§506. Disclosure of termination information to plan participants

Pension Protection Act of 2006

Title V Disclosure

(a) DISTRESS TERMINATIONS.-

(a)(1) IN GENERAL.-Section 4041(c)(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1341(c)(2)) is amended by adding at the end the following:

"(D) DISCLOSURE OF TERMINATION INFORMATION.-

"(i) IN GENERAL.-A plan administrator that has filed a notice of intent to terminate under subsection (a)(2) shall provide to an affected party any information provided to the corporation under subsection (a)(2) not later than 15 days after-

"(I) receipt of a request from the affected party for the information; or

"(II) the provision of new information to the corporation relating to a previous request.

"(ii) CONFIDENTIALITY.-

"(I) IN GENERAL.-The plan administrator shall not provide information under clause (i) in a form that includes any information that may directly or indirectly be associated with, or otherwise identify, an individual participant or beneficiary.

"(II) LIMITATION.-A court may limit disclosure under this subparagraph of confidential information described in section 552(b) of title 5, United States Code, to any authorized representative of the participants or beneficiaries that agrees to ensure the confidentiality of such information.

"(iii) FORM AND MANNER OF INFORMATION; CHARGES.-

"(I) FORM AND MANNER.-The corporation may prescribe the form and manner of the provision of information under this subparagraph, which shall include delivery in written, electronic, or other appropriate form to the extent that such form is reasonably accessible to individuals to whom the information is required to be provided.

"(II) REASONABLE CHARGES.-A plan administrator may charge a reasonable fee for any information provided under this subparagraph in other than electronic form.

"(iv) AUTHORIZED REPRESENTATIVE.-For purposes of this subparagraph, the term 'authorized representative' means any employee organization representing participants in the pension plan.".

(a)(2) CONFORMING AMENDMENT.-Section 4041(c)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1341(c)(1)) is amended in subparagraph (C) by striking "subparagraph (B)" and inserting "subparagraphs (B) and (D)".

(b) INVOLUNTARY TERMINATIONS.-

(b)(1) IN GENERAL.-Section 4042(c) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1342(c)) is amended by-

(b)(1)(A) striking "(c) If the" and inserting "(c)(1) If the";

(b)(1)(B) redesignating paragraph (3) as paragraph (2); and

(b)(1)(C) adding at the end the following:

"(3) DISCLOSURE OF TERMINATION INFORMATION.-

"(A) IN GENERAL.-

"(i) INFORMATION FROM PLAN SPONSOR OR ADMINISTRATOR.- A plan sponsor or plan administrator of a single-employer plan that has received a notice from the corporation of a determination that the plan should be terminated under this section shall provide to an affected party any information provided to the corporation in connection with the plan termination.

"(ii) INFORMATION FROM CORPORATION.-The corporation shall provide a copy of the administrative record, including the trusteeship decision record of a termination of a plan described under clause (i).

"(B) TIMING OF DISCLOSURE.-The plan sponsor, plan administrator, or the corporation, as applicable, shall provide the information described in subparagraph (A) not later than 15 days after-

"(i) receipt of a request from an affected party for such information; or

"(ii) in the case of information described under subparagraph (A)(i), the provision of any new information to the corporation relating to a previous request by an affected party.

"(C) CONFIDENTIALITY.-

"(i) IN GENERAL.-The plan administrator and plan sponsor shall not provide information under subparagraph (A)(i) in a form which includes any information that may directly or indirectly be associated with, or otherwise identify, an individual participant or beneficiary.

"(ii) LIMITATION.-A court may limit disclosure under this paragraph of confidential information described in section 552(b) of title 5, United States Code, to authorized representatives (within the meaning of section 4041(c)(2)(D)(iv)) of the participants or beneficiaries that agree to ensure the confidentiality of such information.

"(D) FORM AND MANNER OF INFORMATION; CHARGES.-

"(i) FORM AND MANNER.-The corporation may prescribe the form and manner of the provision of information under this paragraph, which shall include delivery in written, electronic, or other appropriate form to the extent that such form is reasonably accessible to individuals to whom the information is required to be provided.

"(ii) REASONABLE CHARGES.-A plan sponsor may charge a reasonable fee for any information provided under this paragraph in other than electronic form.".

(c) EFFECTIVE DATE.-

(c)(1) IN GENERAL.-The amendments made by this section shall apply to any plan termination under title IV of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1301 et seq.) with respect to which the notice of intent to terminate (or in the case of a termination by the Pension Benefit Guaranty Corporation, a notice of determination under section 4042 of such Act (29 U.S.C. 1342)) occurs after the date of enactment of this Act.

(c)(2) TRANSITION RULE.-If notice under section 4041(c)(2)(D) or 4042(c)(3) of the Employee Retirement Income Security Act of 1974 (as added by this section) would otherwise be required to be provided before the 90th day after the date of the enactment of this Act, such notice shall not be required to be provided until such 90th day.