Sec. 303. Enforcement of funding standards.......... 108 Sec. 304. Special distribution and merger requirements--- 110 111 Sec. 407. Cooperation and assistance of government agencies-- 125 Sec. 510. Interference with rights protected under Act.... 156 Sec. 1001. Amendment of Internal Revenue Code of 1954_. 162 3 TABLE OF CONTENTS-Continued Subtitle A-Participation, Vesting, Funding, Administration, Etc. Page Sec. 1024. Protection for employees under Federal procurement, Sec. 1032. Duties of Secretary of Health, Education, and Welfare__ 267 269 Sec. 1034. Effective dates____. 273 PART IV-DECLARATORY JUDGMENTS RELATING TO QUALIFICATION Sec. 1041. Tax Court procedure--- 273 PART V-INTERNAL REVENUE SERVICE Sec. 1051. Establishment of office_____ 278 279 1 2 3 Sec. 1052. Authorization of appropriations--- Subtitle B-Other Amendments to the Internal Revenue Code Relating to Retirement Plans Sec. 2001. Contributions on behalf of self-employed individuals and shareholder-employees. -- Sec. 2002. Deduction for retirement savings... Sec. 2003. Limitations on benefits and contributions.. Sec. 2004. Taxation of certain lump-sum distributions.. Sec. 2006. Rules for certain negotiated plans.. PLOYEE BENEFIT PLANS Subtitle A-Policy; Definitions FINDINGS AND DECLARATION OF POLICY SEC. 2. (a) The Congress finds that the growth in size, 4 scope, and numbers of employee benefit plans in recent years 4 1 has been rapid and substantial; that the operational scope 2 and economic impact of such plans is increasingly interstate; 3 that the continued well-being and security of millions of 4 employees and their dependents are directly affected by 5 these plans; that they are affected with a national public 6 interest; that they have become an important factor affecting 7 the stability of employment and the successful development 8 of industrial relations; that they have become an important 9 factor in commerce because of the interstate character of 10 their activities, and of the activities of their participants, and 11 the employers, employee organizations, and other entities 12 by which they are established or maintained; that a large 13 volume of the activities carried on by such plans are affected 14 by means of the mails and instrumentalities of interstate 15 commerce; that owing to the lack of employee information 16 and adequate safeguards concerning their operation, it is 17 desirable in the interests of employees and their beneficiaries, 18 and to provide for the general welfare and the free flow of 19 commerce, that disclosure be made and safeguards be pro20 vided with respect to the establishment, operation, and 21 administration of such plans; that they substantially affect 22 the revenues of the United States because they are afforded 23 preferential Federal tax treatment; that despite the enor24 mous growth in such plans many employees with long years 25 of employment are losing anticipated retirement benefits 5 1 owing to the lack of vesting provisions in such plans; that 2 owing to the inadequacy of current minimum standards, 3 the soundness and stability of plans with respect to adequate 4 funds to pay promised benefits may be endangered; that 5 owing to the involuntary termination of plans before requi6 site funds have been accumulated, employees and their 7 dependents have been deprived of anticipated benefits; and 8 that it is therefore desirable in the interests of employees 9 and their beneficiaries, for the protection of the revenue of 10 the United States, and to provide for the free flow of com11 merce, that minimum standards be provided assuring the 12 equitable character of such plans and their financial sound 13 ness. 14 (b) It is hereby declared to be the policy of this 15 title to protect interstate commerce and the interests of par16 ticipants in employee benefit plans and their beneficiaries, by 17 requiring the disclosure and reporting to participants and 18 beneficiaries of financial and other information with respect 19 thereto, by establishing standards of fiduciary conduct, re20 sponsibility, and obligation upon all persons who exercise 21 any powers of control, management, or disposition with 22 respect to employee benefit funds or have authority or respon23 sibility to do so, or have authority or responsibility in the 24 administration of employee benefit plans, and by providing 25 for appropriate remedies, sanctions, and ready access to the 26 Federal courts. 6 1 (c) It is hereby further declared to be the policy of this 2 title to protect interstate commerce, the Federal taxing 3 power, and the interests of participants in private pension 4 plans and their beneficiaries by improving the equitable 5 character and the soundness of such plans by requiring them 6 to vest the accrued benefits of employees with significant pe7 riods of service, to meet minimum standards of funding, 8 and by requiring plan termination insurance. 11 (1) The term "employee welfare benefit plan" means 12 any plan, fund, or program which is communicated or its 13 benefits described in writing to the employees, and which 14 was heretofore or is hereafter established or maintained by 15 an employer or by an employee organization, or by both, 16 for the purpose of (A) providing for its participants or their 17 beneficiaries, through the purchase of insurance or otherwise, 18 medical, surgical, or hospital care or benefits, or benefits in 19 the event of sickness, accident, disability, death or unemploy20 ment, or vacation benefits, apprenticeship or other training 21 programs, or day care centers, scholarship funds, or prepaid 22 legal services, or (B) in the case of a fund subject to the 23 restrictions of section 302 (c) of the Labor Management 24 Relations Act, 1947, providing any other benefit which may 25 be permitted by section 302 (c) (5), 302 (c) (6), or 302 26 (c) (7) of that Act. 25-028 76 29 (Vol. II) |