (without regard to any limitation in such sections respect 88 STAT. 394 29 USC 1135. Post, p. 995; Ante, p. 850. 29 USC 1136. 29 USC 1137. Pub. Law 93-406 - 66 September 2, 1974 ing persons, partnerships, banks, or common carriers) to the jurisdiction, powers, and duties of the Secretary or any officers designated by him. To the extent he considers appropriate, the Secretary may delegate his investigative functions under this section with respect to insured banks acting as fiduciaries of employee benefit plans to the appropriate Federal banking agency (as defined in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)). REGULATIONS SEC. 505. Subject to title III and section 109, the Secretary may prescribe such regulations as he finds necessary or appropriate to carry out the provisions of this title. Among other things, such regulations may define accounting, technical and trade terms used in such provisions; may prescribe forms; and may provide for the keeping of books and records, and for the inspection of such books and records (subject to section 504 (a) and (b)).' OTHER AGENCIES AND DEPARTMENTS SEC. 506. In order to avoid unnecessary expense and duplication of functions among Government agencies, the Secretary may make such arrangements or agreements for cooperation or mutual assistance in the performance of his functions under this title and the functions of any such agency as he may find to be practicable and consistent with law. The Secretary may utilize, on a reimbursable or other basis, the facilities or services of any department, agency, or establishment of the United States or of any State or political subdivision of a State, including the services of any of its employees, with the lawful consent of such department, agency, or establishment; and each department, agency, or establishment of the United States is authorized and directed to cooperate with the Secretary and, to the extent permitted by law, to provide such information and facilities as he may request for his assistance in the performance of his functions under this title. The Attorney General or his representative shall receive from the Secretary for appropriate action such evidence developed in the performance of his functions under this title as may be found to warrant consideration for criminal prosecution under the provisions of this title or other Federal law. ADMINISTRATION SEC. 507. (a) Subchapter II of chapter 5, and chapter 7, of title 5, 5 USC 551, 701. United States Code (relating to administrative procedure), shall be applicable to this title. 26 USC 1 et seq. (b) Section 5108 of title 5, United States Code, is amended by adding at the end thereof the following new subsection: "(f) In addition to the number of positions authorized by subsection (a), the Secretary of Labor is authorized, without regard to any other provision of this section, to place 1 position in the Department of Labor in grade GS-18, and a total of 20 positions in the Department of Labor in grades GS-16 and 17." (c) No employee of the Department of Labor or the Department of the Treasury shall administer or enforce this title or the Internal Revenue Code of 1954 with respect to any employee benefit plan under which he is a participant or beneficiary, any employee organization of which he is a member, or any employer organization in which he has an interest. This subsection does not apply to an employee benefit plan which covers only employees of the United States. September 2, 1974 - 67 Pub. Law 93-406 88 STAT. 895 APPROPRIATIONS SEC. 508. There are hereby authorized to be appropriated such 29 USC 1138. sums as may be necessary to enable the Secretary to carry out his functions and duties under this Act. SEPARABILITY PROVISIONS SEC. 509. If any provision of this Act, or the application of such 29 USC 1139. provision to any person or circumstances, shall be held invalid, the remainder of this Act, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. INTERFERENCE WITH RIGHTS PROTECTED UNDER ACT SEC. 510. It shall be unlawful for any person to discharge, fine, 29 USC 1140. suspend, expel, discipline, or discriminate against a participant or beneficiary for exercising any right to which he is entitled under the provisions of an employee benefit plan, this title, section 3001, or the Post, p. 995. Welfare and Pension Plans Disclosure Act, or for the purpose of 29 USC 301 interfering with the attainment of any right to which such participant note. may become entitled under the plan, this title, or the Welfare and Pension Plans Disclosure Act. It shall be unlawful for any person to discharge, fine, suspend, expel, or discriminate against any person because he has given information or has testified or is about to testify in any inquiry or proceeding relating to this Act or the Welfare and Pension Plans Disclosure Act. The provisions of section 502 shall be applicable in the enforcement of this section. COERCIVE INTERFERENCE SEC. 511. It shall be unlawful for any person through the use of 29 USC 1141. fraud, force, violence, or threat of the use of force or violence, to restrain, coerce, intimidate, or attempt to restrain, coerce, or intimidate any participant or beneficiary for the purpose of interfering with or preventing the exercise of any right to which he is or may become entitled under the plan, this title, section 3001, or the Welfare and Pension Plans Disclosure Act. Any person who willfully violates Penalty. this section shall be fined $10,000 or imprisoned for not more than one year, or both. ADVISORY COUNCIL the sion Benefit Plans. programs Establishment. 29 USC 1142. SEC. 512. (a) (1) There is hereby established an Advisory Council Advisory on Employee Welfare and Pension Benefit Plans (hereinafter in this Council on section referred to as the "Council") consisting of fifteen members Employee Welappointed by the Secretary. Not more than eight members of the fare and PenCouncil shall be members of the same political party. (2) Members shall be persons qualified to appraise instituted under this Act. (3) Of the members appointed, three shall be representatives of employee organizations (at least one of whom shall be representative of any organization members of which are participants in a multiemployer plan); three shall be representatives of employers (at least one of whom shall be representative of employers maintaining or contributing to multiemployer plans); three representatives shall be appointed from the general public, one of whom shall be a person representing those receiving benefits from a pension plan; and there shall 88 STAT. 896 5 USC 5332. 86 Stat. 776. 29 USC 1143. Pub. Law 93-406 - 68 September 2, 1974 be one representative each from the fields of insurance, corporate trust, actuarial counseling, investment counseling, investinent management, and the accounting field. (4) Members shall serve for terms of three years except that of those first appointed, five shall be appointed for terms of one year, five shall be appointed for terms of two years, and five shall be appointed for terms of three years. A member may be reappointed. A member appointed to fill a vacancy shall be appointed only for the remainder of such term. A majority of members shall constitute a quorum and action shall be taken only by a majority vote of those present and voting. (b) It shall be the duty of the Council to advise the Secretary with respect to the carrying out of his functions under this Act and to submit to the Secretary recommendations with respect thereto. The Council shall meet at least four times each year and at such other times as the Secretary requests. In his annual report submitted pursuant to section 513(b), the Secretary shall include each recommendation which he has received from the Council during the preceding calendar year. (c) The Secretary shall furnish to the Council an executive secretary and such secretarial, clerical, and other services as are deemed necessary to conduct its business. The Secretary may call upon other agencies of the Government for statistical data, reports, and other information which will assist the Council in the performance of its duties. (d) (1) Members of the Council shall each be entitled to receive the daily equivalent of the annual rate of basic pay in effect for grade GS-18 of the General Schedule for each day (including travel time) during which they are engaged in the actual performance of duties vested in the Council. (2) While away from their homes or regular places of business in the performance of services for Council, members of the Council shall be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Government service are allowed expenses under section 5703 (b) of title 5 of the United States Code. (e) Section 14(a) of the Federal Advisory Committee Act (relating to termination) shall not apply to the Council. RESEARCH, STUDIES, AND ANNUAL REPORT SEC. 513. (a)(1) The Secretary is authorized to undertake research and surveys and in connection therewith to collect, compile, analyze and publish data, information, and statistics relating to employee benefit plans, including retirement, deferred compensation, and welfare plans, and types of plans not subject to this Act. (2) The Secretary is authorized and directed to undertake research studies relating to pension plans, including but not limited to (A) the effects of this title upon the provisions and costs of pension plans, (B) the role of private pensions in meeting the economic security needs of the Nation, and (C) the operation of private pension plans including types and levels of benefits, degree of reciprocity or portability, and financial and actuarial characteristics and practices, and methods of encouraging the growth of the private pension system. (3) The Secretary may, as he deems appropriate or necessary, undertake other studies relating to employee benefit plans, the matters regulated by this title, and the enforcement procedures provided for under this title. September 2, 1974 - 69 Pub. Law 93-406 88 STAT. 897 (4) The research, surveys, studies, and publications referred to in this subsection may be conducted directly, or indirectly through grant or contract arrangements. (b) The Secretary shall submit annually a report to the Congress Report to covering his administration of this title for the preceding year, and Congress. including (1) an explanation of any variances or extensions granted under section 110, 207, 303, or 304 and the projected date for terminat- Ante, pp. 851, ing the variance; (2) the status of cases in enforcement status; (3) 865, 872, 873. recommendations received from the Advisory Council during the preceding year; and (4) such information, data, research findings, studies, and recommendations for further legislation in connection with the matters covered by this title as he may find advisable. (c) The Secretary is authorized and directed to cooperate with the Congress and its appropriate committees, subcommittees, and staff in supplying data and any other information, and personnel and services, required by the Congress in any study, examination, or report by the Congress relating to pension benefit plans established or maintained by States or their political subdivisions. EFFECT ON OTHER LAWS SEC. 514. (a) Except as provided in subsection (b) of this section, 29 USC 1144. the provisions of this title and title IV shall supersede any and all State laws insofar as they may now or hereafter relate to any employee benefit plan described in section 4(a) and not exempt under section 4(b). This section shall take effect on January 1, 1975. (b) (1) This section shall not apply with respect to any cause of action which arose, or any act or omission which occurred, before January 1, 1975. (2) (A) Except as provided in subparagraph (B), nothing in this title shall be construed to exempt or relieve any person from any law of any State which regulates insurance, banking, or securities. (B) Neither an employee benefit plan described in section 4(a), which is not exempt under section 4(b) (other than a plan established primarily for the purpose of providing death benefits), nor any trust established under such a plan, shall be deemed to be an insurance company or other insurer, bank, trust company, or investment company or to be engaged in the business of insurance or banking for purposes of any law of any State purporting to regulate insurance companies, insurance contracts, banks, trust companies, or investment companies. (3) Nothing in this section shall be construed to prohibit use by the Secretary of services or facilities of a State agency as permitted under section 506 of this Act. (4) Subsection (a) shall not apply to any generally applicable criminal law of a State. (c) For purposes of this section: (1) The term "State law" includes all laws, decisions, rules, regulations, or other State action having the effect of law, of any State. A law of the United States applicable only to the District of Columbia shall be treated as a State law rather than a law of the United States. "State law." (2) The term "State" includes a State, any political subdivi- "State." sions thereof, or any agency or instrumentality of either, which purports to regulate, directly or indirectly, the terms and conditions of employee benefit plans covered by this title. (d) Nothing in this title shall be construed to alter, amend, modify, invalidate, impair, or supersede any law of the United States (except as provided in sections 111 and 507 (b)) or any rule or regulation issued Ante, pp. 851, under any such law. 894. |