§1304 — Title 29 Labor | U.S. Code

Summary

The board of directors must pick a Participant and Plan Sponsor Advocate from nominees the advisory committee gives them. The usual federal competitive hiring rules and Senior Executive Service rules do not apply. The Advocate will act as a go-between for the corporation, pension plan sponsors, and plan participants. The Advocate will push for participants’ rights, help resolve disputes, spot recurring problems, suggest changes to the corporation’s practices, recommend possible changes to laws, and report fraud, waste, abuse, or legal violations to the corporation’s Office of the Inspector General. If the Advocate is going to be removed or moved, the board must send Congress a written explanation at least 30 days before the change. The Advocate’s pay must match the highest basic pay rate for the Senior Executive Service under section 5382 of title 5, or a rate set under section 9503 of title 5 if the board chooses. By December 31 each year, the Advocate must send a report to the Senate Health, Education, Labor, and Pensions Committee; the Senate Committee on Finance; the House Committee on Education and the Workforce; and the House Committee on Ways and Means. The report must summarize help requests, describe and evaluate the Advocate’s work, name major problems found, list specific legislative and regulatory fixes, and note any actions taken to correct problems from earlier reports. The Advocate must also send the report at the same time to the Secretary of Labor, the Director of the corporation, and other appropriate officials.

Title 29, §1304

Labor — Source: USLM XML via OLRC

(a)The board of directors of the corporation shall select a Participant and Plan Sponsor Advocate from the candidates nominated by the advisory committee to the corporation under section 1302(h)(1) of this title and without regard to the provisions of title 5 relating to appointments in the competitive service or Senior Executive Service.

(b)The Participant and Plan Sponsor Advocate shall—

(1)act as a liaison between the corporation, sponsors of defined benefit pension plans insured by the corporation, and participants in pension plans trusteed by the corporation;

(2)advocate for the full attainment of the rights of participants in plans trusteed by the corporation;

(3)assist pension plan sponsors and participants in resolving disputes with the corporation;

(4)identify areas in which participants and plan sponsors have persistent problems in dealings with the corporation;

(5)to the extent possible, propose changes in the administrative practices of the corporation to mitigate problems;

(6)identify potential legislative changes which may be appropriate to mitigate problems; and

(7)refer instances of fraud, waste, and abuse, and violations of law to the Office of the Inspector General of the corporation.

(c)If the Participant and Plan Sponsor Advocate is removed from office or is transferred to another position or location within the corporation or the Department of Labor, the board of the 11 So in original. The word “the” probably should not appear. directors of the corporation shall communicate in writing the reasons for any such removal or transfer to Congress not less than 30 days before the removal or transfer. Nothing in this subsection shall prohibit a personnel action otherwise authorized by law, other than transfer or removal.

(d)The annual rate of basic pay for the Participant and Plan Sponsor Advocate shall be the same rate as the highest rate of basic pay established for the Senior Executive Service under section 5382 of title 5 or, if the board of directors of the corporation so determines, at a rate fixed under section 9503 of such title.

(e)(1)Not later than December 31 of each calendar year, the Participant and Plan Sponsor Advocate shall report to the Health, Education, Labor, and Pensions Committee of the Senate, the Committee on Finance of the Senate, the Committee on Education and the Workforce of the House of Representatives, and the Committee on Ways and Means of the House of Representatives on the activities of the Office of the Participant and Plan Sponsor Advocate during the fiscal year ending during such calendar year.

(2)Each report submitted under paragraph (1) shall—

(A)summarize the assistance requests received from participants and plan sponsors and describe the activities, and evaluate the effectiveness, of the Participant and Plan Sponsor Advocate during the preceding year;

(B)identify significant problems the Participant and Plan Sponsor Advocate has identified;

(C)include specific legislative and regulatory changes to address the problems; and

(D)identify any actions taken to correct problems identified in any previous report.

(3)The Participant and Plan Sponsor Advocate shall submit a copy of each report to the Secretary of Labor, the Director of the corporation, and any other appropriate official at the same time such report is submitted to the committees of Congress under paragraph (1).

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 1304, Pub. L. 93–406, title IV, § 4004, Sept. 2, 1974, 88 Stat. 1008, related to appointment, within 270 days after Sept. 2, 1974, and powers and functions of a receiver to assume control of terminated plan and its assets, prior to repeal by Pub. L. 99–272, title XI, § 11016(c)(6), Apr. 7, 1986, 100 Stat. 274, effective Jan. 1, 1986, with certain exceptions. See section 11019 of Pub. L. 99–272, set out as an

Effective Date

of 1986 Amendment note under section 1341 of this title.

§1304 Participant and Plan Sponsor Advocate