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116TH CONGRESS
2D SESSION
H. R. 6257
To modify rules relating to 403(b) plans.
IN THE HOUSE OF REPRESENTATIVES
MARCH 12, 2020
Mr. PANETTA (for himself, Mr. ESTES, Mr. BRENDAN F. BOYLE of Pennsyl-
vania, Mr. LAHOOD, Ms. DEAN, and Mr. BARR) introduced the following
bill; which was referred to the Committee on Financial Services, and in
addition to the Committee on Ways and Means, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
A BILL
To modify rules relating to 403(b) plans.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Public Service Retire-
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ment Fairness Act of 2020’’.
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SEC. 2. ENHANCEMENT OF 403(b) PLANS.
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(a) PERMITTED INVESTMENTS.—
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(1) IN
GENERAL.—Section 403(b)(7)(A)(i) of
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the Internal Revenue Code of 1986 is amended to
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read as follows:
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‘‘(i) the amounts to be held in that
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custodial account are invested in regulated
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investment company stock or a group trust
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intended to satisfy the requirements of In-
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ternal Revenue Service Revenue Ruling
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81–100 (or any successor guidance), and’’.
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(2)
CONFORMING
AMENDMENT.—Section
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403(b)(7) of such Code is amended by striking ‘‘FOR
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REGULATED INVESTMENT COMPANY STOCK’’.
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(3) EFFECTIVE DATE.—The amendments made
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by this subsection shall apply to amounts invested
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after December 31, 2019.
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(b) AMENDMENTS TO THE INVESTMENT COMPANY
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ACT OF 1940.—Section 3(c)(11) of the Investment Com-
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pany Act of 1940 (15 U.S.C. 80a–3(c)(11)) is amended
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to read as follows:
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‘‘(11) Any—
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‘‘(A) employee’s stock bonus, pension, or
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profit-sharing trust which meets the require-
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ments for qualification under section 401 of the
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Internal Revenue Code of 1986;
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‘‘(B) custodial account meeting the re-
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quirements of section 403(b)(7) of such Code;
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‘‘(C) governmental plan described in sec-
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tion 3(a)(2)(C) of the Securities Act of 1933;
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‘‘(D) collective trust fund maintained by a
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bank consisting solely of assets of one or more
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of such trusts, government plans, or church
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plans, companies or accounts that are excluded
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from the definition of an investment company
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under paragraph (14) of this subsection;
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‘‘(E) plan which meets the requirements of
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section 403(b) of the Internal Revenue Code of
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1986 if—
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‘‘(i) such plan is subject to title I of
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the Employee Retirement Income Security
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Act of 1974 (29 U.S.C. 1001 et seq.);
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‘‘(ii) any employer making such plan
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available agrees to serve as a fiduciary for
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the plan with respect to the selection of the
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plan’s investments among which partici-
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pants can choose; or
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‘‘(iii) such plan is a governmental
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plan (as defined in section 414(d) of such
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Code); or
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‘‘(F) separate account the assets of which
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are derived solely from—
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‘‘(i) contributions under pension or
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profit-sharing plans which meet the re-
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quirements of section 401 of the Internal
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Revenue Code of 1986 or the requirements
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for deduction of the employer’s contribu-
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tion under section 404(a)(2) of such Code;
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‘‘(ii)
contributions
under
govern-
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mental plans in connection with which in-
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terests, participations, or securities are ex-
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empted from the registration provisions of
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section 5 of the Securities Act of 1933 by
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section 3(a)(2)(C) of such Act;
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‘‘(iii) advances made by an insurance
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company in connection with the operation
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of such separate account; and
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‘‘(iv) contributions to a plan described
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in subparagraph (E).’’.
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(c) AMENDMENTS
TO
THE SECURITIES ACT
OF
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1933.—Section 3(a)(2) of the Securities Act of 1933 (15
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U.S.C. 77c(a)(2)) is amended—
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(1) by striking ‘‘or (D)’’ and inserting ‘‘(D) a
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plan which meets the requirements of section 403(b)
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of such Code if (i) such plan is subject to title I of
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the Employee Retirement Income Security Act of
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1974 (29 U.S.C. 1001 et seq.), (ii) any employer
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making such plan available agrees to serve as a fidu-
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ciary for the plan with respect to the selection of the
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plan’s investments among which participants can
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choose, or (iii) such plan is a governmental plan (as
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defined in section 414(d) of such Code); or (E)’’;
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(2) by striking ‘‘(C), or (D)’’ and inserting
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‘‘(C), (D), or (E)’’; and
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(3) by striking ‘‘(iii) which is a plan funded’’
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and inserting ‘‘(iii) in the case of a plan not de-
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scribed in subparagraph (D), which is a plan fund-
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ed’’.
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(d) AMENDMENTS TO THE SECURITIES EXCHANGE
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ACT OF 1934.—Section 3(a)(12)(C) of the Securities Ex-
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change Act of 1934 (15 U.S.C. 78c(a)(12)(C)) is amend-
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ed—
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(1) by striking ‘‘or (iv)’’ and inserting ‘‘(iv) a
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plan which meets the requirements of section 403(b)
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of such Code if (I) such plan is subject to title I of
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the Employee Retirement Income Security Act of
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1974 (29 U.S.C. 1001 et seq.), (II) any employer
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making such plan available agrees to serve as a fidu-
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ciary for the plan with respect to the selection of the
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plan’s investments among which participants can
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choose, or (III) such plan is a governmental plan (as
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defined in section 414(d) of such Code), or (v)’’;
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(2) by striking ‘‘(ii), or (iii)’’ and inserting
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‘‘(ii), (iii), or (iv)’’; and
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(3) by striking ‘‘(II) is a plan funded’’ and in-
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serting ‘‘(II) in the case of a plan not described in
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clause (iv), is a plan funded’’.
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Æ
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