|
Senator Robert Bennett (R-Utah) has introduced S. 2000, a bill to protect employee pension funds. This will place on employers or fiduciaries the legal burden of maintaining the solvency of these assets. If the employer or fiduciary does not deal with the issue of y2k, and the pension assets fall in value, he can be held liable.
If this bill passes, employers will have to consider whether it still pays to operate a pension fund for employees. Fiduciaries will presumably retire within 24 hours after the President signs this bill. If not, may the Force be with them.
The second part of the bill establishes a y2k Presidential Council. It will have the responsibility for coordinating the Federal government's y2k efforts. The current y2k council was created by President Clinton by executive order on Feb. 4, 1998. It is more advisory in nature. You know. "Get this fixed." "OK, we will." "Good."
* * * * * * * *
S 2000 IS
105th CONGRESS
2d Session
S. 2000
To ensure that businesses, financial markets, and the Federal Government are taking adequate steps to resolve the year 2000 computer problem.
IN THE SENATE OF THE UNITED STATES
April 29, 1998
Mr. BENNETT introduced the following bill; which was read twice and referred to the Committee on Governmental Affairs
A BILL
To ensure that businesses, financial markets, and the Federal Government are taking adequate steps to resolve the year 2000 computer problem.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. FIDUCIARIES OF EMPLOYEE BENEFIT PLANS MUST CONSIDER YEAR 2000 COMPUTER PROBLEMS IN MAKING INVESTMENT DECISIONS.
(a) IN GENERAL- Section 404(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104(a)) is amended by adding at the end the following new paragraph:
`(3) A fiduciary shall not be treated as meeting the requirements of paragraph (1)(B) unless--
`(A) the fiduciary determines that--
`(i) the issuer of any security in which the fiduciary seeks to invest the assets of the plan has, or is taking, steps to substantially eliminate any year 2000 computer problem faced by the issuer, and
`(ii) such security is traded on a market that is prepared to operate without any interruption due to the year 2000 computer problem, or
`(B) in any case where such assets are invested by an insurance carrier, bank, or similar institution, the fiduciary determines that such institution makes the determinations described in subparagraph (A) with respect to the investment of such assets.'
(b) EFFECTIVE DATE- The amendment made by this section shall apply to investments made by a fiduciary, and contracts to invest plan assets entered into with insurance carriers, banks, and similar institutions, on or after the date of the enactment of this Act.
SEC. 2. STEPS TO ENSURE THE FEDERAL GOVERNMENT ADDRESSES YEAR 2000 COMPUTER PROBLEM.
(a) PRESIDENT'S COUNCIL ON YEAR 2000 CONVERSION-
(1) IN GENERAL- The President shall establish the President's Council on Year 2000 Conversion (the `Council') which shall be chaired, at the President's discretion, by an Assistant to the President.
(2) MEMBERSHIP-
(A) IN GENERAL- The Council shall be composed of 1 representative from each of the executive departments and from such other Federal agencies as the Chair shall designate.
(B) VICE CHAIR; OTHER PERSONNEL- The Chair shall appoint a Vice Chair and shall assign other responsibilities to members of the Council as the Chair determines necessary.
(3) FUNCTIONS- The Chair shall--
(A) oversee the activities of executive departments and other Federal agencies to assure that their computer systems operate smoothly through the year 2000,
(B) provide policy direction to, and receive reports and data from, executive departments and other Federal agencies, as is necessary to ensure progress and compliance with Federal standards for remediation of the year 2000 computer problem,
(C) allocate resources for correcting critical year 2000 computer problems among executive departments and other Federal agencies in order to meet critical deadlines, and
(D) utilize any existing authorities granted to the executive branch, or recommend to the Congress other appropriate plans, for the retention of critical personnel needed to address the Federal Government's year 2000 computer problem in a timely manner.
(4) COOPERATION- The head of each executive department and any other Federal agency shall cooperate to the fullest extent with the Council.
(b) REPORT- The Director of the Office of Management and Budget shall report quarterly to the Congress on the progress made by the Federal Government--
(1) in achieving year 2000 compliance, and
(2) in obtaining and retaining the resources and personnel necessary to achieve an orderly conversion to year 2000 compliance.
END
|