Page:United States Statutes at Large Volume 120.djvu/980

 PUBLIC LAW 109–280—AUG. 17, 2006

120 STAT. 949

‘‘(m) NOTICE OF RIGHT TO DIVEST.—Not later than 30 days before the first date on which an applicable individual of an applicable individual account plan is eligible to exercise the right under section 204(j) to direct the proceeds from the divestment of employer securities with respect to any type of contribution, the administrator shall provide to such individual a notice— ‘‘(1) setting forth such right under such section, and ‘‘(2) describing the importance of diversifying the investment of retirement account assets. The notice required by this subsection shall be written in a manner calculated to be understood by the average plan participant and may be delivered in written, electronic, or other appropriate form to the extent that such form is reasonably accessible to the recipient.’’. (b) PENALTIES.—Section 502(c)(7) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1132(c)(7)) is amended by striking ‘‘section 101(i)’’ and inserting ‘‘subsection (i) or (m) of section 101’’. (c) MODEL NOTICE.—The Secretary of the Treasury shall, within 180 days after the date of the enactment of this subsection, prescribe a model notice for purposes of satisfying the requirements of the amendments made by this section. (d) EFFECTIVE DATES.— (1) IN GENERAL.—The amendments made by this section shall apply to plan years beginning after December 31, 2006. (2) TRANSITION RULE.—If notice under section 101(m) of the Employee Retirement Income Security Act of 1974 (as added by this section) would otherwise be required to be provided before the 90th day after the date of the enactment of this Act, such notice shall not be required to be provided until such 90th day.

Deadline.

Deadline. 29 USC 1021 note. 29 USC 1021 note.

SEC. 508. PERIODIC PENSION BENEFIT STATEMENTS.

(a) AMENDMENTS OF ERISA.— (1) IN GENERAL.—Section 105(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1025(a)) is amended to read as follows: ‘‘(a) REQUIREMENTS TO PROVIDE PENSION BENEFIT STATEMENTS.— ‘‘(1) REQUIREMENTS.— ‘‘(A) INDIVIDUAL ACCOUNT PLAN.—The administrator of an individual account plan (other than a one-participant retirement plan described in section 101(i)(8)(B)) shall furnish a pension benefit statement— ‘‘(i) at least once each calendar quarter to a participant or beneficiary who has the right to direct the investment of assets in his or her account under the plan, ‘‘(ii) at least once each calendar year to a participant or beneficiary who has his or her own account under the plan but does not have the right to direct the investment of assets in that account, and ‘‘(iii) upon written request to a plan beneficiary not described in clause (i) or (ii).

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