June 21, 1993
TO: PENSION COMMITTEE NO. 21-93
RE: LEGISLATIVE ALERT CONCERNING ERISA ENFORCEMENT AMENDMENTS
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As we previously advised you, the Senate this week will consider the
budget reconciliation legislation (H.R. 2264) which includes amendments to
ERISA that would provide for a cause of action against nonfiduciary service
providers for knowing participation in fiduciary breaches.
The legislation, which also expands the remedies and civil penalties
available under ERISA with respect to service providers and others, would have
an insignificant revenue impact. (See Institute Memorandum to Pension
Committee No. 20-93, dated June 17, 1993.) Thus, the provision could be
removed from the budget legislation in two different ways. First, it could be
subject to a point of order on the Senate floor on the grounds that its
purpose is not budgetary in nature. If the provision is ruled out of order,
it would take at least 60 Senators to overturn the point of order and keep the
provision in the bill. Second, the provision could be removed on the Senate
floor upon a motion by one Senator and a majority vote.
We therefore ask that you call or write your senators and urge them to
oppose the inclusion of this provision in the budget reconciliation
legislation. Attached for use in your letter or call is a list of talking
points as well as a list of the names, addresses and telephone numbers of all
of the members of the Senate. Given the time constraints of this effort,
letters should be sent by FAX if possible.
Please feel free to contact the undersigned at (202) 955-3516 or Michael
Stern at (202) 955-3559 if you have any questions.
Kathy D. Ireland
Associate Counsel - Pension
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