Employee Benefits Protection Act

Summary

Employee Benefits Protection Act - Revises and extends the provisions of the Welfare and Pension Plans Disclosure Act. Avers that the effect of employee benefit plans has become increasingly interstate in character. Declares it to be the policy of the Act to establish fiduciary standards of conduct for persons having the power or duty to control and dispose of employee benefit funds. Defines additional terms for the purposes of this Act, such as "relative", "administrator", "employee benefit plan" (including either or both types of benefit plans, welfare or pension), "employee benefit fund", "separate account", "adequate consideration", "nonforfeitable pension plan", "accrued benefit", "security", "fiduciary", and "market value" or "value". Permits a person to maintain a civil action for recovery of benefits due him notwithstanding the fact that the plan in which he is enrolled has no more than twenty-five enrollees. Reasserts the duty imposed on the administrator of an employee benefit plan to publish and distribute to each participant or beneficiary of that plan an annual financial report, a plan description, and a report upon termination of the plan. Sets forth the criteria for adequacy of a plan description, and vests authority for making rules and regulations concerning this reporting requirement in the Secretary of Labor. Extends the reporting requirement to the administrator of any employee benefit plan covering one hundred or more participants or if the plan provides for an employee benefit fund subject to the obligations set forth in this Act. Requires an annual audit of any employee benefit established in connection with an employee benefit plan. Enumerates the required disclosures which shall appear in the annual report, and sets forth the publication and distribution requirements. Makes any administrator failing to comply with the provisions of this Act regarding a participant's or beneficiary's request for a report or plan description liable to that participant or beneficiary for up to $50 per day. Provides that the jurisdiction, powers, and duties shall be vested in the Secretary with regard to witnesses, testimony, and disclosures pursuant to investigations under this Act. Provides for maintenance of civil actions by either the Secretary or a participant for appropriate legal or equitable relief for any breach of duty by a fiduciary. Sets forth the bases for jurisdiction, venue and removal of such suits. Permits the court to allow recovery of reasonable attorney's fees and costs and the posting of security by the plaintiff. Declares that every employee benefit fund shall be deemed to be a trust, and shall be held for the exclusive purpose of providing benefits to participants and beneficiaries, and of defraying reasonable expenses in the administration of the plan. Details the duties of a fiduciary of a fund. Makes a fiduciary personally liable for losses to the fund. Sets forth the several obligations of multiple fiduciaries of a fund. Requires that, any action based on a violation of a fiduciary's obligation be brought within three years after the complainant has notice of the facts constituting a violation; but in all cases where notice is lacking, excepting willful misrepresentation, within six years of the time that the violation occurred; and within ten years in the case of willful misrepresentation. Prohibits the holding of office as administrator, counsel, employee, fiduciary or consultant by any person convicted of any crime enumerated in this Act. Makes a violation of this prohibition punishable by $10,000 fine and/or one year imprisonment. Preempts any other Federal or State laws relating to the fiduciary, reporting and disclosure responsibilities of persons acting on behalf of employee benefit plans.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 12 April 1973

   Introduced

   Referred to Senate Committee on Labor and Public Welfare.

   Source: IntroReferral

2. 12 April 1973

   Introduced

   Introduced in Senate

   Source: IntroReferral

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

1 official file

• Introduced in Senate

  summary · EN · 12 April 1973

  Open at official source

Sponsors

• Sen. Javits, Jacob K. [R-NY] · R · Sponsor
• · sshr00 · Standing

Related records

• related to → Employee Benefits Protection Act