,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #ehbh  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,decemb] #aj1 #bjad   
,mr4 ,c>twright 7= himself & ,mr4       
,ellison7 introduc$ ! foll[+ bill2 :i* 0
 ref]r$ to ! ,committee on ,education & 
! ,work=ce1 & 9 addition to ! ,committee
 on ,ways & ,means1 = a p]iod to be     
subsequ5tly det]m9$ by ! ,speak]1 9 ea* 
case = consid]ation ( su* provisions z  
fall )9 ! jurisdiction ( ! committee    
conc]n$  ,a ,,bill  ,to provide = ,,usa 
,retirem5t ,funds1 & = o!r purposes4    
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,,usa ,retirem5t ,funds ,act4  #b4    
,automatic ,,usa ,retirem5t ,fund       
arrangem5ts  7a7 ,requirem5t ,to provide
 access ,ea* cov]$ employ] %all make    
available to ea* qualify+ employee = !  
cal5d> ye> an automatic ,,usa ,retirem5t
 ,fund arrangem5t4  7b7 ,cov]$ employ]  
,= purposes ( ?is title--  7#a7 ,9 g5]al
 ,except z o!rwise provid$ 9 ?is        
subsection & subsection 7c77#b71 ! t]m  
cov]$ employ] means1 ) respect to any   

cal5d> ye>1 an employ] :o does n ma9ta9 
a qualify+ plan or arrangem5t = any "p (
 su* ye>4  7#b7 ,qualify+ plan or       
arrangem5t  7,a7 ,9 g5]al ,! t]m        
qualify+ plan or arrangem5t means a plan
 or arrangem5t describ$ 9 section       
#bai7;g77#e7 ( ! ,int]nal ,rev5ue ,code 
( #aihf4  7,b7 ,exceptions ,su* t]m %all
 n include ! foll[+3  7i7 ,froz5 def9$  
b5efit plan ,a def9$ b5efit plan t _h no
 ongo+ accruals z ( ! fir/ day ( !      
prec$+ cal5d> ye>1 unless ! plan fail$  
to h accruals only because ( !          
application ( section #bjf ( ! ,employee
 ,retirem5t ,income ,security ,act 7#bi 
,u4,s4,c4 #ajef7 & section #dcf ( !     
,int]nal ,rev5ue ,code ( #aihf4  7ii7   
,def9$ contribution plan )\t lifetime   
income options ,a def9$ contribution    
plan t does n provide p>ticipants ) a   
di/ribution option t provides lifetime  
income4  7iii7 ,plans n meet+           
contribution requirem5ts ,a plan--  7,i7
 :i* consi/s ( a ca% or def]r$          
arrangem5t 7z def9$ 9 section #dja7k7 ( 

su* ,code7 ) respect to :i* ! employ]   
does n automatically enroll all eligible
 employees at contribution rates at or  
above ^? specifi$ 9 subsection 7d77#d72 
or  7,,ii7 = :i* ! only contributions   
are nonelective employ] contributions & 
) respect to :i* ! employ]'s annual     
contribution rate is n at or above !    
rates specifi$ 9 subsection 7d77#d74    
7#c7 ,exception = c]ta9 small & new     
employ]s  7,a7 ,9 g5]al ,! t]m cov]$    
employ] %all n include an employ] = a   
cal5d> ye> if ! employ]--  7i7 did n    
employ dur+ ! prec$+ cal5d> ye> m ?an   
#aj employees :o ea* receiv$ at lea/    
#e1jjj ( comp5sation 7z def9$ 9 section 
#cdja7;a7 ( ! ,int]nal ,rev5ue ,code (  
#aihf7 f ! employ] = su* prec$+ cal5d>  
ye>2  7ii7 did n normally employ m ?an  
#aj employees on a typical bus9ess day  
dur+ ! prec$+ cal5d> ye>2 or  7iii7 0 n 
9 exi/5ce at all times dur+ ! cal5d> ye>
 & ! prec$+ cal5d> ye>4  7,b7 ,op]at+   
rules ,9 det]m9+ ! numb] ( employees =  
purposes ( subp>agraph 7,a7--  7i7 rules

 consi/5t ) any rules applicable 9      
det]m9+ ! numb] ( employees = purposes (
 section #djh7p77#b77;,c7 & section     
#dihj;,b7d7 ( ! ,int]nal ,rev5ue ,code (
 #aihf %all apply2  7ii7 all memb]s ( ! 
same family 7)9 ! mean+ ( section       
#cah7;a77#a7 ( ! ,int]nal ,rev5ue ,code 
( #aihf7 %all be treat$ z #a individual2
 &  7iii7 any ref]5ce to an employ] %all
 include a ref]5ce to any pr$ecessor    
employ]4  7#d7 ,exception = gov]nm5ts & 
*ur*es ,! t]m cov]$ employ] %all n      
include--  7,a7 a gov]nm5t or entity    
describ$ 9 section #dad7;d7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf2 or  7,b7 a *ur* 
or a conv5tion or association ( *ur*es t
 is exempt f tax "u section #eja ( su*  
,code4  7#e7 ,aggregation rule ,a p]son 
treat$ z a s+le employ] "u subsection   
7a7 or 7b7 ( section #eb ( ! ,int]nal   
,rev5ue ,code ( #aihf or subsection 7m7 
or 7o7 ( section #dad ( su* ,code %all  
be treat$ z a s+le employ]4  7c7        
,qualify+ employee ,= purposes ( ?is    
title--  7#a7 ,9 g5]al ,! t]m qualify+  

employee means any employee :o is n an  
exclud$ employee4  7#b7 ,plan sponsor's 
employees ,if--  7,a7 an employ] ma9ta9s
 "o or m qualify+ plans or arrangem5ts  
describ$ 9 section #bai7;g77#e7 ( !     
,int]nal ,rev5ue ,code ( #aihf2 &  7,b7 
! employees ( a subsidi>y1 division1 or 
o!r bus9ess unit are g5]ally n eligible 
to p>ticipate 9 any su* qualify+ plan or
 arrangem5t1  = purposes ( ?is section1 
! employ] %all be treat$ z a cov]$      
employ] ) respect to su* employees 7o!r 
?an exclud$ employees71 & su* employees 
7o!r ?an exclud$ employees7 %all be     
treat$ z qualify+ employees = ! cal5d>  
ye>4  7#c7 ,exclud$ employees  7,a7 ,9  
g5]al ,! t]m exclud$ employee means an  
employee :o is an excludable employee & 
:o is 9 a class or category t ! employ] 
excludes f treatm5t z qualify+          
employees4  7,b7 ,excludable employee ,!
 t]m excludable employee means--  7i7 an
 employee describ$ 9 section            
#daj7;b77#c7 ( ! ,int]nal ,rev5ue ,code 
( #aihf2  7ii7 an employee :o has n     

atta9$ ! age ( #ba be=e ! beg9n+ ( !    
cal5d> ye>2  7iii7 an employee :o has n 
complet$ at lea/ #c mon?s ( s]vice ) !  
employ]2  7iv7 9 ! case ( an employ] t  
ma9ta9s a qualify+ plan or arrangem5t   
:i* excludes employees :o h n satisfi$ !
 m9imum age & s]vice requirem5ts =      
p>ticipation 9 ! plan1 an employee :o   
has n satisfi$ su* requirem5ts2  7v7 9 !
 case ( an employ] t ma9ta9s an annuity 
contract 7includ+ a cu/odial acc\nt or  
retirem5t income acc\nt7 "u section     
#djc7;b7 ( ! ,int]nal ,rev5ue ,code (   
#aihf1 an employee :o is p]mitt$ to be  
exclud$ f any sal>y r$uction arrangem5t 
"u ! contract pursuant to p>agraph 7#ab7
 ( su* section #djc7;b72  7vi7 9 ! case 
( an employ] t ma9ta9s an arrangem5t    
describ$ 9 section #djh7p7 ( su* ,code1 
an employee :o is n requir$ to be       
eligible to p>ticipate 9 ! arrangem5t "u
 p>agraph 7#d7 ( su* section #djh7p72 & 
7vii7 9 ! case ( an employ] t ma9ta9s a 
simplifi$ employee p5sion describ$ 9    
section #djh7k7 ( su* ,code1 an employee

 :o is p]mitt$ to be exclud$ f          
p>ticipation "u p>agraph 7#b7 ( su*     
section #djh7k74  7#d7 ,guidance ,!     
,secret>y ( ,labor 79 ?is title ref]r$  
to z ! ,secret>y7 %all issue regulations
 or o!r guidance to c>ry out ?is        
subsection1 includ+--  7,a7 guidel9es = 
det]m9+ ! classes or categories (       
employees to be cov]$ by a ,,usa        
,retirem5t ,fund2  7,b7 guidel9es       
requir+ employ]s to specify !           
classification or categories ( employees
 7if any7 :o are exclud$ f ! ,,usa      
,retirem5t ,fund2 &  7,c7 rules to      
prev5t avoidance ( ! requirem5ts ( ?is  
section4  7d7 ,automatic ,,usa          
,retirem5t ,fund arrangem5t ,= purposes 
( ?is title--  7#a7 ,9 g5]al ,! t]m     
automatic ,,usa ,retirem5t ,fund        
arrangem5t means an arrangem5t ( an     
employ] 7det]m9$ )\t reg>d to :e!r !    
employ] is requir$ to ma9ta9 !          
arrangem5t7--  7,a7 t cov]s ea* qualify+
 employee ( ! cov]$ employ] = ! cal5d>  
ye>2  7,b7 "u :i* a qualify+ employee-- 

7i7 may elect--  7,i7 to contribute to  
an automatic ,,usa ,retirem5t ,fund by  
hav+ ! employ] deposit payroll d$uction 
am\nts or make o!r p]iodic direct       
deposits 7includ+ electronic paym5ts7 to
 ! ,fund2 or  7,,ii7 to h su* paym5ts   
paid to ! employee directly 9 ca%2  7ii7
 is treat$ z hav+ made ! election "u    
clause 7i77,i7 9 ! am\nt specifi$ 9     
p>agraph 7#d7 unless ! individual       
specifically elects n to h su*          
contributions made 7or specifically     
elects to h su* contributions made at a 
diff]5t p]c5tage or 9 a diff]5t am\nt72 
&  7iii7 n m ?an once p] cal5d> ye>1 may
 elect to modify ! selection ( ! ,,usa  
,retirem5t ,fund to :i* contributions   
are made = su* ye>2 &  7,c7 t meets !   
adm9i/rative requirem5ts ( p>agraph     
7#c71 includ+ ! notice requirem5t (     
p>agraph 7#c77;,c74  7#b7 ,automatic    
re-enrollm5t ,an employee's election n  
to contribute to a ,,usa ,retirem5t     
,fund 7or to h su* contributions made at
 a diff]5t p]c5tage or 9 a diff]5t am\nt

 f ^? specifi$ 9 p>agraph 7#d77 %all    
expire aft] #b ye>s4 ,aft] su* #b-ye>   
p]iod & abs5t a new election1 ! employee
 %all be treat$ z hav+ made ! election  
"u p>agraph 7#a77;,b77i77,i7 9 ! am\nt  
specifi$ 9 p>agraph 7#d74  7#c7         
,adm9i/rative requirem5ts  7,a7 ,paym5ts
 ,an employ] %all make ! paym5ts elect$ 
or treat$ z elect$ "u p>agraph 7#a77;,b7
 on or be=e--  7i7 ! la/ day ( ! mon?   
foll[+ ! mon? 9 :i* ! comp5sation       
o!rwise w\ld h be5 payable to ! employee
 9 ca%2 or  7ii7 su* lat] date z !      
,secret>y may prescribe4  7,b7          
,t]m9ation ( employee p>ticipation      
,subject to a requirem5t = reasonable   
notice1 an employee may elect to t]m9ate
 p>ticipation 9 ! arrangem5t at any "t  
dur+ a cal5d> ye>4 ,! arrangem5t may    
provide t1 if an employee s t]m9ates    
p>ticipation1 ! employee may n elect to 
resume p>ticipation until ! beg9n+ ( !  
next cal5d> ye>4  7,c7 ,notice (        
election p]iod ,! employ] %all notify   
ea* employee eligible to p>ticipate = a 

ye> 9 a ,,usa ,retirem5t ,fund          
arrangem5t1 )9 a reasonable p]iod ( "t  
be=e ! #cj? day be=e ! beg9n+ ( su* ye> 
7&1 = ! fir/ ye> ! employee is s        
eligible1 ! #cj? day be=e ! fir/ day su*
 employee is s eligible71 (--  7i7 !    
paym5ts t may be elect$ or treat$ z     
elect$ "u p>agraph 7#a77;,b72  7ii7 !   
opportunity to make ! election to       
t]m9ate p>ticipation 9 ! arrangem5t "u  
subp>agraph 7,b72  7iii7 ! opportunity  
to make ! election "u p>agraph          
7#a77;,b77ii7 to h contributions or     
pur*ases made at a diff]5t p]c5tage or 9
 a diff]5t am\nt2 &  7iv7 ! opportunity 
"u p>agraph 7#a77;,b77iii7 to modify !  
mann] 9 :i* su* am\nts are inve/$ = su* 
ye>4  7,d7 ,employees may *oose usa     
retirem5t fund ,! arrangem5t %all       
provide t a qualifi$ employee may elect 
to h contributions made to any ,,usa    
,retirem5t ,fund available to !         
employee4  7#d7 ,am\nt ( contributions &
 paym5ts ,! am\nt specifi$ 9 ?is        
p>agraph is--  7,a7 #c p]c5t (          

comp5sation = ! cal5d> ye> beg9n+ on    
,janu>y #a1 #bjae2  7,b7 #d p]c5t (     
comp5sation = ! cal5d> ye> beg9n+ on    
,janu>y #a1 #bjaf2  7,c7 #e p]c5t (     
comp5sation = ! cal5d> ye> beg9n+ on    
,janu>y #a1 #bjag2 &  7,d7 #f p]c5t (   
comp5sation = cal5d> ye>s beg9n+ aft]   
,decemb] #ca1 #bjag4  7#e7 ,coord9ation 
) )hold+ ,! ,secret>y ( ! ,treasury %all
 modify ! )hold+ exemption c]tificate "u
 section #cdjb7;f7 ( ! ,int]nal ,rev5ue 
,code ( #aihf s t1 9 ! case ( any       
qualify+ employee cov]$ by a ,,usa      
,retirem5t ,fund arrangem5t1 any notice 
& election requirem5ts ) respect to !   
arrangem5t may be met ?r\gh ! use ( an  
atta*m5t to su* c]tificate or o!r       
modifications ( ! )hold+ exemption      
proc$ures4  7e7 ,deposits to ,,usa      
,retirem5t ,funds  7#a7 ,9 g5]al ,except
 z provid$ 9 p>agraph 7#b71 an employ]  
%all make all contributions on behalf ( 
employees to ! ,,usa ,retirem5t ,fund   
specifi$ by ! employee4  7#b7 ,,usa     
retirem5t funds o!r ?an ^? select$ by   

employee ,9 ! abs5ce ( an affirmative   
selection ( a ,,usa ,retirem5t ,fund by 
! employee1 contributions on behalf ( ! 
employee %all be made to ! ,,usa        
,retirem5t ,fund designat$ by ! employ]4
  7#c7 ,regulations ,! ,secret>y may    
issue su* regulations z are necess>y to 
c>ry out ?is subsection4  7f7           
,preemption ( conflict+ ,/ate laws ,!   
requirem5ts "u ?is section preempt any  
law ( a ,/ate t directly or indirectly  
prohibits or re/ricts ! e/abli%m5t or   
op]ation ( an automatic ,,usa ,retirem5t
 ,fund arrangem5t4 ,no?+ 9 ?is section  
%all be con/ru$ to impair or preempt any
 ,/ate law to ! ext5t su* ,/ate law     
provides a rem$y = ! failure to make    
payroll deposit paym5ts "u any su*      
automatic ,,usa ,retirem5t ,fund        
arrangem5t )9 ! p]iod requir$4  #c4     
,e/abli%m5t ( ,,usa ,retirem5t ,funds   
7a7 ,qualification z a ,,usa ,retirem5t 
,fund ,= purposes ( ?is title--  7#a7 ,9
 g5]al ,! t]m ,,usa ,retirem5t ,fund    
means a fund = :i* ! ,secret>y has      

det]m9$ ! requirem5ts "u ?is title are  
met4  7#b7 ,reque/ = det]m9ation ,! bo>d
 ( tru/ees ( a program e/abli%$ =       
purposes ( be+ treat$ z a ,,usa         
,retirem5t ,fund "u ?is section %all1   
prior to beg9n+ op]ations1 submit to !  
,secret>y 7at su* "t & 9 su* mann] z !  
,secret>y may prescribe7 a reque/ = !   
,secret>y to make a det]m9ation z to    
:e!r ! plan meets ! requirem5ts ( ?is   
title = su* treatm5t4 ,su* reque/ %all  
include copies ( ! writt5 docum5ts      
e/abli%+ ! plan & su* o!r mat]ials z !  
,secret>y may reque/4 ,! ,secret>y %all 
make su* det]m9ation )9 #ahj days (     
receiv+ su* reque/4  7#c7 ,p]iodic      
review ,! ,secret>y %all e/abli% a      
process to p]iodically review ea* plan  
det]m9$ to be a ,,usa ,retirem5t ,fund  
"u p>agraph 7#a7 to ensure t ! plan     
cont9ues to meet ! requirem5ts ( ?is    
title4  7#d7 ,public li/ ( plans ,!     
,secret>y %all ma9ta9 a public li/ (    
plans det]m9$ by ! ,secret>y to qualify 
z ,,usa ,retirem5t ,funds4 ,su* li/ %all

 be po/$ to a publicly available        
,int]net website4  7b7 ,p>ticipation    
7#a7 ,eligibility ,an individual may    
p>ticipate 9 any ,,usa ,retirem5t ,fund 
= :i* su* individual meets ! eligibility
 requirem5ts1 individually or ?r\gh an  
arrangem5t e/abli%$ by an employ]4  7#b7
 ,p>ticipation 9 o!r plans ,an          
individual :o p>ticipates 9 a ,,usa     
,retirem5t ,fund %all n be preclud$ f   
p>ticipat+ 9 a plan or arrangem5t       
describ$ 9 section #bai7;g77#e7 ( !     
,int]nal ,rev5ue ,code ( #aihf4  7c7    
,gov]nance  7#a7 ,assets held 9 tru/2   
bo>d ( tru/ees ,= purposes ( ?is title--
  7,a7 ! assets ( ea* ,,usa ,retirem5t  
,fund %all be held 9 tru/1 &  7,b7 !    
,fund %all be gov]n$ by a bo>d ( tru/ees
 :i* %all consi/ ( at lea/ #c           
individuals :o--  7i7 are indep5d5t (   
s]vice provid]s to ! ,fund2  7ii7 meet !
 qualification requirem5ts e/abli%$ "u  
?is section2 &  7iii7 are collectively  
able to adequately repres5t ! int]e/s ( 
active p>ticipants1 retirees1 &         

contribut+ employ]s4  7#b7 ,indep5d5ce  
requirem5t ,an individual is n indep5d5t
 ( ,fund s]vice provid]s = purposes (   
p>agraph 7#a77;,b77i7 if su*            
individual--  7,a7 is an employee ( any 
,fund s]vice provid]2  7,b7 is a curr5t 
or =m] (fic] or director ( a significant
 ,fund s]vice provid]1 or is o!rwise    
affiliat$ ) su* a provid]2  7,c7 is a   
memb] ( ! imm$iate family ( any p]son :o
 is affiliat$ ) a significant ,fund     
s]vice provid]2  7,d7 d]ives m ?an #a   
p]c5t ( ! individual's annual income f a
 significant ,fund s]vice provid]2  7,e7
 d]ives m ?an #e p]c5t ( ! individual's 
annual income f any ,fund s]vice        
provid]2 or  7,f7 fails to meet meets   
su* o!r crit]ia z are specifi$ by !     
,secret>y to ensure ! indep5d5ce ( !    
bo>d ( directors4  7#c7 ,multiple       
tru/ee%ips ,no individual may s]ve on ! 
bo>d ( tru/ees ( m ?an #a ,,usa         
,retirem5t ,fund unless ! ,secret>y     
receives atte/ation f ! bo>d ( tru/ees (
 ea* applicable ,,usa ,retirem5t ,fund &

 ! individual t1 at ! "t ( appo9tm5t1   
!re is no reasonably =eseeable conflict 
betwe5 ! duties ( su* individual to !   
p>ticipants 9 ea* applicable ,,usa      
,retirem5t ,fund4 ,9 no case may an     
individual s]ve on ! bo>ds ( tru/ees ( m
 ?an #c ,,usa ,retirem5t ,funds4  7#d7  
,tru/ee qualifications ,ea* tru/ee ( a  
,,usa ,retirem5t ,fund %all atte/ t !   
tru/ee is kn[l$geable ( ! tru/ee's      
duties & responsibilities z a fiduci>y (
 a ,,usa ,retirem5t ,fund4 ,! ,secret>y 
may require by regulation su* o!r       
qualifications & docum5tation z may be  
necess>y to ensure t tru/ees are        
suitable & qualifi$4 ,su* requirem5ts   
may include ^? relat$ to education1     
tra9+1 & m9imum compet5cy /&>ds4  7#e7  
,tru/ee selection & removal  7,a7 ,9    
g5]al ,ea* bo>d ( tru/ees ( a ,,usa     
,retirem5t ,fund %all e/abli% writt5    
proc$ures reg>d+ ! appo9tm5t1 removal1 &
 replacem5t ( tru/ees on ! bo>d4 ,su*   
proc$ures %all--  7i7 take effect aft]  
adoption by ! majority ( ! bo>d (       

tru/ees2  7ii7 be readily available to  
p>ticipants2  7iii7 provide p>ticipants 
) a reasonable opportunity to comm5t on1
 or p>ticipate 91 ! tru/ee selection    
process2 &  7iv7 provide = p]iodic      
election ( tru/ees4  7,b7 ,removal by ! 
secret>y ,! ,secret>y may require       
removal or susp5sion ( a tru/ee if !    
conduct ( ! tru/ee is fraudul5t or is   
caus+1 or c be reasonably expect$ to    
cause1 significant1 imm95t1 & irrep>able
 h>m to ! p>ticipants or b5efici>ies ( a
 ,,usa ,retirem5t ,fund4  7,c7 ,funds   
)\t qualifi$ tru/ees ,if a bo>d (       
tru/ees ( a ,,usa ,retirem5t ,fund has  
no memb]s meet+ ! crit]ia "u ?is        
subsection1 ! ,secret>y %all appo9t     
replacem5t tru/ees4  7#f7 ,tru/ee       
comp5sation ,tru/ees ( ! ,fund may be   
comp5sat$ at reasonable rates f ! ,fund1
 b only if su* comp5sation is paid 9    
accordance ) ! writt5 bo>d comp5sation  
policy adopt$ "u p>agraph 7#g77;,a77iv74
  7#g7 ,transp>5cy & p>ticipant         
democracy  7,a7 ,publicly available     

policies ,! bo>d ( tru/ees ( a ,,usa    
,retirem5t ,fund %all adopt & make      
available to p>ticipants & b5efici>ies  
(1 & employ]s contribut+ to1 ! ,,usa    
,retirem5t ,fund--  7i7 a writt5        
inve/m5t policy /atem5t2  7ii7 a writt5 
lifetime income policy /atem5t2  7iii7  
an annual p]=mance assessm5t ( ! bo>d ( 
tru/ees1 includ+ an evaluation (        
weaknesses ( ! bo>d & a plan to address 
su* weaknesses2  7iv7 a writt5 bo>d     
comp5sation policy t includes curr5t    
comp5sation levels & provides a         
reasonable opportunity = comm5t f       
p>ticipants1 b5efici>ies1 & employ]s2 & 
7v7 a writt5 policy address+ conflicts (
 int]e/s ) respect to tru/ees4  7,b7    
,p>ticipant input reg>d+ bo>d ( tru/ees 
7i7 ,9 g5]al ,! bo>d ( tru/ees ( a ,,usa
 ,retirem5t ,fund %all e/abli% proc$ures
 :]eby a p>ticipant or b5efici>y ( su*  
,,usa ,retirem5t ,fund may--  7,i7      
petition ! bo>d ( tru/ees to remove a   
tru/ee or s]vice provid]2  7,,ii7 comm5t
 on ! managem5t & adm9i/ration ( ! ,,usa

 ,retirem5t ,fund2 &  7,,iii7 ) respect 
to a ,,usa ,retirem5t ,fund ) m ?an     
#bej1jjj1jjj ( assets1 vote to approve  
or disapprove ! comp5sation ( ! tru/ees 
at lea/ once e #c ye>s4  7ii7 ,effect ( 
vote ,if p>ticipants & b5efici>ies ( a  
,,usa ,retirem5t ,fund vote to          
disapprove ! comp5sation ( tru/ees "u   
clause 7i77,,iii7--  7,i7 ! results (   
su* vote %all n be b9d+ on ! bo>d (     
tru/ees2 &  7,,ii7 ! bo>d ( tru/ees %all
 notify ! ,secret>y ( ! results ( su*   
vote & provide an explanation ( :y !    
comp5sation is reasonable or anticipat$ 
*anges to ! comp5sation4  7#h7          
,liability insurance = tru/ees ,!       
tru/ees ( ea* ,,usa ,retirem5t ,fund    
%all h fiduci>y liability insurance ) a 
p]-claim limit equal to no less ?an !   
great] (--  7,a7 #e p]c5t ( plan assets2
 or  7,b7 #a1jjj1jjj4  7#i7 ,tru/ee     
duties  7,a7 ,9 g5]al ,! tru/ees ( a    
,,usa ,retirem5t ,fund %all manage !    
,fund ) ! int5tion ( provid+ ea*        
p>ticipant ) a co/-effective /ream (    

income 9 retirem5t & r$uc+ b5efit level 
volatility 7p>ticul>ly = ^? approa*+    
retirem5t74  7,b7 ,applicability ( o!r  
requirem5ts ,ea* tru/ee ( a ,,usa       
,retirem5t ,fund %all be a fiduci>y     
subject to sections #djd7;a71 #djd7;b71 
#dje1 #djf1 & #djh ?r\gh #dac ( !       
,employee ,retirem5t ,income ,security  
,act ( #aigd ) respect to ! ,fund &     
p>ticipants & b5efici>ies ( ! ,fund4    
,ea* su* tru/ee %all be subject to !    
/&>ds & rem$ies ( su* sections & section
 #ejb ( su* ,act1 z if ! ,fund 7 an     
employee b5efit plan4  7d7 ,contribution
 limitations  7#a7 ,employ] ,subject to 
p>agraph 7#c71 employ]s may1 9 addition 
to contributions an employee elects 7or 
is treat$ z hav+ elect$7 to h made1 make
 a contribution ( up to #e1jjj p] ye> to
 a ,,usa ,retirem5t ,fund on behalf (   
ea* employee eligible to p>ticipate 9 a 
,,usa ,retirem5t ,fund1 provid$ su*     
contributions are made 9 a uni=m mann]  
7z ! same doll> am\nt = ea* su* employee
 or ! same p]c5tage ( pay = ea* su*     

employee7 & are n int5d$ to b5efit      
solely highly comp5sat$ employees4  7#b7
 ,employee ,an employee may n elect 7or 
%all n be treat$ z hav+ z elect$7 to    
contribute m ?an #ae1jjj p] ye> to a    
,,usa ,retirem5t ,fund4  7#c7 ,annual   
index+ ( am\nt ,! doll> am\nts "u       
p>agraphs 7#a7 & 7#b7 %all be index$    
annually = inflation4  7e7 ,b5efits 9 ! 
=m ( an annuity  7#a7 ,9 g5]al ,a ,,usa 
,retirem5t ,fund %all pay b5efits 9 ! =m
 ( an annuity 9 accordance ) p>agraph   
7#b74 ,! am\nt ( su* b5efits %all be    
dep5d5t on ! am\nt ( contributions made 
by ! p>ticipant1 ! exp]i5ce ( ! ,fund1 &
 ! =m ( di/ribution elect$ by !         
p>ticipant4 ,! am\nt ( an annuity may be
 adju/$ to reflect ! exp]i5ce ( ! ,fund 
z necess>y to protect ! f9ancial        
integrity ( ! ,fund1 except t annuity   
paym5ts = ^? 9 pay /atus %all n be r$uc$
 m ?an #e p]c5t p] ye> unless ! ,fund is
 fac$ ) a significant f9ancial h>d%ip & 
! ,secret>y has approv$ ! r$uction4     
7#b7 ,annuity ,a ,,usa ,retirem5t ,fund 

%all pay b5efits 9 accordance ) "o ( !  
foll[+3  7,a7 ,9 ! case ( a p>ticipant  
:o does n die be=e ! annuity />t+ date1 
! b5efit payable to su* p>ticipant %all 
be provid$ 9 ! =m ( a qualifi$ jo9t &   
survivor annuity 7z def9$ 9 section     
#bje7;d77#a7 ( ! ,employee ,retirem5t   
,income ,security ,act ( #aigd 7#bi     
,u4,s4,c4 #ajee7;d77#a7774  7,b7 ,9 !   
case ( a p>ticipant :o dies be=e !      
annuity />t+ date & :o has a surviv+    
sp\se1 a qualifi$ pr]etirem5t survivor  
annuity 7z def9$ 9 section #bje7;d77#b7 
( ! ,employee ,retirem5t ,income        
,security ,act ( #aigd 7#bi ,u4,s4,c4   
#ajee7;d77#b777 %all be provid$ to !    
surviv+ sp\se ( su* p>ticipant4  7,c7 ,9
 lieu ( a qualifi$ jo9t & survivor      
annuity =m ( b5efit or ! qualifi$       
pr]etirem5t survivor annuity =m ( b5efit
 7or bo?71 a p>ticipant may elect to    
receive a di/ribution describ$ 9        
subsection 7f77#b7 if "o ( ! foll[+     
conditions are met3  7i7  7,i7 ,! sp\se 
( ! p>ticipant cons5ts 9 writ+ to !     

election4  7,,ii7 ,su* election         
designates a b5efici>y 7or =m ( b5efits7
 :i* may n be *ang$ )\t sp\sal cons5t   
7or ! cons5t ( ! sp\se expressly p]mits 
designations by ! p>ticipant )\t any    
requirem5t ( fur!r cons5t by ! sp\se74  
7,,iii7 ,! sp\se's cons5t ackn[l$ges !  
effect ( su* election & is witness$ by a
 plan repres5tative or a not>y public4  
7ii7 ,x is e/abli%$ to ! satisfaction ( 
a ,fund repres5tative t ! cons5t requir$
 "u subclause 7,i7 _c be obta9$ because 
!re is no sp\se1 because ! sp\se _c be  
locat$1 or because ( su* o!r            
circum/ances z ! ,secret>y may by       
regulations prescribe4  ,! cons5t ( a   
sp\se 7or e/abli%m5t t ! cons5t ( a     
sp\se _c be obta9$7 "u ?is subp>agraph  
%all be effective only ) respect to su* 
sp\se4  7#c7 ,comm5cem5t ( b5efit       
paym5ts ,a p>ticipant may elect ! "t to 
/>t receiv+ b5efit paym5ts f ! ,,usa    
,retirem5t ,fund1 except t a            
p>ticipant--  7,a7 except z provid$ 9   
subsection 7f77#b77;,b71 may n elect to 

receive b5efit paym5ts be=e rea*+ ! age 
( #fj2 &  7,b7 mu/ beg9 receiv+ b5efit  
paym5ts be=e ! age ( #gb4  7#d7 ,notice 
,ea* ,fund %all provide to ea*          
p>ticipant1 )9 a reasonable p]iod ( "t  
be=e ! annuity />t+ date1 a writt5      
explanation sub/antially simil> to t    
requir$ by section #bje7;c77#c7 ( !     
,employee ,retirem5t ,income ,security  
,act ( #aigd  7#bi ,u4,s4,c4            
#ajee7;c77#c774  7#e7 ,assignm5t or     
ali5ation ( fund b5efits ,b5efits "u a  
,,usa ,retirem5t ,fund %all be subject  
to section #bjf7;d7 ( ! ,employee       
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #ajef7;d774  7f7   
,limits on )drawals & transf]s  7#a7    
,transf]s ,a p>ticipant may1 n m        
frequ5tly ?an once p] ye>1 transf] su*  
p>ticipant's b5efit to ano!r ,,usa      
,retirem5t ,fund4  7#b7 ,limits on      
di/ributions  7,a7 ,9 g5]al ,except z   
provid$ 9 subp>agraphs 7,b7 & 7,c71 a   
p>ticipant may n take a di/ribution o!r 
?an "o describ$ 9 subsection 7e77#b74   

7,b7 ,p>ticipants ag$ #ei & y\ng] ,a    
p>ticipant may be=e age #fj take a      
di/ribution ( a portion ( ! p>ticipant's
 b5efit if su* di/ribution does n to    
exce$ #e1ejj & is roll$ ov] to a        
qualify+ plan or arrangem5t describ$ 9  
section #bai7;g77#e7 ( ! ,int]nal       
,rev5ue ,code ( #aihf or an individual  
retirem5t plan4  7,c7 ,p>ticipants ag$  
#fj & old] ,a p>ticipant :o is #fj or   
old] b :o has n ent]$ pay /atus may     
elect "o "t to take a di/ribution ( !   
great] ( #aj1jjj or #ej p]c5t ( !       
p>ticipant's b5efit if ! p>ticipant     
demon/rates to ! satisfaction ( !       
tru/ees ( ! ,fund t ! p>ticipant has    
suffici5t retirem5t income ap>t f !     
,fund or is fac+ a sub/antial h>d%ip4   
7g7 ,me?ods = provid+ annuitiz$ b5efit  
paym5ts  7#a7 ,9 g5]al ,a ,,usa         
,retirem5t ,fund %all e/abli% & ma9ta9  
me*anisms = adequately secur+ ! paym5t (
 annuity b5efits f ! ,fund4 ,! ,fund    
%all include a writt5 description ( su* 
me*anisms 9 ! inve/m5t & lifetime income

 policy /atem5ts requir$ to be disclos$ 
to p>ticipants4  7#b7 ,specific goals ,!
 me*anisms describ$ 9 p>agraph 7#a7 %all
 ensure t--  7,a7 ea* p>ticipant        
receives a /ream ( income = life2  7,b7 
ea* p>ticipant & b5efici>y has an       
opportunity to be protect$ aga9/        
longevity risk2 &  7,c7 volatility 9    
b5efit levels is m9imiz$ = p>ticipants &
 b5efici>ies 9 pay /atus & ^? approa*+  
pay /atus4  7#c7 ,self-annuitization    
7,a7 ,9 g5]al ,not)/&+ any o!r provision
 ( law1 a ,,usa ,retirem5t ,fund may    
self-annuitize if ! ,fund meets su*     
requirem5ts z ! ,secret>y e/abli%es z   
necess>y to protect p>ticipants &       
b5efici>ies 9 consid]ation ( !          
recomm5dations ( ! ,commission "u       
section #ajc4  7,b7 ,duty to address    
em]g+ issues ,! ,secret>y %all1         
p]iodically & 9 accordance ) e/abli%$   
proc$ures1 update ! fund+ requirem5ts   
promulgat$ "u ?is p>agraph 9 response to
 *ang+ economic & bus9ess conditions to 
! ext5t necess>y to c>ry out ! purposes 

( ?is ,act1 tak+ into consid]ation !    
recomm5dations ( ! ,commission4  7h7    
,report+ & disclosure  7#a7 ,annual     
/atem5t ,! tru/ees ( a ,,usa ,retirem5t 
,fund %all provide ea* p>ticipant 9 !   
,fund an annual /atem5t (--  7,a7 !     
e/imat$ am\nt ( ! mon?ly b5efit :i* !   
p>ticipant or b5efici>y is project$ to  
receive f ! ,,usa ,retirem5t ,fund1 9 ! 
=m ( ! default b5efit describ$ 9 ! plan 
9 accordance ) subsection 7e77#b72  7,b7
 an explanation1 writt5 9 a mann]       
calculat$ to be und]/ood by ! av]age    
plan p>ticipant1 t includes int]e/ &    
mortality assumptions us$ 9 calculat+ ! 
e/imate & a /atem5t t actual b5efits may
 be mat]ially diff]5t f su* e/imate2    
7,c7 a disclosure ( ,fund fees &        
p]=mance t is sub/antially simil> to !  
disclosures requir$ ( individual acc\nt 
plans "u ! ,employee ,retirem5t ,income 
,security ,act ( #aigd2  7,d7 any o!r   
disclosures1 includ+ project$ b5efit    
e/imates1 t ! bo>d ( tru/ees ( ! ,,usa  
,retirem5t ,fund det]m9es appropriate2 &

  7,e7 su* o!r disclosures z may be     
requir$ by ! ,secret>y4  7#b7 ,summ>y   
plan description ,! tru/ees ( a ,,usa   
,retirem5t ,fund %all provide           
p>ticipants a summ>y plan description 7z
 describ$ 9 section #ajb ( ! ,employee  
,retirem5t ,income ,security ,act 7#bi  
,u4,s4,c4 #ajbb77 z requir$ by section  
#ajd7;b7 ( ! ,employee ,retirem5t       
,income ,security ,act 7#bi ,u4,s4,c4   
#ajbd7;b774  7#c7 ,annual reports ,!    
tru/ees ( a ,,usa ,retirem5t ,fund %all 
file ) ! ,secret>y ( ,labor p]iodic     
reports 9 accordance ) regulations      
promulgat$ by ! ,secret>y4  7#d7        
,additional requirem5ts ,ea* ,,usa      
,retirem5t ,fund %all be subject to     
sections #ajf & #ajg ( ! ,employee      
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #ajbf1 #ajbg74  7i7
 ,tax treatm5t  7#a7 ,,usa ,retirem5t   
,fund ,a ,,usa ,retirem5t ,fund is      
exempt f taxation "u subtitle ,a ( !    
,int]nal ,rev5ue ,code ( #aihf4 ,not)/&+
 ! prec$+ s5t5ce1 a ,,usa ,retirem5t    

,fund is subject to ! taxes impos$ by   
section #eaa ( su* ,code 7relat+ to     
imposition ( tax on unrelat$ bus9ess    
income ( *>itable1 etc4 organizations74 
7#b7 ,contributions ,9 ! case ( an      
individual1 !re %all be all[$ z a       
d$uction = ! taxable ye> an am\nt equal 
to ! am\nt ( contributions to a ,,usa   
,retirem5t ,fund made by or on behalf ( 
! individual "u an automatic ,,usa      
,retirem5t ,fund arrangem5t "u section  
#b7;d74  7#c7 ,rollov] contributions ,= 
purposes ( ?is ,act1 rules simil> to !  
rules ( subp>agraphs 7,a7 & 7,d7 (      
section #djh7;d77#c7 ( ! ,int]nal       
,rev5ue ,code ( #aihf %all apply4  7#d7 
,di/ributions ,any di/ribution f a ,,usa
 ,retirem5t ,fund %all be includible 9 !
 gross income ( ! di/ributee 9 ! mann] z
 provid$ 9 section #gb ( ! ,int]nal     
,rev5ue ,code ( #aihf4  7#e7 ,prohibit$ 
transactions1 etc ,= purposes ( ?is     
,act1 rules simil> to ! rules (         
p>agraphs 7#b71 7#c71 & 7#d7 ( section  
#djh7;e77#b7 ( ! ,int]nal ,rev5ue ,code 

( #aihf %all apply4  7#f7 ,reports ,!   
tru/ees ( a ,,usa ,retirem5t ,fund %all 
make su* reports reg>d+ su* ,fund to !  
,secret>y ( ! ,treasury & to designat$  
b5efici>ies ) respect to contributions1 
di/ributions1 & su* o!r matt]s z !      
,secret>y ( ! ,treasury may require4 ,! 
reports requir$ by ?is p>agraph %all be 
fil$ at su* "t & 9 su* mann] & furni%$  
to su* individuals at su* "t & 9 su*    
mann] z may be requir$ by ! ,secret>y ( 
! ,treasury4  #d4 ,commission on ,,usa  
,retirem5t ,funds  7a7 ,recognition (   
private commission ,! ,secret>y %all--  
7#a7 recognize an indep5d5t1 private    
commission1 to be kn[n z ! ,commission =
 ,,usa ,retirem5t ,funds ,fund+ 7ref]r$ 
to 9 ?is title z ! ,commission71 &  7#b7
 9 c>ry+ out ! ,secret>y's duties "u ?is
 title1 consid] ! recomm5dations ( su*  
,commission4  7b7 ,commission ,!        
,commission recogniz$ "u subsection 7a7 
%all meet ! foll[+ requirem5ts3  7#a7   
,memb]%ip  7,a7 ,composition ,!         
,commission %all be compos$ ( #i memb]s 

select$ by ! ,secret>y1 9 consultation )
 ! ,secret>y ( ! ,treasury1 ( :om no m  
?an #e may be f "o political p>ty4 ,!   
,secret>y %all designate "o memb] ( !   
,commission z ! ,*airman4 ,no p]son may 
be appo9t$ to ! ,commission if1 dur+ !  
#b-ye> p]iod prec$+ ! date ( appo9tm5t1 
su* p]son 0 a tru/ee ( a ,,usa          
,retirem5t ,fund4  7,b7 ,date ,!        
appo9tm5ts ( ! memb]s ( ! ,commission   
%all be made n lat] ?an #ij days aft] ! 
date ( enactm5t ( ?is ,act4  7,c7 ,p]iod
 ( appo9tm5t2 vacancies ,memb]s %all be 
appo9t$ = t]ms ( #b ye>s & may be       
appo9t$ = consecutive t]ms4 ,any vacancy
 9 ! ,commission %all n affect its p[]s1
 & %all be fill$ 9 ! same mann] z !     
orig9al appo9tm5t4  7#b7 ,majority vote 
,! ,commission may act by majority vote 
( its memb]s1 provid$ t at lea/ #g      
memb]s are pres5t4  7#c7 ,commission    
p]sonnel matt]s  7,a7 ,comp5sation (    
memb]s ,ea* memb] ( ! ,commission :o is 
n an (fic] or employee ( ! ,f$]al       
,gov]nm5t %all be comp5sat$ at a rate   

equal to ! daily equival5t ( ! annual   
rate ( basic pay prescrib$ = level ,,iv 
( ! ,executive ,s*$ule "u section #ecae 
( title #e1 ,unit$ ,/ates ,code1 = ea*  
day 7includ+ travel "t7 dur+ :i* su*    
memb] is engag$ 9 ! p]=mance ( ! duties 
( ! ,commission4 ,all memb]s ( !        
,commission :o are (fic]s or employees (
 ! ,unit$ ,/ates %all s]ve )\t          
comp5sation 9 addition to t receiv$ = _!
 s]vices z (fic]s or employees ( !      
,unit$ ,/ates4  7,b7 ,travel exp5ses ,! 
memb]s ( ! ,commission %all be all[$    
travel exp5ses1 includ+ p] diem 9 lieu (
 subsi/5ce1 at rates au?oriz$ =         
employees ( ag5cies "u sub*apt] ,i (    
*apt] #eg ( title #e1 ,unit$ ,/ates     
,code1 :ile away f _! homes or regul>   
places ( bus9ess 9 ! p]=mance ( s]vices 
= ! ,commission4  7,c7 ,/aff  7i7 ,9    
g5]al ,! ,*airman ( ! ,commission may1  
)\t reg>d to ! civil s]vice laws &      
regulations1 appo9t & t]m9ate an        
executive director & su* o!r additional 
p]sonnel z may be necess>y to enable !  

,commission to p]=m its duties4 ,!      
employm5t ( an executive director %all  
be subject to confirmation by !         
,commission4  7ii7 ,comp5sation ,!      
,*airman ( ! ,commission may fix !      
comp5sation ( ! executive director & o!r
 p]sonnel )\t reg>d to *apt] #ea &      
sub*apt] ,,iii ( *apt] #ec ( title #e1  
,unit$ ,/ates ,code1 relat+ to          
classification ( positions & ,g5]al     
,s*$ule pay rates1 except t ! rate ( pay
 = ! executive director & o!r p]sonnel  
may n exce$ ! rate payable = level ,v ( 
! ,executive ,s*$ule "u section #ecaf ( 
su* title4  7iii7 ,detail ( gov]nm5t    
employees ,any ,f$]al ,gov]nm5t employee
 may be detail$ to ! ,commission )\t    
reimbursem5t1 & su* detail %all be )\t  
int]ruption or loss ( civil s]vice /atus
 or privilege4  7iv7 ,procurem5t (      
tempor>y & int]mitt5t s]vices ,!        
,*airman ( ! ,commission may procure    
tempor>y & int]mitt5t s]vices "u section
 #caji7;b7 ( title #e1 ,unit$ ,/ates    
,code1 at rates = individuals :i* d n   

exce$ ! daily equival5t ( ! annual rate 
( basic pay prescrib$ = level ,v ( !    
,executive ,s*$ule "u section #ecaf (   
su* title4  7#d7 ,recomm5dations &      
regulations on fund+ & di/ribution      
requirem5ts  7,a7 ,9 g5]al ,aft] tak+   
into consid]ation ! recomm5dations ( !  
,commission & provid+ ! public notice & 
an opportunity = comm5t1 ! ,secret>y    
%all promulgate regulations ) respect to
 fund+ & di/ribution requirem5ts = ,,usa
 ,retirem5t ,funds1 z necess>y or       
appropriate 9 ! public int]e/ & = !     
protection ( p>ticipants & b5efici>ies1 
includ+ regulations describ$ 9          
subp>agraphs 7,b7 & 7,c74  7,b7         
,requirem5ts relat+ to annuity paym5ts  
made directly by a ,fund ,! regulations 
"u subp>agraph 7,a7 %all provide t 9 !  
case ( annuity paym5ts made directly by 
! ,fund--  7i7 ! maximum annuity paym5t 
= a p>ticipant or b5efici>y %all be     
det]m9$ us+ ! mortality tables & int]e/ 
rates prescrib$ by ! ,secret>y "u       
subp>agraph 7,c7 at ! "t b5efits        

comm5ce2 &  7ii7 ! level ( b5efits paid 
may be adju/$ p]iodically 9 ord] to     
reflect ! mortality exp]i5ce & !        
inve/m5t exp]i5ce ( ! ,fund1 b only aft]
 ! ,fund has obta9$ a c]tification f a  
memb] ( ! ,am]ican ,academy ( ,actu>ies 
t ! adju/m5t is su/a9able = ! rema9+    
lifetime ( p>ticipants !n receiv+       
b5efits1 bas$ on ! mortality tables &   
int]e/ rates prescrib$ "u subp>agraph   
7,c7 by ! ,secret>y = t "t4  7,c7       
,mortality tables & int]e/ rates us$    
requirem5ts ,! regulations promulgat$ "u
 subp>agraph 7,a7 %all include ! foll[+3
  7i7 ,mortality ,tables  7,i7 ,9 g5]al 
,! ,secret>y %all prescribe mortality   
tables to be us$ 9 det]m9+ annuity      
paym5ts made directly by ! ,fund4 ,su*  
tables %all be bas$ on ! actual exp]i5ce
 ( insurance companies t issue gr\p     
annuities & project$ tr5ds 9 su*        
exp]i5ce4 ,9 prescrib+ su* tables1 !    
,secret>y %all take into acc\nt results 
( available indep5d5t /udies ( !        
mortality ( individuals receiv+         

annuities "u gr\p annuity contracts4    
7,,ii7 ,p]iodic revisions ( mortality   
tables ,! ,secret>y %all make revisions1
 to become effective z soon z           
practicable1 9 any mortality table 9    
effect to reflect m rec5t actual        
exp]i5ce ( insurance companies t issue  
gr\p annuities & project$ tr5ds 9 su*   
exp]i5ce4 ,9 revis+ su* tables1 !       
,secret>y %all take into acc\nt !       
results ( m rec5t available indep5d5t   
/udies ( ! mortality & project$ tr5ds ( 
individuals receiv+ annuities "u gr\p   
annuity contracts4  7ii7 ,int]e/ ,rates 
,! ,secret>y %all prescribe int]e/ rates
 to be us$ 9 det]m9+ annuity paym5ts    
made directly by ! ,fund4 ,su* rates    
%all be bas$ on ! yields on inve/m5t    
grade corporate bonds ) v>y+ maturities 
& t are 9 ! top #c quality levels       
available4 ,int]e/ rates %all be        
prescrib$ qu>t]ly or m frequ5tly1 z     
det]m9$ by ! ,secret>y4  7#e7 ,duty to  
address be/ practices ,! ,commission    
%all prep>e1 & p]iodically update1 a    

report t describes ! be/ practices = !  
gov]nance ( bo>ds ( tru/ees ( ,,usa     
,retirem5t ,funds1 includ+ bo>d ( tru/ee
 composition1 appo9tm5t proc$ures1 t]m  
l5g?1 t]m /agg]+1 tru/ee qualifications1
 delegation ( duties1 & p]=mance        
assessm5t proc$ures4  #e4 ,limitation on
 employ] liability ,section #djd ( !    
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #ajba et    
seq47 is am5d$ by add+ at ! end !       
foll[+3  7e7 ,an employ] %all n be a    
fiduci>y ) respect to ! selection1      
managem5t or adm9i/ration ( a ,,usa     
,retirem5t ,fund solely because su*     
employ] makes available su* ,fund ?r\gh 
an automatic ,,usa ,retirem5t ,fund     
arrangem5t4 ,not)/&+ ! prec$+ s5t5ce1   
employ]s p>ticipat+ 9 a ,,usa ,retirem5t
 ,fund %all be responsible = meet+ !    
enrollm5t requirem5ts & transmitt+      
contributions1 z requir$ "u ! ,,usa     
,retirem5t ,funds ,act4  4  #f4         
,en=cem5t & fraud prev5tion  7a7 ,p5alty
 = failure to timely remit contributions

 to automatic ,,usa ,retirem5t ,fund    
arrangem5ts  7#a7 ,9 g5]al ,if an       
employ] is requir$ "u an automatic ,,usa
 ,retirem5t ,fund arrangem5t to deposit 
am\nts )held f an employee's comp5sation
 into a ,,usa ,retirem5t ,fund b fails  
to d s )9 ! "t prescrib$ "u section     
#b7;d77#c71 su* am\nts %all be treat$ z 
assets ( a ,,usa ,retirem5t ,fund4  7#b7
 ,failure to provide access to payroll  
sav+s arrangem5ts  7,a7 ,g5]al rule ,a  
cov]$ employ] :o fails to meet !        
requirem5ts ( section #b7;a7 = a cal5d> 
ye> %all be subject to a civil money    
p5alty ( #ajj p] cal5d> ye> = ea*       
employee to :om su* failure relates4    
7,b7 ,exceptions ,no civil money p5alty 
%all be impos$ "u ?is p>agraph = a      
failure to meet ! requirem5ts "u section
 #b7;a7--  7i7 dur+ a p]iod = :i* !     
,secret>y det]m9es t ! employ] subject  
to liability = ! civil money p5alty did 
n "k t ! failure exi/$ & ex]cis$        
reasonable dilig5ce to meet !           
requirem5ts ( section #b7;a72 or  7ii7  

7,i7 ! employ] subject to liability = ! 
civil money p5alty ex]cis$ reasonable   
dilig5ce to meet ! requirem5ts ( section
 #b7;a72 &  7,,ii7 ! employ] provides ! 
automatic ,,usa ,retirem5t ,fund        
arrangem5t describ$ to ea* employee     
eligible to p>ticipate 9 ! arrangem5t by
 ! end ( ! #ij-;day p]iod beg9n+ on !   
fir/ date ! employ] knew1 or ex]cis+    
reasonable dilig5ce %\ld h kn[n1 t su*  
failure exi/$4  7,c7 ,waiv] by !        
secret>y ,9 ! case ( a failure to meet !
 requirem5ts ( section #b7;a7 t is due  
to reasonable cause & n to willful      
neglect1 ! ,secret>y may1 9 ! sole      
discretion ( ! ,secret>y1 waive "p or   
all ( ! civil money p5alty impos$ "u ?is
 p>agraph to ! ext5t t ! paym5t ( su*   
civil money p5alty w\ld be excessive or 
o!rwise inequitable relative to !       
failure involv$4  7,d7 ,proc$ures =     
notice ,! ,secret>y may prescribe &     
implem5t proc$ures = obta9+ confirmation
 t employ]s are 9 compliance )          
subsection 7a74 ,! ,secret>y1 9 !       

discretion ( su* ,secret>y1 may         
prescribe t ! confirmation %all be      
obta9$ on an annual or less frequ5t     
basis1 & may use = ?is purpose ! annual 
report or qu>t]ly report = employm5t    
taxes1 or su* o!r means z ! ,secret>y   
may deem advisable4  7b7 ,civil actions 
& en=cem5t  7#a7 ,adm9i/ration &        
en=cem5t ,"p #e ( title ,i ( ! ,employee
 ,retirem5t ,income ,security ,act (    
#aigd 7#bi ,u4,s4,c4 #aacb et seq47 %all
 apply to a ,,usa ,retirem5t ,fund z if 
a ,,usa ,retirem5t ,fund 7 an employee  
b5efit plan4  7#b7 ,am5dm5t ,section    
#ejb7;a7 ( ! ,employee ,retirem5t       
,income ,security ,act ( #aigd 7#bi     
,u4,s4,c4 #aacb et seq47 is am5d$--     
7,a7 9 p>agraph 7#i71 by /rik+ 2 or &   
ins]t+ 22  7,b7 9 p>agraph 7#aj71 by    
/rik+ ! p]iod at ! end & ins]t+ 2 or2 & 
7,c7 by add+ at ! end ! foll[+3  7#aa7 9
 ! ev5t t an employ] fails to make      
timely contributions or paym5ts to a    
,,usa ,retirem5t ,fund e/abli%$ "u title
 ,i ( ! ,,usa ,retirem5t ,funds ,act1 by

 ! ,secret>y1 a p>ticipant1 a b5efici>y1
 or a fiduci>y1 to compel an employ] to 
make su* contributions or paym5ts z if  
su* contributions or paym5ts 7 del9qu5t 
contributions or paym5ts "u section #eae
 or subsection 7g77#b74  4  7#c7        
,non-preemption ( c]ta9 ,/ate law ,no?+ 
9 ?is section %all preempt ,/ate law    
ins(> z ,/ate law relates to ! en=cem5t 
( an obligation to contribute to a ,,usa
 ,retirem5t ,fund4  7c7 ,false /atem5ts 
7#a7 ,9 g5]al ,no p]son1 9 connection ) 
a plan or o!r arrangem5t t is or        
purports to be a ,,usa ,retirem5t ,fund1
 %all make a false /atem5t or false     
repres5tation ( fact1 kn[+ x to be      
false1 9 connection ) ! m>ket+ or sale (
 su* plan or arrangem5t1 to any         
employee1 any memb] ( an employee       
organization1 any b5efici>y1 any        
employ]1 any employee organization1 !   
,secret>y1 or any ,/ate1 or !           
repres5tative or ag5t ( any su* p]son1  
,/ate1 or ! ,secret>y1 conc]n+--  7,a7 !
 f9ancial condition or solv5cy ( su*    

fund or arrangem5t2  7,b7 ! b5efits     
provid$ by su* fund or arrangem5t2  7,c7
 ! regulatory /atus ( su* fund or o!r   
arrangem5t "u any ,f$]al or ,/ate law   
gov]n+ collective b>ga9+1 labor         
managem5t relations1 or int]n union     
affairs2 or  7,d7 ! regulatory /atus (  
su* fund or o!r arrangem5t4  7#b7       
,p5alty ,any p]son :o violates ?is      
subsection %all1 ^u conviction1 be      
imprison$ n m ?an #aj ye>s or f9$ "u    
title #ah1 ,unit$ ,/ates ,code1 or bo?4 
7d7 ,cease & desi/ ord]s  7#a7 ,issuance
 ( ord] ,! ,secret>y may issue a cease &
 desi/ 7ex p>te7 ord] "u ?is title if ! 
,secret>y det]m9es t ! alleg$ conduct ( 
a fund purport+ to be a ,,usa ,retirem5t
 ,fund is fraudul5t1 or creates an      
imm$iate dang] to ! public safety or    
welf>e1 or is caus+ or c be reasonably  
expect$ to cause significant1 imm95t1 & 
irrep>able public injury4  7#b7 ,he>+s  
7,a7 ,9 g5]al ,a p]son :o is adv]sely   
affect$ by ! issuance ( a cease & desi/ 
ord] "u p>agraph 7#a7 may reque/ a he>+ 

by ! ,secret>y reg>d+ su* ord]4 ,!      
,secret>y may require t a he>+ "u ?is   
p>agraph1 includ+ all relat$ in=mation &
 evid5ce1 be conduct$ 9 a confid5tial   
mann]4  7,b7 ,burd5 ( pro( ,! burd5 (   
pro( 9 any he>+ conduct$ "u subp>agraph 
7,a7 %all be on ! p>ty reque/+ ! he>+ to
 %[ cause :y ! cease & desi/ ord] %\ld  
be set aside4  7,c7 ,det]m9ation ,bas$  
^u ! evid5ce pres5t$ at a he>+ "u       
subp>agraph 7,a71 ! ,secret>y may       
affirm1 modify1 or set aside ! cease &  
desi/ ord] at issue1 9 :ole or 9 "p4    
7#c7 ,regulations ,! ,secret>y may      
promulgate su* regulations or o!r       
guidance z may be necess>y or           
appropriate to c>ry out ?is subsection4