The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“THE EMPLOYEE PENSION FREEDOM ACT” mentioning the U.S. Dept of Labor was published in the Extensions of Remarks section on pages E59-E60 on Jan. 29, 2002.
The publication is reproduced in full below:
THE EMPLOYEE PENSION FREEDOM ACT
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HON. GEORGE MILLER
of california
in the house of representatives
Tuesday, January 29, 2002
Mr. GEORGE MILLER of California. Mr. Speaker, the following is a summary of the Employee Pension Freedom Act.
I. Improved Disclosure
Annual Benefit Statements: pension plans would be required to provide annual pension benefit statements to participants and beneficiaries including notification of employee and employer contributions that consist of employer stock and the importance of a well balanced and diversified investment portfolio for long term retirement security.
Accurate Financial Information: in all pension plans where participants make investment decisions, the employer and plan administrator must provide all material investment information to participants as required under securities law to make investment decisions. Prohibits the employer or plan administrator from making any misleading statements to participants regarding the value of employer stock or other investments available under the plan or from omitting information relevant to the value of the stock or other investment options.
II. Strengthened Employee Diversification Rights
Unrestricted Employee Choice Over Employee Contributions: in pension plans where participants make investment decisions, participants will have the right to allocate employee contributions to any plan investment option
(eliminate current law rule permitting employers to require 10% employer stock holdings).
Unrestricted Employee Choice Over Employer Contributions When Vested: the plan administrator must notify all participants upon vesting of the right to transfer employer stock matching contributions to other plan investment options; the plan administrator would have up to 30 days to effect any requested transfer; in an ESOP, employees may diversify employer matching contributions after 10 years of service.
III. Improved Employee Account Access
Faster Vesting for Employees: covered employees will be vested in their employer contributions after completion of one year of participation in the plan (many plans currently vest after five or more years and some, like Enron, do not permit employees to transfer employer contributions even following vesting).
30 Days Advance Notice of Plan ``Lockdowns'': the plan administrator must provide at least 30 days advance written notice of any plan change that would restrict a participant's access to his or her account.
No More Than 10 Business Days for Lockdowns: an employer or plan administrator may not limit participant access to his or her account for a period of more than 10 business days.
IV. Adequate Legal Protection for Employees
Fiduciaries Must Have Insurance or be Bonded: all defined contribution plan fiduciaries shall maintain sufficient fiduciary insurance or bonding to cover financial losses due to breach of fiduciary duty as determined by the Secretary of Labor.
Employee Pension Plan Representation: in pension plans that permit employees to direct control of their pension investments, the plan must include an equal number of employer and employee trustees to oversee the plan. Many plans today have no employee trustees overseeing employees' funds.
No Waivers of Legal Rights: Employers may not require participants to sign waivers of statutory pension rights as part of a termination or severance agreement.
Right to be Made Whole in Court: in cases of fiduciary breach of duty by a fiduciary or knowing participant in a breach, the plan or participants may be made whole by the court.
Improved Labor Department Assistance: the Department of Labor shall establish an office of the Participant Advocate which shall monitor potential abuses of employee pension plan rights and assist pension plan participants in preventing and resolving abuses.
Feasibility Study for Guaranty Insurance: the PBGC shall study and report to Congress no later than 3 years after enactment the options for and feasibility of developing an insurance guarantee system for defined contribution plans.
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