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house Bill H.R. 1984

401(k) Fair Disclosure for Retirement Security Act of 2009

bill Progress

  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house has not voted
      house Committees
      Committee on Education and Labor
      Health, Employment, Labor, and Pensions
    IntroducedApril 21st, 2009

Bill Details

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401(k) Fair Disclosure for Retirement Security Act of 2009

Official Title

To amend title I of the Employee Retirement Income Security Act of 1974 to provide special reporting and disclosure rules for individual account plans and to provide a minimum investment option requirement for such plans.


401(k) Fair Disclosure for Retirement Security Act of 2009 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) to prohibit an administrator of an individual account plan from contracting for services (including the offering of any investment option) to the plan unless the administrator has received in advance a written statement that: (1) specifies the services to be provided; (2) provides the expected total annual service charges allocated among specified components; and (3) discloses the impact of different mutual fund investment share classes as well as financial relationships with, or free or discounted services provided by, service providers. Limits applicability of such requirements to contracts or arrangements for services with a total cost reasonably expected to equal or exceed $5,000 per plan year. Continues to shield an individual account plan fiduciary from liability (as under current law) for any loss resulting from a plan participant's or beneficiary's exercise of control over the plan's assets, but only if the plan includes at least one investment option which: (1) is an unmanaged or passively managed mutual fund with a portfolio of securities designed to substantially match the performance of the entire U.S. equity market or the entire U.S. bond market, or a combination of them; (2) offers a combination of historical returns, risk, and charges likely to meet retirement income needs at adequate levels of contribution; and (3) is offered without any endorsement of the government or the plan sponsor. Requires the Secretary to notify the applicable regulatory authority about any service provider engaged in a pattern or practice that precludes requirement compliance.

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