Sec. 234. Transfer of minimum survivor annuity requirements from plan sponsors to annuity providers

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Section 417 is amended by adding at the end the following: If a defined contribution plan to which the requirements of section 401(a)(11) and this section apply has a designated annuity provider, then, except as provided in paragraph (3), the designated annuity provider (and not any plan sponsor or administrator) shall be liable for any failure to meet any such requirement. For purposes of this subsection, the term designated annuity provider means a person licensed under the laws of any State to issue annuity contracts which has entered into a contract with the plan sponsor or other person who is a fiduciary with respect to the plan to— provide annuity contracts to participants and beneficiaries under the plan, and meet all requirements under this section and section 401(a)(11) with respect to the providing of such annuities, including providing such annuities in the proper form, providing any notice or written explanations during any applicable notice period, and providing the opportunity for participants and their spouses or beneficiaries to make appropriate elections during any applicable election period.

This subsection shall apply to a plan with a designated annuity provider only if the plan sponsor or other person who is a fiduciary with respect to the plan met all requirements for the prudent selection and periodic review of the annuity provider with respect to whom a contract described in paragraph

(2)was entered into. A plan shall not be treated as failing to meet the requirements of this subsection merely because plan assets are used to pay for reasonable expenses of the designated annuity provider in meeting the requirements described in paragraph (2)(B). The Secretary shall, to the maximum extent practicable, ensure that notices and explanations provided by the designated annuity provider are provided in electronic form. . Section 205 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1055 ) is amended by adding at the end the following: If an individual account plan to which the requirements of this section apply has a designated annuity provider, then, except as provided in paragraph (3), the designated annuity provider (and not any plan sponsor or administrator) shall be liable for any failure to meet any such requirement. For purposes of this subsection, the term designated annuity provider means a person licensed under the laws of any State to issue annuity contracts which has entered into a contract with the plan sponsor or other person who is a fiduciary with respect to the plan to— provide annuity contracts to participants and beneficiaries under the plan, and meet all requirements under this section and section 401(a)(11) of the Internal Revenue Code of 1986 with respect to the providing of such annuities, including providing such annuities in the proper form, providing any notice or written explanations during any applicable notice period, and providing the opportunity for participants and their spouses or beneficiaries to make appropriate elections during any applicable election period. This subsection shall apply to a plan with a designated annuity provider only if the plan sponsor or other person who is a fiduciary with respect to the plan met all requirements for the prudent selection and periodic review of the annuity provider with respect to whom a contract described in paragraph

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U.S. Code

Requirement of joint and survivor annuity and preretirement survivor annuity
§ 1055

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Sec. 234

Transfer of minimum survivor annuity requirements from plan sponsors to annuity providers

U.S.C.§ 1055

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