Page:United States Statutes at Large Volume 120.djvu/1009

 120 STAT. 978

PUBLIC LAW 109–280—AUG. 17, 2006

Subtitle C—Fiduciary and Other Rules SEC. 621. INAPPLICABILITY OF RELIEF FROM FIDUCIARY LIABILITY DURING SUSPENSION OF ABILITY OF PARTICIPANT OR BENEFICIARY TO DIRECT INVESTMENTS.

(a) IN GENERAL.—Section 404(c) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104(c)) is amended— (1) in paragraph (1)— (A) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and by inserting ‘‘(A)’’ after ‘‘(c)(1)’’, (B) in subparagraph (A)(ii) (as redesignated by paragraph (1)), by inserting before the period the following: ‘‘, except that this clause shall not apply in connection with such participant or beneficiary for any blackout period during which the ability of such participant or beneficiary to direct the investment of the assets in his or her account is suspended by a plan sponsor or fiduciary’’, and (C) by adding at the end the following new subparagraphs: ‘‘(B) If a person referred to in subparagraph (A)(ii) meets the requirements of this title in connection with authorizing and implementing the blackout period, any person who is otherwise a fiduciary shall not be liable under this title for any loss occurring during such period. ‘‘(C) For purposes of this paragraph, the term ‘blackout period’ has the meaning given such term by section 101(i)(7).’’; and (2) by adding at the end the following: ‘‘(4)(A) In any case in which a qualified change in investment options occurs in connection with an individual account plan, a participant or beneficiary shall not be treated for purposes of paragraph (1) as not exercising control over the assets in his account in connection with such change if the requirements of subparagraph (C) are met in connection with such change. ‘‘(B) For purposes of subparagraph (A), the term ‘qualified change in investment options’ means, in connection with an individual account plan, a change in the investment options offered to the participant or beneficiary under the terms of the plan, under which— ‘‘(i) the account of the participant or beneficiary is reallocated among one or more remaining or new investment options which are offered in lieu of one or more investment options offered immediately prior to the effective date of the change, and ‘‘(ii) the stated characteristics of the remaining or new investment options provided under clause (i), including characteristics relating to risk and rate of return, are, as of immediately after the change, reasonably similar to those of the existing investment options as of immediately before the change. ‘‘(C) The requirements of this subparagraph are met in connection with a qualified change in investment options if— ‘‘(i) at least 30 days and no more than 60 days prior to the effective date of the change, the plan administrator furnishes written notice of the change to the participants

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