,i #aad? ,,congress #b;d ,session ,h4 ,r4 #egca ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,july #ab1 #bjaf,mr4 ,cr[ley introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to e/abli% ,,save ,,up ,acc\nts1 & = o!r purposes4 #a4 ,%ort title & table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,secure1 ,accessible1 ,valuable1 ,effici5t ,univ]sal ,p5sion ,acc\nts ,act or ! ,,save ,,up ,act4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title & table ( cont5ts4 ,title ,i--,,save ,,up ,acc\nts ,sec4 #aja4 ,secure1 ,accessible1 ,valuable1 ,effici5t ,univ]sal ,p5sion ,acc\nts4 ,sec4 #ajb4 ,,save ,,up ,acc\nt contribution programs4 ,sec4 #ajc4 ,,save ,,up ,acc\nts ,fund4 ,sec4 #ajd4 ,inve/m5t ( ,,save ,,up ,acc\nt assets4 ,sec4 #aje4 ,b5efits 9 ! =m ( an annuity4 ,sec4 #ajf4 ,,save ,,up ,acc\nts ,gov]nance4 ,sec4 #ajg4 ,report+ & ,disclosure4 ,sec4 #ajh4 ,fiduci>y duties "u ,,save ,,up ,acc\nt contribution programs & ,,save ,,up ,acc\nts4 ,sec4 #aji4 ,,save ,,up ,acc\nts disreg>d$ = purposes ( means-te/$ programs4 ,title ,,ii--,tax treatm5t ( ,,save ,,up ,acc\nts ,sec4 #bja4 ,tax treatm5t ( ,,save ,,up ,acc\nts4 ,sec4 #bjb4 ,,save ,,up ,acc\nt cr$it4 ,sec4 #bjc4 ,disall[ance ( d$uction = comp5sation = c]ta9 employ]s fail+ to provide ,,save ,,up ,acc\nt contribution program4 ,i ,,save ,,up ,acc\nts #aja4 ,secure1 ,accessible1 ,valuable1 ,effici5t ,univ]sal ,p5sion ,acc\nts 7a7 ,9 g5]al ,!re is h]eby e/abli%$ ! ,,save ,,up ,acc\nt program "u :i* ! ,,save ,,up ,bo>d ( ,tru/ees %all-- 7#a7 e/abli% = ea* eligible employee ( an applicable employ] a ,,save ,,up ,acc\nt1 & 7#b7 manage su* acc\nts1 & hold am\nts 9 su* acc\nt 9 tru/1 = ! exclusive b5efit ( ! individuals on ^: behalf su* acc\nts are e/abli%$4 7b7 ,eligible employee 7#a7 ,9 g5]al ,= purposes ( ?is section1 ! t]m eligible employee means1 ) respect to any applicable employ]1 any employee unless su* employee is eligible to p>ticipate 9 a plan or arrangem5t describ$ 9 section #bai7;g77#e77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 7#b7 ,exception = froz5 plan ,p>agraph 7#a7 %all n apply 9 ! case ( a def9$ b5efit plan unless ! p>ticipant is eligible to receive s]vice-bas$ accruals "u su* plan4 7c7 ,applicable employ] ,= purposes ( ?is title-- 7#a7 ,9 g5]al ,! t]m applicable employ] means1 ) respect to any ye>1 any employ]-- 7,a7 7i7 ! aggregate numb] ( h\rs ( s]vice ( employees ( :i* = mon?s dur+ ! prec$+ cal5d> ye> is #a1fjj or m1 & 7ii7 :i* does n make available to all employees a plan or arrangem5t describ$ 9 section #bai7;g77#e7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 or 7,b7 :i* elects ! application ( ?is title = any ye>4 7#b7 ,h\rs ( s]vice ,! ,,save ,,up ,bo>d ( ,gov]nors1 9 consultation ) ! ,secret>y ( ,labor1 %all prescribe su* guidance z may be necess>y to det]m9e ! h\rs ( s]vice ( employees1 includ+ ) respect to employees :o are n comp5sat$ on an h\rly basis4 7#c7 ,gov]nm5t entities & *ur*es ,! t]m applicable 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#d7 ,aggregation rule ,all p]sons treat$ z a s+le employ] "u subsection 7b71 7c71 7m71 or 7o7 ( section #dad1 ( ! ,int]nal ,rev5ue ,code ( #aihf %all be treat$ z a s+le employ]4 #ajb4 ,,save ,,up ,acc\nt contribution programs 7a7 ,9 g5]al ,ea* applicable employ] %all e/abli% a ,,save ,,up ,acc\nt contribution program4 7b7 ,,save ,,up ,acc\nt contribution program 7#a7 ,9 g5]al ,= purposes ( ?is "p1 ! t]m ,,save ,,up ,acc\nt contribution program means1 ) respect to any applicable employ]1 a writt5 arrangem5t t meets ! requirem5ts ( p>agraphs 7#b7 ?r\gh 7#e74 7#b7 ,automatic def]ral 7,a7 ,9 g5]al ,! requirem5ts ( ?is p>agraph are met if ! ,,save ,,up ,acc\nt contribution program includes a ,,save ,,up ,acc\nt ca% or def]r$ arrangem5t "u :i* ea* eligible employee is treat$ z hav+ elect$ to h ! employ] make elective contributions on ! employee's behalf 9 an am\nt equal to ! applicable p]c5tage ( wages 7z def9$ 9 section #caba7;a7 )\t reg>d to ! contribution & b5efit base limitation 9 p>agraph 7#a7 !re(74 7,b7 ,election out ,! election treat$ z hav+ be5 made "u subp>agraph 7,a7 %all cease to apply ) respect to any employee if su* employee makes an affirmative election-- 7i7 to n h su* contributions made1 or 7ii7 to make elective contributions "u ! ,,save ,,up ,acc\nt ca% or def]r$ arrangem5t at a level specifi$ 9 su* affirmative election4 7,c7 ,,save ,,up ,acc\nt ca% or def]r$ arrangem5t ,= purposes ( ?is subsection1 ! t]m ,,save ,,up ,acc\nt ca% or def]r$ arrangem5t means an arrangem5t "u :i* ! eligible employee may elect to h ! employ] make paym5ts z contributions "u ! arrangem5t to ! employee's ,,save ,,up ,acc\nt on behalf ( ! employee1 or to ! employee directly 9 ca%4 7,d7 ,applicable p]c5tage ,= purposes ( ?is p>agraph1 ! t]m applicable p]c5tage means1 ) respect to any employee-- 7i7 #c p]c5t dur+ ! p]iod end+ on ! la/ day ( ! fir/ cal5d> ye> :i* beg9s aft] ! date on :i* ! fir/ elective contribution describ$ 9 subp>agraph 7,a7 is made ) respect to su* employee2 7ii7 #c4e p]c5t dur+ ! fir/ cal5d> ye> foll[+ ! cal5d> ye> describ$ 9 clause 7i72 7iii7 #d p]c5t dur+ ! second cal5d> ye> foll[+ ! cal5d> ye> describ$ 9 clause 7i72 7iv7 #d4e p]c5t dur+ ! ?ird cal5d> ye> foll[+ ! cal5d> ye> describ$ 9 clause 7i72 & 7v7 #e p]c5t dur+ any subsequ5t cal5d> ye>4 7#c7 ,nonelective employ] contributions ,! requirem5ts ( ?is p>agraph are met if1 "u ! arrangem5t1 ! employ]1 )\t reg>d to any election by ! employee "u p>agraph 7#b71 is requir$ to make a contribution to ! plan on behalf ( ea* qualify+ employee 9 an am\nt equal to at lea/ #ej c5ts p] h\r work$ by ! employee4 ,su* contribution %all n be c\nt$ z p>tial paym5t ( an h\rly wage4 ,an employ] %all n fail to meet ! requirem5ts ( ?is p>agraph solely by reason ( mak+ contributions on behalf ( employees at a rate great] ?an #ej c5ts p] h\r1 b only if su* contributions are made at ! same rate = all qualify+ employees ( ! employ]4 7#d7 ,notices ,! requirem5ts ( ?is p>agraph %all n be treat$ z met ) respect to any ye> unless ! employ] notifies ea* employee eligible to p>ticipate1 )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 (-- 7,a7 ! elective contributions t may be elect$ or treat$ z elect$ "u p>agraph 7#b71 & 7,b7 ! opportunity to elect "u p>agraph 7#b77;,b77i7 to n make elective contributions4 7#e7 ,treatm5t ( contributions ,all contributions ) respect to an employee made "u a ,,save ,,up ,acc\nt contribution program %all be non=feitable & %all be paid ov] to ! ,,save ,,up ,acc\nts ,fund = cr$it+ to ! employee's ,,save ,,up ,acc\nt "u section #ajc4 7#f7 ,wage gr[? adju/m5t 7,a7 ,9 g5]al ,9 ! case ( cal5d> ye>s beg9n+ aft] #bjaf1 ! #ej c5t am\nt 9 p>agraph 7#c7 %all be increas$ by ! av]age annual wage gr[? adju/m5t4 7,b7 ,av]age annual wage gr[? adju/m5t ,= purposes ( subp>agraph 7,a71 ! av]age annual wage gr[? adju/m5t = any cal5d> ye> is ! p]c5tage 7if any7 by :i*-- 7i7 ! national av]age wage index 7z def9$ 9 section #bai7k77#a7 ( ! ,social ,security ,act7 = ! prec$+ cal5d> ye>1 exce$s 7ii7 ! national av]age wage index 7z s def9$7 = #bjae4 7,c7 ,r\nd+ ,adju/m5ts "u ?is p>agraph %all be r\nd$ to ! ne>e/ c5t4 #ajc4 ,,save ,,up ,acc\nts ,fund 7a7 ,e/abli%m5t ( ,fund 7#a7 ,e/abli%m5t ,!re is e/abli%$ 9 ! ,treasury ( ! ,unit$ ,/ates a tru/ fund to be kn[n z ! ,,save ,,up ,acc\nts ,fund4 7#b7 ,am\nts 9 ,fund ,! ,,save ,,up ,acc\nts ,fund %all consi/ ( am\nts paid to ,,save ,,up ,acc\nts pursuant to a ,,save ,,up ,acc\nt contribution programs1 increas$ by ! total net e>n+s f inve/m5ts ( sums 9 ! ,fund attributable to su* deposit$ am\nts1 & r$uc$ by ! total net losses f inve/m5ts ( su* sums4 7#c7 ,budget au?ority2 appropriation ,?is title con/itutes budget au?ority 9 advance ( appropriations ,acts & repres5ts ! obligation ( ! ,,save ,,up ,bo>d ( ,tru/ees to provide = ! paym5t ( am\nts provid$ "u ?is title4 ,! am\nts held 9 ! ,,save ,,up ,acc\nts ,fund are appropriat$ & %all rema9 available )\t fiscal ye> limitation4 7b7 ,accumulation ,acc\nt ,!re is e/abli%$ 9 ! ,,save ,,up ,acc\nts ,fund a sep>ate acc\nt to be kn[n z ! ,accumulations ,acc\nt consi/+ ( su* am\nts describ$ 9 subsection 7a77#b71 less am\nts cr$it$ to ! ,annuity ,acc\nt4 7c7 ,annuity ,acc\nt ,!re is e/abli%$ 9 ! ,,save ,,up ,acc\nts ,fund a sep>ate acc\nt to be kn[n z ! ,annuity ,acc\nt to :i* ! aggregate am\nts cr$it$ to a p>ticipant's ,,save ,,up ,acc\nt "u section #aje %all be transf]r$ at su* "t z ! p>ticipant elects to />t receiv+ b5efit paym5ts "u section #ajf4 7d7 ,res]ve ,acc\nt 7#a7 ,9 g5]al ,!re is e/abli%$ 9 ! ,,save ,,up ,acc\nts ,fund a sep>ate acc\nt to be kn[n z ! ,res]ve ,acc\nt :i* %all repres5t ! am\nts describ$ 9 subsection 7a77#b71 less am\nts cr$it$ to ,,save ,,up ,acc\nts "u section #ajd7;c74 7#b7 ,use ( ,res]ve ,acc\nt ,! ,bo>d ( ,gov]nors %all-- 7,a7 use ,res]ve ,acc\nt am\nts t are allocable to ! inve/m5t ( am\nts 9 ! ,accumulation ,acc\nt to make up any %ortfall 9 ! cr$it+ individuals acc\nts "u section #ajd7;c71 & 7,b7 use ,res]ve ,acc\nt am\nts t are allocable to ! inve/m5t ( am\nts 9 ! ,annuity ,acc\nt to make up any %ortfall 9 ! paym5t ( annuity b5efits "u section #aje4 7e7 ,availability ,! sums 9 ! ,,save ,,up ,acc\nts ,fund are appropriat$ & %all rema9 available )\t fiscal ye> limitation-- 7#a7 to inve/ "u section #ajd2 7#b7 to provide = ! paym5t ( b5efits 9 accordance ) section #aje2 & 7#c7 to pay ! adm9i/rative exp5ses incurr$ ) respect to managem5t ( ,,save ,,up ,acc\nts & su* ,funds4 7f7 ,limitations on use ( am\nts 9 ! ,fund 7#a7 ,9 g5]al ,am\nts 9 ! ,,save ,,up ,acc\nts ,fund cr$it$ to an individual's ,,save ,,up ,acc\nt are non=feitable & may n be us$ =1 or div]t$ to1 purposes o!r ?an = ! exclusive b5efit ( ! individual or ! individual's b5efici>ies "u ?is title4 7#b7 ,assignm5ts ,am\nts 9 ! ,,save ,,up ,acc\nts ,fund cr$it$ to an individual's ,,save ,,up ,acc\nt may n be assign$ or ali5at$ & are n subject to execution1 levy1 atta*m5t1 g>ni%m5t1 or o!r legal process4 #ajd4 ,inve/m5t ( ,,save ,,up ,acc\nt assets 7a7 ,9 g5]al ,am\nts 9 ! ,accumulation ,acc\nt ( ! ,,save ,,up ,acc\nts ,tru/ ,fund %all be inve/$ by ea* ,,save ,,up ,bo>d ( ,tru/ees "u rules & guidance e/abli%$ by ! ,,save ,,up ,bo>d ( ,gov]nors4 ,ea* ,,save ,,up ,bo>d ( ,tru/ees %all be responsible = inve/+ an am\nt 7det]m9$ by ! ,bo>d ( ,gov]nors qu>t]ly7 t is proportional to ! cr$it$ balances ( ,,save ,,up ,acc\nts )9 su* ,bo>d's jurisdiction4 7b7 ,inve/m5t returns 7#a7 ,daily ,! ,,save ,,up ,bo>d ( ,gov]nors %all det]m9e daily ! net inve/m5t return ( ! entire ,,save ,,up ,acc\nts ,tru/ ,fund4 7#b7 ,annual audit ,n less ?an annually1 ! ,,save ,,up ,bo>d ( ,gov]nors %all1 ?r\gh an indep5d5t audit ( ea* ,,save ,,up ,bo>d ( ,tru/ee's inve/m5ts1 det]m9e ! net inve/m5t return ( ! entire ,,save ,,up ,acc\nts ,tru/ ,fund4 7c7 ,cr$it+ ( acc\nts & allocation ( positive inve/m5t returns 7#a7 ,9 g5]al ,ea* ,,save ,,up ,bo>d ( ,tru/ees %all sep>ately acc\nt = ea* individual's ,,save ,,up ,acc\nt )9 its jurisdiction & %all provide = cr$it+ (-- 7,a7 am\nts contribut$ ) respect to ! individual's acc\nt "u section #ajb1 & 7,b7 9 ! case ( any p]iod = :i* ! ,,save ,,up ,acc\nts ,tru/ ,fund is det]m9$ by ! ,,save ,,up ,bo>d ( ,gov]nors to h _h an annualiz$ positive net inve/m5t return1 an am\nt equal to ! individual's allocable %>e ( su* inve/m5t return4 7#b7 ,allocation ( inve/m5t return ,= purposes ( p>agraph 7#a71 an individual's allocable %>e ( inve/m5t returns %all be an am\nt equal to ! return su* individual's ,,save ,,up ,acc\nt w\ld h exp]i5c$ _h su* return 7annualiz$ & express$ z a p]c5tage7 be5 equal to ! less] (-- 7,a7 #f p]c5t1 or 7,b7 ! ,,save ,,up ,acc\nts ,tru/ ,fund annualiz$ inve/m5t return 7express$ z a p]c5tage7 det]m9$ by ! ,,save ,,up ,bo>d ( ,gov]nors4 #aje4 ,b5efits 9 ! =m ( an annuity 7a7 ,9 g5]al ,a ,,save ,,up ,acc\nt %all pay b5efits 9 ! =m ( an annuity 9 accordance ) subsection 7b74 ,! am\nt ( su* b5efits %all be bas$ on ! am\nts cr$it$ to ! individual's ,,save ,,up ,acc\nt & ! =m ( di/ribution ! individual elects4 ,not)/&+ ! prec$+ s5t5ce1 ! am\nt ( an annuity may be adju/$ 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 & ! ,,save ,,up ,bo>d ( ,gov]nors has approv$ ! r$uction4 7b7 ,annuity ,,save ,,up ,acc\nts %all pay b5efits 9 accordance ) "o ( ! foll[+3 7#a7 ,9 ! case ( a p>ticipant :o does n die be=e ! annuity />t+ date1 ! b5efit payable to su* p>ticipant %all be provid$ 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#c7 if "o ( ! foll[+ conditions are met3 7,a7 7i7 ,! sp\se ( ! p>ticipant cons5ts 9 writ+ to ! election4 7ii7 ,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 7iii7 ,! sp\se's cons5t ackn[l$ges ! effect ( su* election & is witness$ by a plan repres5tative or a not>y public4 7,b7 ,x is e/abli%$ to ! satisfaction ( a ,fund repres5tative t ! cons5t requir$ "u clause 7i7 _c be obta9$ because !re is no sp\se1 because ! sp\se _c be locat$1 or because ( su* o!r circum/ances z ! ,,save ,,up ,bo>d ( ,gov]nors may by regulations prescribe4 ,! cons5t ( a sp\se 7or e/abli%m5t t ! cons5t ( a sp\se _c be obta9$7 "u ?is subp>agraph %all be effective only ) respect to su* sp\se4 7c7 ,comm5cem5t ( b5efit paym5ts ,a p>ticipant may elect ! "t to />t receiv+ b5efit paym5ts "u ?is section1 except t a p>ticipant-- 7#a7 may n elect to receive b5efit paym5ts be=e rea*+ ! age ( #fb2 & 7#b7 mu/ beg9 receiv+ b5efit paym5ts be=e ! age ( #gj4 7d7 ,notice ,ea* ,fund %all provide to ea* p>ticipant1 )9 a reasonable p]iod ( "t be=e ! annuity />t+ date1 a writt5 explanation sub/antially simil> to t requir$ by section #bje7;c77#c7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajee7;c77#c774 7e7 ,assignm5t or ali5ation ( fund b5efits ,b5efits "u a ,,save ,,up ,acc\nt %all be subject to section #bjf7;d7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajef7;d774 7f7 ,me?ods = ,provid+ ,annuitiz$ ,b5efit ,paym5ts 7#a7 ,9 g5]al ,! ,,save ,,up ,bo>d ( ,tru/ees %all e/abli% & ma9ta9 me*anisms = adequately secur+ ! paym5t ( annuity b5efits "u ?is section4 ,! ,,save ,,up ,bo>d ( ,tru/ees %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 ,,save ,,up ,acc\nt may self-annuitize if ! ,,save ,,up ,acc\nts ,fund meets su* requirem5ts z ! ,,save ,,up ,bo>d ( ,gov]nors e/abli%es z necess>y to protect p>ticipants & b5efici>ies4 7,b7 ,duty to address em]g+ issues ,! ,,save ,,up ,bo>d ( ,gov]nors %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 ,act4 #ajf4 ,,save ,,up ,acc\nts ,gov]nance 7a7 ,,save ,,up ,bo>d ( ,gov]nors 7#a7 ,e/abli%m5t ,!re is e/abli%$ 9 ! executive bran* ( ! ,gov]nm5t a ,,save ,,up ,acc\nts ,bo>d ( ,gov]nors4 7#b7 ,duties ,! ,bo>d ( ,gov]nors %all-- 7,a7 adm9i/] ! provisions ( ?is title1 except ) respect to matt]s relat+ to ,,save ,,up ,acc\nt contribution programs ma9ta9$ by employ]s pursuant to section #ajb & any duties *>g$ to ! ,,save ,,up ,bo>ds ( ,tru/ees2 7,b7 e/abli% policies = ! inve/m5t & managem5t ( ,,save ,,up ,acc\nt assets1 & = ! managem5t & op]ation ( ,,save ,,up ,acc\nt annuities "u ?is title1 :i* %all provide =-- 7i7 prud5t inve/m5ts suitable = accumulat+ funds = paym5t ( retirem5t income2 7ii7 inve/m5t t>gets2 7iii7 s\nd managem5t practices2 7iv7 l[ adm9i/rative co/s2 7v7 l[ inve/m5t co/s2 & 7vi7 inve/m5ts 9 index funds2 7,c7 review ! p]=mance ( ,,save ,,up ,acc\nt ,fund inve/m5ts2 & 7,d7 review ! managem5t & op]ation ( annuities4 7#c7 ,composition ,! ,,save ,,up ,bo>d ( ,gov]nors %all be compos$ (-- 7,a7 #e memb]s1 ea* ( :om mu/ be a *airman ( a regional ,,save ,,up ,bo>d ( ,tru/ees1 & 7,b7 #f memb]s appo9t$ by ! ,presid5t1 ( :om ! ,presid5t %all appo9t at lea/ "o resid5t f ea* ( ! #e jurisdictions ( ! regional ,,save ,,up ,bo>d ( ,tru/ees4 7#d7 ,*airman ,! ,presid5t %all appo9t "o ( su* memb]s z *airman ( ! ,,save ,,up ,bo>d ( ,gov]nors4 ,su* appo9tm5t %all be made by & ) ! advice & cons5t ( ! ,s5ate4 7#e7 ,l5g? ( appo9tm5ts ,ea* memb] appo9t$ by ! ,presid5t "u p>agraph 7#c77;,b7 %all be appo9t$ = a t]m ( #f ye>s1 except t ( ! fir/ su* memb]s tak+ (fice-- 7,a7 ! *airman memb] %all s]ve a t]m ( #g ye>s1 7,b7 #a memb] %all s]ve a t]m ( #b ye>s1 7,c7 #a memb] %all s]ve a t]m ( #c ye>s1 7,d7 #a memb] %all s]ve a t]m ( #d ye>s1 7,e7 #a memb] %all s]ve a t]m ( #e ye>s1 & 7,f7 #a memb] %all s]ve a t]m ( #f ye>s4 ,no individual may s]ve m ?an #b t]ms z a memb] ( ! ,bo>d4 7b7 ,regional ,,save ,,up ,bo>ds ( ,tru/ees 7#a7 ,9 g5]al ,!re is e/abli%$ 9 ! executive bran* ( ! ,gov]nm5t #e regional ,,save ,,up ,bo>ds ( ,tru/ees1 ! jurisdiction ( :i* %all be1 to ! ext5t practicable1 apportion$ by ! ,secret>y ( ! ,treasury geographically & to approximate an equal di/ribution ( ! ,unit$ ,/ates population4 7#b7 ,duties ,! ,,save ,,up ,bo>d ( ,tru/ees = ea* region %all ov]see ! managem5t & adm9i/ration ( ,,save ,,up ,acc\nts ( ! population )9 its respective jurisdiction1 includ+-- 7,a7 ) respect to su* population1 managem5t & inve/m5t ( ,,save ,,up ,acc\nt ,tru/ ,fund assets1 paym5t ( annuities1 & compliance ) report+ & disclosure requirem5ts1 & 7,b7 selection ( ! adm9i/rator1 attorney1 int]nal auditor1 record keep]1 inve/m5t consult+ team1 & su* o!r /aff z may be necess>y to c>ry out ! duties ( ! ,,save ,,up ,bo>d ( ,tru/ees4 ,any ref]5ce to a ,,save ,,up ,bo>d ( ,tru/ees 9 ?is title %all be con/ru$ to mean ! regional ,,save ,,up ,bo>d ( ,tru/ees ) respect to ! ,,save ,,up ,acc\nts )9 its jurisdiction1 :]e su* con/ruction is necess>y to c>ry out provisions ( ?is title4 7#c7 ,composition ,ea* ,,save ,,up ,bo>d ( ,tru/ees %all be compos$ ( #g memb]s1 ( :om-- 7,a7 #b %all be appo9t$ by ! ,f$]al ,res]ve ,bo>d1 7,b7 #a %all be appo9t$ by ! ,commission] ( ! ,securities & ,ex*ange ,commission1 7,c7 #a %all be appo9t$ by ! ,speak] ( ! ,h\se ( ,repres5tatives1 7,d7 #a %all be appo9t$ by ! ,m9ority ,lead] ( ! ,h\se ( ,repres5tatives1 7,e7 #a %all be appo9t$ by ! ,majority ,lead] ( ! ,s5ate1 & 7,f7 #a %all be appo9t$ by ! ,m9ority ,lead] ( ! ,s5ate4 7#d7 ,*airman ,= ea* ,bo>d ( ,tru/ees1 ! ,presid5t %all designate "o ( ! tru/ees appo9t$ "u p>agraph 7#c7 z *airman1 &1 9 ! case ( ! fir/ su* tru/ees tak+ (fice1 %all designate ! t]m ( su* tru/ee pursuant to p>agraph 7#e74 7#e7 ,vice *airman ,ea* ,bo>d ( ,tru/ees %all designate "o ( ! tru/ees appo9t$ "u p>agraph 7#c7 z vice *airman4 7#f7 ,l5g? ( appo9tm5ts 7,a7 ,9 g5]al ,ea* tru/ee ( ! ,bo>d appo9t$ "u p>agraph 7#c7 %all be appo9t$ = a t]m ( #e ye>s1 except t ( ! fir/ su* tru/ees tak+ (fice-- 7i7 ! *airman tru/ee %all be det]m9$ "u subp>agraph 7,b71 7ii7 #a tru/ee %all s]ve a t]m ( #e ye>s1 7iii7 #a tru/ee %all s]ve a t]m ( #d ye>s1 7iv7 #a tru/ee %all s]ve a t]m ( #c ye>s1 7v7 ! vice *airman tru/ee %all s]ve a t]m ( #b ye>s1 7vi7 #a tru/ee %all s]ve = a t]m ( #b ye>s1 & 7vii7 #a tru/ee %all s]ve = a t]m ( #a ye>4 ,o!r ?an ! *airman & vice *airman tru/ee1 ! t]ms ( ! fir/ tru/ees tak+ (fice %all correspond ) ! individual :o appo9t$ ! tru/ee "u p>agraph 7#c7 & %all be ord]$ f ! longe/ t]m to ! %orte/ t]m on ! basis ( ! ord] 9 :i* ! individuals are li/$ 9 su* p>agraph4 7,b7 ,*airman t]ms ,= purposes ( subp>agraph 7,a77i71 ( ! tru/ees appo9t$ z *airman ( a ,bo>d ( ,tru/ees-- 7i7 #a *airman %all s]ve a t]m ( #f ye>s1 7ii7 #b *airm5 %all s]ve a t]m ( #e ye>s1 7iii7 #a *airman %all s]ve a t]m ( #d ye>s1 & 7iv7 #a *airman %all s]ve a t]m ( #c ye>s4 7,c7 ,t]m limits ,no individual may be appo9t$ to m ?an #b t]ms z a tru/ee ( ! ,,save ,,up ,bo>d ( ,tru/ees4 7c7 ,vacancies 7#a7 ,9 g5]al ,a vacancy on ! ,bo>ds e/abli%$ "u ?is section %all be fill$ 9 ! mann] 9 :i* ! orig9al appo9tm5t 0 made & %all be subject to any conditions t appli$ ) respect to ! orig9al appo9tm5t4 7#b7 ,completion ( t]m ,an individual *os5 to fill a vacancy "u subp>agraph 7,a7 %all be appo9t$ = ! unexpir$ t]m ( ! memb] replac$4 7d7 ,memb]%ip requirem5ts ,memb]s & tru/ees appo9t$ "u ?is section %all h sub/antial exp]i5ce1 tra9+1 & exp]tise 9 ! managem5t ( f9ancial inve/m5ts & p5sion b5efit plans4 7e7 ,comp5sation 7#a7 ,9 g5]al ,ea* su* memb] or tru/ee :o is n an (fic] or employee ( ! ,f$]al ,gov]nm5t %all be comp5sat$ at ! daily rate ( basic pay = level ,,ii ( ! ,executive ,s*$ule = ea* day dur+ :i* su* memb] is engag$ 9 p]=m+ a function ( ! ,bo>d4 7#b7 ,exp5ses ,ea* su* memb] or tru/ee %all be paid travel1 p] diem1 & o!r necess>y exp5ses "u sub*apt] ,i ( *apt] #eg ( title #e1 ,unit$ ,/ates ,code1 :ile travel+ away f su* memb]'s home or regul> place ( bus9ess 9 ! p]=mance ( ! duties ( ! ,bo>d4 7f7 ,dis*>ge ( responsibilities ,! memb]s & tru/ees %all dis*>ge _! responsibilities solely 9 ! int]e/ ( ! p>ticipants 9 ,,save ,,up ,acc\nts & _! b5efici>ies "u ?is "p4 7g7 ,annual indep5d5t audit ,! ,,save ,,up ,bo>d ( ,gov]nors %all annually engage an indep5d5t qualifi$ public acc\ntant to audit ! activities ( ! ,bo>d ( ,gov]nors & ea* ,regional ,bo>d ( ,tru/ees4 #ajg4 ,report+ & ,disclosure 7a7 ,annual /atem5t ,! ,,save ,,up ,bo>d ( ,tru/ees %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 ! ,fund1 9 ! =m ( ! default b5efit describ$ 9 ! plan 9 accordance ) ! bill2 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 ( ,,save ,,up ,acc\nts ,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 ! ,,save ,,up ,bo>d ( ,tru/ees det]m9es appropriate2 & 7#e7 su* o!r disclosures z may be requir$ by ! ,bo>d ( ,gov]nors4 7b7 ,summ>y plan description ,! ,,save ,,up ,bo>d ( ,tru/ees %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 7c7 ,annual reports ,! ,,save ,,up ,bo>d ( ,tru/ees %all file ) ! ,secret>y ( ,labor p]iodic reports 9 accordance ) regulations promulgat$ by ! ,,save ,,up ,bo>d ( ,gov]nors4 7d7 ,additional requirem5ts ,! ,,save ,,up ,bo>d ( ,tru/ees %all be subject to sections #ajf & #ajg ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajbf1 #ajbg74 #ajh4 ,fiduci>y duties "u ,,save ,,up ,acc\nt contribution programs & ,,save ,,up ,acc\nts 7a7 ,limitation on fiduci>y duties "u ! ,,save ,,up ,acc\nt contribution programs ( an employ] 7#a7 ,timely paym5t ( contributions ,= purposes ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 ! employ]'s fiduci>y duties "u a ,,save ,,up ,acc\nt contribution program e/abli%$ "u section #ajb %all be limit$ to ^? duties relat$ to ! timely paym5t 9 full to ! individual's ,,save ,,up ,acc\nt ( elective contributions made on behalf ( employees z requir$ "u section #ajb7;b77#b7 & su* employ] contributions z may be provid$ = "u ! program pursuant to section #ajb7;b77#c74 7#b7 ,rule ( con/ruction ,no?+ 9 ?is ,act %all be con/ru$ to impose on any employ] ) respect to any employee :o is a p>ticipant 9 ! employ]'s ,,save ,,up ,acc\nt contribution program any fiduci>y duty ) respect to ! inve/m5t or di/ribution ( assets held "u ! employee's ,,save ,,up ,acc\nt4 7b7 ,fiduci>y duties ( ,bo>d ( ,gov]nors & ,tru/ees ,= purposes ( ! provisions ( "p #d ( subtitle ,b ( title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 & ! provisions ( "p #e ( su* subtitle z !y relate to ! en=cem5t ( ! provisions ( su* "p #d1 ea* memb] ( ! ,,save ,,up ,bo>d ( ,gov]nors1 ea* tru/ee ( a ,,save ,,up ,bo>d ( ,tru/ees1 & any p]son :o has or ex]cises discretion>y au?ority or discretion>y control ov] ! managem5t or disposition ( ! ,,save ,,up ,acc\nts ,fund1 & am\nts held to ! cr$it ( ,,save ,,up ,acc\nts1 or ! cr$it+ ( assets to ,,save ,,up ,acc\nts1 %all be includ$ )9 ! mean+ ( fiduci>y "u section #c7ba77;,a7 ( su* ,act4 #aji4 ,,save ,,up ,acc\nts disreg>d$ = purposes ( means-te/$ programs ,not)/&+ any o!r provision ( ,f$]al law1 any am\nt contribut$ by or on behalf ( an individual pursuant to a ,,save ,,up ,acc\nt contribution program1 or cr$it$ to an individual's ,,save ,,up ,acc\nt "u ?is title1 %all n be tak5 into acc\nt 9 det]m9+ any individual's or h\sehold's f9ancial eligibility =1 or am\nt (1 any b5efit or s]vice1 paid = 9 :ole or 9 "p ) ,f$]al funds4 ,,ii ,tax treatm5t ( ,,save ,,up ,acc\nts #bja4 ,tax treatm5t ( ,,save ,,up ,acc\nts 7a7 ,9 g5]al ,subp>t ,a ( "p ,i ( sub*apt] ,d ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #djh;,a ! foll[+ new section3 #djh;,b4 ,tax treatm5t ( ,,save ,,up ,acc\nts 7a7 ,9 g5]al ,= purposes ( ?is title1 except z o!rwise provid$ 9 ?is section-- 7#a7 ! ,,save ,,up ,acc\nts ,fund %all be treat$ z a tru/ describ$ 9 section #dja7;a7 :i* is exempt f taxation "u section #eja7;a7 & a ,,save ,,up ,acc\nt %all be treat$ z a def9$ contribution plan :i* includes su* a tru/1 7#b7 any contribution to1 or di/ribution f1 ! ,,save ,,up ,acc\nts ,fund "u a ,,save ,,up ,acc\nt contribution program %all be treat$ 9 ! same mann] z contributions to or di/ributions f su* a tru/1 & 7#c7 contributions to a ,,save ,,up ,acc\nt "u a ,,save ,,up ,acc\nt contribution program %all n be treat$ z di/ribut$ or made available to ! employee or z contributions made by ! employee m]ely because ! employee has1 "u su* program1 an election :e!r ! contribution w be made to ! tru/ or receiv$ by ! employee 9 ca%4 7b7 ,nondiscrim9ation requirem5ts ,a ,,save ,,up ,acc\nt contribution program is n subject to ! p>ticipation & nondiscrim9ation requirem5ts applicable to arrangem5ts describ$ 9 section #dja7k7 or to mat*+ contributions 7z describ$ 9 section #dja7m774 7c7 ,rollov] f ,,save ,,up ,acc\nt prohibit$ ,an eligible rollov] di/ribution 7z def9$ 9 section #djb7;c77#d77 %all n include any am\nt di/ribut$ f a ,,save ,,up ,acc\nt4 7d7 ,,save ,,up ,acc\nt loans 7#a7 ,limitations ,section #gb7p77#b77;,a7 %all only apply ) respect to a ,,save ,,up ,acc\nt to ! ext5t t any loan 7:5 add$ to ! out/&+ balance ( all o!r loans f su* plan7 does n exce$ ! less] (-- 7,a7 #b1ejj1 or 7,b7 ! total non=feitable am\nts cr$it$ to ! individual's ,,save ,,up ,acc\nt4 7#b7 ,repaym5t ,a loan f a ,,save ,,up ,acc\nt %all n fail to be treat$ z a loan describ$ 9 section #gb7p77#b77;,b7 7relat+ to requirem5t t loan be repayable 9 #e ye>s7 solely because ! loan t]ms all[ additional "t 7n to exce$ an aggregate ( #a ye>7 = repaym5t to acc\nt = any p]iods ( unemploym5t4 7e7 ,def9itions ,= purposes ( ?is section1 ! t]ms ,,save ,,up ,acc\nts ,fund1 ,,save ,,up ,acc\nt1 & ,,save ,,up ,acc\nt contribution program %all h ! respective mean+s z :5 us$ 9 title ,i ( ! ,,save ,,up ,act4 4 7b7 ,limitation on exclusion = elective def]rals ,p>agraph 7#c7 ( section #djb7;g7 ( su* ,code is am5d$ by /rik+ & at ! end ( subp>agraph 7,c71 by /rik+ ! p]iod at ! end ( subp>agraph 7,d7 & ins]t+ 1 &1 & by add+ at ! end ! foll[+ new subp>agraph3 7,e7 any elective employ] contribution "u a ,,save ,,up ,acc\nt contribution program 7z def9$ 9 section #djh;,b74 4 7c7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,a ( "p ,i ( sub*apt] ,d ( *apt] #a ( su* ,code is am5d$ by ins]t+ aft] ! item relat+ to section #dji;,a ! foll[+ new section3 #djh;,c4 ,tax treatm5t ( ,,save ,,up ,acc\nts4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #bjb4 ,,save ,,up ,acc\nt cr$it 7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new section3 #de,s4 ,,save ,,up ,acc\nt cr$it 7a7 ,9 g5]al ,= purposes ( section #ch1 9 ! case ( an eligible small employ] t elects ! application ( ?is section1 ! ,,save ,,up ,acc\nt cr$it det]m9$ "u ?is section = any taxable ye> is an am\nt equal to ! less] (-- 7#a7 ! am\nt ( nonelective employ] contributions made by ! employ] = ! taxable ye> ) respect to employees "u section #ajb7;b77#c7 ( ! ,secure1 ,accessible1 ,valuable1 ,effici5t ,univ]sal ,p5sion ,acc\nts ,act1 or 7#b7 #aj1djj4 7b7 ,eligible small employ] ,= purposes ( ?is section1 ! t]m eligible small employ] means any p]son ! gross receipts ( :i* = ! prec$+ taxable ye> did n exce$ #e1jjj1jjj4 7c7 ,limitation ,a taxpay] may elect ! application ( ! section ) respect to n m ?an #e taxable ye>s4 7d7 ,special rules 7#a7 ,controll$ gr\ps ,all memb]s ( ! same controll$ gr\p ( corporations 7)9 ! mean+ ( section #eb7;a77 & all p]sons "u common control 7)9 ! mean+ ( section #eb7;b77 %all be treat$ z #a p]son = purposes ( ?is section4 7#b7 ,disall[ance ( d$uction ,no d$uction %all be all[$ = t portion ( ! nonelective employ] contributions made = ! taxable ye> :i* is equal to ! cr$it det]m9$ "u subsection 7a74 4 7b7 ,cr$it made "p ( g5]al bus9ess cr$it ,section #ch7;b7 ( su* ,code is am5d$ by /rik+ plus at ! end ( p>agraph 7#ce71 by /rik+ ! p]iod at ! end ( p>agraph 7#cf7 & ins]t+ 1 plus1 & by add+ at ! end ! foll[+ new p>agraph3 7#cg7 ! ,,save ,,up ,acc\nt cr$it det]m9$ "u section #de,s7a74 4 7c7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su* ,code is am5d$ by add+ at ! end ! foll[+ new section3 ,sec4 #de,s4 ,,save ,,up ,acc\nt cr$it4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjae4 #bjc4 ,disall[ance ( d$uction = comp5sation = c]ta9 employ]s fail+ to provide ,,save ,,up ,acc\nt contribution program 7a7 ,9 g5]al ,section #afb ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subsection 7q7 z subsection 7r7 & by ins]t+ aft] subsection 7p7 ! foll[+ new subsection3 7q7 ,failure ,to provide ,,save ,,up ,acc\nt contribution program 7#a7 ,9 g5]al ,9 ! case ( an applicable employ] :o fails to ma9ta9 a ,,save ,,up ,acc\nt contribution program = any cal5d> ye> beg9n+ dur+ ! taxable ye>1 no d$uction %all be all[$ "u ?is *apt] = any remun]ation made by ! employ] = s]vices p]=m$ by employees ( ! employ]4 7#b7 ,applicable employ] 7,a7 ,9 g5]al ,= purposes ( ?is subsection1 ! t]m applicable employ] means1 ) respect to any cal5d> ye>1 any employ] :i* is an applicable employ] describ$ 9 section #aja7;c77#a77;,a7 ( ! ,secure1 ,accessible1 ,valuable1 ,effici5t ,univ]sal ,p5sion ,acc\nts ,act4 7,b7 ,aggregation rule ,all p]sons treat$ z a s+le employ] "u subsection 7a7 or 7b7 ( section #eb1 or subsection 7m7 or 7o7 ( section #dad1 ( ! ,int]nal ,rev5ue ,code ( #aihf %all be treat$ z a s+le employ] = purposes ( ?is p>agraph4 7#c7 ,waiv] ,! ,secret>y may waive ! application ( p>agraph 7#a7 ) respect to a taxpay] on a %[+ by ! taxpay] t !re 0 reasonable cause = ! failure & t ! taxpay] act$ 9 good fai?4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjae4