Except as authorized by the Secretary by regulations, no fiduciary may maintain the indicia of ownership of any assets of a plan outside the jurisdiction of the district courts of the United States.
No reports, other than those required under section 1021(g) of this title, shall be required with respect to a simple retirement account established pursuant to such a qualified salary reduction arrangement.
With respect to the selection of an insurer for a guaranteed retirement income contract, the requirements of subsection (a)(1)(B) will be deemed to be satisfied if a fiduciary-
A fiduciary will be deemed to satisfy the requirements of paragraphs (1)(B)(i) and (1)(C)(i) if-
Nothing in this subsection shall be construed to require a fiduciary to select the lowest cost contract. A fiduciary may consider the value of a contract, including features and benefits of the contract and attributes of the insurer (including, without limitation, the insurer's financial strength) in conjunction with the cost of the contract.
For purposes of this subsection, the time of selection is-
Nothing in the preceding sentence shall be construed to require the fiduciary to review the appropriateness of a selection after the purchase of a contract for a participant or beneficiary.
A fiduciary will be deemed to have conducted the periodic review described in subparagraph (A)(ii) if the fiduciary obtains the written representations described in clauses (i), (ii), and (iii) of paragraph (2)(A) from the insurer on an annual basis, unless the fiduciary receives any notice described in paragraph (2)(A)(iv) or otherwise becomes aware of facts that would cause the fiduciary to question such representations.
A fiduciary which satisfies the requirements of this subsection shall not be liable following the distribution of any benefit, or the investment by or on behalf of a participant or beneficiary pursuant to the selected guaranteed retirement income contract, for any losses that may result to the participant or beneficiary due to an insurer's inability to satisfy its financial obligations under the terms of such contract.
For purposes of this subsection-
The term "insurer" means an insurance company, insurance service, or insurance organization, including affiliates of such companies.
The term "guaranteed retirement income contract" means an annuity contract for a fixed term or a contract (or provision or feature thereof) which provides guaranteed benefits annually (or more frequently) for at least the remainder of the life of the participant or the joint lives of the participant and the participant's designated beneficiary as part of an individual account plan.
29 U.S.C. § 1104
REFERENCES IN TEXTThe enactment of the Omnibus Budget Reconciliation Act of 1990, referred to in subsec. (d)(2)(B), is the enactment of Pub. L. 101-508 which was approved Nov. 5, 1990.
AMENDMENTS2019-Subsec. (e). Pub. L. 116-94 added subsec. (e).2008-Subsec. (c)(5). Pub. L. 110-458 substituted "participant or beneficiary" for "participant" wherever appearing.2006-Subsec. (c)(1). Pub. L. 109-280, §621(a)(1), designated existing provisions as subpar. (A), redesignated former subpars. (A) and (B) as cls. (i) and (ii), respectively, of subpar. (A), in cl. (ii), inserted ", except that this clause shall not apply in connection with such participant or beneficiary for any blackout period during which the ability of such participant or beneficiary to direct the investment of the assets in his or her account is suspended by a plan sponsor or fiduciary" before period at end, and added subpars. (B) and (C).Subsec. (c)(4). Pub. L. 109-280, §621(a)(2), added par. (4). Subsec. (c)(5). Pub. L. 109-280, §624(a), added par. (5).2002-Subsec. (c)(3)(A). Pub. L. 107-147, §411(t)(1), struck out "the earlier of" after "the earlier of" in introductory provisions.Subsec. (c)(3)(B). Pub. L. 107-147, §411(t)(2), substituted "a transfer that" for "if the transfer". 2001-Subsec. (c)(3). Pub. L. 107-16 added par. (3).1996-Subsec. (c). Pub. L. 104-188 designated existing provisions as par. (1), redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, and added par. (2). 1990-Subsec. (a)(1)(D). Pub. L. 101-508, §12002(b)(2)(A), substituted "and subchapter III" for "or subchapter III".Subsec. (d). Pub. L. 101-508, §12002(b)(1), added subsec. (d).1980-Subsec. (a)(1)(D). Pub. L. 96-364 inserted reference to subchapter III of this chapter.
STATUTORY NOTES AND RELATED SUBSIDIARIES
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 Pub. L. 109-280, title VI, §621(b), Aug. 17, 2006, 120 Stat. 979, provided that:"(1) IN GENERAL.-The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2007."(2) SPECIAL RULE FOR COLLECTIVELY BARGAINED AGREEMENTS.-In the case of a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified on or before the date of the enactment of this Act [Aug. 17, 2006], paragraph (1) shall be applied to benefits pursuant to, and individuals covered by, any such agreement by substituting for 'December 31, 2007' the earlier of-"(A) the later of-"(i) December 31, 2008, or"(ii) the date on which the last of such collective bargaining agreements terminates (determined without regard to any extension thereof after such date of enactment), or"(B) December 31, 2009." Pub. L. 109-280, title VI, §624(b), Aug. 17, 2006, 120 Stat. 980, provided that:"(1) IN GENERAL.-The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2006."(2) REGULATIONS.-Final regulations under section 404(c)(5)(A) of the Employee Retirement Income Security Act of 1974 [ 29 U.S.C. 1104(c)(5)(A) ] (as added by this section) shall be issued no later than 6 months after the date of the enactment of this Act [Aug. 17, 2006]."
EFFECTIVE DATE OF 2002 AMENDMENT Amendment by Pub. L. 107-147 effective as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107-16 to which such amendment relates, see section 411(x) of Pub. L. 107-147 set out as a note under section 25B of Title 26, Internal Revenue Code.
EFFECTIVE DATE OF 2001 AMENDMENT Amendment by Pub. L. 107-16 applicable to distributions made after Mar. 28, 2005, see section 657(d) of Pub. L. 107-16 set out as a note under section 401 of Title 26, Internal Revenue Code.
EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104-188 applicable to taxable years beginning after Dec. 31, 1996, see section 1421(e) of Pub. L. 104-188 set out as a note under section 72 of Title 26, Internal Revenue Code.
EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101-508 applicable to reversions occurring after Sept. 30, 1990, but not applicable to any reversion after Sept. 30, 1990, if (1) in the case of plans subject to subchapter III of this chapter, notice of intent to terminate under such subchapter was provided to participants (or if no participants, to Pension Benefit Guaranty Corporation) before Oct. 1, 1990, (2) in the case of plans subject to subchapter I of this chapter (and not subchapter III), notice of intent to reduce future accruals under section 1054(h) of this title was provided to participants in connection with termination before Oct. 1, 1990, (3) in the case of plans not subject to subchapter I or III of this chapter, a request for a determination letter with respect to termination was filed with Secretary of the Treasury or Secretary's delegate before Oct. 1, 1990, or (4) in the case of plans not subject to subchapter I or III of this chapter and having only one participant, a resolution terminating the plan was adopted by employer before Oct. 1, 1990, see section 12003 of Pub. L. 101-508 set out as a note under section 4980 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, §625, Aug. 17, 2006, 120 Stat. 980, provided that: "(a) IN GENERAL.-Not later than 1 year after the date of the enactment of this Act [Aug. 17, 2006], the Secretary of Labor shall issue final regulations clarifying that the selection of an annuity contract as an optional form of distribution from an individual account plan to a participant or beneficiary-"(1) is not subject to the safest available annuity standard under Interpretive Bulletin 95-1 ( 29 CFR 2509.95-1 ), and"(2) is subject to all otherwise applicable fiduciary standards."(b) EFFECTIVE DATE.-This section shall take effect on the date of enactment of this Act [Aug. 17, 2006]." 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.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1998For provisions directing that if any amendments made by subtitle D [§§1401-1465] of title I of Pub. L. 104-188 require an amendment to any plan or annuity contract, such amendment shall not be required to be made before the first day of the first plan year beginning on or after Jan. 1, 1998, see section 1465 of Pub. L. 104-188 set out as a note under section 401 of Title 26, Internal Revenue Code.