S.1838 - Pension Protection and Diversification Act of 2001107th Congress (2001-2002)
|Sponsor:||Sen. Boxer, Barbara [D-CA] (Introduced 12/18/2001)|
|Committees:||Senate - Health, Education, Labor, and Pensions|
|Latest Action:||Senate - 12/18/2001 Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (All Actions)|
This bill has the status Introduced
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Summary: S.1838 — 107th Congress (2001-2002)All Information (Except Text)
Pension Protection and Diversification Act of 2001 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) to: (1) limit to 20 percent the portion of funds which may be invested in the employer's stock and real property by an employee's individual account plans under section 401(k) of the Internal Revenue Code; and (2) allow an employee to direct the plan to divest the employee's account of such employer securities or property and to reinvest an equal amount in other assets, at any time after 90 days following allocation of employer securities or real property to the employee's individual account plan. Exempts employee stock ownership plans (ESOPS) from these new ERISA provisions.
Introduced in Senate (12/18/2001)
Amends Internal Revenue Code to: (1) allow employees to diversify assets in ESOPS after five years, and after they've reached age 35 (but requires a trustee-to-trustee transfer for those under age 55); and (2) reduce by 50 percent the allowable deduction for employer matching contributions to defined contribution plans made in employer securities.