Title 29 — Labor

Part 4 · Chapter 18 — Employee Retirement Income Security Program

§ 1108. Exemptions from prohibited transactions

Statutory text

Grant of exemptions

The Secretary shall establish an exemption procedure for purposes of this subsection. Pursuant to such procedure, he may grant a conditional or unconditional exemption of any fiduciary or transaction, or class of fiduciaries or transactions, from all or part of the restrictions imposed by sections 1106 and 1107(a) of this title. Action under this subsection may be taken only after consultation and coordination with the Secretary of the Treasury. An exemption granted under this section shall not relieve a fiduciary from any other applicable provision of this chapter. The Secretary may not grant an exemption under this subsection unless he finds that such exemption is—

administratively feasible,

in the interests of the plan and of its participants and beneficiaries, and

protective of the rights of participants and beneficiaries of such plan.

Before granting an exemption under this subsection from section 1106(a) or 1107(a) of this title, the Secretary shall publish notice in the Federal Register of the pendency of the exemption, shall require that adequate notice be given to interested persons, and shall afford interested persons opportunity to present views. The Secretary may not grant an exemption under this subsection from section 1106(b) of this title unless he affords an opportunity for a hearing and makes a determination on the record with respect to the findings required by paragraphs (1), (2), and (3) of this subsection.

Enumeration of transactions exempted from section 1106 prohibitions

The prohibitions provided in section 1106 of this title shall not apply to any of the following transactions:

Any loans made by the plan to parties in interest who are participants or beneficiaries of the plan if such loans (A) are available to all such participants and beneficiaries on a reasonably equivalent basis, (B) are not made available to highly compensated employees (within the meaning of section 414(q) of title 26) in an amount greater than the amount made available to other employees, (C) are made in accordance with specific provisions regarding such loans set forth in the plan, (D) bear a reasonable rate of interest, and (E) are adequately secured. A loan made by a plan shall not fail to meet the requirements of the preceding sentence by reason of a loan repayment suspension described under section 414(u)(4) of title 26.

Contracting or making reasonable arrangements with a party in interest for office space, or legal, accounting, or other services necessary for the establishment or operation of the plan, if no more than reasonable compensation is paid therefor.

No contract or arrangement for services between a covered plan and a covered service provider, and no extension or renewal of such a contract or arrangement, is reasonable within the meaning of this paragraph unless the requirements of this subparagraph are met. For purposes of applying section 1106(a)(1)(C) of this title with respect to a transaction described under this subparagraph or subparagraph (C), a contract or arrangement for services between a covered plan and an entity providing services to the plan, including a health insurance issuer providing health insurance coverage in connection with the covered plan, in which such entity contracts, in connection with such plan, with a service provider for pharmacy benefit management services, shall be considered an indirect furnishing of goods, services, or facilities between the covered plan and the service provider for pharmacy benefit management services acting as the party in interest.

For purposes of this subparagraph:

The term “covered plan” means a group health plan as defined in section 1191b(a) of this title and the terms “health insurance coverage” and “health insurance issuer” have the meanings given such terms in section 1191b(b) of this title.

The term “covered service provider” means a service provider that enters into a contract or arrangement with the covered plan and reasonably expects $1,000 (or such amount as the Secretary may establish in regulations to account for inflation since December 27, 2020, as appropriate) or more in compensation, direct or indirect, to be received in connection with providing one or more of the following services, pursuant to the contract or arrangement, regardless of whether such services will be performed, or such compensation received, by the covered service provider, an affiliate, or a subcontractor:

Services (including brokerage services), for which the covered service provider, an affiliate, or a subcontractor reasonably expects to receive indirect compensation or direct compensation described in item (dd), provided to a covered plan with respect to selection of insurance products (including vision and dental), recordkeeping services, medical management vendor, benefits administration (including vision and dental), stop-loss insurance, pharmacy benefit management services, wellness services, transparency tools and vendors, group purchasing organization preferred vendor panels, disease management vendors and products, compliance services, employee assistance programs, or third party administration services.

Other services, for which the covered service provider, an affiliate, or a subcontractor reasonably expects to receive indirect compensation or direct compensation described in item (dd), including any of the following: plan design, insurance or insurance product selection (including vision and dental), recordkeeping, medical management, benefits administration selection (including vision and dental), stop-loss insurance, pharmacy benefit management services, wellness design and management services, transparency tools, group purchasing organization agreements and services, participation in and services from preferred vendor panels, disease management, compliance services, employee assistance programs, or third-party administration services, or consulting services related to any such services.

The term “affiliate”, with respect to a covered service provider, means an entity that directly or indirectly (through one or more intermediaries) controls, is controlled by, or is under common control with, such provider, or is an officer, director, or employee of, or partner in, such provider.

The term “compensation” means anything of monetary value, but does not include non-monetary compensation valued at $250 (or such amount as the Secretary may establish in regulations to account for inflation since December 27, 2020, as appropriate) or less, in the aggregate, during the term of the contract or arrangement.

The term “direct compensation” means compensation received directly from a covered plan.

The term “indirect compensation” means compensation received from any source other than the covered plan, the plan sponsor, the covered service provider, or an affiliate. Compensation received from a subcontractor is indirect compensation, unless it is received in connection with services performed under a contract or arrangement with a subcontractor.

The term “responsible plan fiduciary” means a fiduciary with authority to cause the covered plan to enter into, or extend or renew, the contract or arrangement.

The term “subcontractor” means any person or entity (or an affiliate of such person or entity) that is not an affiliate of the covered service provider and that, pursuant to a contract or arrangement with the covered service provider or an affiliate, reasonably expects to receive $1,000 (or such amount as the Secretary may establish in regulations to account for inflation since December 27, 2020, as appropriate) or more in compensation for performing one or more services described in item (bb) under a contract or arrangement with the covered plan.

For purposes of this subparagraph, a description of compensation or cost may be expressed as a monetary amount, formula, or a per capita charge for each enrollee or, if the compensation or cost cannot reasonably be expressed in such terms, by any other reasonable method, including a disclosure that additional compensation may be earned but may not be calculated at the time of contract if such a disclosure includes a description of the circumstances under which the additional compensation may be earned and a reasonable and good faith estimate if the covered service provider cannot otherwise readily describe compensation or cost and explains the methodology and assumptions used to prepare such estimate. Any such description shall contain sufficient information to permit evaluation of the reasonableness of the compensation or cost.

No person or entity is a “covered service provider” within the meaning of subclause (I)(bb) solely on the basis of providing services as an affiliate or a subcontractor that is performing one or more of the services described in subitem (AA) or (BB) of such subclause under the contract or arrangement with the covered plan.

A covered service provider shall disclose to a responsible plan fiduciary, in writing, the following (in accordance with regulations issued by the Secretary addressing time, manner, and content of such disclosures):

A description of the services to be provided to the covered plan pursuant to the contract or arrangement.

If applicable, a statement that the covered service provider, an affiliate, or a subcontractor will provide, or reasonably expects to provide, services pursuant to the contract or arrangement directly to the covered plan as a fiduciary (within the meaning of section 1002(21) of this title).

A description of all direct compensation, either in the aggregate or by service, that the covered service provider, an affiliate, or a subcontractor reasonably expects to receive in connection with the services described in subclause (I).

A description of all indirect compensation that the covered service provider, an affiliate, or a subcontractor reasonably expects to receive in connection with the services described in subclause (I)—

including compensation from a vendor to a brokerage firm based on a structure of incentives not solely related to the contract with the covered plan; and

not including compensation received by an employee from an employer on account of work performed by the employee.

A description of the arrangement between the payer and the covered service provider, an affiliate, or a subcontractor, as applicable, pursuant to which such indirect compensation is paid.

Identification of the services for which the indirect compensation will be received, if applicable.

Identification of the payer of the indirect compensation.

A description of any compensation that will be paid among the covered service provider, an affiliate, or a subcontractor, in connection with the services described in subclause (I) if such compensation is set on a transaction basis (such as commissions, finder’s fees, or other similar incentive compensation based on business placed or retained), including identification of the services for which such compensation will be paid and identification of the payers and recipients of such compensation (including the status of a payer or recipient as an affiliate or a subcontractor), regardless of whether such compensation also is disclosed pursuant to subclause (III) or (IV).

A description of any compensation that the covered service provider, an affiliate, or a subcontractor reasonably expects to receive in connection with termination of the contract or arrangement, and how any prepaid amounts will be calculated and refunded upon such termination.

A covered service provider shall disclose to a responsible plan fiduciary, in writing a description of the manner in which the compensation described in clause (iii), as applicable, will be received.

A covered service provider shall disclose the information required under clauses (iii) and (iv) to the responsible plan fiduciary not later than the date that is reasonably in advance of the date on which the contract or arrangement is entered into, and extended or renewed.

A covered service provider shall disclose any change to the information required under clause (iii) and (iv) as soon as practicable, but not later than 60 days from the date on which the covered service provider is informed of such change, unless such disclosure is precluded due to extraordinary circumstances beyond the covered service provider’s control, in which case the information shall be disclosed as soon as practicable.

Upon the written request of the responsible plan fiduciary or covered plan administrator, a covered service provider shall furnish any other information relating to the compensation received in connection with the contract or arrangement that is required for the covered plan to comply with the reporting and disclosure requirements under this chapter.

The covered service provider shall disclose the information required under clause (iii)(I) reasonably in advance of the date upon which such responsible plan fiduciary or covered plan administrator states that it is required to comply with the applicable reporting or disclosure requirement, unless such disclosure is precluded due to extraordinary circumstances beyond the covered service provider’s control, in which case the information shall be disclosed as soon as practicable.

No contract or arrangement will fail to be reasonable under this subparagraph solely because the covered service provider, acting in good faith and with reasonable diligence, makes an error or omission in disclosing the information required pursuant to clause (iii) (or a change to such information disclosed pursuant to clause (v)(II)) or clause (vi), provided that the covered service provider discloses the correct information to the responsible plan fiduciary as soon as practicable, but not later than 30 days from the date on which the covered service provider knows of such error or omission.

Pursuant to subsection (a), subparagraphs (C) and (D) of section 1106(a)(1) of this title shall not apply to a responsible plan fiduciary, notwithstanding any failure by a covered service provider to disclose information required under clause (iii), if the following conditions are met:

The responsible plan fiduciary did not know that the covered service provider failed or would fail to make required disclosures and reasonably believed that the covered service provider disclosed the information required to be disclosed.

The responsible plan fiduciary, upon discovering that the covered service provider failed to disclose the required information, requests in writing that the covered service provider furnish such information.

If the covered service provider fails to comply with a written request described in subclause (III) within 90 days of the request, the responsible plan fiduciary notifies the Secretary of the covered service provider’s failure, in accordance with subclauses (III) and (IV).

Pursuant to subsection (a), subparagraphs (C) and (D) of section 1106(a)(1) of this title shall not apply to a responsible plan fiduciary, notwithstanding any failure to remit required amounts under subparagraph (C)(i), if the following conditions are met:

The responsible plan fiduciary did not know that the covered service provider failed or would fail to make required remittances and reasonably believed that the covered service provider remitted such required amounts.

The responsible plan fiduciary, upon discovering that the covered service provider failed to remit the required amounts, requests in writing that the covered service provider remit such amounts.

A notice described in subclause (I)(cc) shall contain—

the name of the covered plan;

the plan number used for the annual report on the covered plan;

the plan sponsor’s name, address, and employer identification number;

the name, address, and telephone number of the responsible plan fiduciary;

the name, address, phone number, and, if known, employer identification number of the covered service provider;

a description of the services provided to the covered plan;

a description of the information that the covered service provider failed to disclose;

the date on which such information was requested in writing from the covered service provider; and

a statement as to whether the covered service provider continues to provide services to the plan.

A notice described in subclause (I)(cc) shall be filed with the Department not later than 30 days following the earlier of—

The covered service provider’s refusal to furnish the information requested by the written request described in subclause (I)(bb); or

90 days after the written request referred to in subclause (I)(cc) is made.

If the covered service provider fails to comply with the written request under subclause (I)(bb) within 90 days of such request, the responsible plan fiduciary shall determine whether to terminate or continue the contract or arrangement under section 1104 of this title. If the requested information relates to future services and is not disclosed promptly after the end of the 90-day period, the responsible plan fiduciary shall terminate the contract or arrangement as expeditiously as possible, consistent with such duty of prudence.

Nothing in this subparagraph shall be construed to supersede any provision of State law that governs disclosures by parties that provide the services described in this section, except to the extent that such law prevents the application of a requirement of this section.

A service provider for pharmacy benefit management services that is considered to indirectly furnish goods, services, or facilities to a covered plan, as described in clause (i)(I), is entitled to relief with respect to a violation of this section provided the conditions for receiving such relief are satisfied.

For plan years beginning on or after the date that is 30 months after February 3, 2026, (referred to in this clause as the “effective date”), no contract or arrangement or renewal or extension of a contract or arrangement, entered into on or after the effective date, for services between a covered plan and a covered service provider (or between a sponsor of a covered plan and a covered service provider), through a health insurance issuer offering group health insurance coverage, a third-party administrator, an entity providing pharmacy benefit management services, or other entity, for pharmacy benefit management services, is reasonable within the meaning of this paragraph unless such entity providing pharmacy benefit management services—

remits 100 percent of rebates, fees, alternative discounts, and other remuneration received from any applicable entity that are related to utilization of drugs or drug spending under such health plan or health insurance coverage, to the group health plan or, in the case of a health insurance issuer offering group health insurance coverage in connection with a group health plan, to the health insurance issuer offering group health insurance coverage on behalf of the plan; and

does not enter into any contract for pharmacy benefit management services on behalf of such a plan or coverage, with an applicable entity unless 100 percent of rebates, fees, alternative discounts, and other remuneration received under such contract that are related to the utilization of drugs or drug spending under such group health plan or health insurance coverage are remitted to the group health plan or, in the case of a health insurance issuer offering group health insurance coverage in connection with a group health plan, to the health insurance issuer on behalf of the plan by the entity providing pharmacy benefit management services.

Nothing in subclause (I) shall be construed to affect the term of a contract or arrangement, as in effect on the effective date (as described in such subclause), except that such subclause shall apply to any renewal or extension of such a contract or arrangement entered into on or after such effective date, as so described.

With respect to such rebates, fees, alternative discounts, and other remuneration—

the rebates, fees, alternative discounts, and other remuneration under clause (i)(I) shall be—

remitted—

on a quarterly basis, to the group health plan or, in the case of a health insurance issuer offering group health insurance coverage in connection with a group health plan, to the group health insurance issuer on behalf of the plan, not later than 90 days after the end of each quarter; or

in the case of an underpayment in a remittance for a prior quarter, as soon as practicable, but not later than 90 days after notice of the underpayment is first given;

fully disclosed and enumerated to the group health plan or health insurance issuer; and

returned to the covered service provider for pharmacy benefit management services on behalf of the group health plan if any audit by a plan sponsor, issuer or a third party designated by a plan sponsor, indicates that the amounts received are in excess of correct amounts after such amounts have been paid to the group health plan, in the amount of such excess;

the Secretary may issue regulations governing—

procedures for the remittance of rebates, fees, alternative discounts, and other remuneration under subclause (I)(aa);

any audit pursuant to this subparagraph; and

the timing, manner, and content of the disclosure of rebates, fees, alternative discounts, and other remuneration under subclause (I)(bb) as well as any other information the Secretary determines necessary for the responsible plan fiduciary to consider the reasonableness of the contract or arrangement (provided that such information does not include personally identifiable health information or protected health information subject to established individual privacy and nondiscrimination requirements under law); and

the records of such rebates, fees, alternative discounts, other remuneration, and disclosures, shall be available for audit by the plan (or the plan sponsor, issuer, or a third party designated by a plan sponsor on behalf of the plan), not less than once per plan year.

To ensure that an entity providing pharmacy benefit management services is able to meet the requirements of clause (ii)(I), a rebate aggregator (or other purchasing entity designed to aggregate rebates) and an applicable group purchasing organization shall remit such rebates to the entity providing pharmacy benefit management services not later than 45 days after the end of each quarter.

A third-party administrator of a group health plan, a health insurance issuer offering group health insurance coverage, or a covered service provider for pharmacy benefit management services under such health plan or health insurance coverage shall make rebate contracts with rebate aggregators or drug manufacturers available for audit by such plan, subject to reasonable restrictions (as determined by the Secretary) on confidentiality to prevent re-disclosure of such contracts or use of such information in audits for purposes unrelated to this section.

Audits carried out under clauses (ii)(III) and (iv) shall be performed by an auditor selected by the responsible plan fiduciary. Payment for such auditors shall not be made, whether directly or indirectly, by the entity providing pharmacy benefit management services.

Nothing in this subparagraph shall be construed to—

prohibit reasonable payments to entities offering pharmacy benefit management services for bona fide services using a fee structure not described in this subparagraph, provided that such fees are transparent and quantifiable to group health plans and health insurance issuers;

require a third-party administrator of a group health plan or covered service provider for pharmacy benefit management services under such health plan or health insurance coverage to remit bona fide service fees to the group health plan;

limit the ability of a group health plan or health insurance issuer to pass through rebates, fees, alternative discounts, and other remuneration to the participant or beneficiary;

modify the requirements for the creation, receipt, maintenance, or transmission of protected health information under the privacy regulations promulgated under the Health Insurance Portability and Accountability Act of 1996 in part 160 and subparts A and E of part 164 of title 45, Code of Federal Regulations (or successor regulations); or

limit any requirement under subparagraph (A) or (B).

For purposes of this subparagraph—

the terms “applicable entity” and “applicable group purchasing organization” have the meanings given such terms in section 1185o(e) of this title;

the terms “covered plan”, “covered service provider”, and “responsible plan fiduciary” have the meanings given such terms in subparagraph (B); and

the terms “group health insurance coverage”, “health insurance coverage”, and “health insurance issuer” have the meanings given such terms in section 1191b of this title.

A loan to an employee stock ownership plan (as defined in section 1107(d)(6) of this title), if—

such loan is primarily for the benefit of participants and beneficiaries of the plan, and

such loan is at an interest rate which is not in excess of a reasonable rate.

If the plan gives collateral to a party in interest for such loan, such collateral may consist only of qualifying employer securities (as defined in section 1107(d)(5) of this title).

The investment of all or part of a plan’s assets in deposits which bear a reasonable interest rate in a bank or similar financial institution supervised by the United States or a State, if such bank or other institution is a fiduciary of such plan and if—

the plan covers only employees of such bank or other institution and employees of affiliates of such bank or other institution, or

such investment is expressly authorized by a provision of the plan or by a fiduciary (other than such bank or institution or affiliate thereof) who is expressly empowered by the plan to so instruct the trustee with respect to such investment.

Any contract for life insurance, health insurance, or annuities with one or more insurers which are qualified to do business in a State, if the plan pays no more than adequate consideration, and if each such insurer or insurers is—

the employer maintaining the plan, or

a party in interest which is wholly owned (directly or indirectly) by the employer maintaining the plan, or by any person which is a party in interest with respect to the plan, but only if the total premiums and annuity considerations written by such insurers for life insurance, health insurance, or annuities for all plans (and their employers) with respect to which such insurers are parties in interest (not including premiums or annuity considerations written by the employer maintaining the plan) do not exceed 5 percent of the total premiums and annuity considerations written for all lines of insurance in that year by such insurers (not including premiums or annuity considerations written by the employer maintaining the plan).

The providing of any ancillary service by a bank or similar financial institution supervised by the United States or a State, if such bank or other institution is a fiduciary of such plan, and if—

such bank or similar financial institution has adopted adequate internal safeguards which assure that the providing of such ancillary service is consistent with sound banking and financial practice, as determined by Federal or State supervisory authority, and

the extent to which such ancillary service is provided is subject to specific guidelines issued by such bank or similar financial institution (as determined by the Secretary after consultation with Federal and State supervisory authority), and adherence to such guidelines would reasonably preclude such bank or similar financial institution from providing such ancillary service (i) in an excessive or unreasonable manner, and (ii) in a manner that would be inconsistent with the best interests of participants and beneficiaries of employee benefit plans.

Such ancillary services shall not be provided at more than reasonable compensation.

The exercise of a privilege to convert securities, to the extent provided in regulations of the Secretary, but only if the plan receives no less than adequate consideration pursuant to such conversion.

Any transaction between a plan and (i) a common or collective trust fund or pooled investment fund maintained by a party in interest which is a bank or trust company supervised by a State or Federal agency or (ii) a pooled investment fund of an insurance company qualified to do business in a State, if—

the transaction is a sale or purchase of an interest in the fund,

the bank, trust company, or insurance company receives not more than reasonable compensation, and

such transaction is expressly permitted by the instrument under which the plan is maintained, or by a fiduciary (other than the bank, trust company, or insurance company, or an affiliate thereof) who has authority to manage and control the assets of the plan.

The making by a fiduciary of a distribution of the assets of the plan in accordance with the terms of the plan if such assets are distributed in the same manner as provided under section 1344 of this title (relating to allocation of assets).

Any transaction required or permitted under part 1 of subtitle E of subchapter III.

A merger of multiemployer plans, or the transfer of assets or liabilities between multiemployer plans, determined by the Pension Benefit Guaranty Corporation to meet the requirements of section 1411 of this title.

The sale by a plan to a party in interest on or after December 18, 1987, of any stock, if—

the requirements of paragraphs (1) and (2) of subsection (e) are met with respect to such stock,

on the later of the date on which the stock was acquired by the plan, or January 1, 1975, such stock constituted a qualifying employer security (as defined in section 1107(d)(5) of this title as then in effect), and

such stock does not constitute a qualifying employer security (as defined in section 1107(d)(5) of this title as in effect at the time of the sale).

Any transfer made before January 1, 2033, of excess pension assets from a defined benefit plan to a retiree health account in a qualified transfer permitted under section 420 of title 26 (as in effect on December 29, 2022).

Any transaction in connection with the provision of investment advice described in section 1002(21)(A)(ii) of this title to a participant or beneficiary of an individual account plan that permits such participant or beneficiary to direct the investment of assets in their individual account, if—

the transaction is—

the provision of the investment advice to the participant or beneficiary of the plan with respect to a security or other property available as an investment under the plan,

the acquisition, holding, or sale of a security or other property available as an investment under the plan pursuant to the investment advice, or

the direct or indirect receipt of fees or other compensation by the fiduciary adviser or an affiliate thereof (or any employee, agent, or registered representative of the fiduciary adviser or affiliate) in connection with the provision of the advice or in connection with an acquisition, holding, or sale of a security or other property available as an investment under the plan pursuant to the investment advice; and

the requirements of subsection (g) are met.

Any transaction involving the purchase or sale of securities, or other property (as determined by the Secretary), between a plan and a party in interest (other than a fiduciary described in section 1002(21)(A) of this title) with respect to a plan if—

the transaction involves a block trade,

at the time of the transaction, the interest of the plan (together with the interests of any other plans maintained by the same plan sponsor), does not exceed 10 percent of the aggregate size of the block trade,

the terms of the transaction, including the price, are at least as favorable to the plan as an arm’s length 3 transaction, and

the compensation associated with the purchase and sale is not greater than the compensation associated with an arm’s length ³ transaction with an unrelated party.

For purposes of this paragraph, the term “block trade” means any trade of at least 10,000 shares or with a market value of at least $200,000 which will be allocated across two or more unrelated client accounts of a fiduciary.

Any transaction involving the purchase or sale of securities, or other property (as determined by the Secretary), between a plan and a party in interest if—

the transaction is executed through an electronic communication network, alternative trading system, or similar execution system or trading venue subject to regulation and oversight by—

the applicable Federal regulating entity, or

such foreign regulatory entity as the Secretary may determine by regulation,

either—

the transaction is effected pursuant to rules designed to match purchases and sales at the best price available through the execution system in accordance with applicable rules of the Securities and Exchange Commission or other relevant governmental authority, or

neither the execution system nor the parties to the transaction take into account the identity of the parties in the execution of trades,

the price and compensation associated with the purchase and sale are not greater than the price and compensation associated with an arm’s length ³ transaction with an unrelated party,

if the party in interest has an ownership interest in the system or venue described in subparagraph (A), the system or venue has been authorized by the plan sponsor or other independent fiduciary for transactions described in this paragraph, and

not less than 30 days prior to the initial transaction described in this paragraph executed through any system or venue described in subparagraph (A), a plan fiduciary is provided written or electronic notice of the execution of such transaction through such system or venue.

Transactions described in subparagraphs (A), (B), and (D) of section 1106(a)(1) of this title between a plan and a person that is a party in interest other than a fiduciary (or an affiliate) who has or exercises any discretionary authority or control with respect to the investment of the plan assets involved in the transaction or renders investment advice (within the meaning of section 1002(21)(A)(ii) of this title) with respect to those assets, solely by reason of providing services to the plan or solely by reason of a relationship to such a service provider described in subparagraph (F), (G), (H), or (I) of section 1002(14) of this title, or both, but only if in connection with such transaction the plan receives no less, nor pays no more, than adequate consideration.

For purposes of this paragraph, the term “adequate consideration” means—

in the case of a security for which there is a generally recognized market—

the price of the security prevailing on a national securities exchange which is registered under section 6 of the Securities Exchange Act of 1934 [15 U.S.C. 78f], taking into account factors such as the size of the transaction and marketability of the security, or

if the security is not traded on such a national securities exchange, a price not less favorable to the plan than the offering price for the security as established by the current bid and asked prices quoted by persons independent of the issuer and of the party in interest, taking into account factors such as the size of the transaction and marketability of the security, and

in the case of an asset other than a security for which there is a generally recognized market, the fair market value of the asset as determined in good faith by a fiduciary or fiduciaries in accordance with regulations prescribed by the Secretary.

Foreign exchange transactions.—

Any foreign exchange transactions, between a bank or broker-dealer (or any affiliate of either), and a plan (as defined in section 1002(3) of this title) with respect to which such bank or broker-dealer (or affiliate) is a trustee, custodian, fiduciary, or other party in interest, if—

the transaction is in connection with the purchase, holding, or sale of securities or other investment assets (other than a foreign exchange transaction unrelated to any other investment in securities or other investment assets),

at the time the foreign exchange transaction is entered into, the terms of the transaction are not less favorable to the plan than the terms generally available in comparable arm’s length ³ foreign exchange transactions between unrelated parties, or the terms afforded by the bank or broker-dealer (or any affiliate of either) in comparable arm’s-length foreign exchange transactions involving unrelated parties,

the exchange rate used by such bank or broker-dealer (or affiliate) for a particular foreign exchange transaction does not deviate by more than 3 percent from the interbank bid and asked rates for transactions of comparable size and maturity at the time of the transaction as displayed on an independent service that reports rates of exchange in the foreign currency market for such currency, and

the bank or broker-dealer (or any affiliate of either) does not have investment discretion, or provide investment advice, with respect to the transaction.

Cross trading.—

Any transaction described in sections 1106(a)(1)(A) and 1106(b)(2) of this title involving the purchase and sale of a security between a plan and any other account managed by the same investment manager, if—

the transaction is a purchase or sale, for no consideration other than cash payment against prompt delivery of a security for which market quotations are readily available,

the transaction is effected at the independent current market price of the security (within the meaning of section 270.17a–7(b) of title 17, Code of Federal Regulations),

no brokerage commission, fee (except for customary transfer fees, the fact of which is disclosed pursuant to subparagraph (D)), or other remuneration is paid in connection with the transaction,

a fiduciary (other than the investment manager engaging in the cross-trades or any affiliate) for each plan participating in the transaction authorizes in advance of any cross-trades (in a document that is separate from any other written agreement of the parties) the investment manager to engage in cross trades at the investment manager’s discretion, after such fiduciary has received disclosure regarding the conditions under which cross trades may take place (but only if such disclosure is separate from any other agreement or disclosure involving the asset management relationship), including the written policies and procedures of the investment manager described in subparagraph (H),

each plan participating in the transaction has assets of at least $100,000,000, except that if the assets of a plan are invested in a master trust containing the assets of plans maintained by employers in the same controlled group (as defined in section 1107(d)(7) of this title), the master trust has assets of at least $100,000,000,

the investment manager provides to the plan fiduciary who authorized cross trading under subparagraph (D) a quarterly report detailing all cross trades executed by the investment manager in which the plan participated during such quarter, including the following information, as applicable: (i) the identity of each security bought or sold; (ii) the number of shares or units traded; (iii) the parties involved in the cross-trade; and (iv) trade price and the method used to establish the trade price,

the investment manager does not base its fee schedule on the plan’s consent to cross trading, and no other service (other than the investment opportunities and cost savings available through a cross trade) is conditioned on the plan’s consent to cross trading,

the investment manager has adopted, and cross-trades are effected in accordance with, written cross-trading policies and procedures that are fair and equitable to all accounts participating in the cross-trading program, and that include a description of the manager’s pricing policies and procedures, and the manager’s policies and procedures for allocating cross trades in an objective manner among accounts participating in the cross-trading program, and

the investment manager has designated an individual responsible for periodically reviewing such purchases and sales to ensure compliance with the written policies and procedures described in subparagraph (H), and following such review, the individual shall issue an annual written report no later than 90 days following the period to which it relates signed under penalty of perjury to the plan fiduciary who authorized cross trading under subparagraph (D) describing the steps performed during the course of the review, the level of compliance, and any specific instances of non-compliance.

The written report under subparagraph (I) shall also notify the plan fiduciary of the plan’s right to terminate participation in the investment manager’s cross-trading program at any time.

Except as provided in subparagraphs (B) and (C), a transaction described in section 1106(a) of this title in connection with the acquisition, holding, or disposition of any security or commodity, if the transaction is corrected before the end of the correction period.

Subparagraph (A) does not apply to any transaction between a plan and a plan sponsor or its affiliates that involves the acquisition or sale of an employer security (as defined in section 1107(d)(1) of this title) or the acquisition, sale, or lease of employer real property (as defined in section 1107(d)(2) of this title).

In the case of any fiduciary or other party in interest (or any other person knowingly participating in such transaction), subparagraph (A) does not apply to any transaction if, at the time the transaction occurs, such fiduciary or party in interest (or other person) knew (or reasonably should have known) that the transaction would (without regard to this paragraph) constitute a violation of section 1106(a) of this title.

For purposes of this paragraph, the term “correction period” means, in connection with a fiduciary or party in interest (or other person knowingly participating in the transaction), the 14-day period beginning on the date on which such fiduciary or party in interest (or other person) discovers, or reasonably should have discovered, that the transaction would (without regard to this paragraph) constitute a violation of section 1106(a) of this title.

For purposes of this paragraph—

The term “security” has the meaning given such term by section 475(c)(2) of title 26 (without regard to subparagraph (F)(iii) and the last sentence thereof).

The term “commodity” has the meaning given such term by section 475(e)(2) of title 26 (without regard to subparagraph (D)(iii) thereof).

The term “correct” means, with respect to a transaction—

to undo the transaction to the extent possible and in any case to make good to the plan or affected account any losses resulting from the transaction, and

to restore to the plan or affected account any profits made through the use of assets of the plan.

The provision of a de minimis financial incentive described in section 401(k)(4)(A) or section 403(b)(12)(A) of title 26.

Fiduciary benefits and compensation not prohibited by section 1106

Nothing in section 1106 of this title shall be construed to prohibit any fiduciary from—

receiving any benefit to which he may be entitled as a participant or beneficiary in the plan, so long as the benefit is computed and paid on a basis which is consistent with the terms of the plan as applied to all other participants and beneficiaries;

receiving any reasonable compensation for services rendered, or for the reimbursement of expenses properly and actually incurred, in the performance of his duties with the plan; except that no person so serving who already receives full time pay from an employer or an association of employers, whose employees are participants in the plan, or from an employee organization whose members are participants in such plan shall receive compensation from such plan, except for reimbursement of expenses properly and actually incurred; or

serving as a fiduciary in addition to being an officer, employee, agent, or other representative of a party in interest.

Owner-employees; family members; shareholder employees

Section 1107(b) of this title and subsections (b), (c), and (e) of this section shall not apply to a transaction in which a plan directly or indirectly—

lends any part of the corpus or income of the plan to,

pays any compensation for personal services rendered to the plan to, or

acquires for the plan any property from, or sells any property to,

any person who is with respect to the plan an owner-employee (as defined in section 401(c)(3) of title 26), a member of the family (as defined in section 267(c)(4) of such title) of any such owner-employee, or any corporation in which any such owner-employee owns, directly or indirectly, 50 percent or more of the total combined voting power of all classes of stock entitled to vote or 50 percent or more of the total value of shares of all classes of stock of the corporation.

For purposes of paragraph (1), the following shall be treated as owner-employees:

A shareholder-employee.

A participant or beneficiary of an individual retirement plan (as defined in section 7701(a)(37) of title 26).

An employer or association of employees which establishes such an individual retirement plan under section 408(c) of such title.

Paragraph (1)(C) shall not apply to a transaction which consists of a sale of employer securities to an employee stock ownership plan (as defined in section 1107(d)(6) of this title) by a shareholder-employee, a member of the family (as defined in section 267(c)(4) of such title) of any such owner-employee, or a corporation in which such a shareholder-employee owns stock representing a 50 percent or greater interest described in paragraph (1).

For purposes of paragraph (1)(A), the term “owner-employee” shall only include a person described in clause (ii) or (iii) of subparagraph (A).

For purposes of paragraph (2), the term “shareholder-employee” means an employee or officer of an S corporation (as defined in section 1361(a)(1) of such title) who owns (or is considered as owning within the meaning of section 318(a)(1) of such title) more than 5 percent of the outstanding stock of the corporation on any day during the taxable year of such corporation.

Acquisition or sale by plan of qualifying employer securities; acquisition, sale, or lease by plan of qualifying employer real property

Sections 1106 and 1107 of this title shall not apply to the acquisition or sale by a plan of qualifying employer securities (as defined in section 1107(d)(5) of this title) or acquisition, sale or lease by a plan of qualifying employer real property (as defined in section 1107(d)(4) of this title)—

if such acquisition, sale, or lease is for adequate consideration (or in the case of a marketable obligation, at a price not less favorable to the plan than the price determined under section 1107(e)(1) of this title),

if no commission is charged with respect thereto, and

if—

the plan is an eligible individual account plan (as defined in section 1107(d)(3) of this title), or

in the case of an acquisition or lease of qualifying employer real property by a plan which is not an eligible individual account plan, or of an acquisition of qualifying employer securities by such a plan, the lease or acquisition is not prohibited by section 1107(a) of this title.

Applicability of statutory prohibitions to mergers or transfers

Section 1106(b)(2) of this title shall not apply to any merger or transfer described in subsection (b)(11).

Provision of investment advice to participant and beneficiaries

In general

The prohibitions provided in section 1106 of this title shall not apply to transactions described in subsection (b)(14) if the investment advice provided by a fiduciary adviser is provided under an eligible investment advice arrangement.

Eligible investment advice arrangement

For purposes of this subsection, the term “eligible investment advice arrangement” means an arrangement—

which either—

provides that any fees (including any commission or other compensation) received by the fiduciary adviser for investment advice or with respect to the sale, holding, or acquisition of any security or other property for purposes of investment of plan assets do not vary depending on the basis of any investment option selected, or

uses a computer model under an investment advice program meeting the requirements of paragraph (3) in connection with the provision of investment advice by a fiduciary adviser to a participant or beneficiary, and

with respect to which the requirements of paragraph (4), (5), (6), (7), (8), and (9) are met.

Investment advice program using computer model

In general

An investment advice program meets the requirements of this paragraph if the requirements of subparagraphs (B), (C), and (D) are met.

Computer model

The requirements of this subparagraph are met if the investment advice provided under the investment advice program is provided pursuant to a computer model that—

applies generally accepted investment theories that take into account the historic returns of different asset classes over defined periods of time,

utilizes relevant information about the participant, which may include age, life expectancy, retirement age, risk tolerance, other assets or sources of income, and preferences as to certain types of investments,

utilizes prescribed objective criteria to provide asset allocation portfolios comprised of investment options available under the plan,

operates in a manner that is not biased in favor of investments offered by the fiduciary adviser or a person with a material affiliation or contractual relationship with the fiduciary adviser, and

takes into account all investment options under the plan in specifying how a participant’s account balance should be invested and is not inappropriately weighted with respect to any investment option.

Certification

In general

The requirements of this subparagraph are met with respect to any investment advice program if an eligible investment expert certifies, prior to the utilization of the computer model and in accordance with rules prescribed by the Secretary, that the computer model meets the requirements of subparagraph (B).

Renewal of certifications

If, as determined under regulations prescribed by the Secretary, there are material modifications to a computer model, the requirements of this subparagraph are met only if a certification described in clause (i) is obtained with respect to the computer model as so modified.

Eligible investment expert

The term “eligible investment expert” means any person—

which meets such requirements as the Secretary may provide, and

does not bear any material affiliation or contractual relationship with any investment adviser or a related person thereof (or any employee, agent, or registered representative of the investment adviser or related person).

Exclusivity of recommendation

The requirements of this subparagraph are met with respect to any investment advice program if—

the only investment advice provided under the program is the advice generated by the computer model described in subparagraph (B), and

any transaction described in subsection (b)(14)(A)(ii) occurs solely at the direction of the participant or beneficiary.

Nothing in the preceding sentence shall preclude the participant or beneficiary from requesting investment advice other than that described in subparagraph (A), but only if such request has not been solicited by any person connected with carrying out the arrangement.

Express authorization by separate fiduciary

The requirements of this paragraph are met with respect to an arrangement if the arrangement is expressly authorized by a plan fiduciary other than the person offering the investment advice program, any person providing investment options under the plan, or any affiliate of either.

Annual audit

The requirements of this paragraph are met if an independent auditor, who has appropriate technical training or experience and proficiency and so represents in writing—

conducts an annual audit of the arrangement for compliance with the requirements of this subsection, and

following completion of the annual audit, issues a written report to the fiduciary who authorized use of the arrangement which presents its specific findings regarding compliance of the arrangement with the requirements of this subsection.

For purposes of this paragraph, an auditor is considered independent if it is not related to the person offering the arrangement to the plan and is not related to any person providing investment options under the plan.

Disclosure

The requirements of this paragraph are met if—

the fiduciary adviser provides to a participant or a beneficiary before the initial provision of the investment advice with regard to any security or other property offered as an investment option, a written notification (which may consist of notification by means of electronic communication)—

of the role of any party that has a material affiliation or contractual relationship with the fiduciary adviser in the development of the investment advice program and in the selection of investment options available under the plan,

of the past performance and historical rates of return of the investment options available under the plan,

of all fees or other compensation relating to the advice that the fiduciary adviser or any affiliate thereof is to receive (including compensation provided by any third party) in connection with the provision of the advice or in connection with the sale, acquisition, or holding of the security or other property,

of any material affiliation or contractual relationship of the fiduciary adviser or affiliates thereof in the security or other property,

 4 the manner, and under what circumstances, any participant or beneficiary information provided under the arrangement will be used or disclosed,

of the types of services provided by the fiduciary adviser in connection with the provision of investment advice by the fiduciary adviser,

that the adviser is acting as a fiduciary of the plan in connection with the provision of the advice, and

that a recipient of the advice may separately arrange for the provision of advice by another adviser, that could have no material affiliation with and receive no fees or other compensation in connection with the security or other property, and

at all times during the provision of advisory services to the participant or beneficiary, the fiduciary adviser—

maintains the information described in subparagraph (A) in accurate form and in the manner described in paragraph (8),

provides, without charge, accurate information to the recipient of the advice no less frequently than annually,

provides, without charge, accurate information to the recipient of the advice upon request of the recipient, and

provides, without charge, accurate information to the recipient of the advice concerning any material change to the information required to be provided to the recipient of the advice at a time reasonably contemporaneous to the change in information.

Other conditions

The requirements of this paragraph are met if—

the fiduciary adviser provides appropriate disclosure, in connection with the sale, acquisition, or holding of the security or other property, in accordance with all applicable securities laws,

the sale, acquisition, or holding occurs solely at the direction of the recipient of the advice,

the compensation received by the fiduciary adviser and affiliates thereof in connection with the sale, acquisition, or holding of the security or other property is reasonable, and

the terms of the sale, acquisition, or holding of the security or other property are at least as favorable to the plan as an arm’s length ³ transaction would be.

Standards for presentation of information

In general

The requirements of this paragraph are met if the notification required to be provided to participants and beneficiaries under paragraph (6)(A) is written in a clear and conspicuous manner and in a manner calculated to be understood by the average plan participant and is sufficiently accurate and comprehensive to reasonably apprise such participants and beneficiaries of the information required to be provided in the notification.

Model form for disclosure of fees and other compensation

The Secretary shall issue a model form for the disclosure of fees and other compensation required in paragraph (6)(A)(iii) which meets the requirements of subparagraph (A).

Maintenance for 6 years of evidence of compliance

The requirements of this paragraph are met if a fiduciary adviser who has provided advice referred to in paragraph (1) maintains, for a period of not less than 6 years after the provision of the advice, any records necessary for determining whether the requirements of the preceding provisions of this subsection and of subsection (b)(14) have been met. A transaction prohibited under section 1106 of this title shall not be considered to have occurred solely because the records are lost or destroyed prior to the end of the 6-year period due to circumstances beyond the control of the fiduciary adviser.

Exemption for plan sponsor and certain other fiduciaries

In general

Subject to subparagraph (B), a plan sponsor or other person who is a fiduciary (other than a fiduciary adviser) shall not be treated as failing to meet the requirements of this part solely by reason of the provision of investment advice referred to in section 1002(21)(A)(ii) of this title (or solely by reason of contracting for or otherwise arranging for the provision of the advice), if—

the advice is provided by a fiduciary adviser pursuant to an eligible investment advice arrangement between the plan sponsor or other fiduciary and the fiduciary adviser for the provision by the fiduciary adviser of investment advice referred to in such section,

the terms of the eligible investment advice arrangement require compliance by the fiduciary adviser with the requirements of this subsection, and

the terms of the eligible investment advice arrangement include a written acknowledgment by the fiduciary adviser that the fiduciary adviser is a fiduciary of the plan with respect to the provision of the advice.

Continued duty of prudent selection of adviser and periodic review

Nothing in subparagraph (A) shall be construed to exempt a plan sponsor or other person who is a fiduciary from any requirement of this part for the prudent selection and periodic review of a fiduciary adviser with whom the plan sponsor or other person enters into an eligible investment advice arrangement for the provision of investment advice referred to in section 1002(21)(A)(ii) of this title. The plan sponsor or other person who is a fiduciary has no duty under this part to monitor the specific investment advice given by the fiduciary adviser to any particular recipient of the advice.

Availability of plan assets for payment for advice

Nothing in this part shall be construed to preclude the use of plan assets to pay for reasonable expenses in providing investment advice referred to in section 1002(21)(A)(ii) of this title.

Definitions

For purposes of this subsection and subsection (b)(14)—

Fiduciary adviser

The term “fiduciary adviser” means, with respect to a plan, a person who is a fiduciary of the plan by reason of the provision of investment advice referred to in section 1002(21)(A)(ii) of this title by the person to a participant or beneficiary of the plan and who is—

registered as an investment adviser under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.) or under the laws of the State in which the fiduciary maintains its principal office and place of business,

a bank or similar financial institution referred to in subsection (b)(4) or a savings association (as defined in section 1813(b)(1) of title 12), but only if the advice is provided through a trust department of the bank or similar financial institution or savings association which is subject to periodic examination and review by Federal or State banking authorities,

an insurance company qualified to do business under the laws of a State,

a person registered as a broker or dealer under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.),

an affiliate of a person described in any of clauses (i) through (iv), or

an employee, agent, or registered representative of a person described in clauses (i) through (v) who satisfies the requirements of applicable insurance, banking, and securities laws relating to the provision of the advice.

For purposes of this part, a person who develops the computer model described in paragraph (3)(B) or markets the investment advice program or computer model shall be treated as a person who is a fiduciary of the plan by reason of the provision of investment advice referred to in section 1002(21)(A)(ii) of this title to a participant or beneficiary and shall be treated as a fiduciary adviser for purposes of this subsection and subsection (b)(14), except that the Secretary may prescribe rules under which only 1 fiduciary adviser may elect to be treated as a fiduciary with respect to the plan.

Affiliate

The term “affiliate” of another entity means an affiliated person of the entity (as defined in section 80a–2(a)(3) of title 15).

Registered representative

The term “registered representative” of another entity means a person described in section 3(a)(18) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(18)) (substituting the entity for the broker or dealer referred to in such section) or a person described in section 202(a)(17) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(17)) (substituting the entity for the investment adviser referred to in such section).

Provision of pharmacy benefit services

In general

Provided that all of the conditions described in paragraph (2) are met, the restrictions imposed by subsections (a), (b)(1), and (b)(2) of section 1106 of this title shall not apply to—

the offering of pharmacy benefit services to a group health plan that is sponsored by an entity described in section 1002(37)(G)(vi) of this title or to any other group health plan that is sponsored by a regional council, local union, or other labor organization affiliated with such entity;

the purchase of pharmacy benefit services by plan participants and beneficiaries of a group health plan that is sponsored by an entity described in section 1002(37)(G)(vi) of this title or of any other group health plan that is sponsored by a regional council, local union, or other labor organization affiliated with such entity; or

the operation or implementation of pharmacy benefit services by an entity described in section 1002(37)(G)(vi) of this title or by any other group health plan that is sponsored by a regional council, local union, or other labor organization affiliated with such entity,

in any arrangement where such entity described in section 1002(37)(G)(vi) of this title or any related organization or subsidiary of such entity provides pharmacy benefit services that include prior authorization and appeals, a retail pharmacy network, pharmacy benefit administration, mail order fulfillment, formulary support, manufacturer payments, audits, and specialty pharmacy and goods, to any such group health plan.

Conditions

The conditions described in this paragraph are the following:

The terms of the arrangement are at least as favorable to the group health plan as such group health plan could obtain in a similar arm’s length arrangement with an unrelated third party.

At least 50 percent of the providers participating in the pharmacy benefit services offered by the arrangement are unrelated to the contributing employers or any other party in interest with respect to the group health plan.

The group health plan retains an independent fiduciary who will be responsible for monitoring the group health plan’s consultants, contractors, subcontractors, and other service providers for purposes of pharmacy benefit services described in paragraph (1) offered by such entity or any of its related organizations or subsidiaries and monitors the transactions of such entity and any of its related organizations or subsidiaries to ensure that all conditions of this exemption are satisfied during each plan year.

Any decisions regarding the provision of pharmacy benefit services described in paragraph (1) are made by the group health plan’s independent fiduciary, based on objective standards developed by the independent fiduciary in reliance on information provided by the arrangement.

The independent fiduciary of the group health plan provides an annual report to the Secretary and the congressional committees of jurisdiction attesting that the conditions described in subparagraphs (C) and (D) have been met for the applicable plan year, together with a statement that use of the arrangement’s services are in the best interest of the participants and beneficiaries in the aggregate for that plan year compared to other similar arrangements the group health plan could have obtained in transactions with an unrelated third party.

The arrangement is not designed to benefit any party in interest with respect to the group health plan.

Violations

In the event an entity described in section 1002(37)(G)(vi) of this title or any affiliate of such entity violates any of the conditions of such exemption, such exemption shall not apply with respect to such entity or affiliate and all enforcement and claims available under this chapter shall apply with respect to such entity or affiliate.

Rule of construction

Nothing in this subsection shall be construed to modify any obligation of a group health plan otherwise set forth in this chapter.

Group health plan

In this subsection, the term “group health plan” has the meaning given such term in section 1191b(a) of this title.

Footnotes

3 So in original. Probably should be “arm’s-length”.
4 So in original. The word “of” probably should appear.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1974
Employee Retirement Income Security Act of 1974
Pub. L. 93–406 title I § 408 · 88 Stat. 829
Enacted · 29 U.S.C. § 1108
Pub. L. 93–406, title I, § 408, Sept. 2, 1974, 88 Stat. 883
Source evidence
Code source credit
Pub. L. 93–406, title I, § 408, Sept. 2, 1974, 88 Stat. 883
Enacted provision · exact public law section
Sec. 408. exemptions from prohibited transactions (a) The Secretary shall establish an exemption procedure 29 USC 1108. for purposes of this subsection. Pursuant to such procedure, he may grant a conditional or unconditional exemption of any fiduciary or transaction, or class of fiduciaries or transactions, from all or part of the restrictions imposed by sections 406 and 407(a). Action under this subsection may be taken only after consultation and coordination with the Secretary of the Treasury. An exemption granted under this section shall not relieve a fiduciary from any other applicable provision of this Act. The Secretary may not grant an exemption under this subsection unless he finds that such exemption is— (1) administratively feasible, (2) in the interests of the plan and of its participants and beneficiaries, and (3) protective of the rights of participants and beneficiaries of such plan. Before granting an exemption under this subsection from section 406(a) Publication in Federal Register. or 407(a), the Secretary shall publish notice in the Federal Register of the pendency of the exemption, shall require that adequate notice be given to interested persons, and shall afford interested persons opportunity to present views. The Secretary may not grant an exemption under this subsection from section 406(b) unless he affords an opportunity for a hearing and makes a determination on the record with respect to the findings required by paragraphs (1), (2), and (3) of this subsection. (b) The prohibitions provided in section 406 shall not apply to Nonapplicability. any of the following transactions: (1) Any loans made by the plan to parties in interest who are participants or beneficiaries of the plan if such loans (A) are available to all such participants and beneficiaries on a reasonably equivalent basis, (B) are not made available to highly compensated employees, officers, or shareholders in an amount greater than the amount made available to other employees, (C) are made in accordance with specific provisions regarding such loans set forth in the plan, (D) bear a reasonable rate of interest, and (E) are adequately secured. (2) Contracting or making reasonable arrangements with a party in interest for office space, or legal, accounting, or other services necessary for the establishment or operation of the plan, if no more than reasonable compensation is paid therefor. (3) A loan to an employee stock ownership plan (as defined in section 407(d)(6)), if— (A) such loan is primarily for the benefit of participants and beneficiaries of the plan, and (B) such loan is at an interest rate which is not in excess of a reasonable rate. If the plan gives collateral to a party in interest for such loan, such collateral may consist only of qualifying employer securities (as defined in section 407(d)(5)). (4) The investment of all or part of a plan’s assets in deposits which bear a reasonable interest rate in a bank or similar financial institution supervised by the United States or a State, if such bank or other institution is a fiduciary of such plan and if— (A) the plan covers only employees of such bank or other institution and employees of affiliates of such bank or other institution, or (B) such investment is expressly authorized by a provision of the plan or by a fiduciary (other than such bank or institution or affiliate thereof) who is expressly empowered by the plan to so instruct the trustee with respect to such investment. (5) Any contract for life insurance, health insurance, or annuities with one or more insurers which are qualified to do business in a State, if the plan pays no more than adequate consideration, and if each such insurer or insurers is— (A) the employer maintaining the plan, or (B) a party in interest which is wholly owned (directly or indirectly) by the employer maintaining the plan, or by any person which is a party in interest with respect to the plan, but only if the total premiums and annuity considerations written by such insurers for life insurance, health insurance, or annuities for all plans (and their employers) with respect to which such insurers are parties in interest (not including premiums or annuity considerations written by the employer maintaining the plan) do not exceed 5 percent of the total premiums and annuity considerations written for all lines of insurance in that year by such insurers (not including premiums or annuity considerations written by the employer maintaining the plan). (6) The providing of any ancillary service by a bank or similar financial institution supervised by the United States or a State, if such bank or other institution is a fiduciary of such plan, and if— (A) such bank or similar financial institution has adopted adequate internal safeguards which assure that the providing of such ancillary service is consistent with sound banking and financial practice, as determined by Federal or State supervisory authority, and (B) the extent to which such ancillary service is provided is subject to specific guidelines issued by such bank or similar financial institution (as determined by the Secretary after consultation with Federal and State supervisory authority), and adherence to such guidelines would reasonably preclude such bank or similar financial institution from providing such ancillary service (i) in an excessive or unreasonable manner, and (ii) in a manner that would be inconsistent with the best interests of participants and beneficiaries of employee benefit plans. Such ancillary services shall not be provided at more than reasonable compensation. (7) The exercise of a privilege to convert securities, to the extent provided in regulations of the Secretary, but only if the plan receives no less than adequate consideration pursuant to such conversion. (8) Any transaction between a plan and (i) a common or collective trust fund or pooled investment fund maintained by a party in interest which is a bank or trust company supervised by a State or Federal agency or (ii) a pooled investment fund of an insurance company qualified to do business in a State, if— (A) the transaction is a sale or purchase of an interest in the fund, (B) the bank, trust company, or insurance company receives not more than reasonable compensation, and (C) such transaction is expressly permitted by the instrument under which the plan is maintained, or by a fiduciary (other than the bank, trust company, or insurance company, or an affiliate thereof) who has authority to manage and control the assets of the plan. (9) The making by a fiduciary of a distribution of the assets of the plan in accordance with the terms of the plan if such assets are distributed in the same manner as provided under section 4044 of this Act (relating to allocation of assets). Post, p. 1025. (c) Nothing in section 406 shall be construed to prohibit any fiduciary from— (1) receiving any benefit to which he may be entitled as a participant or beneficiary in the plan, so long as the benefit is computed and paid on a basis which is consistent with the terms of the plan as applied to all other participants and beneficiaries; (2) receiving any reasonable compensation for services rendered, or for the reimbursement of expenses properly and actually incurred, in the performance of his duties with the plan; except that no person so serving who already receives full-time pay from an employer or an association of employers, whose employees are participants in the plan, or from an employee organization whose members are participants in such plan shall receive compensation from such plan, except for reimbursement of expenses properly and actually incurred; or (3) serving as a fiduciary in addition to being an officer, employee, agent, or other representative of a party in interest. (d) Section 407(b) and subsections (a), (b), (c), and (e) of this section shall not apply to any transaction in which a plan, directly or indirectly— (1) lends any part of the corpus or income of the plan to; (2) pays any compensation for personal services rendered to the plan to; or (3) acquires for the plan any property from or sells any property to; any person who is with respect to the plan an owner-employee (as defined in section 401(c)(3) of the Internal Revenue Code of 1954), 26 USC 401. 26 USC 267. a member of the family (as defined in section 267(c)(4) of such Code) of any such owner-employee, or a corporation controlled by any such owner-employee through the ownership, directly or indirectly, of 50 percent or more of the total combined voting power of all classes of stock entitled to vote or 50 percent or more of the total value of shares of all classes of stock of the corporation. For purposes of this subsection a shareholder employee (as defined in section 1379 of the Internal Revenue Code of 1954) and a participant or beneficiary of an individual 26 USC 1379. retirement account, individual retirement annuity, or an individual retirement bond (as defined in section 408 or 409 of the Internal Revenue Code of 1954) and an employer or association of employers which Post, pp. 959, 964. establishes such an account or annuity under section 408(c) of such code shall be deemed to be an owner-employee. (e) Sections 406 and 407 shall not apply to the acquisition or sale by a plan of qualifying employer securities (as defined in section 407(d)(5)) or acquisition, sale or lease by a plan of qualifying employer real property (as defined in section 407(d)(4))— (1) if such acquisition, sale, or lease is for adequate consideration (or in the case of a marketable obligation, at a price not less favorable to the plan than the price determined under Section 407(e)(1)), (2) if no commission is charged with respect thereto, and (3) if— (A) the plan is an eligible individual account plan (as defined in section 407(d)(3)), or (B) in the case of an acquisition or lease of qualifying employer real property by a plan which is not an eligible individual account plan, or of an acquisition of qualifying employer securities by such a plan, the lease or acquisition is not prohibited by section 407(a).
1980
Multiemployer Pension Plan Amendments Act of 1980
Pub. L. 96–364 § 308(a) · 94 Stat. 1208
Added · 29 U.S.C. § 1108(b)(10); 29 U.S.C. § 1108(b)(11)
Pub. L. 96–364, § 308(a), added pars. (10) and (11)
Source evidence
Code amendment note
Subsec. (b)(10), (11). Pub. L. 96–364, § 308(a), added pars. (10) and (11).
Enacted provision · exact public law section
(a) Section 408(b) is amended by adding at the end thereof the 29 USC 1108. following: “(10) Any transaction required or permitted under part 1 of Ante, p. 1217. subtitle E of title IV. “(11) A merger of multiemployer plans, or the transfer of assets or liabilities between multiemployer plans, determined by the Pension Benefit Guaranty Corporation to meet the requirements Ante, p. 1244. 29 USC 1108. of section 4231.”.
1980
Multiemployer Pension Plan Amendments Act of 1980
Pub. L. 96–364 § 308(b) · 94 Stat. 1208
Added · 29 U.S.C. § 1108(f)
Pub. L. 96–364, § 308(b), added subsec. (f)
Source evidence
Code amendment note
Subsec. (f). Pub. L. 96–364, § 308(b), added subsec. (f).
Enacted provision · exact public law section
(b) Section 408 is amended by adding at the end thereof the following new subsection: “(f) Section 406(b)(2) shall not apply to any merger or transfer described in subsection (b)(11).”.
1982
Subchapter S Revision Act of 1982
Pub. L. 97–354 § 5(a)(43) · 96 Stat. 1669
Substituted · 29 U.S.C. § 1108(d)
Pub. L. 97–354 substituted “section 1379 of title 26 as in effect on the day before the date of the enactment of the Subchapter S Revision Act of 1982” for “section 1379 of title 26”
Source evidence
Code amendment note
Subsec. (d). Pub. L. 97–354 substituted “section 1379 of title 26 as in effect on the day before the date of the enactment of the Subchapter S Revision Act of 1982” for “section 1379 of title 26”.
Enacted provision · exact public law section
(43) Subsection (d) of section 408 of the Employee Retirement Income Security Act of 1974 is amended by striking out “section 26 USC 1108. 1379 of the Internal Revenue Code of 1954” and inserting in lieu thereof “section 1379 of the Internal Revenue Code of 1954 as in effect on the day before the date of the enactment of the Subchapter S Revision Act of 1982”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1114(b)(15)(B) · 100 Stat. 2085
Substituted · 29 U.S.C. § 1108(b)(1)(B)
Pub. L. 99–514, § 1114(b)(15)(B), substituted “highly compensated employees (within the meaning of section 414(q) of title 26)” for “highly compensated employees, officers, or shareholders”
Source evidence
Code amendment note
Subsec. (b)(1)(B). Pub. L. 99–514, § 1114(b)(15)(B), substituted “highly compensated employees (within the meaning of section 414(q) of title 26)” for “highly compensated employees, officers, or shareholders”.
Enacted provision · exact public law section
(B) Section 408(b)(1)(B) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108(b)(1)) is amended by striking out “highly compensated employees, officers, or shareholders” and inserting in lieu thereof “highly compensated employees (within the meaning of section 414(q) of the Internal Revenue Code of 1986)”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1898(i)(1) · 100 Stat. 2085
Struck · 29 U.S.C. § 1108(d)
Pub. L. 99–514, § 1898(i)(1), struck out “(a),” before “(b),” in introductory provisions
Source evidence
Code amendment note
Subsec. (d). Pub. L. 99–514, § 1898(i)(1), struck out “(a),” before “(b),” in introductory provisions.
Enacted provision · exact public law section
(1) Subsection (d) of section 408 of the Employee Retirement Income Security Act of 1974 is amended by striking out “(a),”.
1989
Revenue Reconciliation Act of 1989
Pub. L. 101–239 § 7881 · 103 Stat. 2106
Added · 29 U.S.C. § 1108(b)(12)
Pub. L. 101–239, § 7881(l)(5), added par. (12)
Source evidence
Code amendment note
Subsec. (b)(12). Pub. L. 101–239, § 7881(l)(5), added par. (12).
Enacted provision · exact public law section
SEC. 7881. AMENDMENTS RELATED TO PENSION PROTECTION ACT. (a) Amendments Related to Section 9303.— (1) (A) Subclause (II) of section 412(l)(3)(C)(ii) is amended by 26 USC 412. inserting “(but not below zero)” after “reducing”. (B) Subclause (II) of section 302(d)(3)(C)(ii) of ERISA is 29 USC 1082. amended by inserting “(but not below zero)” after “reducing”. (2) (A) Clause (i) of section 412(1)(4)(8) is amended by inserting “and the unamortized portion of the unfunded existing benefit increase liability” after “liability”. (B) Clause (i) of section 302(d)(4)(B) of ERISA is amended by inserting “and the unamortized portion of the unfunded existing benefit increase liability” after “liability”. (3) (A) Section 412(l)(5)(C) is amended by striking “October 17, 1987” and inserting “the first plan year beginning after December 31, 1988”. (B) Section 302(d)(5)(C) of ERISA is amended by striking “October 17, 1987” and inserting “the first plan year beginning after December 31, 1988”. (4) (A) Section 412(1)(7)(D) is amended— (i) by striking “and” at the end of clause (iii)(I), by striking the period at the end of clause (iii)(II) and inserting “, and”, and by adding at the end of clause (iii) the following new subclause: “(III) has years of service greater than the minimum years of service necessary for eligibility to participate in the plan.”, and (ii) by adding at the end thereof the following new clause: “(iv) Election.— An employer may elect not to have this subparagraph apply. Such an election, once made, may be revoked only with the consent of the Secretary.”. (B) Section 302(d)(7)(D) of ERISA is amended— (i) by striking “and” at the end of clause (iii)(I), by striking the period at the end of clause (iii)(II) and inserting “, and”, and by adding at the end of clause (iii) the following new subclause: “(III) has years of service greater than the minimum years of service necessary for eligibility to participate in the plan.”, and (ii) by adding at the end thereof the following new clause: “(iv) Election.— An employer may elect not to have this subparagraph apply. Such an election, once made, may be revoked only with the consent of the Secretary of the Treasury.”. (5) (A) Section 412(1)(8) is amended— (i) by striking “reduced by any credit balance in the funding standard account” in subparagraph (A)(ii), and (ii) by adding at the end thereof the following new subparagraph: “(E) Deduction for credit balances.— For purposes of this subsection, the amount determined under subparagraph (A)(ii) shall be reduced by any credit balance in the funding standard account. The Secretary may provide for such reduction for purposes of any other provision which references this subsection.”. (B) Section 302(d)(8) of ERISA is amended— (i) by striking “reduced by any credit balance in the funding standard account” in subparagraph (A)(ii), and (ii) by adding at the end thereof the following new subparagraph: “(E) Deduction for credit balances.— For purposes of this subsection, the amount determined under subparagraph (A)(ii) shall be reduced by any credit balance in the funding standard account. The Secretary of the Treasury may provide for such reduction for purposes of any other provision which references this subsection.”. (6) (A) Section 412(c)(9) is amended— (i) by striking “3 years” and inserting “year”, and (ii) by striking “3-year” in the heading and inserting “Annual”. (B) Section 302(c)(9) of ERISA is amended by striking “3 years” and inserting “year”. (7) Subclause (II) of section 9303(e)(3)(C)(ii) of the Pension 26 USC 412 note. Protection Act is amended by inserting “(and any income allocable to such amount)” after “clause (i)”. (b) Amendments Related to Section 9304.— (1) (A) Subparagraph (A) of section 412(c)(10) is amended— (i) by inserting “defined benefit” before “plan other”, and (ii) by striking “Plans” in the heading and inserting “Defined benefit plans”. (B) Subparagraph (A) of section 302(c)(10) of ERISA is 29 USC 1082. amended by inserting “defined benefit” before “plan other”. (2) (A) Subparagraph (B) of section 412(c)(10) is amended— 26 USC 412. (i) by striking “multiemployer plan” and inserting “plan not described in subparagraph (A)”, and (ii) by striking “Multiemployer” in the heading and inserting “Other”. (B) Subparagraph (B) of section 302(c)(10) of ERISA is amended by striking “multiemployer plan” and inserting “plan not described in subparagraph (A)”. (3) (A) Section 412(m)(1) is amended by inserting “defined benefit” before “plan (other”. (B) Section 302(e)(1) of ERISA is amended by inserting “defined benefit” before “plan (other”. (4) (A) Subparagraph (D) of section 412(m)(4) is amended to read as follows: “(D) Special rules for unpredictable contingent event benefits.— In the case of a plan to which subsection (1) applies for any calendar year and which has any unpredictable contingent event benefit liabilities— “(i) Liabilities not taken into account.— Such liabilities shall not be taken into account in computing the required annual payment under subparagraph (B). “(ii) Increase in installments.— Each required installment shall be increased by the greater of— “(I) the unfunded percentage of the amount of benefits described in subsection (l)(5)(A)(i) paid during the 3-month period preceding the month in which the due date for such installment occurs, or “(II) 25 percent of the amount determined under subsection (l)(5)(A)(ii) for the plan year. “(iii) Unfunded percentage.— For purposes of clause (ii)(I), the term ‘unfunded percentage’ means the percentage determined under subsection d)(5)(A)(i)(I) for the plan year. “(iv) Limitation on increase.— In no event shall the increases under clause (ii) exceed the amount necessary to increase the funded current liability percentage (within the meaning of subsection (1)(8)(B)) for the plan year to 100 percent.”. (B) Subparagraph (D) of section 302(e)(4) of ERISA is amended to read as follows: “(D) Special rules for unpredictable contingent event benefits.— In the case of a plan to which subsection (d) applies for any calendar year and which has any unpredictable contingent event benefit liabilities— “(i) Liabilities not taken into account.— Such liabilities shall not be taken into account in computing the required annual payment under subparagraph (B). “(ii) Increase in installments.— Each required installment shall be increased by the greater of— “(I) the unfunded percentage of the amount of benefits described in subsection (d)(5)(A)(i) paid curing the 3-month period preceding the month in which the due date for such installment occurs, or “(II) 25 percent of the amount determined under subsection (d)(5)(A)(ii) for the plan year. “(iii) Unfunded percentage.— For purposes of clause (ii)(I), the term ‘unfunded percentage’ means the percentage determined under subsection (d)(5)(A)(i)(I) for the plan year. “(iv) Limitation on increase.— In no event shall the increases under clause (ii) exceed the amount necessary to increase the funded current liability percentage (within the meaning of subsection (d)(8)(B)) for the plan year to 100 percent.”. (5) (A) Section 101(d)(1) of ERISA is amended by striking “an employer of a plan” and inserting “an employer maintaining a plan”. (B) Section 502(c) of ERISA is amended by adding at the end thereof the following new paragraph: “(3) Any employer maintaining a plan who fails to meet the notice requirement of section 101(d) with respect to any participant or beneficiary may in the court’s discretion be liable to such participant or beneficiary in the amount of up to $100 a day from the date of such failure, and the court may in its discretion order such other relief as it deems proper.”. (C) Section 9304(d) of the Pension Protection Act is amended by striking “Section” and inserting “Effective with respect to plan years beginning after December 31, 1987, section”. (6) (A) (i) Subparagraph (B) of section 412(m)(1) is amended to read as follows: “(B) the rate of interest used under the plan in determining costs (including adjustments under subsection (b)(5)(B)).”. (ii) Clause (ii) of section 412(d)(1)(A) is amended by inserting “(including adjustments under subsection (b)(5)(B))” after “costs”. (B) (i) Subparagraph (B) of section 302(e)(1) of ERISA is amended to read as follows: “(B) the rate of interest used under the plan in determining costs (including adjustments under subsection (b)(5)(B)).”. (ii) Section 303(a)(1)(B) of ERISA (as redesignated by subsection (e)(2)) is amended by inserting “(including adjustments under section 302(b)(5)(B))” after “costs”. (7) Section 303(a) of ERISA (as amended by section 9306(c)(2)(A) of the Pension Protection Act) is amended— (A) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively, and by adjusting the left-hand margination thereof 4 ems to the left; (B) in paragraph (1) (as redesignated), by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; and (C) in paragraph (2) (as redesignated), by inserting “of such Code” after “section 6621(b)”. (8) Subsection (f) of section 303 of ERISA (as so redesignated by section 9306(a)(2) of the Pension Protection Act) is transferred to immediately after subsection (e) of such section. (c) Amendments Related to Section 9306.— (1) The last sentence of section 412(f)(4)(A) is amended by striking “the benefit liabilities” and inserting “for benefit liabilities”. (2) The last sentence of section 303(e)(1) of ERISA is amended 29 USC 1083. by striking “the benefit liabilities” and inserting “for benefit liabilities”. (3) Section 9306(f)(3) of the Pension Protection Act is amended 26 USC 412 note. to read as follows: “(3) Subsection (b).— The amendments made by subsection (b) shall apply to waivers for plan years beginning after December 31, 1987. For purposes of applying such amendments, the number of waivers which may be granted for plan years after December 31, 1987, shall be determined without regard to any waivers granted for plan years beginning before January 1, 1988.”. (d) Amendments Related to Section 9307.— (1) (A) Clause (iii) of section 412(b)(5)(B) is amended by striking 26 USC 412. “for purposes of this section and for purposes of determining current liability,”. (B) Clause (iii) of section 302(b)(5)(B) of ERISA is amended by 29 USC 1082. striking “for purposes of this section and for purposes of determining current liability,”. (2) (A) Section 302(b)(5)(B) of ERISA is amended by inserting the following matter after the heading and before clause (i): “For purposes of determining a plan’s current liability and for purposes of determining a plan’s required contribution under section 302(d) for any plan year—”. (B) Section 302(b)(5) of ERISA is amended by striking the matter following the heading thereof and preceding subparagraph (A). (C) Subclause (I) of section 302(b)(5)(B)(ii) of ERISA is amended by striking “average rate” and inserting “the weighted average of the rates”. (3) Section 9307(f) of the Pension Protection Act is amended to 26 USC 404 note. read as follows: “(f) Effective Date.— “(1) In general.— Except as provided in paragraph (2), the amendments made by this section shall apply to years beginning after December 31, 1987. “(2) Amortization of gains and losses.— Sections 412(b)(2)(B)(iv) and 412(b)(3)(B)(ii) of the Internal Revenue Code of 1986 and sections 302(b)(2)(B)(iv) and 302(b)(3)(B)(ii) of the Employee Retirement Income Security Act of 1974 (as amended by paragraphs (1)(A) and (2)(A) of subsection (a)) shall apply to gains and losses established in years beginning after December 31, 1987. For purposes of the preceding sentence, any gain or loss determined by a valuation occurring as of January 1, 1988, shall be treated as established in years beginning before 1988, or at the election of the employer, shall be amortized in accordance with Internal Revenue Service Notice 89–52.”. (4) Subparagraphs (A) and (B) of section 302(c)(3) of ERISA are each amended by adjusting the left-hand margination thereof, and of each subdivision thereof, 2 ems to the left. (e) Amendments Related to Section 9311.— (1) Section 9311(a)(2) of the Pension Protection Act is amended 29 USC 1344 note. by striking “plan assets to the employer for purposes of section 4044(d)(1)(C) of the Employee Retirement Income Security Act of 1974” and inserting “residual plan assets upon termination”. (2) Section 9311(d) of the Pension Protection Act is amended— (A) by striking “section 4041(c)” and inserting “section 4041” in paragraph (1), and (B) by adding at the end thereof the following new flush sentence: “Except as provided in subsection (a)(2), the amendments made by subsection (a) shall, apply to any provision of the plan or plan amendment adopted after December 17, 1987.”. (3) Section 9311(b)(2) of the Pension Protection Act is amended by striking “subsection (c)(1)” and inserting “subsection (a)(1)”. (4) Section 9311(a)(2) of the Pension Protection Act is amended— (A) by striking “1 year after the effective date of such amendments made by paragraph (1)” and inserting “December 17, 1988”; and (B) by striking the last sentence. (f) Amendments Related to Section 9312.— (1) Section 9312(b)(3)(B)(i) of the Pension Protection Act is amended— (A) by striking “section 4022(c)(1)” in subclause (I) and inserting “section 4022(c)(3)”, and (B) by striking “subparagraph (B) of section 4022(c)(1)” and inserting “subparagraph (C) of section 4022(c)(3)”. (2) Section 4062(a) of ERISA is amended— (A) by inserting “and” at the end of paragraph (1); (B) by striking paragraph (2); (C) by redesignating paragraph (3) as paragraph (2); and (D) in paragraph (2) (as so redesignated), by striking “subsection (d)” and inserting “subsection (c)”. (3) (A) Section 4064(b) of ERISA is amended by striking “and clauses (i)(II) and (ii) of section 4062(b)(1)(A)” and inserting “and section 4068(a)”. (B) Section 4068(a) of ERISA is amended by striking the last sentence. (4) Section 4022(c)(1) of ERISA is amended by striking “(in the case of a deceased participant)”. (5) Section 4022(c)(3)(B)(ii) of ERISA is amended by inserting “, and during the 5-Federal fiscal year period ending with the fiscal year preceding the fiscal year in which occurs the date of the notice of intent to terminate with respect to the plan termination for which the recovery ratio is being determined” after “1987”. (6) Section 9312(b)(3)(B) of the Pension Protection Act is amended by striking clause (ii). (7) Section 4041(c) of ERISA is amended— (A) fay striking “(or its designee under section 4049(b))” in paragraph (2)(A)(iii)(H), (B) by striking “section 4049” in paragraph (2)(A)(iii)(II) and inserting “section 4022(c)”, and (C) by striking the last sentence of paragraph (3)(C)(i). (8) Section 4070(a) of ERISA is amended by striking “4049,”. (9) Section 9312(d)(1) of the Pension Protection Act is amended by striking “section 4041(c)” and inserting “section 4041”. (10) (A) Section 4062(b)(2)(B) of ERISA is amended by striking “the liability under paragraph (1)(A)(ii)” and inserting “so much of the liability under paragraph (1)(A) as exceeds 30 percent of the collective net worth of all persons described in subsection (a) (including interest)”. (B) Section 9312(b)(2)(B)(ii) of the Pension Protection Act is 29 USC 1362. amended to read as follows: “(ii) Section 4062(d) of ERISA (as redesignated by paragraph (1)(B)) is amended by striking out paragraph (3).”. (C) Section 4068 of ERISA is amended by adding at the end 29 USC 1368. the following new subsection: “(f) Definitions.— For purposes of this section— “(1) The collective net worth of persons subject to liability in connection with a plan termination shall be determined as provided in section 4062(d)(1). “(2) The term ‘pre-tax profits’ has the meaning provided in section 4062(d)(2).”. (11) Section 4022(c)(1) of ERISA is amended by striking “section 29 USC 1322. 4044(a), to such participant” and inserting “section 4044(a). Such payment shall be made to such participant”. (12) Subsection (a) of section 4068 of ERISA is amended— (A) by striking “to the extent such amount does not exceed 30 percent of the collective net worth of all persons described in section 4062(a)” the first place it appears; and (B) by striking “to the extent such amount does not Gifts and property. Real property. exceed 30 percent of the collective net worth of all persons described in section 4062(a)” the second place it appears and all that follows and inserting the following: “in the amount of such liability (including interest) upon all property and rights to property, whether real or personal, belonging to such person, except that such lien may not be in an amount in excess of 30 percent of the collective net worth of all persons described in section 4062(a)”. (13) The table of contents in section 1 of ERISA is amended by striking the item relating to section 4049. (g) Amendments Related to Section 9313.— (1) Section 4041(d)(1) of ERISA is amended by striking “sufficient 29 USC 1341. for benefit commitments” and inserting “sufficient for benefit liabilities”. (2) Section 4041(c)(2)(B) of ERISA is amended by inserting “proposed” before “termination” in the parenthetical in the second sentence. (3) Clause (ii) of section 4041(c)(2)(A) of ERISA is amended— (A) by inserting “unless the corporation determines the information is not necessary for purposes of paragraph (3)(A) or section 4062,” before “certification”, (B) by inserting “and, if applicable, the proposed distribution date” after “termination date” in subclause (I), and (C) by striking “date” and inserting “dates” in subclauses (II) through (V). (4) Subparagraph (B) of section 4041(b)(3) of ERISA is amended by adding a period at the end. (5) Section 9313(b)(3) of the Pension Protection Act is amended 29 USC 1341. by inserting “each place it appears” before the period. (6) Section 4041(b)(2)(A) of ERISA is amended by adjusting the left-hand margination of the last sentence two ems to the right. (7) The first subsection (b) of section 9314 of the Pension Protection Act is amended by striking “Section 4042” and 29 USC 1342. inserting “Section 4042(a)”, and by striking “third sentence” and inserting “last sentence”. (8) Section 9314(c)(1) of the Pension Protection Act is amended by inserting “title IV of” after “Subtitle D of”. (h) Amendment Related to Section 9331.— (1) Subparagraph (E) of section 4006(a)(3) of ERISA is amended by adding at the end thereof the following new clause: “(v) No premium shall be determined under this subparagraph for any plan year if, as of the close of the preceding plan year, contributions to the plan for the preceding plan year were not less than the full funding limitation for the preceding plan year under section 412(c)(7) of the Internal Revenue Code of 1986.”. (2) Clause (iii) of section 4006(c)(1)(A) of ERISA is amended by adjusting the left-hand margination thereof 2 ems to the left. (i) Amendments Related to Section 9341.— (1) (A) Section 401(a)(29)(C)(i)(H) is amended by inserting “and any other plan amendments adopted after December 22, 1987, and before such plan amendment” after “amendment”. (B) Section 307(c)(1)(B) of ERISA is amended by inserting “and any other plan amendments adopted after December 22, 1987, and before such plan amendment”. (2) Section 307(d) of ERISA is amended by inserting “of the Treasury” after “Secretary”. (3) (A) Section 307 of ERISA is amended by redesignating subsection (e) as subsection (f) and by inserting after subsection (d) the following new subsection: “(e) Notice.— A contributing sponsor which is required to provide security under subsection (a) shall notify the Pension Benefit Guaranty Corporation within 30 days after the amendment requiring such security takes effect. Such notice shall contain such information as the Corporation may require.”. (B) Section 4071 of ERISA is amended— (i) by striking “or subtitle A B, or C” and inserting “, subtitle A B, or C, as section 302(f)(4) or 307(e)”, and (ii) by inserting “or such section” after “such subtitle”. (4) (A) Clause (i) of section 401(a)(29)(A) is amended by inserting “to which the requirements of section 412 apply” after “multiemployer plan)”. (B) Section 307(a)(1) of ERISA is amended by inserting “to which the requirements of section 302 apply” after “multiemployer plan)”. (5) Section 9341(c) of the Pension Protection Act is amended by inserting “(without regard to any extension, amendment, or modification of such agreements on or after such date of enactment)” after “ratified before the date of enactment”. (j) Amendments Related to Section 9342.— (1) Paragraph (11) of section 103(d) of ERISA is amended— (A) by striking “60 percent” and inserting “70 percent”, and (B) by striking “such percentage” and inserting “the percentage which such value is of such liability.”. (2) Section 502(a)(6) of ERISA is amended by striking “subsection (i)” and inserting “subsection (c)(2) or (i)”. (3) Section 502(c)(2) of ERISA is amended— (A) by inserting “against any plan administrator” after “civil penalty”, and (B) by striking “a plan administrator’s” and inserting “such plan administrator’s”. (4) Paragraph (2) of section 413 of ERISA is amended by 29 USC 1113. striking the comma. (k) Amendment Related to Section 9343.— Section 403(c) of ERISA is amended by striking paragraph (3) and by redesignating 29 USC 1103. paragraph (4) as paragraph (3). (l) Amendments Related to Section 9345.— (1) Section 407(d)(3)(C) of ERISA is amended by adjusting the 29 USC 1107. left-hand margination thereof 2 ems to the left. (2) Section 4O7(d)(9) of ERISA is amended— (A) by striking “such arrangement” and inserting “such individual account plan”; and (B) by adjusting the left-hand margination thereof 2 ems to the right. (3) Section 407(f) of ERISA is amended— (A) in paragraph (1), by striking “this subsection” and inserting “this paragraph”; and (B) by striking paragraph (3). (4) Section 407(f)(1) of ERISA is amended by inserting “, immediately following the acquisition of such stock” after “if”. (5) Section 408(b) of ERISA is amended by adding at the end 29 USC 1108. the following new paragraph: “(12) The sale by a plan to a party in interest on or after Securities. December 18, 1987, of any stock, if— “(A) the requirements of paragraphs (1) and (2) of subsection (e) are met with respect to such stock, “(B) on the later of the date on which the stock was acquired by the plan, or January 1, 1975, such stock constituted a qualifying employer security (as defined in section 4O7(d)(5) as then in effect), and “(C) such stock does not constitute a qualifying employer security (as defined in section 407(d)(5) as in effect at the time of the sale).”. (m) Amendments Related to Section 9346.— (1) (A) Clause (iii) of section 411(c)(2)(C) is amended to read as 26 USC 411. follows: “(iii) interest on the sum of the amounts determined under clauses (i) and (ii) compounded annually— “(I) at the rate of 120 percent of the Federal mid-term rate (as in effect under section 1274 for the 1st month of a plan year) for the period beginning with the 1st plan year to which subsection (a)(2) applies (by reason of the applicable effective date) and ending with the date on which the determination is being made, and “(II) at the interest rate which would be used under the plan under section 417(e)(3) (as of the determination date) for the period beginning with the determination date and ending on the date on which the employee attains normal retirement age.”, (B) Subparagraph (B) of section 411(c)(2) is amended to read as follows: “(B) Defined benefit plans.— In the case of a defined benefit plan, the accrued benefit derived from contributions made by an employee as of any applicable date is the amount equal to the employee’s accumulated contributions expressed as an annual benefit commencing at normal retirement age, using an interest rate which would be used under the plan under section 417(e)(3) (as of the determination date).”. (C) Section 411(c)(2) is amended by striking subparagraph (E). (D) Section 411(a)(7) is amended by adding at the end thereof the following new subparagraph: “(D) Accrued benefit attributable to employee contributions.— The accrued benefit of an employee shall not be less than the amount determined under subsection (c)(2)(B) with respect to the employee’s accumulated contributions.”. (2) (A) Clause (iii) of section 204(c)(2)(C) of ERISA is amended to read as follows: “(iii) interest on the sum of the amounts determined under clauses (i) and (ii) compounded annually— “(I) at the rate of 120 percent of the Federal mid-term rate (as in effect under section 1274 of the Internal Revenue Code of 1986 for the 1st month of a plan year for the period beginning with the 1st plan year to which subsection (a)(2) applies by reason of the applicable effective date) and ending with the date on which the determination is being made, and “(II) at the interest rate which would be used under the plan under section 205(g)(3) (as of the determination date) for the period beginning with the determination date and ending on the date on which the employee attains normal retirement age.”. (B) Subparagraph (B) of section 204(c)(2) of ERISA is amended to read as follows: “(B) Defined benefit plans.— In the case of a defined benefit plan, the accrued benefit derived from contributions made by an employee as of any applicable date is the amount equal to the employee’s accumulated contributions expressed as an annual benefit commencing at normal retirement age, using an interest rate which would be used under the plan under section 205(g)(3) (as of the determination date).”. (C) Section 204(c)(2) of ERISA is amended by striking subparagraph (E). (D) Paragraph (23) of section 3 of ERISA is amended by adding at the end thereof the following new flush sentence: “The accrued benefit of an employee shall not be less than the amount determined under section 204(c)(2)(B) with respect to the employee’s accumulated contribution.”. (3) If— (A) during the period beginning December 22, 1987, and ending June 21, 1988, a plan was amended to reflect the amendments made by section 9346 of the Pension Protection Act, and (B) such plan is amended to reflect the amendments made by this subsection, any plan amendment described in subparagraph (B) shall not be treated as reducing accrued benefits for purposes of section 411(d)(6) of the Internal Revenue Code of 1986 or section 204(g) of ERISA.
1989
Revenue Reconciliation Act of 1989
Pub. L. 101–239 § 7891(a)(1) · 103 Stat. 2106
Substituted · 29 U.S.C. § 1108(d)
Pub. L. 101–239, § 7891(a)(1), in last sentence, substituted “section 401(c)(3) of the Internal Revenue Code of 1986” for “section 401(c)(3) of the Internal Revenue Code of 1954”, which for purposes of codification was translated as “section 401(c)(3) of title 26” thus requiring no change in text
Source evidence
Code amendment note
Subsec. (d). Pub. L. 101–239, § 7891(a)(1), in last sentence, substituted “section 401(c)(3) of the Internal Revenue Code of 1986” for “section 401(c)(3) of the Internal Revenue Code of 1954”, which for purposes of codification was translated as “section 401(c)(3) of title 26” thus requiring no change in text.
Enacted provision · exact public law section
(1) Titles I, III, and IV of ERISA (other than sections 3(37)(E), 29 USC 1001 et seq. 301(a)(7), and 308, the last sentence of section 408(d), and sections 414(c), 4001(a)(3)(ii), and 4303) are each amended by striking “Internal Revenue Code of 1954” each place it appears and inserting “Internal Revenue Code of 1986”.
1989
Revenue Reconciliation Act of 1989
Pub. L. 101–239 § 7891(a)(2) · 103 Stat. 2106
1. Substituted · 29 U.S.C. § 1108(d)
  Pub. L. 101–239, § 7891(a)(2), in last sentence, substituted “section 408 of the Internal Revenue Code of 1986” for “section 408 of the Internal Revenue Code of 1954” which for purposes of codification were translated as “section 408 of title 26” and “section 408(c) of title 26”, respectively, thus requiring no change in text
2. Substituted · 29 U.S.C. § 1108(d)
  Pub. L. 101–239, § 7891(a)(2), in last sentence, substituted “section 408(c) of the Internal Revenue Code of 1986” for “section 408(c) of such Code” which for purposes of codification were translated as “section 408 of title 26” and “section 408(c) of title 26”, respectively, thus requiring no change in text
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–239, § 7891(a)(2), in last sentence, substituted “section 408 of the Internal Revenue Code of 1986” for “section 408 of the Internal Revenue Code of 1954” and “section 408(c) of the Internal Revenue Code of 1986” for “section 408(c) of such Code” which for purposes of codification were translated as “section 408 of title 26” and “section 408(c) of title 26”, respectively, thus requiring no change in text.
Enacted provision · exact public law section
(2) The last sentence of section 408(d) of ERISA (as amended 29 USC 1108. by section 7894(e)(4)(A)(i)) is further amended— (A) by striking “section 408 of the Internal Revenue Code of 1954” and inserting “section 408 of the Internal Revenue Code of 1986”; and (B) by striking “section 408(c) of such Code” and inserting “section 408(c) of the Internal Revenue Code of 1986”.
1989
Revenue Reconciliation Act of 1989
Pub. L. 101–239 § 7894(e)(4)(A) · 103 Stat. 2106
1. Substituted · 29 U.S.C. § 1108(d)
  Pub. L. 101–239, § 7894(e)(4)(A), in last sentence, substituted “individual retirement account or individual retirement annuity described in section 408 of title 26 or a retirement bond described in section 409 of title 26 (as effective for obligations issued before January 1, 1984)” for “individual retirement account, individual retirement annuity, or an individual retirement bond (as defined in section 408 or 409 of title 26)” which for purposes of codification was translated as “section 408(c) of title 26” thus requiring no change in text
2. Substituted · 29 U.S.C. § 1108(d)
  Pub. L. 101–239, § 7894(e)(4)(A), in last sentence, substituted “section 408(c) of such Code” for “section 408(c) of such code” which for purposes of codification was translated as “section 408(c) of title 26” thus requiring no change in text
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–239, § 7894(e)(4)(A), in last sentence, substituted “individual retirement account or individual retirement annuity described in section 408 of title 26 or a retirement bond described in section 409 of title 26 (as effective for obligations issued before January 1, 1984)” for “individual retirement account, individual retirement annuity, or an individual retirement bond (as defined in section 408 or 409 of title 26)” and “section 408(c) of such Code” for “section 408(c) of such code”, which for purposes of codification was translated as “section 408(c) of title 26” thus requiring no change in text.
Enacted provision · exact public law section
(A) Section 408(d) of ERISA is amended, in the last sentence— (i) by striking “individual retirement account, individual retirement annuity, or an individual retirement bond (as defined in section 408 or 409 of the Internal Revenue Code of 1954)” and inserting “individual retirement account or individual retirement annuity described in section 408 of the Internal Revenue Code of 1954 or a retirement bond described in section 409 of the Internal Revenue Code of 1954 (as effective for obligations issued before January 1, 1984)”; and (ii) by striking “section 408(c) of such code” and inserting “section 408(c) of such Code”.
1990
Omnibus Budget Reconciliation Act of 1990
Pub. L. 101–508 title XII § 12012(b) · 104 Stat. 1388
Added · 29 U.S.C. § 1108(b)(13)
Pub. L. 101–508 added par. (13)
Source evidence
Code amendment note
Subsec. (b)(13). Pub. L. 101–508 added par. (13).
Enacted provision · exact public law section
(b) Exemptions From Prohibited Transactions.— Section 408(b) of such Act (29 U.S.C. 1108(b)) is amended by adding at the end thereof the following new paragraph: “(13) Any transfer in a taxable year beginning before January 1, 1996, of excess pension assets from a defined benefit plan to a retiree health account in a qualified transfer permitted under section 420 of the Internal Revenue Code of 1986 (as in effect on January 1, 1991).”
1994
Pub. L. 103–465 title VII § 731(c)(4)(C) · 108 Stat. 4809
1. Substituted · 29 U.S.C. § 1108(b)(13)
  Pub. L. 103–465 substituted “2001” for “1996”
2. Substituted · 29 U.S.C. § 1108(b)(13)
  Pub. L. 103–465 substituted “1995” for “1991”
Source evidence
Code amendment note
Subsec. (b)(13). Pub. L. 103–465 substituted “2001” for “1996” and “1995” for “1991”.
Enacted provision · exact public law section
(C) Paragraph (13) of section 408(b) of such Act (29 U.S.C. U08(b)(13)) is amended— (i) by striking “1996” and inserting “2001”, and (ii) by striking “1991” and inserting “1995”.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 title I § 1704(n)(2) · 110 Stat. 1755
Inserted · 29 U.S.C. § 1108(b)(1)
Pub. L. 104–188 inserted at end “A loan made by a plan shall not fail to meet the requirements of the preceding sentence by reason of a loan repayment suspension described under section 414(u)(4) of title 26.”
Source evidence
Code amendment note
Subsec. (b)(1). Pub. L. 104–188 inserted at end “A loan made by a plan shall not fail to meet the requirements of the preceding sentence by reason of a loan repayment suspension described under section 414(u)(4) of title 26.”
Enacted provision · exact public law section
(2) Amendment to erisa.— Section 408(b)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 29 USC 1108. 1148(b)) is amended by adding at the end the following new sentence: “A loan made by a plan shall not fail to meet the requirements of the preceding sentence by reason of a loan repayment suspension described under section 414(u)(4) of the Internal Revenue Code of 1986.”.
1997
Pub. L. 105–34 title XV § 1506(b)(2) · 111 Stat. 788
1. Amended · 29 U.S.C. § 1108(d)
  Pub. L. 105–34 amended subsec. (d) generally
2. Substituted · 29 U.S.C. § 1108(d)
  Pub. L. 105–34 substituting present provisions for provisions exempting transactions involving an owner-employee, a member of the family, or a corporation controlled by any such owner-employee through the ownership, directly or indirectly, of 50 percent or more of the total combined voting power of all classes of stock entitled to vote or 50 percent or more of the total value of shares of all classes of stock of the corporation
Source evidence
Code amendment note
Subsec. (d). Pub. L. 105–34 amended subsec. (d) generally, substituting present provisions for provisions exempting transactions involving an owner-employee, a member of the family, or a corporation controlled by any such owner-employee through the ownership, directly or indirectly, of 50 percent or more of the total combined voting power of all classes of stock entitled to vote or 50 percent or more of the total value of shares of all classes of stock of the corporation.
Enacted provision · exact public law section
(2) Amendment to erisa.— Section 408(d) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108(d)) is amended to read as follows: (1) Section 407(b) and subsections (b), (c), and (e) of this section shall not apply to a transaction in which a plan directly or indirectly— “(A) lends any part of the corpus or income of the plan to, “(B) pays any compensation for personal services rendered to the plan to, or “(C) acquires for the plan any property from, or sells any property to, any person who is with respect to the plan an owner-employee (as defined in section 401(c)(3) of the Internal Revenue Code of 1986), a member of the family (as defined in section 267(c)(4) of such Code) of any such owner-employee, or any corporation in which any such owner-employee owns, directly or indirectly, 50 percent or more of the total combined voting power of all classes of stock entitled to vote or 50 percent or more of the total value of shares of all classes of stock of the corporation. “(2) (A) For purposes of paragraph (1), the following shall be treated as owner-employees: “(i) A shareholder-employee. “(ii) A participant or beneficiary of an individual retirement plan (as defined in section 7701(a)(37) of the Internal Revenue Code of 1986). “(iii) An employer or association of employees which establishes such an individual retirement plan under section 408(c) of such Code. “(B) Paragraph (1)(C) shall not apply to a transaction which consists of a sale of employer securities to an employee stock ownership plan (as defined in section 407(d)(6)) by a shareholderemployee, a member of the family (as defined in section 267(c)(4) of such Code) of any such owner-employee, or a corporation in which such a shareholder-employee owns stock representing a 50 percent or greater interest described in paragraph (1). “(3) For purposes of paragraph (2), the term ‘shareholderemployee’ means an employee or officer of an S corporation (as defined in section 1361(a)(1) of such Code) who owns (or is considered as owning within the meaning of section 318(a)(1) of such Code) more than 5 percent of the outstanding stock of the corporation on any day during the taxable year of such corporation.”.
1999
Tax Relief Extension Act of 1999
Pub. L. 106–170 title V § 535(a)(2)(C) · 113 Stat. 1860
1. Substituted · 29 U.S.C. § 1108(b)(13)
  Pub. L. 106–170 substituted “made before January 1, 2006” for “in a taxable year beginning before January 1, 2001”
2. Substituted · 29 U.S.C. § 1108(b)(13)
  Pub. L. 106–170 substituted “December 17, 1999” for “January 1, 1995”
Source evidence
Code amendment note
Subsec. (b)(13). Pub. L. 106–170 substituted “made before January 1, 2006” for “in a taxable year beginning before January 1, 2001” and “December 17, 1999” for “January 1, 1995”.
Enacted provision · exact public law section
(C) Paragraph (13) of section 408(b) of such Act (29 U.S.C. 1108(b)(13)) is amended— (i) by striking “in a taxable year beginning before January 1. 2001” and inserting “made before January 1, 2006”; and (ii) by striking “January 1, 1995” and inserting “the date of the enactment of the Tax Relief Extension Act of 1999”.
2001
Pub. L. 107–16 title VI § 612(b) · 115 Stat. 38
Added · 29 U.S.C. § 1108(d)(2)(C)
Pub. L. 107–16 added subpar. (C)
Source evidence
Code amendment note
Subsec. (d)(2)(C). Pub. L. 107–16 added subpar. (C).
Enacted provision · exact public law section
(b) Amendment of ERISA.— Section 408(d)(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108(d)(2)) is amended by adding at the end the following new subparagraph: “(C) For purposes of paragraph (1)(A), the term ‘owner-employee’ shall only include a person described in clause (ii) or (iii) of subparagraph (A).”.
2004
Pension Funding Equity Act of 2004
Pub. L. 108–218 title II § 204(b)(3) · 118 Stat. 596
1. Substituted · 29 U.S.C. § 1108(b)(13)
  Pub. L. 108–218 substituted “January 1, 2014” for “January 1, 2006”
2. Substituted · 29 U.S.C. § 1108(b)(13)
  Pub. L. 108–218 substituted “April 10, 2004” for “December 17, 1999”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 108–218 substituted “January 1, 2014” for “January 1, 2006” and “April 10, 2004” for “December 17, 1999”.
Enacted provision · exact public law section
(3) Paragraph (13) of section 408(b) of such Act (29 U.S.C. 1108(b)(3)) is amended— (A) by striking “January 1, 2006” and inserting “January 1, 2014”, and (B) by striking “Tax Relief Extension Act of 1999” and inserting “Pension Funding Equity Act of 2004”.
2004
Pub. L. 108–357 title VII § 709(a)(3) · 118 Stat. 1418
Substituted · 29 U.S.C. § 1108(b)(13)
Pub. L. 108–357 substituted “October 22, 2004” for “April 10, 2004”
Source evidence
Code amendment note
Subsec. (b)(13). Pub. L. 108–357 substituted “October 22, 2004” for “April 10, 2004”.
Enacted provision · exact public law section
(3) Paragraph (13) of section 408(b) of such Act (29 U.S.C. 1108(b)(3)) is amended by striking “Pension Funding Equity Act of 2004” and inserting “American Jobs Creation Act of 2004”.
2006
Pub. L. 109–280 § 108(a)(11) · 120 Stat. 780
Substituted · 29 U.S.C. § 1108(b)(13)
Pub. L. 109–280, § 108(a)(11), formerly § 107(a)(11), as renumbered by Pub. L. 111–192, substituted “August 17, 2006” for “October 22, 2004”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Subsec. (b)(13). Pub. L. 109–280, § 108(a)(11), formerly § 107(a)(11), as renumbered by Pub. L. 111–192, substituted “August 17, 2006” for “October 22, 2004”.
Enacted provision · exact public law section
(11) in sections 101(e)(3), 403(c)(1), 29 USC 1021, 1103, 1108. and 408(b)(13), by striking “American Jobs Creation Act of 2004” and inserting “Pension Protection Act of 2006”.
2006
Pub. L. 109–280 § 601(a)(1) · 120 Stat. 780
Added · 29 U.S.C. § 1108(b)(14)
Pub. L. 109–280, § 601(a)(1), added par. (14)
Source evidence
Code amendment note
Subsec. (b)(14). Pub. L. 109–280, § 601(a)(1), added par. (14).
Enacted provision · exact public law section
(1) Exemption from prohibited transactions.— Section 408(b) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108(b)) is amended by adding at the end the following new paragraph: “(14) Any transaction in connection with the provision of investment advice described in section 3(21)(A)(ii) to a participant or beneficiary of an individual account plan that permits such participant or beneficiary to direct the investment of assets in their individual account, if— “(A) the transaction is— “(i) the provision of the investment advice to the participant or beneficiary of the plan with respect to a security or other property available as an investment under the plan, “(ii) the acquisition, holding, or sale of a security or other property available as an investment under the plan pursuant to the investment advice, or “(iii) the direct or indirect receipt of fees or other compensation by the fiduciary adviser or an affiliate thereof (or any employee, agent, or registered representative of the fiduciary adviser or affiliate) in connection with the provision of the advice or in connection with an acquisition, holding, or sale of a security or other property available as an investment under the plan pursuant to the investment advice; and “(B) the requirements of subsection (g) are met.” .
2006
Pub. L. 109–280 § 611(a)(1) · 120 Stat. 780
Added · 29 U.S.C. § 1108(b)(15)(19)
Pub. L. 109–280, § 611(a)(1), (c)(1), (d)(1), (e)(1), (g)(1), added pars. (15) to (19)
Source evidence
Code amendment note
Subsec. (b)(15) to (19). Pub. L. 109–280, § 611(a)(1), (c)(1), (d)(1), (e)(1), (g)(1), added pars. (15) to (19).
Enacted provision · exact public law section
(1) Amendments to employee retirement income security act of 1974.— Section 408(b) of such Act (29 U.S.C. 1108(b)), as amended by section 601, is amended by adding at the end the following new paragraph: “(15) (A) Any transaction involving the purchase or sale of securities, or other property (as determined by the Secretary), between a plan and a party in interest (other than a fiduciary described in section 3(21)(A)) with respect to a plan if— “(i) the transaction involves a block trade, “(ii) at the time of the transaction, the interest of the plan (together with the interests of any other plans maintained by the same plan sponsor), does not exceed 10 percent of the aggregate size of the block trade, “(iii) the terms of the transaction, including the price, are at least as favorable to the plan as an arm’s length transaction, and “(iv) the compensation associated with the purchase and sale is not greater than the compensation associated with an arm’s length transaction with an unrelated party. “(B) For purposes of this paragraph, the term ‘block trade’ means any trade of at least 10,000 shares or with a market value of at least $200,000 which will be allocated across two or more unrelated client accounts of a fiduciary.” .
2006
Pub. L. 109–280 § 612(a) · 120 Stat. 780
Added · 29 U.S.C. § 1108(b)(20)
Pub. L. 109–280, § 612(a), added par. (20)
Source evidence
Code amendment note
Subsec. (b)(20). Pub. L. 109–280, § 612(a), added par. (20).
Enacted provision · exact public law section
(a) Amendment of Employee Retirement Income Security Act of 1974.— Section 408(b) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108(b)), as amended by sections 601 and 611, is further amended by adding at the end the following new paragraph: “(20) (A) Except as provided in subparagraphs (B) and (C), a transaction described in section 406(a) in connection with the acquisition, holding, or disposition of any security or commodity, if the transaction is corrected before the end of the correction period. “(B) Subparagraph (A) does not apply to any transaction between a plan and a plan sponsor or its affiliates that involves the acquisition or sale of an employer security (as defined in section 407(d)(1)) or the acquisition, sale, or lease of employer real property (as defined in section 407(d)(2)). “(C) In the case of any fiduciary or other party in interest (or any other person knowingly participating in such transaction), subparagraph (A) does not apply to any transaction if, at the time the transaction occurs, such fiduciary or party in interest (or other person) knew (or reasonably should have known) that the transaction would (without regard to this paragraph) constitute a violation of section 406(a). “(D) For purposes of this paragraph, the term ‘correction period’ means, in connection with a fiduciary or party in interest (or other person knowingly participating in the transaction), the 14-day period beginning on the date on which such fiduciary or party in interest (or other person) discovers, or reasonably should have discovered, that the transaction would (without regard to this paragraph) constitute a violation of section 406(a). “(E) For purposes of this paragraph— “(i) The term ‘security’ has the meaning given such term by section 475(c)(2) of the Internal Revenue Code of 1986 (without regard to subparagraph (F)(iii) and the last sentence thereof). “(ii) The term ‘commodity’ has the meaning given such term by section 475(e)(2) of such Code (without regard to subparagraph (D)(iii) thereof). “(iii) The term ‘correct’ means, with respect to a trans- action— “(I) to undo the transaction to the extent possible and in any case to make good to the plan or affected account any losses resulting from the transaction, and “(II) to restore to the plan or affected account any profits made through the use of assets of the plan.” .
2006
Pub. L. 109–280 § 601(a)(2) · 120 Stat. 780
Added · 29 U.S.C. § 1108(g)
Pub. L. 109–280, § 601(a)(2), added subsec. (g)
Source evidence
Code amendment note
Subsec. (g). Pub. L. 109–280, § 601(a)(2), added subsec. (g).
Enacted provision · exact public law section
(2) Requirements.— Section 408 of such Act 29 USC 1108. is amended further by adding at the end the following new subsection: “(g) Provision of Investment Advice to Participant and Beneficiaries.— “(1) In general.— The prohibitions provided in section 406 shall not apply to transactions described in subsection (b)(14) if the investment advice provided by a fiduciary adviser is provided under an eligible investment advice arrangement. “(2) Eligible investment advice arrangement.— For purposes of this subsection, the term ‘eligible investment advice arrangement’ means an arrangement— “(A) which either— “(i) provides that any fees (including any commission or other compensation) received by the fiduciary adviser for investment advice or with respect to the sale, holding, or acquisition of any security or other property for purposes of investment of plan assets do not vary depending on the basis of any investment option selected, or “(ii) uses a computer model under an investment advice program meeting the requirements of paragraph (3) in connection with the provision of investment advice by a fiduciary adviser to a participant or beneficiary, and “(B) with respect to which the requirements of paragraph (4), (5), (6), (7), (8), and (9) are met. “(3) Investment advice program using computer model.— “(A) In general.— An investment advice program meets the requirements of this paragraph if the requirements of subparagraphs (B), (C), and (D) are met. “(B) Computer model.— The requirements of this subparagraph are met if the investment advice provided under the investment advice program is provided pursuant to a computer model that— “(i) applies generally accepted investment theories that take into account the historic returns of different asset classes over defined periods of time, “(ii) utilizes relevant information about the participant, which may include age, life expectancy, retirement age, risk tolerance, other assets or sources of income, and preferences as to certain types of investments, “(iii) utilizes prescribed objective criteria to provide asset allocation portfolios comprised of investment options available under the plan, “(iv) operates in a manner that is not biased in favor of investments offered by the fiduciary adviser or a person with a material affiliation or contractual relationship with the fiduciary adviser, and “(v) takes into account all investment options under the plan in specifying how a participant’s account balance should be invested and is not inappropriately weighted with respect to any investment option. “(C) Certification.— “(i) In general.— The requirements of this subparagraph are met with respect to any investment advice program if an eligible investment expert certifies, prior to the utilization of the computer model and in accordance with rules prescribed by the Secretary, that the computer model meets the requirements of subparagraph (B). “(ii) Renewal of certifications.— If, as determined under regulations prescribed by the Secretary, there are material modifications to a computer model, the requirements of this subparagraph are met only if a certification described in clause (i) is obtained with respect to the computer model as so modified. “(iii) Eligible investment expert.— The term ‘eligible investment expert’ means any person— “(I) which meets such requirements as the Secretary may provide, and “(II) does not bear any material affiliation or contractual relationship with any investment adviser or a related person thereof (or any employee, agent, or registered representative of the investment adviser or related person). “(D) Exclusivity of recommendation.— The requirements of this subparagraph are met with respect to any investment advice program if— “(i) the only investment advice provided under the program is the advice generated by the computer model described in subparagraph (B), and “(ii) any transaction described in subsection (b)(14)(B)(ii) occurs solely at the direction of the participant or beneficiary. Nothing in the preceding sentence shall preclude the participant or beneficiary from requesting investment advice other than that described in subparagraph (A), but only if such request has not been solicited by any person connected with carrying out the arrangement. “(4) Express authorization by separate fiduciary.— The requirements of this paragraph are met with respect to an arrangement if the arrangement is expressly authorized by a plan fiduciary other than the person offering the investment advice program, any person providing investment options under the plan, or any affiliate of either. “(5) Annual audit.— The requirements of this paragraph are met if an independent auditor, who has appropriate technical training or experience and proficiency and so represents in writing— “(A) conducts an annual audit of the arrangement for compliance with the requirements of this subsection, and “(B) Reports. following completion of the annual audit, issues a written report to the fiduciary who authorized use of the arrangement which presents its specific findings regarding compliance of the arrangement with the requirements of this subsection. For purposes of this paragraph, an auditor is considered independent if it is not related to the person offering the arrangement to the plan and is not related to any person providing investment options under the plan. “(6) Disclosure.— The requirements of this paragraph are met if— “(A) the fiduciary adviser provides to a participant or a beneficiary before the initial provision of the investment advice with regard to any security or other property offered as an investment option, a written notification (which may consist of notification by means of electronic communication)— “(i) of the role of any party that has a material affiliation or contractual relationship with the financial adviser in the development of the investment advice program and in the selection of investment options available under the plan, “(ii) of the past performance and historical rates of return of the investment options available under the plan, “(iii) of all fees or other compensation relating to the advice that the fiduciary adviser or any affiliate thereof is to receive (including compensation provided by any third party) in connection with the provision of the advice or in connection with the sale, acquisition, or holding of the security or other property, “(iv) of any material affiliation or contractual relationship of the fiduciary adviser or affiliates thereof in the security or other property, “(v) the manner, and under what circumstances, any participant or beneficiary information provided under the arrangement will be used or disclosed, “(vi) of the types of services provided by the fiduciary adviser in connection with the provision of investment advice by the fiduciary adviser, “(vii) that the adviser is acting as a fiduciary of the plan in connection with the provision of the advice, and “(viii) that a recipient of the advice may separately arrange for the provision of advice by another adviser, that could have no material affiliation with and receive no fees or other compensation in connection with the security or other property, and “(B) at all times during the provision of advisory services to the participant or beneficiary, the fiduciary adviser— “(i) maintains the information described in subparagraph (A) in accurate form and in the manner described in paragraph (8), “(ii) provides, without charge, accurate information to the recipient of the advice no less frequently than annually, “(iii) provides, without charge, accurate information to the recipient of the advice upon request of the recipient, and “(iv) provides, without charge, accurate information to the recipient of the advice concerning any material change to the information required to be provided to the recipient of the advice at a time reasonably contemporaneous to the change in information. “(7) Other conditions.— The requirements of this paragraph are met if— “(A) the fiduciary adviser provides appropriate disclosure, in connection with the sale, acquisition, or holding of the security or other property, in accordance with all applicable securities laws, “(B) the sale, acquisition, or holding occurs solely at the direction of the recipient of the advice, “(C) the compensation received by the fiduciary adviser and affiliates thereof in connection with the sale, acquisition, or holding of the security or other property is reasonable, and “(D) the terms of the sale, acquisition, or holding of the security or other property are at least as favorable to the plan as an arm’s length transaction would be. “(8) Standards for presentation of information.— “(A) In general.— The requirements of this paragraph are met if the notification required to be provided to participants and beneficiaries under paragraph (6)(A) is written in a clear and conspicuous manner and in a manner calculated to be understood by the average plan participant and is sufficiently accurate and comprehensive to reasonably apprise such participants and beneficiaries of the information required to be provided in the notification. “(B) Model form for disclosure of fees and other compensation.— The Secretary shall issue a model form for the disclosure of fees and other compensation required in paragraph (6)(A)(iii) which meets the requirements of subparagraph (A). “(9) Maintenance for 6 years of evidence of compliance.— The requirements of this paragraph are met if a fiduciary adviser who has provided advice referred to in paragraph (1) maintains, for a period of not less than 6 years after the provision of the advice, any records necessary for determining whether the requirements of the preceding provisions of this subsection and of subsection (b)(14) have been met. A transaction prohibited under section 406 shall not be considered to have occurred solely because the records are lost or destroyed prior to the end of the 6-year period due to circumstances beyond the control of the fiduciary adviser. “(10) Exemption for plan sponsor and certain other fiduciaries.— “(A) In general.— Subject to subparagraph (B), a plan sponsor or other person who is a fiduciary (other than a fiduciary adviser) shall not be treated as failing to meet the requirements of this part solely by reason of the provision of investment advice referred to in section 3(21)(A)(ii) (or solely by reason of contracting for or otherwise arranging for the provision of the advice), if— “(i) the advice is provided by a fiduciary adviser pursuant to an eligible investment advice arrangement between the plan sponsor or other fiduciary and the fiduciary adviser for the provision by the fiduciary adviser of investment advice referred to in such section, “(ii) the terms of the eligible investment advice arrangement require compliance by the fiduciary adviser with the requirements of this subsection, and “(iii) the terms of the eligible investment advice arrangement include a written acknowledgment by the fiduciary adviser that the fiduciary adviser is a fiduciary of the plan with respect to the provision of the advice. “(B) Continued duty of prudent selection of adviser and periodic review.— Nothing in subparagraph (A) shall be construed to exempt a plan sponsor or other person who is a fiduciary from any requirement of this part for the prudent selection and periodic review of a fiduciary adviser with whom the plan sponsor or other person enters into an eligible investment advice arrangement for the provision of investment advice referred to in section 3(21)(A)(ii). The plan sponsor or other person who is a fiduciary has no duty under this part to monitor the specific investment advice given by the fiduciary adviser to any particular recipient of the advice. “(C) Availability of plan assets for payment for advice.— Nothing in this part shall be construed to preclude the use of plan assets to pay for reasonable expenses in providing investment advice referred to in section 3(21)(A)(ii). “(11) Definitions.— For purposes of this subsection and subsection (b)(14)— “(A) Fiduciary adviser.— The term ‘fiduciary adviser’ means, with respect to a plan, a person who is a fiduciary of the plan by reason of the provision of investment advice referred to in section 3(21)(A)(ii) by the person to the participant or beneficiary of the plan and who is— “(i) registered as an investment adviser under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.) or under the laws of the State in which the fiduciary maintains its principal office and place of business, “(ii) a bank or similar financial institution referred to in section 408(b)(4) or a savings association (as defined in section 3(b)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1813(b)(1)), but only if the advice is provided through a trust department of the bank or similar financial institution or savings association which is subject to periodic examination and review by Federal or State banking authorities, “(iii) an insurance company qualified to do business under the laws of a State, “(iv) a person registered as a broker or dealer under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), “(v) an affiliate of a person described in any of clauses (i) through (iv), or “(vi) an employee, agent, or registered representative of a person described in clauses (i) through (v) who satisfies the requirements of applicable insurance, banking, and securities laws relating to the provision of the advice. For purposes of this part, a person who develops the computer model described in paragraph (3)(B) or markets the investment advice program or computer model shall be treated as a person who is a fiduciary of the plan by reason of the provision of investment advice referred to in section 3(21)(A)(ii) to the participant or beneficiary and shall be treated as a fiduciary adviser for purposes of this subsection and subsection (b)(14), except that the Secretary may prescribe rules under which only 1 fiduciary adviser may elect to be treated as a fiduciary with respect to the plan. “(B) Affiliate.— The term ‘affiliate’ of another entity means an affiliated person of the entity (as defined in section 2(a)(3) of the Investment Company Act of 1940 (15 U.S.C. 80a–2(a)(3))). “(C) Registered representative.— The term ‘registered representative’ of another entity means a person described in section 3(a)(18) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(18)) (substituting the entity for the broker or dealer referred to in such section) or a person described in section 202(a)(17) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-2(a)(17)) (substituting the entity for the investment adviser referred to in such section).” .
2008
Worker, Retiree, and Employer Recovery Act of 2008
Pub. L. 110–458 § 106(b)(1) · 122 Stat. 5092
Struck · 29 U.S.C. § 1108(b)(18)(C)
Pub. L. 110–458, § 106(b)(1), struck out “or less” after “deviate by more”
Source evidence
Code amendment note
Subsec. (b)(18)(C). Pub. L. 110–458, § 106(b)(1), struck out “or less” after “deviate by more”.
Enacted provision · exact public law section
(1) Amendment to erisa.— Section 408(b)(18)(C) 29 USC 1108. of ERISA is amended by striking “or less”.
2008
Worker, Retiree, and Employer Recovery Act of 2008
Pub. L. 110–458 § 106(a)(1)(A) · 122 Stat. 5092
Substituted · 29 U.S.C. § 1108(g)(3)(D)(ii)
Pub. L. 110–458, § 106(a)(1)(A), substituted “subsection (b)(14)(A)(ii)” for “subsection (b)(14)(B)(ii)”
Source evidence
Code amendment note
Subsec. (g)(3)(D)(ii). Pub. L. 110–458, § 106(a)(1)(A), substituted “subsection (b)(14)(A)(ii)” for “subsection (b)(14)(B)(ii)”.
Enacted provision · exact public law section
(A) Section 408(g)(3)(D)(ii) of ERISA 29 USC 1108. is amended by striking “subsection (b)(14)(B)(ii)” and inserting “subsection (b)(14)(A)(ii)”.
2008
Worker, Retiree, and Employer Recovery Act of 2008
Pub. L. 110–458 § 106(a)(1)(B) · 122 Stat. 5092
Substituted · 29 U.S.C. § 1108(g)(6)(A)(i)
Pub. L. 110–458, § 106(a)(1)(B), substituted “fiduciary adviser” for “financial adviser”
Source evidence
Code amendment note
Subsec. (g)(6)(A)(i). Pub. L. 110–458, § 106(a)(1)(B), substituted “fiduciary adviser” for “financial adviser”.
Enacted provision · exact public law section
(B) Section 408(g)(6)(A)(i) of ERISA is amended by striking “financial adviser” and inserting “fiduciary adviser”.
2008
Worker, Retiree, and Employer Recovery Act of 2008
Pub. L. 110–458 § 106(a)(1)(C) · 122 Stat. 5092
1. Substituted · 29 U.S.C. § 1108(g)(11)(A)
  Pub. L. 110–458, § 106(a)(1)(C), substituted “a participant” for “the participant” in cl. (ii)
2. Substituted · 29 U.S.C. § 1108(g)(11)(A)
  Pub. L. 110–458, § 106(a)(1)(C), substituted “subsection (b)(4)” for “section 1108(b)(4) of this title” in cl. (ii)
Source evidence
Code amendment note
Subsec. (g)(11)(A). Pub. L. 110–458, § 106(a)(1)(C), substituted “a participant” for “the participant” in introductory and concluding provisions and “subsection (b)(4)” for “section 1108(b)(4) of this title” in cl. (ii).
Enacted provision · exact public law section
(C) Section 408(g)(11)(A) of ERISA is amended— (i) by striking “the participant” each place it appears and inserting “a participant”, and (ii) by striking “section 408(b)(4)” in clause (ii) and inserting “subsection (b)(4)”.
2012
Highway Investment, Job Creation, and Economic Growth Act of 2012
Pub. L. 112–141 div. D title II § 40241(b) · 126 Stat. 405
1. Substituted · 29 U.S.C. § 1108(b)(13)
  Pub. L. 112–141 substituted “January 1, 2022” for “January 1, 2014”
2. Substituted · 29 U.S.C. § 1108(b)(13)
  Pub. L. 112–141 substituted “July 6, 2012” for “August 17, 2006”
Source evidence
Code amendment note
Subsec. (b)(13). Pub. L. 112–141 substituted “January 1, 2022” for “January 1, 2014” and “July 6, 2012” for “August 17, 2006”.
Enacted provision · exact public law section
(b) Conforming ERISA Amendments.— (1) Sections 101(e)(3), 403(c)(1), and 408(b)(13) of the Employee Retirement Income Security Act of 1974 29 USC 1021, 1103, 1108. are each amended by striking “Pension Protection Act of 2006” and inserting “MAP-21”. (2) Section 408(b)(13) of such Act (29 U.S.C. 1108(b)(13)) is amended by striking “January 1, 2014” and inserting “January 1, 2022”.
2015
Surface Transportation and Veterans Health Care Choice Improvement Act of 2015
Pub. L. 114–41 title II § 2007(b) · 129 Stat. 443
1. Substituted · 29 U.S.C. § 1108(b)(13)
  Pub. L. 114–41 substituted “January 1, 2026” for “January 1, 2022” . The latter substitution was executed to reflect the probable intent of Congress notwithstanding an extra closing quotation mark in the directory language
2. Substituted · 29 U.S.C. § 1108(b)(13)
  Pub. L. 114–41 substituted “July 31, 2015” for “July 6, 2012” . The latter substitution was executed to reflect the probable intent of Congress notwithstanding an extra closing quotation mark in the directory language
Source evidence
Code amendment note
Subsec. (b)(13). Pub. L. 114–41 substituted “January 1, 2026” for “January 1, 2022” and “July 31, 2015” for “July 6, 2012”. The latter substitution was executed to reflect the probable intent of Congress notwithstanding an extra closing quotation mark in the directory language.
Enacted provision · exact public law section
(b) Conforming ERISA Amendments.— (1) Sections 101(e)(3), 403(c)(1), and 408(b)(13) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1021(e)(3), 1103(c)(1), 1108(b)(13)) are each amended by striking “MAP–21’ ” and inserting “Surface Transportation and Veterans Health Care Choice Improvement Act of 2015”. (2) Section 408(b)(13) of such Act (29 U.S.C. 1108(b)(13)) is amended by striking “January 1, 2022” and inserting “January 1, 2026”.
2019
Temporary Relief from Certain ERISA Requirements Act of 2020
Pub. L. 116–94 div. P title XIII § 1302(a) · 133 Stat. 2534
Added · 29 U.S.C. § 1108(h)
Pub. L. 116–94 added subsec. (h)
Source evidence
Code amendment note
Subsec. (h). Pub. L. 116–94 added subsec. (h).
Enacted provision · exact public law section
(a) In General.— Section 408 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108) is amended by adding at the end the following: “(h) Provision of Pharmacy Benefit Services.— “(1) In general.— Provided that all of the conditions described in paragraph (2) are met, the restrictions imposed by subsections (a), (b)(1), and (b)(2) of section 406 shall not apply to— “(A) the offering of pharmacy benefit services to a group health plan that is sponsored by an entity described in section 3(37)(G)(vi) or to any other group health plan that is sponsored by a regional council, local union, or other labor organization affiliated with such entity; “(B) the purchase of pharmacy benefit services by plan participants and beneficiaries of a group health plan that is sponsored by an entity described in section 3(37)(G)(vi) or of any other group health plan that is sponsored by a regional council, local union, or other labor organization affiliated with such entity; or “(C) the operation or implementation of pharmacy benefit services by an entity described in section 3(37)(G)(vi) or by any other group health plan that is sponsored by a regional council, local union, or other labor organization affiliated with such entity, in any arrangement where such entity described in section 3(37)(G)(vi) or any related organization or subsidiary of such entity provides pharmacy benefit services that include prior authorization and appeals, a retail pharmacy network, pharmacy benefit administration, mail order fulfillment, formulary support, manufacturer payments, audits, and specialty pharmacy and goods, to any such group health plan. “(2) Conditions.— The conditions described in this paragraph are the following: “(A) The terms of the arrangement are at least as favorable to the group health plan as such group health plan could obtain in a similar arm’s length arrangement with an unrelated third party. “(B) At least 50 percent of the providers participating in the pharmacy benefit services offered by the arrangement are unrelated to the contributing employers or any other party in interest with respect to the group health plan. “(C) The group health plan retains an independent fiduciary who will be responsible for monitoring the group health plan’s consultants, contractors, subcontractors, and other service providers for purposes of pharmacy benefit services described in paragraph (1) offered by such entity or any of its related organizations or subsidiaries and monitors the transactions of such entity and any of its related organizations or subsidiaries to ensure that all conditions of this exemption are satisfied during each plan year. “(D) Any decisions regarding the provision of pharmacy benefit services described in paragraph (1) are made by the group health plan’s independent fiduciary, based on objective standards developed by the independent fiduciary in reliance on information provided by the arrangement. “(E) The independent fiduciary of the group health plan provides an annual report to the Secretary and the congressional committees of jurisdiction attesting that the conditions described in subparagraphs (C) and (D) have been met for the applicable plan year, together with a statement that use of the arrangement’s services are in the best interest of the participants and beneficiaries in the aggregate for that plan year compared to other similar arrangements the group health plan could have obtained in transactions with an unrelated third party. “(F) The arrangement is not designed to benefit any party in interest with respect to the group health plan. “(3) Violations.— In the event an entity described in section 3(37)(G)(vi) or any affiliate of such entity violates any of the conditions of such exemption, such exemption shall not apply with respect to such entity or affiliate and all enforcement and claims available under this Act shall apply with respect to such entity or affiliate. “(4) Rule of construction.— Nothing in this subsection shall be construed to modify any obligation of a group health plan otherwise set forth in this Act. “(5) Group health plan.— In this subsection, the term ‘group health plan’ has the meaning given such term in section 733(a).” .
2020
Department of Justice Appropriations Act, 2021
Pub. L. 116–260 div. BB title II § 202(a) · 134 Stat. 1182
1. Amended · 29 U.S.C. § 1108(b)(2)
  Pub. L. 116–260 designated existing provisions as subpar. (A)
2. Added · 29 U.S.C. § 1108(b)(2)
  Pub. L. 116–260 added subpar. (B)
Source evidence
Code amendment note
Subsec. (b)(2). Pub. L. 116–260 designated existing provisions as subpar. (A) and added subpar. (B).
Enacted provision · exact public law section
Sec. 202. None Abortion. of the funds appropriated by this title shall be available to pay for an abortion, except where the life of the mother would be endangered if the fetus were carried to term, or in the case of rape or incest: Provided, That should this prohibition be declared unconstitutional by a court of competent jurisdiction, this section shall be null and void.
2022
Financial Services and General Government Appropriations Act, 2023
Pub. L. 117–328 § 606(b)(3) · 136 Stat. 4459
1. Substituted · 29 U.S.C. § 1108(b)(13)
  Pub. L. 117–328, § 606(b)(3), substituted “January 1, 2033” for “January 1, 2026”
2. Substituted · 29 U.S.C. § 1108(b)(13)
  Pub. L. 117–328, § 606(b)(3), substituted “(as in effect on December 29, 2022)” for “(as in effect on July 31, 2015)”
Source evidence
Code amendment note
Subsec. (b)(13). Pub. L. 117–328, § 606(b)(3), substituted “January 1, 2033” for “January 1, 2026” and “(as in effect on December 29, 2022)” for “(as in effect on July 31, 2015)”.
Enacted provision · exact public law section
Sec. 606. No funds appropriated pursuant to this Act may be expended by an entity unless the entity agrees that in expending the assistance the entity will comply with chapter 83 of title 41, United States Code.
Effective date note
Amendment by section 113(d) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of Title 26, Internal Revenue Code. Amendment by section 606(b)(3) of Pub. L. 117–328 applicable to transfers made after Dec. 29, 2022, see section 606(c) of Pub. L. 117–328, set out as a note under section 420 of Title 26, Internal Revenue Code.
2022
Department of the Treasury Appropriations Act, 2023
Pub. L. 117–328 § 113(d) · 136 Stat. 4459
Added · 29 U.S.C. § 1108(b)(21)
Pub. L. 117–328, § 113(d), added par. (21)
Source evidence
Code amendment note
Subsec. (b)(21). Pub. L. 117–328, § 113(d), added par. (21).
Enacted provision · exact public law section
Sec. 113. Appropriations to the Department of the Treasury in this Act shall be available for uniforms or allowances therefor, as authorized by law (5 U.S.C. 5901), including maintenance, repairs, and cleaning; purchase of insurance for official motor vehicles operated in foreign countries; purchase of motor vehicles without regard to the general purchase price limitations for vehicles purchased and used overseas for the current fiscal year; entering into contracts with the Department of State for the furnishing of health and medical services to employees and their dependents serving in foreign countries; and services authorized by 5 U.S.C. 3109.
Effective date note
Amendment by section 113(d) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of Title 26, Internal Revenue Code. Amendment by section 606(b)(3) of Pub. L. 117–328 applicable to transfers made after Dec. 29, 2022, see section 606(c) of Pub. L. 117–328, set out as a note under section 420 of Title 26, Internal Revenue Code.

44 of 44 references resolved to an enrolled provision

Editorial Notes

References in Text

This chapter, referred to in subsecs. (a), (b)(2)(B)(vi)(I), and (h)(3), (4), was in the original “this Act”, meaning Pub. L. 93–406, known as the Employee Retirement Income Security Act of 1974. Titles I, III, and IV of such Act are classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of this title and Tables.

The Health Insurance Portability and Accountability Act of 1996, referred to in subsec. (b)(2)(C)(vi)(IV), is Pub. L. 104–191, Aug. 21, 1996, 110 Stat. 1936. For complete classification of this Act to the Code, see Short Title of 1996 Amendments note set out under section 201 of Title 42, The Public Health and Welfare, and Tables.

The Investment Advisers Act of 1940, referred to in subsec. (g)(11)(A)(i), is title II of act Aug. 22, 1940, ch. 686, 54 Stat. 847, which is classified generally to subchapter II (§ 80b–1 et seq.) of chapter 2D of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 80b–20 of Title 15 and Tables.

The Securities Exchange Act of 1934, referred to in subsec. (g)(11)(A)(iv), is act June 6, 1934, ch. 404, 48 Stat. 881, which is classified principally to chapter 2B (§ 78a et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 78a of Title 15 and Tables.

Amendments1980–2022 · 18 rounds

2026–Subsec. (b)(2)(B)(i). Pub. L. 119–75, § 6702(c)(2)(A), substituted “requirements of this subparagraph” for “requirements of this clause” and inserted at end “For purposes of applying section 1106(a)(1)(C) of this title with respect to a transaction described under this subparagraph or subparagraph (C), a contract or arrangement for services between a covered plan and an entity providing services to the plan, including a health insurance issuer providing health insurance coverage in connection with the covered plan, in which such entity contracts, in connection with such plan, with a service provider for pharmacy benefit management services, shall be considered an indirect furnishing of goods, services, or facilities between the covered plan and the service provider for pharmacy benefit management services acting as the party in interest.”

Subsec. (b)(2)(B)(ii)(I)(aa). Pub. L. 119–75, § 6702(c)(2)(C), (D), inserted “in” after “defined” and “and the terms ‘health insurance coverage’ and ‘health insurance issuer’ have the meanings given such terms in section 1191b(b) of this title” before period at end.

Subsec. (b)(2)(B)(ii)(I)(bb)(AA). Pub. L. 119–75, § 6702(c)(1)(A), substituted “Services (including brokerage services),” for “Brokerage services,”.

Subsec. (b)(2)(B)(ii)(I)(bb)(BB). Pub. L. 119–75, § 6702(c)(1)(B), substituted “Other services,” for “Consulting,” and “including any of the following: plan design, insurance or insurance product selection (including vision and dental), recordkeeping, medical management, benefits administration selection (including vision and dental), stop-loss insurance, pharmacy benefit management services, wellness design and management services, transparency tools, group purchasing organization agreements and services, participation in and services from preferred vendor panels, disease management, compliance services, employee assistance programs, or third-party administration services, or consulting services related to any such services.” for “related to the development or implementation of plan design, insurance or insurance product selection (including vision and dental), recordkeeping, medical management, benefits administration selection (including vision and dental), stop-loss insurance, pharmacy benefit management services, wellness design and management services, transparency tools, group purchasing organization agreements and services, participation in and services from preferred vendor panels, disease management, compliance services, employee assistance programs, or third party administration services.”

Subsec. (b)(2)(B)(iii). Pub. L. 119–75, § 6702(c)(2)(E), inserted “(in accordance with regulations issued by the Secretary addressing time, manner, and content of such disclosures)” after “following” in introductory provisions.

Subsec. (b)(2)(B)(viii)(I)(cc). Pub. L. 119–75, § 6702(a)(1)(B), substituted “subclause (III)” for “subclause (II)” and “subclauses (III) and (IV)” for “subclauses (II) and (III)”.

Subsec. (b)(2)(B)(viii)(II) to (V). Pub. L. 119–75, § 6702(a)(1)(A), (C), added subcl. (II) and redesignated former subcls. (II) to (IV) as (III) to (V), respectively.

Subsec. (b)(2)(B)(x). Pub. L. 119–75, § 6702(c)(2)(B), added cl. (x).

Subsec. (b)(2)(C). Pub. L. 119–75, § 6702(a)(2), added subpar. (C).

2022

Subsec. (b)(13). Pub. L. 117–328, § 606(b)(3), substituted “January 1, 2033” for “January 1, 2026” and “(as in effect on December 29, 2022)” for “(as in effect on July 31, 2015)”.

Subsec. (b)(21). Pub. L. 117–328, § 113(d), added par. (21).

2020

Subsec. (b)(2). Pub. L. 116–260 designated existing provisions as subpar. (A) and added subpar. (B).

2019

Subsec. (h). Pub. L. 116–94 added subsec. (h).

2015

Subsec. (b)(13). Pub. L. 114–41 substituted “January 1, 2026” for “January 1, 2022” and “July 31, 2015” for “July 6, 2012”. The latter substitution was executed to reflect the probable intent of Congress notwithstanding an extra closing quotation mark in the directory language.

2012

Subsec. (b)(13). Pub. L. 112–141 substituted “January 1, 2022” for “January 1, 2014” and “July 6, 2012” for “August 17, 2006”.

2008

Subsec. (b)(18)(C). Pub. L. 110–458, § 106(b)(1), struck out “or less” after “deviate by more”.

Subsec. (g)(3)(D)(ii). Pub. L. 110–458, § 106(a)(1)(A), substituted “subsection (b)(14)(A)(ii)” for “subsection (b)(14)(B)(ii)”.

Subsec. (g)(6)(A)(i). Pub. L. 110–458, § 106(a)(1)(B), substituted “fiduciary adviser” for “financial adviser”.

Subsec. (g)(11)(A). Pub. L. 110–458, § 106(a)(1)(C), substituted “a participant” for “the participant” in introductory and concluding provisions and “subsection (b)(4)” for “section 1108(b)(4) of this title” in cl. (ii).

2006

Subsec. (b)(13). Pub. L. 109–280, § 108(a)(11), formerly § 107(a)(11), as renumbered by Pub. L. 111–192, substituted “August 17, 2006” for “October 22, 2004”.

Subsec. (b)(14). Pub. L. 109–280, § 601(a)(1), added par. (14).

Subsec. (b)(15) to (19). Pub. L. 109–280, § 611(a)(1), (c)(1), (d)(1), (e)(1), (g)(1), added pars. (15) to (19).

Subsec. (b)(20). Pub. L. 109–280, § 612(a), added par. (20).

Subsec. (g). Pub. L. 109–280, § 601(a)(2), added subsec. (g).

2004

Subsec. (b)(13). Pub. L. 108–357 substituted “October 22, 2004” for “April 10, 2004”.

Pub. L. 108–218 substituted “January 1, 2014” for “January 1, 2006” and “April 10, 2004” for “December 17, 1999”.

2001

Subsec. (d)(2)(C). Pub. L. 107–16 added subpar. (C).

1999

Subsec. (b)(13). Pub. L. 106–170 substituted “made before January 1, 2006” for “in a taxable year beginning before January 1, 2001” and “December 17, 1999” for “January 1, 1995”.

1997

Subsec. (d). Pub. L. 105–34 amended subsec. (d) generally, substituting present provisions for provisions exempting transactions involving an owner-employee, a member of the family, or a corporation controlled by any such owner-employee through the ownership, directly or indirectly, of 50 percent or more of the total combined voting power of all classes of stock entitled to vote or 50 percent or more of the total value of shares of all classes of stock of the corporation.

1996

Subsec. (b)(1). Pub. L. 104–188 inserted at end “A loan made by a plan shall not fail to meet the requirements of the preceding sentence by reason of a loan repayment suspension described under section 414(u)(4) of title 26.”

1994

Subsec. (b)(13). Pub. L. 103–465 substituted “2001” for “1996” and “1995” for “1991”.

1990

Subsec. (b)(13). Pub. L. 101–508 added par. (13).

1989

Subsec. (b)(12). Pub. L. 101–239, § 7881(l)(5), added par. (12).

Subsec. (d). Pub. L. 101–239, § 7891(a)(1), in last sentence, substituted “section 401(c)(3) of the Internal Revenue Code of 1986” for “section 401(c)(3) of the Internal Revenue Code of 1954”, which for purposes of codification was translated as “section 401(c)(3) of title 26” thus requiring no change in text.

Pub. L. 101–239, § 7891(a)(2), in last sentence, substituted “section 408 of the Internal Revenue Code of 1986” for “section 408 of the Internal Revenue Code of 1954” and “section 408(c) of the Internal Revenue Code of 1986” for “section 408(c) of such Code” which for purposes of codification were translated as “section 408 of title 26” and “section 408(c) of title 26”, respectively, thus requiring no change in text.

Pub. L. 101–239, § 7894(e)(4)(A), in last sentence, substituted “individual retirement account or individual retirement annuity described in section 408 of title 26 or a retirement bond described in section 409 of title 26 (as effective for obligations issued before January 1, 1984)” for “individual retirement account, individual retirement annuity, or an individual retirement bond (as defined in section 408 or 409 of title 26)” and “section 408(c) of such Code” for “section 408(c) of such code”, which for purposes of codification was translated as “section 408(c) of title 26” thus requiring no change in text.

1986

Subsec. (b)(1)(B). Pub. L. 99–514, § 1114(b)(15)(B), substituted “highly compensated employees (within the meaning of section 414(q) of title 26)” for “highly compensated employees, officers, or shareholders”.

Subsec. (d). Pub. L. 99–514, § 1898(i)(1), struck out “(a),” before “(b),” in introductory provisions.

1982

Subsec. (d). Pub. L. 97–354 substituted “section 1379 of title 26 as in effect on the day before the date of the enactment of the Subchapter S Revision Act of 1982” for “section 1379 of title 26”.

1980

Subsec. (b)(10), (11). Pub. L. 96–364, § 308(a), added pars. (10) and (11).

Subsec. (f). Pub. L. 96–364, § 308(b), added subsec. (f).

Statutory Notes and Related Subsidiaries

Effective Date of 2022 Amendment

Amendment by section 113(d) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of Title 26, Internal Revenue Code.

Amendment by section 606(b)(3) of Pub. L. 117–328 applicable to transfers made after Dec. 29, 2022, see section 606(c) of Pub. L. 117–328, set out as a note under section 420 of Title 26, Internal Revenue Code.

Effective Date of 2020 Amendment

Pub. L. 116–260, div. BB, title II, § 202(e), Dec. 27, 2020, 134 Stat. 2900, provided that: “The amendments made by subsections (a) and (c) [enacting section 300gg–46 of Title 42, The Public Health and Welfare, and amending this section] shall apply beginning 1 year after the date of enactment of this Act [Dec. 27, 2020].”

Effective Date of 2008 Amendment

Amendment by Pub. L. 110–458 effective as if included in the provisions of Pub. L. 109–280 to which the amendment relates, except as otherwise provided, see section 112 of Pub. L. 110–458, set out as a note under section 72 of Title 26, Internal Revenue Code.

Effective Date of 2006 Amendment

Amendment by section 108(a)(11) of Pub. L. 109–280 applicable 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.

Pub. L. 109–280, title VI, § 601(a)(3), Aug. 17, 2006, 120 Stat. 958, provided that: “The amendments made by this subsection [amending this section] shall apply with respect to advice referred to in section 3(21)(A)(ii) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1002(21)(A)(ii)] provided after December 31, 2006.”

Amendment by section 611(a)(1), (c)(1), (d)(1), (e)(1), (g)(1) of Pub. L. 109–280 applicable to transactions occurring after Aug. 17, 2006, see section 611(h)(1) of Pub. L. 109–280, set out as a note under section 4975 of Title 26, Internal Revenue Code.

Amendment by section 612(a) of Pub. L. 109–280 applicable to any transaction which the fiduciary or disqualified person discovers, or reasonably should have discovered, after Aug. 17, 2006, constitutes a prohibited transaction, see section 612(c) of Pub. L. 109–280, set out as a note under section 4975 of Title 26, Internal Revenue Code.

Effective Date of 2001 Amendment

Amendment by Pub. L. 107–16 applicable to years beginning after Dec. 31, 2001, see section 612(c) of Pub. L. 107–16, set out as a note under section 4975 of Title 26, Internal Revenue Code.

Effective Date of 1999 Amendment

Amendment by Pub. L. 106–170 applicable to qualified transfers occurring after Dec. 17, 1999, see section 535(c)(1) of Pub. L. 106–170, set out as a note under section 420 of Title 26, Internal Revenue Code.

Effective Date of 1997 Amendment

Amendment by Pub. L. 105–34 applicable to taxable years beginning after Dec. 31, 1997, see section 1506(c) of Pub. L. 105–34, set out as a note under section 409 of Title 26, Internal Revenue Code.

Effective Date of 1996 Amendment

Amendment by Pub. L. 104–188 effective as of Dec. 12, 1994, see section 1704(n)(3) of Pub. L. 104–188, set out as a note under section 414 of Title 26, Internal Revenue Code.

Effective Date of 1990 Amendment

Amendment by Pub. L. 101–508 applicable to qualified transfers under section 420 of title 26 made after Nov. 5, 1990, see section 12012(e) of Pub. L. 101–508, set out as a note under section 1021 of this title.

Effective Date of 1989 Amendment

Amendment by section 7881(l)(5) of Pub. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Pension Protection Act, Pub. L. 100–203, §§ 9302–9346, to which such amendment relates, see section 7882 of Pub. L. 101–239, set out as a note under section 401 of Title 26, Internal Revenue Code.

Amendment by section 7891(a) of Pub. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 7891(f) of Pub. L. 101–239, set out as a note under section 1002 of this title.

Section 7894(e)(4)(B) of Pub. L. 101–239 provided that: “The amendments made by subparagraph (A) [amending this section] shall take effect as if originally included in section 491(b) of the Deficit Reduction Act of 1984 [Pub. L. 98–369].”

Effective Date of 1986 Amendment

Amendment by section 1114(b)(15)(B) of Pub. L. 99–514 applicable to years beginning after Dec. 31, 1988, see section 1114(c)(3) of Pub. L. 99–514, set out as a note under section 414 of Title 26, Internal Revenue Code.

Section 1898(i)(2) of Pub. L. 99–514 provided that: “The amendment made by paragraph (1) [amending this section] shall apply to transactions after the date of the enactment of this Act [Oct. 22, 1986].”

Effective Date of 1982 Amendment

Amendment by Pub. L. 97–354 applicable to taxable years beginning after Dec. 31, 1982, see section 6(a) of Pub. L. 97–354, set out as a note under section 1361 of Title 26, Internal Revenue Code.

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.

Regulations

Pub. L. 109–280, title VI, § 611(g)(3), Aug. 17, 2006, 120 Stat. 975, provided that: “No later than 180 days after the date of the enactment of this Act [Aug. 17, 2006], the Secretary of Labor, after consultation with the Securities and Exchange Commission, shall issue regulations regarding the content of policies and procedures required to be adopted by an investment manager under section 408(b)(19) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1108(b)(19)].”

Secretary of the Treasury or his delegate to issue before Feb. 1, 1988, final regulations to carry out amendments made by section 1114 of Pub. L. 99–514, see section 1141 of Pub. L. 99–514, set out as a note under section 401 of Title 26, Internal Revenue Code.

Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this part call for the promulgation of regulations, see sections 1031 and 1114 of this title.

Rule of Construction

Pub. L. 119–75, div. J, title VII, § 6702(b), Feb. 3, 2026, 140 Stat. 736, provided that: “Subclause (II)(aa) of section 408(b)(2)(B)(viii) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108(b)(2)(B)(viii)), as amended by subsection (a), shall not be construed to relieve or limit a responsible plan fiduciary from the duty to monitor the practices of any covered service provider that contracts with the applicable covered plan, including for the purposes of ensuring the reasonableness of compensation. For purposes of this subsection, the terms ‘covered plan’, ‘covered service provider’, and ‘responsible plan fiduciary’ have the meanings given such terms in section 408(b)(2)(B)(ii) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108(b)(2)(B)(ii)).”

Applicability of Existing Regulations

Pub. L. 116–260, div. BB, title II, § 202(b), Dec. 27, 2020, 134 Stat. 2899, provided that: “Nothing in the amendments made by subsection (a) [amending this section] shall be construed to affect the applicability of section 2550.408b–2 of title 29, Code of Federal Regulations (or any successor regulations), with respect to any applicable entity other than a covered plan or a covered service provider (as defined in section 408(b)(2)(B)(ii) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1108(b)(2)(B)(ii)], as amended by subsection (a)).”

Transition Rule

Pub. L. 116–260, div. BB, title II, § 202(d), Dec. 27, 2020, 134 Stat. 2900, provided that: “No contract executed prior to the effective date described in subsection (e) [see Effective Date of 2020 Amendment note above] by a group health plan subject to the requirements of section 408(b)(2)(B) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1108(b)(2)(B)] (as amended by subsection (a)) or by a health insurance issuer subject to the requirements of section 2746 of the Public Health Service Act [42 U.S.C. 300gg–46] (as added by subsection (c)) shall be subject to the requirements of such section 408(b)(2)(B) or such section 2746, as applicable.”

Applicability of Amendments by Pub. L. 116–94

With respect to a group health plan subject to subsec. (h) of this section and section 4975(c) of Title 26, Internal Revenue Code, as amended by section 1302(a), (b) of div. P of Pub. L. 116–94, beginning at the end of the fifth plan year of such group health plan that begins after Dec. 20, 2019, subsec. (h) of this section and section 4975(c) of Title 26 to have no force or effect, see section 1302(c) of div. P of Pub. L. 116–94, set out as a note under section 4975 of Title 26.

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.

Coordination of 2006 Amendment With Existing Exemptions

Any exemption under subsec. (b) of this section provided by amendment by section 601(a)(1), (2) of Pub. L. 109–280 not to alter existing individual or class exemptions provided by statute or administrative action, see section 601(c) of Pub. L. 109–280, set out as a note under section 4975 of Title 26, Internal Revenue Code.

Plan Amendments Not Required Until January 1, 1989

For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of Title 26, Internal Revenue Code.

Credits

1974–2026 · 21 acts

1974Pub. L. 93–406, title I, § 408, Sept. 2, 1974, 88 Stat. 883
1980Pub. L. 96–364, title III, § 308, Sept. 26, 1980, 94 Stat. 1295
1982Pub. L. 97–354, § 5(a)(43), Oct. 19, 1982, 96 Stat. 1697
1986Pub. L. 99–514, title XI, § 1114(b)(15)(B), title XVIII, § 1898(i)(1), Oct. 22, 1986, 100 Stat. 2452, 2957
1989Pub. L. 101–239, title VII, §§ 7881(l)(5), 7891(a), 7894(e)(4)(A), Dec. 19, 1989, 103 Stat. 2443, 2445, 2450
1990Pub. L. 101–508, title XII, § 12012(b), Nov. 5, 1990, 104 Stat. 1388–571
1994Pub. L. 103–465, title VII, § 731(c)(4)(C), Dec. 8, 1994, 108 Stat. 5004
1996Pub. L. 104–188, title I, § 1704(n)(2), Aug. 20, 1996, 110 Stat. 1886
1997Pub. L. 105–34, title XV, § 1506(b)(2), Aug. 5, 1997, 111 Stat. 1066
1999Pub. L. 106–170, title V, § 535(a)(2)(C), Dec. 17, 1999, 113 Stat. 1934
2001Pub. L. 107–16, title VI, § 612(b), June 7, 2001, 115 Stat. 100
2004Pub. L. 108–218, title II, § 204(b)(3), Apr. 10, 2004, 118 Stat. 609
2004Pub. L. 108–357, title VII, § 709(a)(3), Oct. 22, 2004, 118 Stat. 1551
2006Pub. L. 109–280, title I, § 108(a)(11), formerly § 107(a)(11), title VI, §§ 601(a)(1), (2), 611(a)(1), (c)(1), (d)(1), (e)(1), (g)(1), 612(a), Aug. 17, 2006, 120 Stat. 819, 952, 953, 967–969, 971, 972, 975, renumbered Pub. L. 111–192, title II, § 202(a), June 25, 2010, 124 Stat. 1297
2008Pub. L. 110–458, title I, § 106(a)(1), (b)(1), Dec. 23, 2008, 122 Stat. 5106
2012Pub. L. 112–141, div. D, title II, § 40241(b), July 6, 2012, 126 Stat. 859
2015Pub. L. 114–41, title II, § 2007(b), July 31, 2015, 129 Stat. 459
2019Pub. L. 116–94, div. P, title XIII, § 1302(a), Dec. 20, 2019, 133 Stat. 3204
2020Pub. L. 116–260, div. BB, title II, § 202(a), Dec. 27, 2020, 134 Stat. 2894
2022Pub. L. 117–328, div. T, title I, § 113(d), title VI, § 606(b)(3), Dec. 29, 2022, 136 Stat. 5296, 5397
2026Pub. L. 119–75, div. J, title VII, § 6702(a), (c), Feb. 3, 2026, 140 Stat. 733, 736.

Show as published

(Pub. L. 93–406, title I, § 408, Sept. 2, 1974, 88 Stat. 883; Pub. L. 96–364, title III, § 308, Sept. 26, 1980, 94 Stat. 1295; Pub. L. 97–354, § 5(a)(43), Oct. 19, 1982, 96 Stat. 1697; Pub. L. 99–514, title XI, § 1114(b)(15)(B), title XVIII, § 1898(i)(1), Oct. 22, 1986, 100 Stat. 2452, 2957; Pub. L. 101–239, title VII, §§ 7881(l)(5), 7891(a), 7894(e)(4)(A), Dec. 19, 1989, 103 Stat. 2443, 2445, 2450; Pub. L. 101–508, title XII, § 12012(b), Nov. 5, 1990, 104 Stat. 1388–571; Pub. L. 103–465, title VII, § 731(c)(4)(C), Dec. 8, 1994, 108 Stat. 5004; Pub. L. 104–188, title I, § 1704(n)(2), Aug. 20, 1996, 110 Stat. 1886; Pub. L. 105–34, title XV, § 1506(b)(2), Aug. 5, 1997, 111 Stat. 1066; Pub. L. 106–170, title V, § 535(a)(2)(C), Dec. 17, 1999, 113 Stat. 1934; Pub. L. 107–16, title VI, § 612(b), June 7, 2001, 115 Stat. 100; Pub. L. 108–218, title II, § 204(b)(3), Apr. 10, 2004, 118 Stat. 609; Pub. L. 108–357, title VII, § 709(a)(3), Oct. 22, 2004, 118 Stat. 1551; Pub. L. 109–280, title I, § 108(a)(11), formerly § 107(a)(11), title VI, §§ 601(a)(1), (2), 611(a)(1), (c)(1), (d)(1), (e)(1), (g)(1), 612(a), Aug. 17, 2006, 120 Stat. 819, 952, 953, 967–969, 971, 972, 975, renumbered Pub. L. 111–192, title II, § 202(a), June 25, 2010, 124 Stat. 1297; Pub. L. 110–458, title I, § 106(a)(1), (b)(1), Dec. 23, 2008, 122 Stat. 5106; Pub. L. 112–141, div. D, title II, § 40241(b), July 6, 2012, 126 Stat. 859; Pub. L. 114–41, title II, § 2007(b), July 31, 2015, 129 Stat. 459; Pub. L. 116–94, div. P, title XIII, § 1302(a), Dec. 20, 2019, 133 Stat. 3204; Pub. L. 116–260, div. BB, title II, § 202(a), Dec. 27, 2020, 134 Stat. 2894; Pub. L. 117–328, div. T, title I, § 113(d), title VI, § 606(b)(3), Dec. 29, 2022, 136 Stat. 5296, 5397; Pub. L. 119–75, div. J, title VII, § 6702(a), (c), Feb. 3, 2026, 140 Stat. 733, 736.)