I 116TH CONGRESS 2D SESSION H. R. 8660 To direct the Secretary of Labor to modify regulations to allow the use of performance benchmarks in the case of designated investment alter- natives, and for other purposes. IN THE HOUSE OF REPRESENTATIVES OCTOBER 23, 2020 Mr. EVANS introduced the following bill; which was referred to the Committee on Education and Labor A BILL To direct the Secretary of Labor to modify regulations to allow the use of performance benchmarks in the case of designated investment alternatives, and for other pur- poses. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. PERFORMANCE BENCHMARKS FOR ASSET AL- 3 LOCATION FUNDS. 4 (a) IN GENERAL.—Not later than 6 months after the 5 date of the enactment of this Act, the Secretary of Labor 6 (or the Secretary’s delegate) shall modify the regulations 7 under section 404 of the Employee Retirement Income Se- 8 VerDate Sep 11 2014 18:41 Nov 06, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8660.IH H8660 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 8660 IH curity Act of 1974 (29 U.S.C. 1104) to provide that, in 1 the case of a designated investment alternative which con- 2 tains a mix of asset classes, a plan administrator may, 3 but is not required to, use a benchmark which is a blend 4 of different broad-based securities market indices if— 5 (1) the blend is reasonably representative of the 6 asset class holdings of the designated investment al- 7 ternative; 8 (2) for purposes of determining the blend’s re- 9 turns for 1-, 5-, and 10-calendar-year periods (or for 10 the life of the alternative, if shorter), the blend is 11 modified at least once per year to reflect changes in 12 the asset class holdings of the designated investment 13 alternative; 14 (3) the blend is furnished to participants and 15 beneficiaries in a manner that is reasonably designed 16 to be understandable and helpful; and 17 (4) each securities market index which is used 18 for an associated asset class would separately satisfy 19 the requirements of such regulations for such asset 20 class. 21 (b) STUDY.—Not later than December 31, 2021, the 22 Secretary of Labor (or the Secretary’s delegate) shall de- 23 liver a report to the Committees on Ways and Means and 24 Education and Labor of the House of Representatives and 25 VerDate Sep 11 2014 18:41 Nov 06, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8660.IH H8660 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 8660 IH the Committees on Finance and Health, Education, 1 Labor, and Pensions of the Senate regarding the effective- 2 ness of the benchmarking requirements under section 3 2550.404a–5 of title 29, Code of Federal Regulations. 4 Æ VerDate Sep 11 2014 18:41 Nov 06, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H8660.IH H8660 pamtmann on DSKBC07HB2PROD with BILLS