Page:United States Statutes at Large Volume 110 Part 3.djvu/69

 PUBLIC LAW 104-188—AUG. 20, 1996 110 STAT. 1799 if the terms of such pension, as in effect on December 31, 1996, provide that an employee may make the election described in subparagraph (A).", (d) MODIFICATIONS OF ERISA. — (1) REPORTING REQUIREMENTS.— Section 101 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1021) is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection: " (g) SIMPLE RETIREMENT ACCOUNTS. — "(1) No EMPLOYER REPORTS.— Except as provided in this subsection, no report shall be required under this section by an employer maintaining a qualified salary reduction arrangement under section 408(p) of the Internal Revenue Code of 1986. "(2) SUMMARY DESCRIPTION. —The trustee of any simple retirement account established pursuant to a qualified salary reduction arrangement under section 408(p) of such Code shall provide to the employer maintaining the arrangement each year a description containing the following information: "(A) The name and address of the employer and the trustee. "(B) The requirements for eligibility for participation. "(C) The benefits provided with respect to the arrangement. "(D) The time and method of making elections with respect to the arrangement. "(E) The procedures for, and effects of, withdrawals (including rollovers) from the arrangement. "(3) EMPLOYEE NOTIFICATION.— The employer shall notify each employee immediately before the period for which an election described in section 408(p)(5)(C) of such Code may be made of the employee's opportunity to make such election. Such notice shall include a copy of the description described in paragraph (2)." (2) FIDUCIARY DUTIES. —Section 404(c) of such Act (29 U.S.C. 1104(c)) is amended by inserting "(1)" after "(c)", by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and by adding at the end the following new paragraph: "(2) In the case of a simple retirement account established pursuant to a qualified salary reduction arrangement under section 408(p) of the Internal Revenue Code of 1986, a participant or beneficiary shall, for purposes of paragraph (1), be treated as exercising control over the assets in the account upon the earliest of— "(A) an affirmative election among investment options with respect to the initial investment of any contribution, "(B) a rollover to any other simple retirement account or individual retirement plan, or "(C) one year after the simple retirement account is established. No reports, other than those required under section 101(g), shall be required with respect to a simple retirement account established pursuant to such a qualified salary reduction arrangement.".

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