H.R. 1000

[Belgarath]

Saw that this just passed the house. I have a couple of questions, for anyone who follows this stuff:

1. If I'm reading it correctly, it would require quarterly statements for any plan that allows participant directed investments. Other opinions?

2. If I'm correct, does anybody have "contacts" in the industry or on the Hill who have a feeling for how likely this is to pass, in current form or something reasonably close to it, the Senate and have the Head Cheese sign it into law?

A lot of plan currently allow participant directed investments, yet only require annual statements. A quarterly requirement would be a pain.

Any input/thoughts appreciated!

[MGB]

Yes, it requires quarterly statements.

Somewhat probable of passage. Note that it also passed the House last year, but stopped there. The main problem is the investment advice. There have been competing proposals out there and Boehner's approach has not been universally accepted.

The Senate at this time has no plans to do anything with it. After the stimulus package is done with, it is unknown what they may take up, but pension-related bills are not a high priority for them.

[david rigby]

Contains some provisions of concern.

For example, upon termination of a DC plan, it permits the transfer to the PBGC of account of a "missing participant". I wonder if the authors intend for DB plans to pay for the administrative cost of such service.

[WDIK]

So under section 202, Form 5500-EZ is no longer the "Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan"? I'm not sure if this is useful, but exempting one-participant plans with under $250,000 in assets from filing may make some happy.

[Mike Preston]

pax, doesn't the PBGC charge an administrative fee to accept the monies currently from a DB plan? If they charged the same amount for a DC plan transfer you would think that they would set the level such that there is no subsidy. Maybe.