,i #aacth ,,congress #b;d ,session ,h4 ,r4 #ehbh ,,in ,,the ,,house ,,of ,,representatives ,december #aj1 #bjad ,mr4 ,cartwright 7for himself and ,mr4 ,ellison7 introduced the following bill2 which was referred to the ,committee on ,education and the ,workforce1 and in addition to the ,committee on ,ways and ,means1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to provide for ,,usa ,retirement ,funds1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,,usa ,retirement ,funds ,act4 #b4 ,automatic ,,usa ,retirement ,fund arrangements 7a7 ,requirement ,to provide access ,each covered employer shall make available to each qualifying employee for the calendar year an automatic ,,usa ,retirement ,fund arrangement4 7b7 ,covered employer ,for purposes of this title-- 7#a7 ,in general ,except as otherwise provided in this subsection and subsection 7c77#b71 the term covered employer means1 with respect to any calendar year1 an employer who does not maintain a qualifying plan or arrangement for any part of such year4 7#b7 ,qualifying plan or arrangement 7,a7 ,in general ,the term qualifying plan or arrangement means a plan or arrangement described in section #bai7;g77#e7 of the ,internal ,revenue ,code of #aihf4 7,b7 ,exceptions ,such term shall not include the following3 7i7 ,frozen defined benefit plan ,a defined benefit plan that had no ongoing accruals as of the first day of the preceding calendar year1 unless the plan failed to have accruals only because of the application of section #bjf of the ,employee ,retirement ,income ,security ,act 7#bi ,u4,s4,c4 #ajef7 and section #dcf of the ,internal ,revenue ,code of #aihf4 7ii7 ,defined contribution plan without lifetime income options ,a defined contribution plan that does not provide participants with a distribution option that provides lifetime income4 7iii7 ,plans not meeting contribution requirements ,a plan-- 7,i7 which consists of a cash or deferred arrangement 7as defined in section #dja7k7 of such ,code7 with respect to which the employer does not automatically enroll all eligible employees at contribution rates at or above those specified in subsection 7d77#d72 or 7,,ii7 for which the only contributions are nonelective employer contributions and with respect to which the employer's annual contribution rate is not at or above the rates specified in subsection 7d77#d74 7#c7 ,exception for certain small and new employers 7,a7 ,in general ,the term covered employer shall not include an employer for a calendar year if the employer-- 7i7 did not employ during the preceding calendar year more than #aj employees who each received at least #e1jjj of compensation 7as defined in section #cdja7;a7 of the ,internal ,revenue ,code of #aihf7 from the employer for such preceding calendar year2 7ii7 did not normally employ more than #aj employees on a typical business day during the preceding calendar year2 or 7iii7 was not in existence at all times during the calendar year and the preceding calendar year4 7,b7 ,operating rules ,in determining the number of employees for purposes of subparagraph 7,a7-- 7i7 rules consistent with any rules applicable in determining the number of employees for purposes of section #djh7p77#b77;,c7 and section #dihj;,b7d7 of the ,internal ,revenue ,code of #aihf shall apply2 7ii7 all members of the same family 7within the meaning of section #cah7;a77#a7 of the ,internal ,revenue ,code of #aihf7 shall be treated as #a individual2 and 7iii7 any reference to an employer shall include a reference to any predecessor employer4 7#d7 ,exception for governments and churches ,the term covered employer shall not include-- 7,a7 a government or entity described in section #dad7;d7 of the ,internal ,revenue ,code of #aihf2 or 7,b7 a church or a convention or association of churches that is exempt from tax under section #eja of such ,code4 7#e7 ,aggregation rule ,a person treated as a single employer under subsection 7a7 or 7b7 of section #eb of the ,internal ,revenue ,code of #aihf or subsection 7m7 or 7o7 of section #dad of such ,code shall be treated as a single employer4 7c7 ,qualifying employee ,for purposes of this title-- 7#a7 ,in general ,the term qualifying employee means any employee who is not an excluded employee4 7#b7 ,plan sponsor's employees ,if-- 7,a7 an employer maintains one or more qualifying plans or arrangements described in section #bai7;g77#e7 of the ,internal ,revenue ,code of #aihf2 and 7,b7 the employees of a subsidiary1 division1 or other business unit are generally not eligible to participate in any such qualifying plan or arrangement1 for purposes of this section1 the employer shall be treated as a covered employer with respect to such employees 7other than excluded employees71 and such employees 7other than excluded employees7 shall be treated as qualifying employees for the calendar year4 7#c7 ,excluded employees 7,a7 ,in general ,the term excluded employee means an employee who is an excludable employee and who is in a class or category that the employer excludes from treatment as qualifying employees4 7,b7 ,excludable employee ,the term excludable employee means-- 7i7 an employee described in section #daj7;b77#c7 of the ,internal ,revenue ,code of #aihf2 7ii7 an employee who has not attained the age of #ba before the beginning of the calendar year2 7iii7 an employee who has not completed at least #c months of service with the employer2 7iv7 in the case of an employer that maintains a qualifying plan or arrangement which excludes employees who have not satisfied the minimum age and service requirements for participation in the plan1 an employee who has not satisfied such requirements2 7v7 in the case of an employer that maintains an annuity contract 7including a custodial account or retirement income account7 under section #djc7;b7 of the ,internal ,revenue ,code of #aihf1 an employee who is permitted to be excluded from any salary reduction arrangement under the contract pursuant to paragraph 7#ab7 of such section #djc7;b72 7vi7 in the case of an employer that maintains an arrangement described in section #djh7p7 of such ,code1 an employee who is not required to be eligible to participate in the arrangement under paragraph 7#d7 of such section #djh7p72 and 7vii7 in the case of an employer that maintains a simplified employee pension described in section #djh7k7 of such ,code1 an employee who is permitted to be excluded from participation under paragraph 7#b7 of such section #djh7k74 7#d7 ,guidance ,the ,secretary of ,labor 7in this title referred to as the ,secretary7 shall issue regulations or other guidance to carry out this subsection1 including-- 7,a7 guidelines for determining the classes or categories of employees to be covered by a ,,usa ,retirement ,fund2 7,b7 guidelines requiring employers to specify the classification or categories of employees 7if any7 who are excluded from the ,,usa ,retirement ,fund2 and 7,c7 rules to prevent avoidance of the requirements of this section4 7d7 ,automatic ,,usa ,retirement ,fund arrangement ,for purposes of this title-- 7#a7 ,in general ,the term automatic ,,usa ,retirement ,fund arrangement means an arrangement of an employer 7determined without regard to whether the employer is required to maintain the arrangement7-- 7,a7 that covers each qualifying employee of the covered employer for the calendar year2 7,b7 under which a qualifying employee-- 7i7 may elect-- 7,i7 to contribute to an automatic ,,usa ,retirement ,fund by having the employer deposit payroll deduction amounts or make other periodic direct deposits 7including electronic payments7 to the ,fund2 or 7,,ii7 to have such payments paid to the employee directly in cash2 7ii7 is treated as having made the election under clause 7i77,i7 in the amount specified in paragraph 7#d7 unless the individual specifically elects not to have such contributions made 7or specifically elects to have such contributions made at a different percentage or in a different amount72 and 7iii7 not more than once per calendar year1 may elect to modify the selection of the ,,usa ,retirement ,fund to which contributions are made for such year2 and 7,c7 that meets the administrative requirements of paragraph 7#c71 including the notice requirement of paragraph 7#c77;,c74 7#b7 ,automatic re-enrollment ,an employee's election not to contribute to a ,,usa ,retirement ,fund 7or to have such contributions made at a different percentage or in a different amount from those specified in paragraph 7#d77 shall expire after #b years4 ,after such #b-year period and absent a new election1 the employee shall be treated as having made the election under paragraph 7#a77;,b77i77,i7 in the amount specified in paragraph 7#d74 7#c7 ,administrative requirements 7,a7 ,payments ,an employer shall make the payments elected or treated as elected under paragraph 7#a77;,b7 on or before-- 7i7 the last day of the month following the month in which the compensation otherwise would have been payable to the employee in cash2 or 7ii7 such later date as the ,secretary may prescribe4 7,b7 ,termination of employee participation ,subject to a requirement for reasonable notice1 an employee may elect to terminate participation in the arrangement at any time during a calendar year4 ,the arrangement may provide that1 if an employee so terminates participation1 the employee may not elect to resume participation until the beginning of the next calendar year4 7,c7 ,notice of election period ,the employer shall notify each employee eligible to participate for a year in a ,,usa ,retirement ,fund arrangement1 within a reasonable period of time before the #cjth day before the beginning of such year 7and1 for the first year the employee is so eligible1 the #cjth day before the first day such employee is so eligible71 of-- 7i7 the payments that may be elected or treated as elected under paragraph 7#a77;,b72 7ii7 the opportunity to make the election to terminate participation in the arrangement under subparagraph 7,b72 7iii7 the opportunity to make the election under paragraph 7#a77;,b77ii7 to have contributions or purchases made at a different percentage or in a different amount2 and 7iv7 the opportunity under paragraph 7#a77;,b77iii7 to modify the manner in which such amounts are invested for such year4 7,d7 ,employees may choose usa retirement fund ,the arrangement shall provide that a qualified employee may elect to have contributions made to any ,,usa ,retirement ,fund available to the employee4 7#d7 ,amount of contributions and payments ,the amount specified in this paragraph is-- 7,a7 #c percent of compensation for the calendar year beginning on ,january #a1 #bjae2 7,b7 #d percent of compensation for the calendar year beginning on ,january #a1 #bjaf2 7,c7 #e percent of compensation for the calendar year beginning on ,january #a1 #bjag2 and 7,d7 #f percent of compensation for calendar years beginning after ,december #ca1 #bjag4 7#e7 ,coordination with withholding ,the ,secretary of the ,treasury shall modify the withholding exemption certificate under section #cdjb7;f7 of the ,internal ,revenue ,code of #aihf so that1 in the case of any qualifying employee covered by a ,,usa ,retirement ,fund arrangement1 any notice and election requirements with respect to the arrangement may be met through the use of an attachment to such certificate or other modifications of the withholding exemption procedures4 7e7 ,deposits to ,,usa ,retirement ,funds 7#a7 ,in general ,except as provided in paragraph 7#b71 an employer shall make all contributions on behalf of employees to the ,,usa ,retirement ,fund specified by the employee4 7#b7 ,,usa retirement funds other than those selected by employee ,in the absence of an affirmative selection of a ,,usa ,retirement ,fund by the employee1 contributions on behalf of the employee shall be made to the ,,usa ,retirement ,fund designated by the employer4 7#c7 ,regulations ,the ,secretary may issue such regulations as are necessary to carry out this subsection4 7f7 ,preemption of conflicting ,state laws ,the requirements under this section preempt any law of a ,state that directly or indirectly prohibits or restricts the establishment or operation of an automatic ,,usa ,retirement ,fund arrangement4 ,nothing in this section shall be construed to impair or preempt any ,state law to the extent such ,state law provides a remedy for the failure to make payroll deposit payments under any such automatic ,,usa ,retirement ,fund arrangement within the period required4 #c4 ,establishment of ,,usa ,retirement ,funds 7a7 ,qualification as a ,,usa ,retirement ,fund ,for purposes of this title-- 7#a7 ,in general ,the term ,,usa ,retirement ,fund means a fund for which the ,secretary has determined the requirements under this title are met4 7#b7 ,request for determination ,the board of trustees of a program established for purposes of being treated as a ,,usa ,retirement ,fund under this section shall1 prior to beginning operations1 submit to the ,secretary 7at such time and in such manner as the ,secretary may prescribe7 a request for the ,secretary to make a determination as to whether the plan meets the requirements of this title for such treatment4 ,such request shall include copies of the written documents establishing the plan and such other materials as the ,secretary may request4 ,the ,secretary shall make such determination within #ahj days of receiving such request4 7#c7 ,periodic review ,the ,secretary shall establish a process to periodically review each plan determined to be a ,,usa ,retirement ,fund under paragraph 7#a7 to ensure that the plan continues to meet the requirements of this title4 7#d7 ,public list of plans ,the ,secretary shall maintain a public list of plans determined by the ,secretary to qualify as ,,usa ,retirement ,funds4 ,such list shall be posted to a publicly available ,internet website4 7b7 ,participation 7#a7 ,eligibility ,an individual may participate in any ,,usa ,retirement ,fund for which such individual meets the eligibility requirements1 individually or through an arrangement established by an employer4 7#b7 ,participation in other plans ,an individual who participates in a ,,usa ,retirement ,fund shall not be precluded from participating in a plan or arrangement described in section #bai7;g77#e7 of the ,internal ,revenue ,code of #aihf4 7c7 ,governance 7#a7 ,assets held in trust2 board of trustees ,for purposes of this title-- 7,a7 the assets of each ,,usa ,retirement ,fund shall be held in trust1 and 7,b7 the ,fund shall be governed by a board of trustees which shall consist of at least #c individuals who-- 7i7 are independent of service providers to the ,fund2 7ii7 meet the qualification requirements established under this section2 and 7iii7 are collectively able to adequately represent the interests of active participants1 retirees1 and contributing employers4 7#b7 ,independence requirement ,an individual is not independent of ,fund service providers for purposes of paragraph 7#a77;,b77i7 if such individual-- 7,a7 is an employee of any ,fund service provider2 7,b7 is a current or former officer or director of a significant ,fund service provider1 or is otherwise affiliated with such a provider2 7,c7 is a member of the immediate family of any person who is affiliated with a significant ,fund service provider2 7,d7 derives more than #a percent of the individual's annual income from a significant ,fund service provider2 7,e7 derives more than #e percent of the individual's annual income from any ,fund service provider2 or 7,f7 fails to meet meets such other criteria as are specified by the ,secretary to ensure the independence of the board of directors4 7#c7 ,multiple trusteeships ,no individual may serve on the board of trustees of more than #a ,,usa ,retirement ,fund unless the ,secretary receives attestation from the board of trustees of each applicable ,,usa ,retirement ,fund and the individual that1 at the time of appointment1 there is no reasonably foreseeable conflict between the duties of such individual to the participants in each applicable ,,usa ,retirement ,fund4 ,in no case may an individual serve on the boards of trustees of more than #c ,,usa ,retirement ,funds4 7#d7 ,trustee qualifications ,each trustee of a ,,usa ,retirement ,fund shall attest that the trustee is knowledgeable of the trustee's duties and responsibilities as a fiduciary of a ,,usa ,retirement ,fund4 ,the ,secretary may require by regulation such other qualifications and documentation as may be necessary to ensure that trustees are suitable and qualified4 ,such requirements may include those related to education1 training1 and minimum competency standards4 7#e7 ,trustee selection and removal 7,a7 ,in general ,each board of trustees of a ,,usa ,retirement ,fund shall establish written procedures regarding the appointment1 removal1 and replacement of trustees on the board4 ,such procedures shall-- 7i7 take effect after adoption by the majority of the board of trustees2 7ii7 be readily available to participants2 7iii7 provide participants with a reasonable opportunity to comment on1 or participate in1 the trustee selection process2 and 7iv7 provide for periodic election of trustees4 7,b7 ,removal by the secretary ,the ,secretary may require removal or suspension of a trustee if the conduct of the trustee is fraudulent or is causing1 or can be reasonably expected to cause1 significant1 imminent1 and irreparable harm to the participants or beneficiaries of a ,,usa ,retirement ,fund4 7,c7 ,funds without qualified trustees ,if a board of trustees of a ,,usa ,retirement ,fund has no members meeting the criteria under this subsection1 the ,secretary shall appoint replacement trustees4 7#f7 ,trustee compensation ,trustees of the ,fund may be compensated at reasonable rates from the ,fund1 but only if such compensation is paid in accordance with the written board compensation policy adopted under paragraph 7#g77;,a77iv74 7#g7 ,transparency and participant democracy 7,a7 ,publicly available policies ,the board of trustees of a ,,usa ,retirement ,fund shall adopt and make available to participants and beneficiaries of1 and employers contributing to1 the ,,usa ,retirement ,fund-- 7i7 a written investment policy statement2 7ii7 a written lifetime income policy statement2 7iii7 an annual performance assessment of the board of trustees1 including an evaluation of weaknesses of the board and a plan to address such weaknesses2 7iv7 a written board compensation policy that includes current compensation levels and provides a reasonable opportunity for comment from participants1 beneficiaries1 and employers2 and 7v7 a written policy addressing conflicts of interests with respect to trustees4 7,b7 ,participant input regarding board of trustees 7i7 ,in general ,the board of trustees of a ,,usa ,retirement ,fund shall establish procedures whereby a participant or beneficiary of such ,,usa ,retirement ,fund may-- 7,i7 petition the board of trustees to remove a trustee or service provider2 7,,ii7 comment on the management and administration of the ,,usa ,retirement ,fund2 and 7,,iii7 with respect to a ,,usa ,retirement ,fund with more than #bej1jjj1jjj of assets1 vote to approve or disapprove the compensation of the trustees at least once every #c years4 7ii7 ,effect of vote ,if participants and beneficiaries of a ,,usa ,retirement ,fund vote to disapprove the compensation of trustees under clause 7i77,,iii7-- 7,i7 the results of such vote shall not be binding on the board of trustees2 and 7,,ii7 the board of trustees shall notify the ,secretary of the results of such vote and provide an explanation of why the compensation is reasonable or anticipated changes to the compensation4 7#h7 ,liability insurance for trustees ,the trustees of each ,,usa ,retirement ,fund shall have fiduciary liability insurance with a per-claim limit equal to no less than the greater of-- 7,a7 #e percent of plan assets2 or 7,b7 #a1jjj1jjj4 7#i7 ,trustee duties 7,a7 ,in general ,the trustees of a ,,usa ,retirement ,fund shall manage the ,fund with the intention of providing each participant with a cost-effective stream of income in retirement and reducing benefit level volatility 7particularly for those approaching retirement74 7,b7 ,applicability of other requirements ,each trustee of a ,,usa ,retirement ,fund shall be a fiduciary subject to sections #djd7;a71 #djd7;b71 #dje1 #djf1 and #djh through #dac of the ,employee ,retirement ,income ,security ,act of #aigd with respect to the ,fund and participants and beneficiaries of the ,fund4 ,each such trustee shall be subject to the standards and remedies of such sections and section #ejb of such ,act1 as if the ,fund were an employee benefit plan4 7d7 ,contribution limitations 7#a7 ,employer ,subject to paragraph 7#c71 employers may1 in addition to contributions an employee elects 7or is treated as having elected7 to have made1 make a contribution of up to #e1jjj per year to a ,,usa ,retirement ,fund on behalf of each employee eligible to participate in a ,,usa ,retirement ,fund1 provided such contributions are made in a uniform manner 7as the same dollar amount for each such employee or the same percentage of pay for each such employee7 and are not intended to benefit solely highly compensated employees4 7#b7 ,employee ,an employee may not elect 7or shall not be treated as having as elected7 to contribute more than #ae1jjj per year to a ,,usa ,retirement ,fund4 7#c7 ,annual indexing of amount ,the dollar amounts under paragraphs 7#a7 and 7#b7 shall be indexed annually for inflation4 7e7 ,benefits in the form of an annuity 7#a7 ,in general ,a ,,usa ,retirement ,fund shall pay benefits in the form of an annuity in accordance with paragraph 7#b74 ,the amount of such benefits shall be dependent on the amount of contributions made by the participant1 the experience of the ,fund1 and the form of distribution elected by the participant4 ,the amount of an annuity may be adjusted to reflect the experience of the ,fund as necessary to protect the financial integrity of the ,fund1 except that annuity payments for those in pay status shall not be reduced more than #e percent per year unless the ,fund is faced with a significant financial hardship and the ,secretary has approved the reduction4 7#b7 ,annuity ,a ,,usa ,retirement ,fund shall pay benefits in accordance with one of the following3 7,a7 ,in the case of a participant who does not die before the annuity starting date1 the benefit payable to such participant shall be provided in the form of a qualified joint and survivor annuity 7as defined in section #bje7;d77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajee7;d77#a7774 7,b7 ,in the case of a participant who dies before the annuity starting date and who has a surviving spouse1 a qualified preretirement survivor annuity 7as defined in section #bje7;d77#b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajee7;d77#b777 shall be provided to the surviving spouse of such participant4 7,c7 ,in lieu of a qualified joint and survivor annuity form of benefit or the qualified preretirement survivor annuity form of benefit 7or both71 a participant may elect to receive a distribution described in subsection 7f77#b7 if one of the following conditions are met3 7i7 7,i7 ,the spouse of the participant consents in writing to the election4 7,,ii7 ,such election designates a beneficiary 7or form of benefits7 which may not be changed without spousal consent 7or the consent of the spouse expressly permits designations by the participant without any requirement of further consent by the spouse74 7,,iii7 ,the spouse's consent acknowledges the effect of such election and is witnessed by a plan representative or a notary public4 7ii7 ,it is established to the satisfaction of a ,fund representative that the consent required under subclause 7,i7 cannot be obtained because there is no spouse1 because the spouse cannot be located1 or because of such other circumstances as the ,secretary may by regulations prescribe4 ,the consent of a spouse 7or establishment that the consent of a spouse cannot be obtained7 under this subparagraph shall be effective only with respect to such spouse4 7#c7 ,commencement of benefit payments ,a participant may elect the time to start receiving benefit payments from the ,,usa ,retirement ,fund1 except that a participant-- 7,a7 except as provided in subsection 7f77#b77;,b71 may not elect to receive benefit payments before reaching the age of #fj2 and 7,b7 must begin receiving benefit payments before the age of #gb4 7#d7 ,notice ,each ,fund shall provide to each participant1 within a reasonable period of time before the annuity starting date1 a written explanation substantially similar to that required by section #bje7;c77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajee7;c77#c774 7#e7 ,assignment or alienation of fund benefits ,benefits under a ,,usa ,retirement ,fund shall be subject to section #bjf7;d7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajef7;d774 7f7 ,limits on withdrawals and transfers 7#a7 ,transfers ,a participant may1 not more frequently than once per year1 transfer such participant's benefit to another ,,usa ,retirement ,fund4 7#b7 ,limits on distributions 7,a7 ,in general ,except as provided in subparagraphs 7,b7 and 7,c71 a participant may not take a distribution other than one described in subsection 7e77#b74 7,b7 ,participants aged #ei and younger ,a participant may before age #fj take a distribution of a portion of the participant's benefit if such distribution does not to exceed #e1ejj and is rolled over to a qualifying plan or arrangement described in section #bai7;g77#e7 of the ,internal ,revenue ,code of #aihf or an individual retirement plan4 7,c7 ,participants aged #fj and older ,a participant who is #fj or older but who has not entered pay status may elect one time to take a distribution of the greater of #aj1jjj or #ej percent of the participant's benefit if the participant demonstrates to the satisfaction of the trustees of the ,fund that the participant has sufficient retirement income apart from the ,fund or is facing a substantial hardship4 7g7 ,methods for providing annuitized benefit payments 7#a7 ,in general ,a ,,usa ,retirement ,fund shall establish and maintain mechanisms for adequately securing the payment of annuity benefits from the ,fund4 ,the ,fund shall include a written description of such mechanisms in the investment and lifetime income policy statements required to be disclosed to participants4 7#b7 ,specific goals ,the mechanisms described in paragraph 7#a7 shall ensure that-- 7,a7 each participant receives a stream of income for life2 7,b7 each participant and beneficiary has an opportunity to be protected against longevity risk2 and 7,c7 volatility in benefit levels is minimized for participants and beneficiaries in pay status and those approaching pay status4 7#c7 ,self-annuitization 7,a7 ,in general ,notwithstanding any other provision of law1 a ,,usa ,retirement ,fund may self-annuitize if the ,fund meets such requirements as the ,secretary establishes as necessary to protect participants and beneficiaries in consideration of the recommendations of the ,commission under section #ajc4 7,b7 ,duty to address emerging issues ,the ,secretary shall1 periodically and in accordance with established procedures1 update the funding requirements promulgated under this paragraph in response to changing economic and business conditions to the extent necessary to carry out the purposes of this ,act1 taking into consideration the recommendations of the ,commission4 7h7 ,reporting and disclosure 7#a7 ,annual statement ,the trustees of a ,,usa ,retirement ,fund shall provide each participant in the ,fund an annual statement of-- 7,a7 the estimated amount of the monthly benefit which the participant or beneficiary is projected to receive from the ,,usa ,retirement ,fund1 in the form of the default benefit described in the plan in accordance with subsection 7e77#b72 7,b7 an explanation1 written in a manner calculated to be understood by the average plan participant1 that includes interest and mortality assumptions used in calculating the estimate and a statement that actual benefits may be materially different from such estimate2 7,c7 a disclosure of ,fund fees and performance that is substantially similar to the disclosures required of individual account plans under the ,employee ,retirement ,income ,security ,act of #aigd2 7,d7 any other disclosures1 including projected benefit estimates1 that the board of trustees of the ,,usa ,retirement ,fund determines appropriate2 and 7,e7 such other disclosures as may be required by the ,secretary4 7#b7 ,summary plan description ,the trustees of a ,,usa ,retirement ,fund shall provide participants a summary plan description 7as described in section #ajb of the ,employee ,retirement ,income ,security ,act 7#bi ,u4,s4,c4 #ajbb77 as required by section #ajd7;b7 of the ,employee ,retirement ,income ,security ,act 7#bi ,u4,s4,c4 #ajbd7;b774 7#c7 ,annual reports ,the trustees of a ,,usa ,retirement ,fund shall file with the ,secretary of ,labor periodic reports in accordance with regulations promulgated by the ,secretary4 7#d7 ,additional requirements ,each ,,usa ,retirement ,fund shall be subject to sections #ajf and #ajg of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbf1 #ajbg74 7i7 ,tax treatment 7#a7 ,,usa ,retirement ,fund ,a ,,usa ,retirement ,fund is exempt from taxation under subtitle ,a of the ,internal ,revenue ,code of #aihf4 ,notwithstanding the preceding sentence1 a ,,usa ,retirement ,fund is subject to the taxes imposed by section #eaa of such ,code 7relating to imposition of tax on unrelated business income of charitable1 etc4 organizations74 7#b7 ,contributions ,in the case of an individual1 there shall be allowed as a deduction for the taxable year an amount equal to the amount of contributions to a ,,usa ,retirement ,fund made by or on behalf of the individual under an automatic ,,usa ,retirement ,fund arrangement under section #b7;d74 7#c7 ,rollover contributions ,for purposes of this ,act1 rules similar to the rules of subparagraphs 7,a7 and 7,d7 of section #djh7;d77#c7 of the ,internal ,revenue ,code of #aihf shall apply4 7#d7 ,distributions ,any distribution from a ,,usa ,retirement ,fund shall be includible in the gross income of the distributee in the manner as provided in section #gb of the ,internal ,revenue ,code of #aihf4 7#e7 ,prohibited transactions1 etc ,for purposes of this ,act1 rules similar to the rules of paragraphs 7#b71 7#c71 and 7#d7 of section #djh7;e77#b7 of the ,internal ,revenue ,code of #aihf shall apply4 7#f7 ,reports ,the trustees of a ,,usa ,retirement ,fund shall make such reports regarding such ,fund to the ,secretary of the ,treasury and to designated beneficiaries with respect to contributions1 distributions1 and such other matters as the ,secretary of the ,treasury may require4 ,the reports required by this paragraph shall be filed at such time and in such manner and furnished to such individuals at such time and in such manner as may be required by the ,secretary of the ,treasury4 #d4 ,commission on ,,usa ,retirement ,funds 7a7 ,recognition of private commission ,the ,secretary shall-- 7#a7 recognize an independent1 private commission1 to be known as the ,commission for ,,usa ,retirement ,funds ,funding 7referred to in this title as the ,commission71 and 7#b7 in carrying out the ,secretary's duties under this title1 consider the recommendations of such ,commission4 7b7 ,commission ,the ,commission recognized under subsection 7a7 shall meet the following requirements3 7#a7 ,membership 7,a7 ,composition ,the ,commission shall be composed of #i members selected by the ,secretary1 in consultation with the ,secretary of the ,treasury1 of whom no more than #e may be from one political party4 ,the ,secretary shall designate one member of the ,commission as the ,chairman4 ,no person may be appointed to the ,commission if1 during the #b-year period preceding the date of appointment1 such person was a trustee of a ,,usa ,retirement ,fund4 7,b7 ,date ,the appointments of the members of the ,commission shall be made not later than #ij days after the date of enactment of this ,act4 7,c7 ,period of appointment2 vacancies ,members shall be appointed for terms of #b years and may be appointed for consecutive terms4 ,any vacancy in the ,commission shall not affect its powers1 and shall be filled in the same manner as the original appointment4 7#b7 ,majority vote ,the ,commission may act by majority vote of its members1 provided that at least #g members are present4 7#c7 ,commission personnel matters 7,a7 ,compensation of members ,each member of the ,commission who is not an officer or employee of the ,federal ,government shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level ,,iv of the ,executive ,schedule under section #ecae of title #e1 ,united ,states ,code1 for each day 7including travel time7 during which such member is engaged in the performance of the duties of the ,commission4 ,all members of the ,commission who are officers or employees of the ,united ,states shall serve without compensation in addition to that received for their services as officers or employees of the ,united ,states4 7,b7 ,travel expenses ,the members of the ,commission shall be allowed travel expenses1 including per diem in lieu of subsistence1 at rates authorized for employees of agencies under subchapter ,i of chapter #eg of title #e1 ,united ,states ,code1 while away from their homes or regular places of business in the performance of services for the ,commission4 7,c7 ,staff 7i7 ,in general ,the ,chairman of the ,commission may1 without regard to the civil service laws and regulations1 appoint and terminate an executive director and such other additional personnel as may be necessary to enable the ,commission to perform its duties4 ,the employment of an executive director shall be subject to confirmation by the ,commission4 7ii7 ,compensation ,the ,chairman of the ,commission may fix the compensation of the executive director and other personnel without regard to chapter #ea and subchapter ,,iii of chapter #ec of title #e1 ,united ,states ,code1 relating to classification of positions and ,general ,schedule pay rates1 except that the rate of pay for the executive director and other personnel may not exceed the rate payable for level ,v of the ,executive ,schedule under section #ecaf of such title4 7iii7 ,detail of government employees ,any ,federal ,government employee may be detailed to the ,commission without reimbursement1 and such detail shall be without interruption or loss of civil service status or privilege4 7iv7 ,procurement of temporary and intermittent services ,the ,chairman of the ,commission may procure temporary and intermittent services under section #caji7;b7 of title #e1 ,united ,states ,code1 at rates for individuals which do not exceed the daily equivalent of the annual rate of basic pay prescribed for level ,v of the ,executive ,schedule under section #ecaf of such title4 7#d7 ,recommendations and regulations on funding and distribution requirements 7,a7 ,in general ,after taking into consideration the recommendations of the ,commission and providing the public notice and an opportunity for comment1 the ,secretary shall promulgate regulations with respect to funding and distribution requirements for ,,usa ,retirement ,funds1 as necessary or appropriate in the public interest and for the protection of participants and beneficiaries1 including regulations described in subparagraphs 7,b7 and 7,c74 7,b7 ,requirements relating to annuity payments made directly by a ,fund ,the regulations under subparagraph 7,a7 shall provide that in the case of annuity payments made directly by the ,fund-- 7i7 the maximum annuity payment for a participant or beneficiary shall be determined using the mortality tables and interest rates prescribed by the ,secretary under subparagraph 7,c7 at the time benefits commence2 and 7ii7 the level of benefits paid may be adjusted periodically in order to reflect the mortality experience and the investment experience of the ,fund1 but only after the ,fund has obtained a certification from a member of the ,american ,academy of ,actuaries that the adjustment is sustainable for the remaining lifetime of participants then receiving benefits1 based on the mortality tables and interest rates prescribed under subparagraph 7,c7 by the ,secretary for that time4 7,c7 ,mortality tables and interest rates used requirements ,the regulations promulgated under subparagraph 7,a7 shall include the following3 7i7 ,mortality ,tables 7,i7 ,in general ,the ,secretary shall prescribe mortality tables to be used in determining annuity payments made directly by the ,fund4 ,such tables shall be based on the actual experience of insurance companies that issue group annuities and projected trends in such experience4 ,in prescribing such tables1 the ,secretary shall take into account results of available independent studies of the mortality of individuals receiving annuities under group annuity contracts4 7,,ii7 ,periodic revisions of mortality tables ,the ,secretary shall make revisions1 to become effective as soon as practicable1 in any mortality table in effect to reflect more recent actual experience of insurance companies that issue group annuities and projected trends in such experience4 ,in revising such tables1 the ,secretary shall take into account the results of more recent available independent studies of the mortality and projected trends of individuals receiving annuities under group annuity contracts4 7ii7 ,interest ,rates ,the ,secretary shall prescribe interest rates to be used in determining annuity payments made directly by the ,fund4 ,such rates shall be based on the yields on investment grade corporate bonds with varying maturities and that are in the top #c quality levels available4 ,interest rates shall be prescribed quarterly or more frequently1 as determined by the ,secretary4 7#e7 ,duty to address best practices ,the ,commission shall prepare1 and periodically update1 a report that describes the best practices for the governance of boards of trustees of ,,usa ,retirement ,funds1 including board of trustee composition1 appointment procedures1 term length1 term staggering1 trustee qualifications1 delegation of duties1 and performance assessment procedures4 #e4 ,limitation on employer liability ,section #djd of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajba et seq47 is amended by adding at the end the following3 7e7 ,an employer shall not be a fiduciary with respect to the selection1 management or administration of a ,,usa ,retirement ,fund solely because such employer makes available such ,fund through an automatic ,,usa ,retirement ,fund arrangement4 ,notwithstanding the preceding sentence1 employers participating in a ,,usa ,retirement ,fund shall be responsible for meeting the enrollment requirements and transmitting contributions1 as required under the ,,usa ,retirement ,funds ,act4 4 #f4 ,enforcement and fraud prevention 7a7 ,penalty for failure to timely remit contributions to automatic ,,usa ,retirement ,fund arrangements 7#a7 ,in general ,if an employer is required under an automatic ,,usa ,retirement ,fund arrangement to deposit amounts withheld from an employee's compensation into a ,,usa ,retirement ,fund but fails to do so within the time prescribed under section #b7;d77#c71 such amounts shall be treated as assets of a ,,usa ,retirement ,fund4 7#b7 ,failure to provide access to payroll savings arrangements 7,a7 ,general rule ,a covered employer who fails to meet the requirements of section #b7;a7 for a calendar year shall be subject to a civil money penalty of #ajj per calendar year for each employee to whom such failure relates4 7,b7 ,exceptions ,no civil money penalty shall be imposed under this paragraph for a failure to meet the requirements under section #b7;a7-- 7i7 during a period for which the ,secretary determines that the employer subject to liability for the civil money penalty did not know that the failure existed and exercised reasonable diligence to meet the requirements of section #b7;a72 or 7ii7 7,i7 the employer subject to liability for the civil money penalty exercised reasonable diligence to meet the requirements of section #b7;a72 and 7,,ii7 the employer provides the automatic ,,usa ,retirement ,fund arrangement described to each employee eligible to participate in the arrangement by the end of the #ij-;day period beginning on the first date the employer knew1 or exercising reasonable diligence should have known1 that such failure existed4 7,c7 ,waiver by the secretary ,in the case of a failure to meet the requirements of section #b7;a7 that is due to reasonable cause and not to willful neglect1 the ,secretary may1 in the sole discretion of the ,secretary1 waive part or all of the civil money penalty imposed under this paragraph to the extent that the payment of such civil money penalty would be excessive or otherwise inequitable relative to the failure involved4 7,d7 ,procedures for notice ,the ,secretary may prescribe and implement procedures for obtaining confirmation that employers are in compliance with subsection 7a74 ,the ,secretary1 in the discretion of such ,secretary1 may prescribe that the confirmation shall be obtained on an annual or less frequent basis1 and may use for this purpose the annual report or quarterly report for employment taxes1 or such other means as the ,secretary may deem advisable4 7b7 ,civil actions and enforcement 7#a7 ,administration and enforcement ,part #e of title ,i of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aacb et seq47 shall apply to a ,,usa ,retirement ,fund as if a ,,usa ,retirement ,fund were an employee benefit plan4 7#b7 ,amendment ,section #ejb7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aacb et seq47 is amended-- 7,a7 in paragraph 7#i71 by striking 2 or and inserting 22 7,b7 in paragraph 7#aj71 by striking the period at the end and inserting 2 or2 and 7,c7 by adding at the end the following3 7#aa7 in the event that an employer fails to make timely contributions or payments to a ,,usa ,retirement ,fund established under title ,i of the ,,usa ,retirement ,funds ,act1 by the ,secretary1 a participant1 a beneficiary1 or a fiduciary1 to compel an employer to make such contributions or payments as if such contributions or payments were delinquent contributions or payments under section #eae or subsection 7g77#b74 4 7#c7 ,non-preemption of certain ,state law ,nothing in this section shall preempt ,state law insofar as ,state law relates to the enforcement of an obligation to contribute to a ,,usa ,retirement ,fund4 7c7 ,false statements 7#a7 ,in general ,no person1 in connection with a plan or other arrangement that is or purports to be a ,,usa ,retirement ,fund1 shall make a false statement or false representation of fact1 knowing it to be false1 in connection with the marketing or sale of such plan or arrangement1 to any employee1 any member of an employee organization1 any beneficiary1 any employer1 any employee organization1 the ,secretary1 or any ,state1 or the representative or agent of any such person1 ,state1 or the ,secretary1 concerning-- 7,a7 the financial condition or solvency of such fund or arrangement2 7,b7 the benefits provided by such fund or arrangement2 7,c7 the regulatory status of such fund or other arrangement under any ,federal or ,state law governing collective bargaining1 labor management relations1 or intern union affairs2 or 7,d7 the regulatory status of such fund or other arrangement4 7#b7 ,penalty ,any person who violates this subsection shall1 upon conviction1 be imprisoned not more than #aj years or fined under title #ah1 ,united ,states ,code1 or both4 7d7 ,cease and desist orders 7#a7 ,issuance of order ,the ,secretary may issue a cease and desist 7ex parte7 order under this title if the ,secretary determines that the alleged conduct of a fund purporting to be a ,,usa ,retirement ,fund is fraudulent1 or creates an immediate danger to the public safety or welfare1 or is causing or can be reasonably expected to cause significant1 imminent1 and irreparable public injury4 7#b7 ,hearings 7,a7 ,in general ,a person who is adversely affected by the issuance of a cease and desist order under paragraph 7#a7 may request a hearing by the ,secretary regarding such order4 ,the ,secretary may require that a hearing under this paragraph1 including all related information and evidence1 be conducted in a confidential manner4 7,b7 ,burden of proof ,the burden of proof in any hearing conducted under subparagraph 7,a7 shall be on the party requesting the hearing to show cause why the cease and desist order should be set aside4 7,c7 ,determination ,based upon the evidence presented at a hearing under subparagraph 7,a71 the ,secretary may affirm1 modify1 or set aside the cease and desist order at issue1 in whole or in part4 7#c7 ,regulations ,the ,secretary may promulgate such regulations or other guidance as may be necessary or appropriate to carry out this subsection4