Sec. 205. Enhancement of 403(b) plans

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Section 3(c)(11) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–3(c)(11) ) is amended to read as follows: Any— employee’s stock bonus, pension, or profit-sharing trust which meets the requirements for qualification under section 401 of the Internal Revenue Code of 1986; custodial account meeting the requirements of section 403(b)(7) of such Code; governmental plan described in section 3(a)(2)(C) of the Securities Act of 1933 ( 15 U.S.C. 77c(a)(2)(C) ); collective trust fund maintained by a bank consisting solely of assets of one or more— trusts described in subparagraph (A); government plans described in subparagraph (C); church plans, companies, or accounts that are excluded from the definition of an investment company under paragraph

(14)of this subsection; or plans which meet the requirements of section 403(b) of the Internal Revenue Code of 1986— if— such plan is subject to title I of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1001 et seq. ); any employer making such plan available agrees to serve as a fiduciary for the plan with respect to the selection of the plan’s investments among which participants can choose; or such plan is a governmental plan (as defined in section 414(d) of such Code); and if the employer, a fiduciary of the plan, or another person acting on behalf of the employer reviews and approves each investment alternative offered under such plan described under subclause (I)(cc) prior to the investment being offered to participants in the plan; or separate account the assets of which are derived solely from— contributions under pension or profit-sharing plans which meet the requirements of section 401 of the Internal Revenue Code of 1986 or the requirements for deduction of the employer’s contribution under section 404(a)(2) of such Code; contributions under governmental plans in connection with which interests, participations, or securities are exempted from the registration provisions of section 5 of the Securities Act of 1933 ( 15 U.S.C. 77e ) by section 3(a)(2)(C) of such Act ( 15 U.S.C. 77c(a)(2)(C) ); advances made by an insurance company in connection with the operation of such separate account; and contributions to a plan described in clause

(iii)or

(iv)of subparagraph (D). . 1933 Section 3(a)(2) of the Securities Act of 1933 ( 15 U.S.C. 77c(a)(2) ) is amended— by striking beneficiaries, or

(D)and inserting beneficiaries,

(D)a plan which meets the requirements of section 403(b) of such Code

(i)if

(I)such plan is subject to title I of the Employee Retirement Income Security Act of 1974 ( ; 29 U.S.C. 1001 et seq. ),

(II)any employer making such plan available agrees to serve as a fiduciary for the plan with respect to the selection of the plan’s investments among which participants can choose, or

(III)such plan is a governmental plan (as defined in section 414(d) of such Code), and

(ii)if the employer, a fiduciary of the plan, or another person acting on behalf of the employer reviews and approves each investment alternative offered under any plan described under clause (i)(III) prior to the investment being offered to participants in the plan, or

(E)by striking (C), or

(D)and inserting (C), (D), or

(E); and by striking

(iii)which is a plan funded and all that follows through retirement income account). and inserting

(iii)in the case of a plan not described in subparagraph

(D)or (E), which is a plan funded by an annuity contract described in section 403(b) of such Code . 1934 Section 3(a)(12)(C) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a)(12)(C) ) is amended— by striking or

(iv)and inserting

(iv)a plan which meets the requirements of section 403(b) of such Code

(I)if

(aa)such plan is subject to title I of the Employee Retirement Income Security Act of 1974 ( ; 29 U.S.C. 1001 et seq. ),

(bb)any employer making such plan available agrees to serve as a fiduciary for the plan with respect to the selection of the plan’s investments among which participants can choose, or

(cc)such plan is a governmental plan (as defined in section 414(d) of such Code), and

(II)if the employer, a fiduciary of the plan, or another person acting on behalf of the employer reviews and approves each investment alternative offered under any plan described under subclause (I)(cc) prior to the investment being offered to participants in the plan, or

(v)by striking (ii), or

(iii)and inserting (ii), (iii), or

(iv); and by striking

(II)is a plan funded and inserting

(II)in the case of a plan not described in clause (iv), is a plan funded . Section 12(g)(2)(H) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78l(g)(2)(H) ) is amended by striking or

(iii)and inserting

(iii)a plan described in section 3(a)(12)(C)(iv) of this Act, or

(iv).

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