Federal Pension Plans Protection Act

Summary

Federal Pension Plans Protection Act - Title I: Plan Terminations Insurance - Establishes in the Department of Labor a program to be known as the private pension plan insurance program. Provides that such program shall insure beneficiaries of covered pension funds against the loss of benefits to which they are entitled arising from failure of the amounts contributed to such fund to provide benefits. Specifies on the insurance extended under such program. Requires an annual, uniform premium payment to the fund by eligible pension programs. Permits the Secretary of Labor to change the premium rates when necessary, and to determine the insurance of the rights of beneficiaries according to set priorities when it is not feasible to insure against loss of rights of all the beneficiaries. Authorizes the Secretary of the Treasury to establish a revolving fund into which all amounts paid into the program as premiums shall be deposited, and from which liabilities insured under the program shall be paid. Specifies the rate of interest on moneys borrowed from the Treasury. Rquires an employer who contributes to the terminating plan or who has terminated the plan and is not insolvent to reimburse the program for any insurance benefits paid to the beneficiaries of such terminated program. Imposes a lien in favor of the United States on any employer who neglects or refuses to pay such amount for which he is liable under this section. Authorizes the Secretary to promulgate rules and regulations with regard to the release of any lien imposed. Creates a Federal Advisory Council for Insurance of Employee's Pension Funds consisting of nine members appointed by the President by and with the advice and consent of the Senate. Designates it to be the duties of the Advisory Council to consult with and to advise the Secretary of Labor with respect to the administration of this title. Title II: Vesting - Specifies that a pension plan shall not be an eligible pension plan unless the Secretary of Labor certifies to the Secretary of the Treasury that such plan provides that participants shall be vested in 100% of the accrued portion of the normal retirement benefit of such funds attributable to covered service according to the number of years of service accrued under the fund. Provides that except for certain specified exceptions any participant covered under a plan for the number of years required for a vested right under this section shall be entitled to such vested right regardless of whether his years of covered service are continuous. Authorizes the Secretary to prescribe standards governing the maximum number of working hours, days, weeks, or months which shall constitute a year of covered service or a break in such service. Allows the Secretary to defer applicability of vesting standards upon proper application by the plan administrator and proper notice to affected or interested parties. Title III: Funding - Establishes minimum funding requirements to be met for a plan to be an eligible plan. Indicates special rules for multiemployer plans. Title IV: Internal Revenue Code Amendment - Prohibits a pension fund which for any taxable years is insurable under the Federal Plan to be a qualified pension plan under this Act if such fund is not insured for such year under the program herein established. Title V: Effective Dates - Directs that Title I shall become effective 3 years after enactment of the Act, and that Titles II and III shall become effective two years after the date of enactment.

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

Timeline

1. 21 May 1973

   Introduced

   Referred to Senate Committee on Finance.

   Source: IntroReferral

2. 21 May 1973

   Introduced

   Introduced in Senate

   Source: IntroReferral

Votes

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Versions

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Documents

1 official file

• Introduced in Senate

  summary · EN · 21 May 1973

  Open at official source

Sponsors

• Sen. Hartke, Vance [D-IN] · D · Sponsor
• Sen. Pastore, John O. [D-RI] · D · Cosponsor
• · ssfi00 · Standing

Related records

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