| "(i) Notice of Blackout Periods to Participant or Beneficiary
Under Individual Account Plan.-- |
"(1) Duties of plan administrator.-- In advance of the commencement
of any blackout period with respect to an individual account plan,
the plan administrator shall notify the plan participants and beneficiaries
who are affected by such action in accordance with this subsection. |
"(2) Notice requirements.---- |
"(A) In general.--The notices described in paragraph (1) shall
be written in a manner calculated to be understood by the average
plan participant and shall include--
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"(i) the reasons for the blackout period,
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"(ii) an identification of the investments and other rights affected,
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"(iii) the expected beginning date and length of the blackout
period,
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"(iv) in the case of investments affected, a statement that the
participant or beneficiary should evaluate the appropriateness of
their current investment decisions in light of their inability to
direct or diversify assets credited to their accounts during the
blackout period, and
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"(v) such other matters as the Secretary may require by regulation.
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"(B) Notice to participants and beneficiaries.--Except as otherwise
provided in this subsection, notices described in paragraph (1)
shall be furnished to all participants and beneficiaries under the
plan to whom the blackout period applies at least 30 days in advance
of the blackout period.
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"(C) Exception to 30-day notice requirement.--In any case in which--
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"(i) a deferral of the blackout period would violate the requirements
of subparagraph (A) or (B) of section 404(a)(1), and a fiduciary
of the plan reasonably so determines in writing, or
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"(ii) the inability to provide the 30-day advance notice is due
to events that were unforeseeable or circumstances beyond the reasonable
control of the plan administrator, and a fiduciary of the plan reasonably
so determines in writing,
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subparagraph (B) shall not apply, and the notice shall be furnished
to all participants and beneficiaries under the plan to whom the
blackout period applies as soon as reasonably possible under the
circumstances unless such a notice in advance of the termination
of the blackout period is impracticable.
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"(D) Written notice.--The notice required to be provided under
this subsection shall be in writing, except that such notice may
be in electronic or other form to the extent that such form is reasonably
accessible to the recipient.
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"(E) Notice to issuers of employer securities subject to blackout
period.--In the case of any blackout period in connection with an
individual account plan, the plan administrator shall provide timely
notice of such blackout period to the issuer of any employer securities
subject to such blackout period.
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"(3) Exception for blackout periods with limited applicability.--
In any case in which the blackout period applies only to 1 or more
participants or beneficiaries in connection with a merger, acquisition,
divestiture, or similar transaction involving the plan or plan sponsor
and occurs solely in connection with becoming or ceasing to be a
participant or beneficiary under the plan by reason of such merger,
acquisition, divestiture, or transaction, the requirement of this
subsection that the notice be provided to all participants and beneficiaries
shall be treated as met if the notice required under paragraph (1)
is provided to such participants or beneficiaries to whom the blackout
period applies as soon as reasonably practicable. |
"(4) Changes in length of blackout period.-- If, following the
furnishing of the notice pursuant to this subsection, there is a
change in the beginning date or length of the blackout period (specified
in such notice pursuant to paragraph (2)(A)(iii)), the administrator
shall provide affected participants and beneficiaries notice of
the change as soon as reasonably practicable. In relation to the
extended blackout period, such notice shall meet the requirements
of paragraph (2)(D) and shall specify any material change in the
matters referred to in clauses (i) through (v) of paragraph (2)(A). |
"(5) Regulatory exceptions.-- The Secretary may provide by regulation
for additional exceptions to the requirements of this subsection
which the Secretary determines are in the interests of participants
and beneficiaries. |
"(6) Guidance and model notices.-- The Secretary shall issue guidance
and model notices which meet the requirements of this subsection. |
"(7) Blackout period.-- For purposes of this subsection-- |
"(A) In general.--The term 'blackout period' means, in connection
with an individual account plan, any period for which any ability
of participants or beneficiaries under the plan, which is otherwise
available under the terms of such plan, to direct or diversify assets
credited to their accounts, to obtain loans from the plan, or to
obtain distributions from the plan is temporarily suspended, limited,
or restricted, if such suspension, limitation, or restriction is
for any period of more than 3 consecutive business days.
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"(B) Exclusions.--The term 'blackout period' does not include
a suspension, limitation, or restriction--
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"(i) which occurs by reason of the application of the securities
laws (as defined in section 3(a)(47) of the Securities Exchange
Act of 1934),
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"(ii) which is a change to the plan which provides for a regularly
scheduled suspension, limitation, or restriction which is disclosed
to participants or beneficiaries through any summary of material
modifications, any materials describing specific investment alternatives
under the plan, or any changes thereto, or
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"(iii) which applies only to 1 or more individuals, each of whom
is the participant, an alternate payee (as defined in section 206(d)(3)(K)),
or any other beneficiary pursuant to a qualified domestic relations
order (as defined in section 206(d)(3)(B)(i)).
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"(8) Individual account plan.---- |
"(A) In general.--For purposes of this subsection, the term 'individual
account plan' shall have the meaning provided such term in section
3(34), except that such term shall not include a one-participant
retirement plan.
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"(B) One-participant retirement plan.--For purposes of subparagraph
(A), the term 'one-participant retirement plan' means a retirement
plan that--
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"(i) on the first day of the plan year--
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"(I) covered only the employer (and the employer's spouse) and
the employer owned the entire business (whether or not incorporated),
or
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"(II) covered only one or more partners (and their spouses) in
a business partnership (including partners in an S or C corporation
(as defined in section 1361(a) of the Internal Revenue Code of 1986)),
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"(ii) meets the minimum coverage requirements of section 410(b)
of the Internal Revenue Code of 1986 (as in effect on the date of
the enactment of this paragraph) without being combined with any
other plan of the business that covers the employees of the business,
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"(iii) does not provide benefits to anyone except the employer
(and the employer's spouse) or the partners (and their spouses),
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"(iv) does not cover a business that is a member of an affiliated
service group, a controlled group of corporations, or a group of
businesses under common control, and
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"(v) does not cover a business that leases employees.".
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