Text: S.1400 — 104th Congress (1995-1996)All Information (Except Text)

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Introduced in Senate (11/07/1995)

 
[Congressional Bills 104th Congress]
[From the U.S. Government Printing Office]
[S. 1400 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                S. 1400

     To require the Secretary of Labor to issue guidance as to the 
 application of the Employee Retirement Income Security Act of 1974 to 
                  insurance company general accounts.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 7, 1995

Mrs. Kassebaum (for herself, Mr. Dodd, and Mr. Jeffords) introduced the 
 following bill; which was read twice and referred to the Committee on 
                       Labor and Human Resources

_______________________________________________________________________

                                 A BILL


 
     To require the Secretary of Labor to issue guidance as to the 
 application of the Employee Retirement Income Security Act of 1974 to 
                  insurance company general accounts.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``ERISA Clarification Act of 1995''.

SEC. 2. CLARIFICATION OF APPLICATION OF ERISA TO INSURANCE COMPANY 
              GENERAL ACCOUNTS.

    (a) In General.--Section 401 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1101) is amended by adding at the end 
the following new subsection:
    ``(c)(1) Not later than December 31, 1996, the Secretary of Labor 
shall issue (by regulation, ruling, exemption, or otherwise) final 
guidance for the purposes of determining, in cases where an insurer 
issues 1 or more policies to or for the benefit of an employee benefit 
plan, which assets of the insurer (other than plan assets held in its 
separate accounts) constitute assets of the plan for purposes of this 
part and section 4975 of the Internal Revenue Code of 1986.
    ``(2) In issuing final guidance under paragraph (1), the Secretary 
of Labor--
            ``(A) may exclude any assets of the insurer with respect to 
        its operations, products, or services from treatment as plan 
        assets, and
            ``(B) shall provide that assets not treated as plan assets 
        under subsection (b)(2) shall not be treated as plan assets 
        under paragraph (1).
    ``(3)(A) Subject to subparagraphs (B) and (C), any guidance issued 
under paragraph (1) shall not take effect before the date on which it 
becomes final.
    ``(B) Before the date which is 18 months following the date 
described in subparagraph (A), in the case of the issuance by an 
insurer of 1 or more policies to or for the benefit of an employee 
benefit plan assets of the insurer (other than plan assets held in its 
separate accounts) shall not, solely by reason of issuance of such 
policy or policies, constitute assets of the plan for purposes of this 
part and section 4975 of the Internal Revenue Code of 1986.
    ``(C) No person shall be subject to liability under this part or 
section 4975 of the Internal Revenue Code of 1986 on the basis of a 
claim that the assets described in subparagraph (B) are plan assets 
with respect to any act or omission which took place before the date 
referred to in subparagraph (B), regardless of whether any such act or 
omission may be deemed to be continuing following such date.
    ``(4) Policy.--For purposes of this subsection, the term `policy' 
includes a contract.''
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by this section shall take effect on January 1, 
        1975.
            (2) Civil actions.--The amendment made by this section 
        shall not apply to any civil action commenced before November 
        7, 1995.
                                 <all>