Introduced in House
Protecting Workers’ Benefits Act
SEC. 1. SHORT TITLETrack this section →
This Act may be cited as the Protecting Workers’ Benefits Act.
SEC. 2. PROTECTING WORKERS’ BENEFITSTrack this section →
Section 502 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1132) is amended— (1) in subsection (a)(2), by inserting plan, after or by a; and (2) in subsection (d), by adding at the end the following: (3) (A) A participant or beneficiary of a plan may bring an action as an assignee for such plan pursuant to section 502(a)(2) for appropriate relief pursuant to section 409. Such an action shall be brought on behalf of the plan, and the participant or beneficiary must serve a copy of the complaint on such plan. (B) Any amount recovered in an action under this paragraph in which the plan prevails or substantially prevails, or in which a settlement is reached, shall be treated as a plan asset. (C) Subject to subparagraph (D), a participant or beneficiary who brings an action on behalf of a plan as described in subparagraph (A) in which the plan prevails or substantially prevails, or in which a settlement is reached, shall— (i) be treated as having an equitable interest in the disposition of plan assets; and (ii) receive— (I) not less than 0.5 percent, but not more than 1 percent, of the amount recovered through the action or the settlement of the action; and (II) such other relief as the court may award, such as costs and expenses incurred in connection with such action. (D) If more than one participant or beneficiary bring an action as described in subparagraph (A) in which the plan prevails or substantially prevails, or in which a settlement is reached, then the court shall distribute the amount described in subparagraph (C)(ii) equitably such that a portion of such amount is awarded to— (i) in the case of such an action that is not brought as a class action, each plaintiff; and (ii) in the case of such an action that is brought as a class action, each named plaintiff. (E) A participant or beneficiary of a plan bringing an action in relation to such plan as described in subparagraph (A) shall, if an action is already pending involving substantially the same allegations, promptly move to consolidate such actions as appropriate..