29 U.S.C. § 1304 — Participant and Plan Sponsor Advocate

Page 636 TITLE 29—LABOR § 1304 2006—Subsec. (b). Pub. L. 109–280, § 411(a)(2), sub- stituted ‘‘under this subchapter, the Director, any member’’ for ‘‘under this subchapter, any member’’ and ‘‘designated by the Director or chairman’’ for ‘‘des- ignated by the chairman’’. Subsec. (e)(1). Pub. L. 109–280, § 108(b)(2), formerly § 107(b)(2), as renumbered by Pub. L. 111–192, substituted ‘‘1083(k)(1)(A) and (B)’’ for ‘‘1082(f)(1)(A) and (B)’’ and ‘‘430(k)(1)(A) and (B)’’ for ‘‘412(n)(1)(A) and (B)’’. 1994—Subsec. (a). Pub. L. 103–465, § 776(b)(1), inserted ‘‘and whether section 1350(a) of this title has been satis- fied’’ before period at end of second sentence. Subsec. (e)(1). Pub. L. 103–465, § 773(a), inserted ‘‘(A)’’ after ‘‘enforce’’ and substituted ‘‘, and’’ and cl. (B) for period at end. 1986—Subsec. (a). Pub. L. 99–272, § 11016(c)(5), inserted provisions directing the corporation to audit annually a statistically significant number of plans terminating under section 1341(b) of this title to determine whether participants and beneficiaries have received their ben- efit commitments and to include a statistically signifi- cant number of participants and beneficiaries in each audit. Subsec. (e)(6). Pub. L. 99–272, § 11014(b)(2), added par. (6). Subsec. (f). Pub. L. 99–272, § 11014(b)(1), amended sub- sec. (f) generally. Prior to amendment, subsec. (f) read as follows: ‘‘Except as provided in section 1451(a)(2) of this title, any participant, beneficiary, plan adminis- trator, or employee adversely affected by any action of the corporation, or by a receiver or trustee appointed by the corporation, with respect to a plan in which such participant, beneficiary, plan administrator or employer has an interest, may bring an action against the corporation, receiver, or trustee in the appropriate court. For purposes of this subsection the term ‘appro- priate court’ means the United States district court be- fore which proceedings under section 1341 or 1342 of this title are being conducted, or if no such proceedings are being conducted the United States district court for the district in which the plan has its principal office, or the United States district court for the District of Co- lumbia. The district courts of the United States have jurisdiction of actions brought under this subsection without regard to the amount in controversy. In any suit, action, or proceeding in which the corporation is a party, or intervenes under section 1451 of this title, in any State court, the corporation may, without bond or security, remove such suit, action, or proceeding from the State court to the United States District Court for the district or division embracing the place where the same is pending by following any procedure for removal now or hereafter in effect.’’ 1984—Subsec. (e)(4). Pub. L. 98–620 struck out par. (4) which provided that upon application by the corpora- tion to a court of the United States for expedited han- dling of any case in which the corporation was a party, it was the duty of that court to assign such case for hearing at the earliest practical date and to cause such case to be in every way expedited. 1980—Subsec. (a). Pub. L. 96–364, § 402(a)(2)(A), sub- stituted ‘‘enforce’’ for ‘‘determine whether any person has violated or is about to violate’’. Subsec. (e)(1). Pub. L. 96–364, § 402(a)(2)(B), substituted ‘‘enforce’’ for ‘‘redress violations of’’. Subsec. (f). Pub. L. 96–364, §§ 402(a)(2)(C), 403(k), sub- stituted ‘‘Except as provided in section 1451(a)(2) of the title, any’’ for ‘‘Any’’ and inserted provisions relating to removal of actions. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2014 AMENDMENT Amendment by Pub. L. 113–97 applicable to years be- ginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of Title 26, In- ternal Revenue Code. EFFECTIVE DATE OF 2006 AMENDMENT Amendment by section 108(b)(2) of Pub. L. 109–280 ap- plicable to plan years beginning after 2007, see section 108(e) of Pub. L. 109–280, set out as a note under section 1021 of this title. EFFECTIVE DATE OF 1994 AMENDMENT Pub. L. 103–465, title VII, § 773(b), Dec. 8, 1994, 108 Stat. 5045, provided that: ‘‘The amendments made by this section [amending this section] shall be effective for in- stallments and other payments required under section 302 of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1082] or section 412 of the Internal Rev- enue Code of 1986 [26 U.S.C. 412] that become due on or after the date of the enactment of this Act [Dec. 8, 1994].’’ Amendment by section 776(b)(1) of Pub. L. 103–465 ef- fective with respect to distributions that occur in plan years commencing on or after Jan. 1, 1996, see section 776(e) of Pub. L. 103–465, set out as a note under section 1056 of this title. EFFECTIVE DATE OF 1986 AMENDMENT Pub. L. 99–272, title XI, § 11014(b)(3), Apr. 7, 1986, 100 Stat. 264, provided that: ‘‘The amendments made by this subsection [amending this section] shall apply with respect to actions filed after the date of the enact- ment of this Act [Apr. 7, 1986].’’ Amendment by section 11016(c)(5) of Pub. L. 99–272 ef- fective Jan. 1, 1986, with certain exceptions, see section 11019 of Pub. L. 99–272, set out as a note under section 1341 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–620 not applicable to cases pending on Nov. 8, 1984, see section 403 of Pub. L. 98–620, set out as a note under section 1657 of Title 28, Judici- ary and Judicial Procedure. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–364 effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title. APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB. L. 109–280 For special rules on applicability of amendments by subtitles A (§§ 101–108) and B (§§ 111–116) of title I of Pub. L. 109–280 to certain eligible cooperative plans, PBGC settlement plans, and eligible government contractor plans, see sections 104, 105, and 106 of Pub. L. 109–280, set out as notes under section 401 of Title 26, Internal Revenue Code. § 1304. Participant and Plan Sponsor Advocate (a) In general The board of directors of the corporation shall select a Participant and Plan Sponsor Advocate from the candidates nominated by the advisory committee to the corporation under section 1302(h)(1) of this title and without regard to the provisions of title 5 relating to appointments in the competitive service or Senior Executive Service. (b) Duties The Participant and Plan Sponsor Advocate shall— (1) act as a liaison between the corporation, sponsors of defined benefit pension plans in- sured by the corporation, and participants in pension plans trusteed by the corporation; (2) advocate for the full attainment of the rights of participants in plans trusteed by the corporation; (3) assist pension plan sponsors and partici- pants in resolving disputes with the corpora- tion; Page 637 TITLE 29—LABOR § 1305 1 So in original. The word ‘‘the’’ probably should not appear. (4) identify areas in which participants and plan sponsors have persistent problems in dealings with the corporation; (5) to the extent possible, propose changes in the administrative practices of the corpora- tion to mitigate problems; (6) identify potential legislative changes which may be appropriate to mitigate prob- lems; and (7) refer instances of fraud, waste, and abuse, and violations of law to the Office of the In- spector General of the corporation. (c) Removal If the Participant and Plan Sponsor Advocate is removed from office or is transferred to an- other position or location within the corpora- tion or the Department of Labor, the board of the 1 directors of the corporation shall commu- nicate in writing the reasons for any such re- moval or transfer to Congress not less than 30 days before the removal or transfer. Nothing in this subsection shall prohibit a personnel action otherwise authorized by law, other than transfer or removal. (d) Compensation The annual rate of basic pay for the Partici- pant and Plan Sponsor Advocate shall be the same rate as the highest rate of basic pay estab- lished for the Senior Executive Service under section 5382 of title 5 or, if the board of directors of the corporation so determines, at a rate fixed under section 9503 of such title. (e) Annual report (1) In general Not later than December 31 of each calendar year, the Participant and Plan Sponsor Advo- cate shall report to the Health, Education, Labor, and Pensions Committee of the Senate, the Committee on Finance of the Senate, the Committee on Education and the Workforce of the House of Representatives, and the Com- mittee on Ways and Means of the House of Representatives on the activities of the Office of the Participant and Plan Sponsor Advocate during the fiscal year ending during such cal- endar year. (2) Content Each report submitted under paragraph (1) shall— (A) summarize the assistance requests re- ceived from participants and plan sponsors and describe the activities, and evaluate the effectiveness, of the Participant and Plan Sponsor Advocate during the preceding year; (B) identify significant problems the Par- ticipant and Plan Sponsor Advocate has identified; (C) include specific legislative and regu- latory changes to address the problems; and (D) identify any actions taken to correct problems identified in any previous report. (3) Concurrent submission The Participant and Plan Sponsor Advocate shall submit a copy of each report to the Sec- retary of Labor, the Director of the corpora- tion, and any other appropriate official at the same time such report is submitted to the committees of Congress under paragraph (1). (Pub. L. 93–406, title IV, § 4004, as added Pub. L. 112–141, div. D, title II, § 40232(a), July 6, 2012, 126 Stat. 856.) Editorial Notes PRIOR PROVISIONS A prior section 1304, Pub. L. 93–406, title IV, § 4004, Sept. 2, 1974, 88 Stat. 1008, related to appointment, within 270 days after Sept. 2, 1974, and powers and func- tions of a receiver to assume control of terminated plan and its assets, prior to repeal by Pub. L. 99–272, title XI, § 11016(c)(6), Apr. 7, 1986, 100 Stat. 274, effective Jan. 1, 1986, with certain exceptions. See section 11019 of Pub. L. 99–272, set out as an Effective Date of 1986 Amend- ment note under section 1341 of this title. § 1304a. Sponsor education and assistance (a) Definition In this section, the term ‘‘CSEC plan’’ has the meaning given that term in subsection (f)(1) of section 1060 of this title. (b) Education The Participant and Plan Sponsor Advocate established under section 1304 of this title shall make itself available to assist CSEC plan spon- sors and participants as part of the duties it per- forms under the general supervision of the Board of Directors under section 1304(b) of this title. (Pub. L. 113–97, title I, § 105, Apr. 7, 2014, 128 Stat. 1121.) Editorial Notes CODIFICATION Section was enacted as part of the Cooperative and Small Employer Charity Pension Flexibility Act, and not as part of the Employee Retirement Income Secu- rity Act of 1974 which comprises this chapter. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as an Effec- tive Date of 2014 Amendment note under section 401 of Title 26, Internal Revenue Code. § 1305. Pension benefit guaranty funds (a) Establishment of four revolving funds on books of Treasury of the United States There are established on the books of the Treasury of the United States four revolving funds to be used by the corporation in carrying out its duties under this subchapter. One of the funds shall be used with respect to basic benefits guaranteed under section 1322 of this title, one of the funds shall be used with respect to basic benefits guaranteed under section 1322a of this title, one of the funds shall be used with respect to nonbasic benefits guaranteed under section 1322 of this title (if any), and the remaining fund shall be used with respect to nonbasic benefits guaranteed under section 1322a of this title (if any), other than subsection (g)(2) thereof (if any). Whenever in this subchapter reference is