Protecting America's Pensions Act of 2002

Summary

Protecting America's Pensions Act of 2002 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) to set forth requirements for disclosure, diversification, account access, and accountability under defined contribution plans that are individual account plans (IAPs) (401(k) and similar plans). Allows IAPs either to permit employees' elective deferrals to be invested in employer securities, or to make the employer's contribution in employer securities; but prohibits an IAP from doing both. Exempts from such limitation any employer who maintains a certain kind of defined benefit plan (DBP) coverage besides the IAP. Requires IAPs to offer at least three investment options in addition to an option to invest in employer securities or real property. Requires IAPs to grant a participant or beneficiary the right to reinvest in any other option provided by the IAP any assets that are in employer securities or real property within certain time limits. Exempts IAP sponsors from fiduciary liability for IAP investments only if they designate independent investment advisors, who shall be fiduciaries with respect to such investments. Requires IAPs to furnish quarterly pension benefit statements with certain information to plan participants if they and beneficiaries have rights to direct investments. Requires sponsors and administrators of IAPs to provide all material investment information to participants and beneficiaries in an accurate form, and treats misleading investment information as a violation. Requires same day electronic disclosures of insider trading to the Securities Exchange Commission, to the public through the Commission, on the issuer's internal corporate website, and, in appropriate form, to any employees of the issuer who do not have access to such website. Requires disclosure on paper within seven calendar days after any electronic disclosure. Requires IAPs to give 30 days notice to participants and beneficiaries before a period (lockdown) in which their ability to divest or diversify assets control over their account assets will be limited. Provides that, during such lockdowns, employers are not exempt from liability for failing in fiduciary duty with respect to IAP investments. Requires fiduciaries of IAPs which cover more than 100 participants to have adequate insurance to protect the interests of participants and beneficiaries. Requires joint boards of trustees, representing interests of employers and those of employee participants and beneficiaries, to hold in trust the assets of single-employer IAPs which cover more than 100 participants. Establishes an Office of Pension Participant Advocacy in the Department of Labor (DOL). Requires studies: (1) by the Pension Benefit Guaranty Corporation on IAP insurance system feasibility; and (2) by DOL on fees charged by IAPs. Amends the Internal Revenue Code with respect to collectively bargained 401(k) plans.

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Documents

6 official files

• Reported to Senate (text)

  Reported to Senate · EN · 26 July 2002

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• Reported to Senate (PDF)

  Reported to Senate · EN · 26 July 2002

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• Reported to Senate with amendment(s)

  summary · EN · 26 July 2002

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• Introduced in Senate (text)

  Introduced in Senate · EN · 6 March 2002

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• Introduced in Senate (PDF)

  Introduced in Senate · EN · 6 March 2002

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• Introduced in Senate

  summary · EN · 6 March 2002

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