How S 2003 changes current law

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill allows the transfer of excess health assets from pension plans to fund benefits for active employees without penalties under certain conditions.

• 29 U.S.C. 1003

  Transfers of Excess Health Assets.--A pension plan shall not be treated as failing to meet the requirements of this subchapter solely by reason of any transfer made as permitted by section 420(h) of the Internal Revenue Code of 1986.

  Establishes that pension plans can transfer excess health assets without being deemed non-compliant.

• 29 U.S.C. 1083(l)

  Notwithstanding the preceding sentence, any assets transferred to the plan pursuant to section 420(h) of such Code shall be treated as assets in the plan.

  Ensures that transferred excess health assets are counted as part of the plan's assets.

• 29 U.S.C. 1108(b)(13)

  . → , or any transfer of excess health assets permitted under section 420(h) of such Code (as in effect on the date of the enactment of the Strengthening Benefit Plans Act of 2025).

  Clarifies that transfers of excess health assets are permissible under existing regulations.

• 29 U.S.C. 1021(e)

  Transfers of excess health assets.--(A) Notice to participants.--Not later than 60 days before the date of a transfer by an employee pension benefit plan of excess health assets pursuant to section 420(h)(1) of the Internal Revenue Code of 1986, the administrator of the plan shall provide notice (in such manner as the Secretary may prescribe) of such transfer to each participant and beneficiary under the plan.

  Imposes a notification requirement for participants regarding transfers of excess health assets.