Summary: H.R.3677 — 107th Congress (2001-2002)All Information (Except Text)

There is one summary for H.R.3677. Bill summaries are authored by CRS.

Shown Here:
Introduced in House (02/05/2002)

Safeguarding America's Retirement Act of 2002 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) to prohibit individual account plans which include cash or deferred arrangements, under the Internal Revenue Code (IRC) section 401(k), from using employee contributions to acquire or hold more than ten percent of their value in employer securities.

Requires such plans to give a participant or beneficiary whose nonforfeitable accrued benefit attributable to employee contributions is invested in whole or in part in employer securities a reasonable opportunity periodically (at least quarterly) to invest such accrued benefit in investment vehicles, other than employer securities, selected to permit diversification.

Prohibits plan sponsors, administrators, or other fiduciaries from imposing any lockdown in connection with the nonforfeitable accrued benefit of a participant or beneficiary.

Amends ERISA and IRC to provide for vesting (a nonforfeitable right to all of the participant's accrued benefits) of elective deferrals under such plans for participants who have completed three years of plan participation.