December 4, 1990
TO: PENSION COMMITTEE NO. 28-90
RE: ERISA ENFORCEMENT PACKAGE
__________________________________________________________
As we previously informed you, the Department of Labor is
proposing to amend certain provisions of ERISA in order to
strengthen the regulatory scheme. (See Institute Memorandum to
Pension Committee No. 12-90, dated May 8, 1990.) Attached is a
copy of the Department's proposed Employee Retirement Income
Security Act Amendments of 1990 which was recently printed by the
U.S. House of Representatives Document Room.
Section 3 of the bill would repeal the limited scope audit
exemption contained in Section 103(a)(3)(C) of ERISA as of
January 1, 1992. However, the bill does not appear to contain a
substitute as contemplated by the initial proposal earlier this
year which would permit use of a "single audit approach." With
regard to proxy voting, section 5 of the bill would require the
fiduciary with proxy voting responsibility to maintain a written
policy governing the voting of any securities which he manages
and provide a copy of such policy to the plan administrator.
We will keep you informed of further developments.
W. Richard Mason
Assistant General Counsel
Attachment