401(k) Fair Disclosure and Pension Security Act of 2009

Summary

401(k) Fair Disclosure for Retirement Security Act of 2009 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) to prohibit an administrator of an individual account plan from contracting or arranging for services to the plan (including the offering of any investment option) unless the administrator has received, reasonably in advance, a written statement from the service provider that: (1) specifies the services to be provided; (2) provides the expected total annual service charges allocated among specified components; and (3) discloses the impact of different mutual fund investment share classes as well as financial relationships with, or free or discounted services provided by, service providers. Limits applicability of such requirements to contracts or arrangements for services with a total cost reasonably expected to equal or exceed $5,000 per plan year. Continues to shield an individual account plan fiduciary from liability (as under current law) for any loss resulting from a plan participant's or beneficiary's exercise of control over the plan's assets, but only if the plan includes at least one investment option which: (1) is a passively managed investment with a portfolio of securities designed to be representative of the U.S. investable equity market or the U.S. investment grade bond market, or a combination of them; and (2) is offered without any endorsement of the government or the plan sponsor. Requires the Secretary to notify the applicable regulatory authority about any service provider engaged in a pattern or practice that precludes requirement compliance. Allows an individual account plan and a participant or beneficiary who controls the investment of such plan's assets to receive investment advice from an independent investment adviser that: (1) is registered under the Investment Advisers Act of 1940; (2) is not the plan investment provider; and (3) meets certain other requirements. Prescribes requirements for an investment advice program. Requires the Secretary of Labor to establish a program that provides information and materials to help employees attain financial literacy with respect to investment for retirement. Revises the authority of a plan sponsor to use interest rates under the corporate bond yield curve, in lieu of specified segment interest rates, solely to determine the minimum required contribution to a single-employer defined benefit pension plan. Allows revocation of such an election, once made, only with the consent of the Secretary. But allows revocation without the Secretary's consent for a plan year beginning in 2010 of any such election in effect for a plan year beginning in 2009. Adds another five years to the extension period for automatic amortization of the unfunded liability of a multiemployer plan.

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Documents

6 official files

• Reported in House (text)

  Reported in House · EN · 28 May 2010

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• Reported in House (PDF)

  Reported in House · EN · 28 May 2010

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• Reported to House amended, Part I

  summary · EN · 31 July 2009

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• Introduced in House (text)

  Introduced in House · EN · 23 June 2009

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• Introduced in House (PDF)

  Introduced in House · EN · 23 June 2009

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• Introduced in House

  summary · EN · 23 June 2009

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