,,ii #aaeth ,,congress #b;d ,session ,s4 #cbdb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ai1 #bjah,mr4 ,merkley introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to establish an ,american ,savings ,account ,fund and create a retirement savings plan available to all employees1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,american ,savings ,act4 #b4 ,american ,savings ,accounts 7a7 ,in general ,the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajja et seq47 is amended by adding at the end the following3 ,v ,american ,savings ,accounts ,a ,administration #ejja4 ,american ,savings ,account ,board of ,directors 7a7 ,in general ,there is established an ,american ,savings ,account ,board of ,directors 7hereafter referred to in this title as the ,board7 as a federally chartered organization4 ,except as otherwise provided1 such ,board has perpetual existence4 7b7 ,purpose ,the purpose of the ,board is-- 7#a7 to establish policies for the investment and management of the ,american ,savings ,account ,fund2 and 7#b7 to carry out the responsibilities of the ,board under section #ejjb4 7c7 ,membership ,the ,board shall be composed of #i members appointed by the ,president in consultation with the ,secretary of ,labor and with the advice and consent of the ,senate1 to include-- 7#a7 the ,secretary of ,labor or a delegate of the ,secretary2 7#b7 #a representative of employers2 7#c7 #a representative of the private retirement savings investment industry2 7#d7 #a representative of employees2 7#e7 #a representative of retirees2 and 7#f7 the ,executive ,director and #c additional members of the ,federal ,retirement ,thrift ,investment ,board established under section #hdgb7;a7 of title #e1 ,united ,states ,code4 ,of such #i members1 #a shall be elected by the members of the ,board as the ,chair4 7d7 ,terms and vacancies 7#a7 ,term ,a member of the ,board shall be appointed for a term of #d years and1 after the expiration of such term1 may be reappointed immediately to a subsequent term4 7#b7 ,vacancy ,a vacancy on the ,board shall be filled in the manner in which the original appointment was made and shall be subject to any conditions which applied with respect to the original appointment4 ,an individual chosen to fill a vacancy shall be appointed for the unexpired term of the member replaced4 7#c7 ,expiration ,the term of any member shall not expire before the date on which the member's successor takes office4 7e7 ,responsibility ,the members of the ,board shall discharge their responsibilities solely in the interest of participants and beneficiaries under this title4 7f7 ,compensation 7#a7 ,in general ,each member of the ,board who is not an officer or employee of the ,federal ,government shall be compensated at the daily rate of basic pay for grade ,,gs-#ah of the ,general ,schedule under subchapter ,,iii of chapter #ec of title #e1 ,united ,states ,code1 for each day during which such member is engaged in performing a function of the ,board4 7#b7 ,per diem1 etc ,a member of the ,board shall be paid travel1 per diem1 and other necessary expenses while traveling away from such member's home or regular place of business in the performance of the duties of the ,board4 7#c7 ,payments ,payments authorized under this subsection shall be paid from the ,american ,savings ,account ,fund4 #ejjb4 ,responsibilities of ,american ,savings ,account ,board of ,directors 7a7 ,establishment of investment funds and options ,the ,board shall select or establish a list of investment funds and options similar to those described in subsection 7b7 of section #hdch of title #e1 ,united ,states ,code1 among which an individual participating in an ,american ,savings ,account established under section #ejjc7;a7 may elect under subsection 7b77#b74 7b7 ,investment of sums 7#a7 ,in general ,the ,chair of the ,board shall invest the sums available in the ,american ,savings ,account ,fund for investment as provided in elections made under paragraph 7#b74 ,if an election has not been made with respect to any sums in the ,american ,savings ,account ,fund available for investment1 the ,chair shall invest such sums in a portfolio similar to the age-appropriate target date asset allocation portfolio established by the ,federal ,retirement ,thrift ,investment ,board under section #hdch7;b7 of title #e1 ,united ,states ,code1 in the same manner as sums in the ,thrift ,savings ,fund established under section #hdcg of title #e1 ,united ,states ,code1 are invested under such section4 7#b7 ,election 7,a7 ,in general ,at least twice each year1 an individual participating in an ,american ,savings ,account established under subsection 7c77#a7 may elect any of the investment funds and options referred to in subsection 7a7 into which the sums in the ,american ,savings ,account ,fund credited to such individual's ,american ,savings ,account are to be invested or reinvested in the same manner as sums in the ,thrift ,savings ,fund are invested under section #hdch of title #e1 ,united ,states ,code4 7,b7 ,form and manner of election ,an election may be made under subparagraph 7,a7 only in such manner and within such period as shall be provided by the ,chair of the ,board4 7c7 ,accounting and information 7#a7 ,in general ,the ,chair of the ,board shall establish and maintain-- 7,a7 an ,american ,savings ,account described in paragraph 7#a7 of section #ejba7;a72 or 7,b7 at the election of the individual pursuant to section #ejba7;b77#b71 an ,american ,savings ,account described in paragraph 7#b7 of section #ejba7;a72 for each individual who makes contributions under section #ejba7;b77#c71 or for whom contributions are made under section #ejbb1 to the ,american ,savings ,account ,fund4 7#b7 ,balance2 allocation of earnings and losses1 etc ,rules similar to the rules of paragraphs 7#b7 and 7#c7 of section #hdci7;a7 of title #e1 ,united ,states ,code1 shall apply for purposes of an individual's ,american ,savings ,account established under paragraph 7#a74 7#c7 ,examination by qualified public accountant2 reporting1 etc ,rules similar to the requirements of subsections 7b71 7c71 and 7d7 of section #hdci of title #e1 ,united ,states ,code1 shall apply with respect to individuals for whom an ,american ,savings ,account is maintained under this subsection 7in the case of such subsection 7d71 applied as if each such individual were an employee described in such subsection74 7d7 ,reporting requirements 7#a7 ,annual report ,the ,board shall1 not later than ,june #cj of each year1 submit to ,congress an annual report on the operations of the ,american ,savings ,account ,fund4 ,such report shall include1 for the prior calendar year1 information on the number of participants as of the last day of such prior calendar year1 the median balance in participants' accounts as of such last day1 demographic information on participants1 the percentage allocation of amounts among investment funds or options1 the status of the development and implementation of the mutual fund window1 the diversity demographics of any company1 investment adviser1 or other entity retained to invest and manage the assets of the ,american ,savings ,account ,fund1 and such other information as the ,board considers appropriate4 ,a copy of each annual report under this subsection shall be made available to the public through an ,internet website4 7#b7 ,reporting of fees and other information 7,a7 ,in general ,the ,board shall provide to each individual for whom an account is maintained-- 7i7 a periodic statement relating to the individual's account2 7ii7 a summary description of the investment funds and options under subsection 7a7 covering1 and an evaluation of1 each such option during the #e-year period preceding the date as of which such evaluation is made2 7iii7 a statement of the amount of the investment management fees1 administrative expenses1 and any other fees or expenses paid with respect to each such investment fund and option2 and 7iv7 a statement notifying participants as to how they may access the annual report described in paragraph 7#a71 as well as any other information concerning ,american ,savings ,accounts that might be useful4 ,if the fees and expenses described in clause 7iii7 exceed the fees charged to a similarly situated individual who contributes to the ,thrift ,savings ,fund established under section #hdcg of title #e1 ,united ,states ,code1 the information required under the preceding sentence shall include a statement identifying the reason for such excess4 7,b7 ,time when sent ,information under subparagraph 7,a7 with respect to each participant shall be provided immediately upon payment of the participant's first contribution to the ,american ,savings ,account ,fund and on a regular basis thereafter1 in a manner designed to facilitate informed decisionmaking with respect to elections under subsection 7b77#b74 ,nothing in this subparagraph shall be considered to limit the dissemination of information only to the times required under the preceding sentence4 7,c7 ,use of estimates ,for purposes of providing the information required under this paragraph1 the ,board may provide a reasonable and representative estimate of any fees or expenses described in subparagraph 7,a7 and shall indicate any such estimate as being such an estimate4 ,any such estimate shall be based on the previous year's experience4 #ejjc4 ,fiduciary responsibilities2 liability and penalties 7a7 ,definitions ,for purposes of this section-- 7#a7 the term adequate consideration means-- 7,a7 in the case of a security for which there is a generally recognized market-- 7i7 the price of the security prevailing on a national securities exchange which is registered under section #f of the ,securities ,exchange ,act of #aicd2 or 7ii7 if the security is not traded on such a national securities exchange1 a price not less favorable to the ,american ,savings ,account ,fund than the offering price for the security as established by the current bid and asked prices quoted by persons independent of the issuer and of any party in interest2 and 7,b7 in the case of an asset other than a security for which there is a generally recognized market1 the fair market value of the asset as determined in good faith by a fiduciary or fiduciaries in accordance with regulations prescribed by the ,secretary of ,labor2 7#b7 the term fiduciary means-- 7,a7 a member of the ,board1 including the ,chair2 7,b7 any person who has or exercises discretionary authority or discretionary control over the management or disposition of the assets of the ,american ,savings ,account ,fund2 and 7,c7 any person who1 with respect to the ,american ,savings ,account ,fund1 is described in section #c7ba77;,a72 and 7#c7 the term party in interest includes-- 7,a7 any fiduciary2 7,b7 any counsel to a person who is a fiduciary1 with respect to the actions of such person as a fiduciary2 7,c7 any participant2 7,d7 any person providing services to the ,board and1 with respect to the actions of the ,chair as a fiduciary1 any person providing services to the ,chair2 7,e7 a labor organization1 the members of which are participants2 7,f7 a spouse1 sibling1 ancestor1 lineal descendant1 or spouse of a lineal descendant of a person described in subparagraph 7,a71 7,b71 or 7,d72 7,g7 a corporation1 partnership1 or trust or estate of which1 or in which1 at least #ej percent of-- 7i7 the combined voting power of all classes of stock entitled to vote or the total value of shares of all classes of stock of such corporation2 7ii7 the capital interest or profits interest of such partnership2 or 7iii7 the beneficial interest of such trust or estate1 is owned1 directly or indirectly1 or held by a person described in subparagraph 7,a71 7,b71 7,d71 or 7,e72 7,h7 an official 7including a director7 of1 or an individual employed by1 a person described in subparagraph 7,a71 7,b71 7,d71 7,e71 or 7,g71 or an individual having powers or responsibilities similar to those of such an official2 7,i7 a holder 7directly or indirectly7 of at least #aj percent of the shares in a person described in any subparagraph referred to in subparagraph 7,h72 and 7,j7 a person who1 directly or indirectly1 is at least a #aj percent partner or joint venturer 7measured in capital or profits7 in a person described in any subparagraph referred to in subparagraph 7,h74 7b7 ,in general 7#a7 ,discharge of responsibilities ,to the extent not inconsistent with the provisions of this title and the policies prescribed by the ,board1 a fiduciary shall discharge the fiduciary's responsibilities with respect to the ,american ,savings ,account ,fund or applicable portion thereof solely in the interest of the participants and beneficiaries and-- 7,a7 for the exclusive purpose of-- 7i7 providing benefits to participants and their beneficiaries2 and 7ii7 defraying reasonable expenses of administering the ,american ,savings ,account ,fund or applicable portions thereof2 7,b7 with the care1 skill1 prudence1 and diligence under the circumstances then prevailing that a prudent individual acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like objectives2 and 7,c7 to the extent permitted by this title1 by diversifying the investments of the ,american ,savings ,account ,fund or applicable portions thereof so as to minimize the risk of large losses1 unless under the circumstances it is clearly prudent not to do so4 7#b7 ,ownership ,no fiduciary may maintain the indicia of ownership of any assets of the ,american ,savings ,account ,fund outside the jurisdiction of the district courts of the ,united ,states4 7c7 ,prohibited transactions 7#a7 ,in general ,a fiduciary shall not permit the ,american ,savings ,account ,fund to engage in any of the following transactions1 except in exchange for adequate consideration3 7,a7 ,a transfer of any assets of the ,american ,savings ,account ,fund to any person the fiduciary knows or should know to be a party in interest or the use of such assets by any such person4 7,b7 ,an acquisition of any property from or sale of any property to the ,american ,savings ,account ,fund by any person the fiduciary knows or should know to be a party in interest4 7,c7 ,a transfer or exchange of services between the ,american ,savings ,account ,fund and any person the fiduciary knows or should know to be a party in interest4 7#b7 ,special rules ,notwithstanding paragraph 7#a71 a fiduciary with respect to the ,american ,savings ,account ,fund shall not-- 7,a7 deal with any assets of the ,american ,savings ,account ,fund in the fiduciary's own interest or for the fiduciary's own account2 7,b7 act1 in an individual capacity or any other capacity1 in any transaction involving the ,american ,savings ,account ,fund on behalf of a party1 or representing a party1 whose interests are adverse to the interests of the ,american ,savings ,account ,fund or the interests of its participants or beneficiaries2 or 7,c7 receive any consideration for the fiduciary's own personal account from any party dealing with sums credited to the ,american ,savings ,account ,fund in connection with a transaction involving assets of the ,american ,savings ,account ,fund4 7#c7 ,granting of exemptions 7,a7 ,the ,secretary may1 in accordance with procedures which the ,secretary shall by regulation prescribe1 grant a conditional or unconditional exemption of any fiduciary or transaction1 or class of fiduciaries or transactions1 from all or part of the restrictions imposed by paragraph 7#b74 7,b7 ,an exemption granted under this paragraph shall not relieve a fiduciary from any other applicable provision of this title4 7,c7 ,the ,secretary may not grant an exemption under this paragraph unless the ,secretary finds that such exemption is-- 7i7 administratively feasible2 7ii7 in the interests of the ,american ,savings ,account ,fund and of its participants and beneficiaries2 and 7iii7 protective of the rights of participants and beneficiaries of such ,fund4 7,d7 ,an exemption under this paragraph may not be granted unless-- 7i7 notice of the proposed exemption is published in the ,federal ,register2 7ii7 interested persons are given an opportunity to present views2 and 7iii7 the ,secretary affords an opportunity for a hearing and makes a determination on the record with respect to the respective requirements of clauses 7i71 7ii71 and 7iii7 of subparagraph 7,c74 7,e7 ,notwithstanding subparagraph 7,d71 the ,secretary may determine that an exemption granted for any class of fiduciaries or transactions under section #djh7;a7 shall1 upon publication of notice in the ,federal ,register under this subparagraph1 constitute an exemption for purposes of the provisions of paragraph 7#b74 7d7 ,allowances ,this section does not prohibit any fiduciary from-- 7#a7 receiving any benefit which the fiduciary is entitled to receive under this title as a participant or beneficiary2 7#b7 receiving any reasonable compensation authorized by this title for services rendered1 or for reimbursement of expenses properly and actually incurred1 in the performance of the fiduciary's duties under this title2 or 7#c7 serving as a fiduciary in addition to being an officer1 employee1 agent1 or other representative of a party in interest4 7e7 ,liability 7#a7 ,in general 7,a7 ,any fiduciary that breaches the responsibilities1 duties1 and obligations set out in subsection 7b7 or violates subsection 7c7 shall be personally liable to the ,american ,savings ,account ,fund for any losses to such ,fund resulting from each such breach or violation and to restore to such ,fund any profits made by the fiduciary through use of assets of such ,fund by the fiduciary1 and shall be subject to such other equitable or remedial relief as a court considers appropriate1 except as provided in paragraphs 7#c7 and 7#d74 ,a fiduciary may be removed for a breach referred to in the preceding sentence4 7,b7 ,the ,secretary may assess a civil penalty against a party in interest with respect to each transaction which is engaged in by the party in interest and is prohibited by subsection 7c74 ,the amount of such penalty shall be equal to #e percent of the amount involved in each such transaction 7as defined in section #dige7;f77#d7 of the ,internal ,revenue ,code of #aihf7 for each year or part thereof during which the prohibited transaction continues1 except that1 if the transaction is not corrected 7in such manner as the ,secretary shall prescribe by regulation consistent with section #dige7;f77#e7 of such ,code7 within #ij days after the date the ,secretary transmits notice to the party in interest 7or such longer period as the ,secretary may permit71 such penalty may be in an amount not more than #ajj percent of the amount involved4 7,c7 7i7 ,a fiduciary shall not be liable under subparagraph 7,a7 with respect to a breach of fiduciary duty under subsection 7b7 committed before becoming a fiduciary or after ceasing to be a fiduciary4 7ii7 ,a fiduciary shall not be liable under subparagraph 7,a71 and no civil action may be brought against a fiduciary-- 7,i7 for providing for the automatic enrollment of a participant in accordance with this title2 or 7,,ii7 for enrolling a participant or beneficiary in a default investment fund or option in accordance with this title4 7,d7 ,a fiduciary shall be jointly and severally liable under subparagraph 7,a7 for a breach of fiduciary duty under subsection 7b7 by another fiduciary only if-- 7i7 the fiduciary participates knowingly in1 or knowingly undertakes to conceal1 an act or omission of such other fiduciary1 knowing such act or omission is such a breach2 7ii7 by the fiduciary's failure to comply with subsection 7b7 in the administration of the fiduciary's specific responsibilities which give rise to the fiduciary status1 the fiduciary has enabled such other fiduciary to commit such a breach2 or 7iii7 the fiduciary has knowledge of a breach by such other fiduciary1 unless the fiduciary makes reasonable efforts under the circumstances to remedy the breach4 7,e7 ,the ,secretary shall prescribe1 in regulations1 procedures for allocating fiduciary responsibilities among fiduciaries1 including investment managers4 ,any fiduciary who1 pursuant to such procedures1 allocates to a person or persons any fiduciary responsibility shall not be liable for an act or omission of such person or persons unless-- 7i7 such fiduciary violated subsection 7b7 with respect to the allocation1 with respect to the implementation of the procedures prescribed by the ,secretary1 or in continuing such allocation2 or 7ii7 such fiduciary would otherwise be liable in accordance with subparagraph 7,d74 7#b7 ,civil action only as provided ,no civil action may be maintained against any fiduciary with respect to the responsibilities1 liabilities1 and penalties authorized or provided for in this section except in accordance with paragraphs 7#c7 and 7#d74 7#c7 ,rules regarding civil actions ,a civil action may be brought in the district courts of the ,united ,states-- 7,a7 by the ,secretary against any fiduciary other than a ,member of the ,board or the ,chair of the ,board-- 7i7 to determine and enforce a liability under paragraph 7#a77;,a72 7ii7 to collect any civil penalty under paragraph 7#a77;,b72 7iii7 to enjoin any act or practice which violates any provision of subsection 7b7 or 7c72 7iv7 to obtain any other appropriate equitable relief to redress a violation of any such provision2 or 7v7 to enjoin any act or practice which violates section #ejja7;e72 7,b7 by any participant1 beneficiary1 or fiduciary against any fiduciary-- 7i7 to enjoin any act or practice which violates any provision of subsection 7b7 or 7c72 7ii7 to obtain any other appropriate equitable relief to redress a violation of any such provision2 or 7iii7 to enjoin any act or practice which violates section #ejja7;e72 or 7,c7 by any participant or beneficiary-- 7i7 to recover benefits of such participant or beneficiary under the provisions of this title1 to enforce any right of such participant or beneficiary under such provisions1 or to clarify any such right to future benefits under such provisions2 or 7ii7 to enforce any claim otherwise cognizable under sections #acdf7;b7 and #bfga through #bfhj of title #bh1 ,united ,states ,code1 provided that the remedy against the ,united ,states provided by sections #acdf7;b7 and #bfgb of title #bh1 ,united ,states ,code1 for damages for injury or loss of property caused by the negligent or wrongful act or omission of any fiduciary while acting within the scope of the fiduciary's duties or employment shall be exclusive of any other civil action or proceeding by the participant or beneficiary for recovery of money by reason of the same subject matter against the fiduciary 7or the estate of such fiduciary7 whose act or omission gave rise to such action or proceeding1 whether or not such action or proceeding is based on an alleged violation of subsection 7b7 or 7c74 7#d7 ,other rules 7,a7 ,in all civil actions under paragraph 7#c77;,a71 attorneys appointed by the ,secretary may represent the ,secretary 7except as provided in section #eah7;a7 of title #bh1 ,united ,states ,code71 however all such litigation shall be subject to the direction and control of the ,attorney ,general4 7,b7 ,the ,attorney ,general shall defend any civil action or proceeding brought in any court against any fiduciary referred to in paragraph 7#c77;,c77ii7 7or the estate of such fiduciary7 for any such injury4 ,any fiduciary against whom such a civil action or proceeding is brought shall deliver1 within such time after date of service or knowledge of service as determined by the ,attorney ,general1 all process served upon such fiduciary 7or an attested copy thereof7 to the ,chair of the ,board1 who shall promptly furnish copies of the pleading and process to the ,attorney ,general and the ,united ,states ,attorney for the district wherein the action or proceeding is brought4 7,c7 ,upon certification by the ,attorney ,general that a fiduciary described in paragraph 7#c77;,c77ii7 was acting in the scope of such fiduciary's duties or employment as a fiduciary at the time of the occurrence or omission out of which the action arose1 any such civil action or proceeding commenced in a ,state court shall be-- 7i7 removed without bond at any time before trial by the ,attorney ,general to the district court of the ,united ,states for the district and division in which it is pending2 and 7ii7 deemed a tort action brought against the ,united ,states under the provisions of title #bh1 ,united ,states ,code1 and all references thereto4 7,d7 ,the ,attorney ,general may compromise or settle any claim asserted in such civil action or proceeding in the manner provided in section #bfgg of title #bh1 ,united ,states ,code1 and with the same effect4 ,to the extent section #bfgb of title #bh1 ,united ,states ,code1 provides that persons other than the ,attorney ,general or the ,attorney ,general's designee may compromise and settle claims1 and that payment of such claims may be made from agency appropriations1 such provisions shall not apply to claims based upon an alleged violation of subsection 7b7 or 7c74 7,e7 ,for the purposes of paragraph 7#c77;,c77ii7 the provisions of sections #bfhj7;h7 of title #bh1 ,united ,states ,code1 shall not apply to any claim based upon an alleged violation of subsection 7b7 or 7c74 7,f7 ,notwithstanding sections #acdf7;b7 and #bfga through #bfhj of title #bh1 ,united ,states ,code1 whenever an award1 compromise1 or settlement is made under such sections upon any claim based upon an alleged violation of subsection 7b7 or 7c71 payment of such award1 compromise1 or settlement shall be made to the appropriate account within the ,american ,savings ,account ,fund1 or where there is no such appropriate account1 to the participant or beneficiary bringing the claim4 7,g7 ,for purposes of paragraph 7#c77;,c77ii71 the term fiduciary includes only the ,members of the ,board and the ,board's ,chair4 7#e7 ,prohibition of monetary relief ,any relief awarded against a ,member of the ,board or the ,chair of the ,board in a civil action authorized by paragraph 7#c7 may not include any monetary damages or any other recovery of money4 7#f7 ,limitation ,an action may not be commenced under paragraph 7#c77;,a7 or 7,b7 with respect to a fiduciary's breach of any responsibility1 duty1 or obligation under subsection 7b7 or a violation of subsection 7c7 after the earlier of-- 7,a7 #f years after-- 7i7 the date of the last action which constituted a part of the breach or violation2 or 7ii7 in the case of an omission1 the latest date on which the fiduciary could have cured the breach or violation2 or 7,b7 #c years after the earliest date on which the plaintiff had actual knowledge of the breach or violation1 except that1 in the case of fraud or concealment1 such action may be commenced not later than #f years after the date of discovery of such breach or violation4 7#g7 ,jurisdiction 7,a7 ,the district courts of the ,united ,states shall have exclusive jurisdiction of civil actions under this subsection4 7,b7 ,an action under this subsection may be brought in the ,district ,court of the ,united ,states for the ,district of ,columbia or a district court of the ,united ,states in the district where the breach alleged in the complaint or petition filed in the action took place or in the district where a defendant resides or may be found4 ,process may be served in any other district where a defendant resides or may be found4 7#h7 ,service 7,a7 ,a copy of the complaint or petition filed in any action brought under this subsection 7other than by the ,secretary7 shall be served on the ,chair1 the ,secretary1 and the ,secretary of the ,treasury by certified mail4 7,b7 ,any officer referred to in subparagraph 7,a7 shall have the right in the officer's discretion to intervene in any action4 ,if the ,secretary brings an action under paragraph 7#b7 on behalf of a participant or beneficiary1 the ,secretary shall notify the ,chair and the ,secretary of the ,treasury4 7f7 ,regulations ,the ,secretary may prescribe regulations to carry out this section4 7g7 ,audits by ,secretary 7#a7 ,in general ,the ,secretary of ,labor shall establish a program to carry out audits to determine the level of compliance with the requirements of this section relating to fiduciary responsibilities and prohibited activities of fiduciaries4 7#b7 ,contracts1 etc ,an audit under this subsection may be conducted by the ,secretary1 by contract with a qualified nongovernmental organization1 or in cooperation with the ,comptroller ,general of the ,united ,states1 as the ,secretary considers appropriate4 #ejjd4 ,american ,savings ,account ,fund ,advisory ,council 7a7 ,in general ,the ,board shall establish an ,american ,savings ,account ,fund ,advisory ,council1 to be composed of #ad members appointed by the ,chair of the ,board4 ,the ,chair of the ,board shall designate #a member of the ,council to serve as head of the ,council4 7b7 ,terms and vacancies 7#a7 ,term ,a member of the ,council shall be appointed for a term of #d years4 7#b7 ,vacancies 7,a7 ,a vacancy in the ,council shall be filled in the manner in which the original appointment was made and shall be subject to any conditions which applied with respect to the original appointment4 7,b7 ,an individual chosen to fill a vacancy shall be appointed for the unexpired term of the member replaced4 7,c7 ,the term of any member shall not expire before the date on which the member's successor takes office4 7c7 ,action by majority resolution ,the ,council shall act by resolution of a majority of the members4 7d7 ,responsibilities ,the ,council shall-- 7#a7 advise the ,board and the ,chair of the ,board on matters relating to-- 7,a7 investment policies for the ,american ,savings ,account ,fund2 and 7,b7 the administration of this title2 and 7#b7 perform such other duties as the ,board may direct with respect to investment funds established in accordance with this title4 ,b ,american ,savings ,account ,fund #ejaa4 ,american ,savings ,account ,fund 7a7 ,in general ,there is established in the ,treasury of the ,united ,states an ,american ,savings ,account ,fund4 7b7 ,amounts in ,fund ,the ,american ,savings ,account ,fund consists of the sum of all amounts contributed under section #ejbb1 increased by the total net earnings from investments of sums in the ,american ,savings ,account ,fund or reduced by the total net losses from investments of the ,american ,savings ,account ,fund1 and reduced by the total amount of payments made from the ,american ,savings ,account ,fund 7including payments for administrative expenses74 7c7 ,appropriations from ,fund ,the sums in the ,american ,savings ,account ,fund are appropriated and shall remain available without fiscal year limitation-- 7#a7 to invest as provided in section #ejjb7;b77#a72 7#b7 to pay benefits or purchase annuity contracts under section #ejba7;b72 7#c7 to pay the administrative expenses of the ,board relating to the responsibilities under section #ejjb2 and 7#d7 at the discretion of the ,chair of the ,board1 to purchase insurance to cover potential liability of persons who serve in a fiduciary capacity with respect to the ,american ,savings ,account ,fund1 in a manner consistent with rules similar to the provisions of section #hdgi of title #e1 ,united ,states ,code4 7d7 ,benefits inalienable and nonforfeitable 7#a7 ,in general ,subject to paragraphs 7#c7 and 7#d7 of subsection 7c7 and paragraphs 7#c7 and 7#d7 of this subsection1 sums in the ,american ,savings ,account ,fund credited to the ,american ,savings ,account of a participant may not be used for1 or diverted to1 purposes other than for the exclusive benefit of the participant or the participant's beneficiaries4 7#b7 ,protection from alienation ,except as provided in paragraphs 7#c7 and 7#d71 sums in the ,american ,savings ,account ,fund may not be assigned or alienated and are not subject to execution1 levy1 attachment1 garnishment1 or other legal process4 7#c7 ,certain exceptions ,moneys due or payable from the ,american ,savings ,account ,fund to any individual shall be subject to legal process for the enforcement of the individual's legal obligations to provide child support or make alimony payments as provided in section #dei of the ,social ,security ,act1 the enforcement of an order for restitution under section #cffc;,a of title #ah1 ,united ,states ,code1 or an obligation of the ,chair of the ,board to make a payment to another person under paragraph 7#d71 and shall be subject to a ,federal tax levy under section #fcca of the ,internal ,revenue ,code of #aihf4 7#d7 ,court orders ,rules similar to the rules of section #hdfg of title #e1 ,united ,states ,code1 shall apply with respect to payments which would otherwise be made to a participant under section #ejba7;b74 7e7 ,limitation on further appropriation ,the sums in the ,american ,savings ,account ,fund shall not be appropriated for any purpose other than the purposes specified in this section and may not be used for any other purpose4 7f7 ,amounts held in trust ,all sums contributed to the ,american ,savings ,account ,fund by a participant or by an employer for the benefit of such participant and all net earnings in such ,fund attributable to investment of such sums are held in such ,fund in trust for such participant4 #ejab4 ,tax treatment of the ,american ,savings ,account ,fund 7a7 ,in general ,for purposes of the ,internal ,revenue ,code of #aihf-- 7#a7 the ,american ,savings ,account ,fund shall be treated as a trust described in section #dja7;a7 of such ,code which is exempt from taxation under section #eja7;a7 of such ,code2 7#b7 any contribution to1 or distribution from1 the ,american ,savings ,account ,fund shall be treated in the same manner as contributions to or distributions from such a trust2 7#c7 contributions to the ,american ,savings ,account ,fund shall not be treated as distributed or made available to a participant nor as a contribution made to the ,fund by an individual merely because the individual has1 under section #ejbb7;b77#a77;,c71 made an election whether the contribution will be made to the ,american ,savings ,account ,fund or received by the individual in cash2 and 7#d7 the rules of section #dad7w7 of such ,code shall apply with respect to ,american ,savings ,accounts1 except that paragraph 7#b77;,b7 thereof shall be applied by substituting the due date for the return of tax for the taxable year in which the first elective contribution is made with respect to the employee under the arrangement for the date which is #ij days after the date of the first elective contribution with respect to the employee under the arrangement4 7b7 ,coordination with ,social ,security ,act ,subsection 7a7 shall not be construed to provide that any amount of the employee's compensation which is contributed to the ,american ,savings ,account ,fund shall not be included in the term wages for the purposes of section #bji of the ,social ,security ,act or section #caba7;a7 of the ,internal ,revenue ,code of #aihf4 ,c ,american ,savings ,accounts #ejba4 ,american ,savings ,accounts 7a7 ,in general ,for purposes of this title1 the term ,american ,savings ,account means-- 7#a7 an individual retirement account 7as defined in section #djh7;a7 of the ,internal ,revenue ,code of #aihf72 and 7#b7 in the case of an individual making the election under subsection 7b77#b71 a ,roth ,,ira 7as defined in section #djh;,a7b7 of such ,code72 established and maintained by the ,board1 as trustee of such account4 7b7 ,special rules 7#a7 ,eligibility 7,a7 ,in general ,all qualified employees shall be eligible to participate in an ,american ,savings ,account4 7,b7 ,qualified employee ,for purposes of this subtitle-- 7i7 ,in general ,the term qualified employee means an employee 7other than an employee described in section #daj7;b77#c77;,c7 of the ,internal ,revenue ,code of #aihf7 of an ,american employer if the employer does not provide the opportunity for the employee to participate in a defined contribution plan 7within the meaning of section #dad7;i7 of the ,internal ,revenue ,code of #aihf7 maintained by the employer that satisfies the requirements of section #dja7;a7 or #djc7;b7 of the ,internal ,revenue ,code of #aihf4 7ii7 ,exception for employees covered by collective bargaining agreements ,such term shall not include any employee who is included in a group of employees covered by a collective bargaining agreement described in section #daj7;b77#c77;,a7 of such ,code4 7iii7 ,american employer ,the term ,american employer has the meaning given such term by section #caba7;h7 of such ,code4 7#b7 ,election to convert to ,roth ,,ira ,subject to the rules of section #djh;,a7d77#c7 of the ,internal ,revenue ,code of #aihf1 an individual may elect at any time to convert all or a portion of the individual retirement account established for the individual under section #ejjb7;c77#a77;,a7 to a ,roth ,,ira 7as defined in section #djh;,a7b7 of such ,code74 7#c7 ,contributions 7,a7 ,in general ,subject to section #ejbb7;b77#a71 an individual may contribute to the ,american ,savings ,account ,fund in any year1 pursuant to an election under section #ejjb7;b77#b71 an amount not to exceed the limitation described in subparagraph 7,c74 ,contributions pursuant to such an election shall1 with respect to each pay period for which such election remains in effect1 be made in accordance with a program of regular contributions as prescribed by the ,chair4 7,b7 ,eligible rollover distributions ,an individual may contribute to the ,american ,savings ,account ,fund an eligible rollover that an individual retirement account or ,roth ,,ira could accept under section #djh or #djh;,a of the ,internal ,revenue ,code of #aihf1 whichever is applicable 7after the application of subparagraph 7,c774 ,in the case of an eligible rollover distribution 7as defined in section #djb7;c77#d7 of such ,code71 the maximum amount transferred to the ,american ,savings ,account ,fund shall not exceed the amount which would otherwise have been included in the individual's gross income for ,federal income tax purposes4 7,c7 ,modification of contribution limitation ,in lieu of the contribution limitations for individual retirement accounts or ,roth ,i,r,as1 whichever is applicable1 under part ,i of subchapter ,d of chapter #a of the ,internal ,revenue ,code of #aihf1 the annual contribution limitation applicable to an ,american ,savings ,account shall be equal to the limitation applicable under section #dae7;c7 of the ,internal ,revenue ,code of #aihf to contributions to a defined contribution plan4 7#d7 ,annuities1 etc 7,a7 ,in general ,the ,board shall prescribe methods of payment of annuities similar to the methods available under section #hdcd7;a77#b7 of title #e1 ,united ,states ,code4 7,b7 ,rules applicable ,rules similar to the rules of subsections 7b71 7c71 7d71 and 7e7 of section #hdcd of title #e1 ,united ,states ,code1 shall apply for purposes of this paragraph4 7#e7 ,protections for spouses and former spouses 7,a7 ,in general ,except as provided in subparagraph 7,a71 rules similar to the rules of sections #hdcc7;e7 and #hdce of title #e1 ,united ,states ,code1 shall apply for purposes of this subsection4 7,b7 ,additional protection for surviving spouses ,a surviving spouse shall be the first party entitled to receive benefits 7before any designated beneficiary other than the surviving spouse7 unless the surviving spouse consents in writing to the application of the order of precedence in effect but for this subparagraph4 #ejbb4 ,employer requirements 7a7 ,in general ,except as provided in subsections 7a7 and 7b7 of section #ejbc1 each ,united ,states employer shall make contributions meeting the requirements of subsection 7b7 on behalf of such qualified employee to the ,american ,savings ,account ,fund1 beginning with the later of-- 7#a7 the first pay period for which the employee receives compensation from the employer2 or 7#b7 the first pay period beginning on or after the contribution beginning date4 7b7 ,contributions ,the requirements of this subsection are met for a taxable year with respect to contributions to the ,american ,savings ,account ,fund on behalf of a qualified employee if-- 7#a7 ,contribution amount ,with respect to any pay period beginning in such taxable year-- 7,a7 ,in general ,except as provided in subparagraphs 7,b7 and 7,c71 such contributions are equal to #c percent of the compensation of the employee for such period4 7,b7 ,coordination with limitations ,the total contributions to the ,fund on behalf of the employee for pay periods in any taxable year do not exceed the contribution limitation described in section #ejba7;b77#c77;,c74 7,c7 ,election ,after the first pay period with respect to which a contribution is made with respect to a qualified employee under subsection 7a71 the qualified employee may elect-- 7i7 to change the percentage of compensation which is contributed to the ,fund on behalf of such employee1 except that such percentage may not be less than #b percent or greater than the highest percentage that would not cause total contributions during the taxable year to exceed the limitation under subparagraph 7,b72 or 7ii7 to discontinue contributions to the ,fund and withdraw all contributions previously made through a salary reduction arrangement in the same calendar year other than nonelective contributions made by the employer on behalf of the employee4 ,in the event a qualified employee elects to withdraw all contributions previously made to the ,fund under the preceding sentence1 the amount of any nonelective contributions made by the employer on behalf of the employee shall be withdrawn and paid to the employer4 7,d7 ,contributions may be made through salary reduction arrangement ,contributions by an employer shall not fail to meet the requirements of this subsection solely because the employee may elect to have the employer make payments-- 7i7 to the ,american ,savings ,account of the employee2 or 7ii7 to the employee directly in cash4 ,the preceding sentence shall apply only if the contributions on behalf of all qualified employees of the employer for a pay period are in a uniform dollar amount or a uniform percentage of compensation4 7,e7 ,mandatory percentage increase offer 7i7 ,in general ,if a qualified employee elects under subparagraph 7,c7 a contribution percentage that is less than #e percent1 then #ab months after such election is made and every #ab months thereafter the ,board shall notify the employee in writing that such contribution percentage will be increased by #j4e percent unless the employee objects within #cj days of receipt of such notice4 ,if the employee does not so object1 upon notification by the ,board1 the employer shall increase the percentage of the employee's compensation which is contributed to the ,fund on behalf of the employee by #j4e percent4 7ii7 ,applicability 7,i7 ,in general ,clause 7i7 shall cease to apply once the percentage of compensation contributed to the ,fund on behalf of the employee is greater than or equal to #e percent4 7,,ii7 ,coordination with limitations ,clause 7i7 shall not apply during a taxable year if1 as so increased1 the percentage of compensation contributed to the ,fund on behalf of the employee would exceed the percentage described in subparagraph 7,c77i74 7#b7 ,frequency and timing of contributions ,contributions under subsection 7a7 are made not less frequently than monthly during such year1 and each such contribution is made not later than #cj days after the close of the pay period to which it relates4 7c7 ,exceptions ,subsection 7a7 shall not apply to an employer that is a church or convention or association of churches which is exempt from tax under section #eja7;a7 of the ,internal ,revenue ,code of #aihf4 ,if such an employer elects to make contributions to the ,american ,savings ,account ,fund on behalf of qualified employees of the employer1 such contributions must meet the requirements of paragraph 7#a74 7d7 ,self-,employed individuals ,an individual-- 7#a7 who has net earnings from self-employment 7as defined in section #adjb7;a7 of the ,internal ,revenue ,code of #aihf72 7#b7 who is not a qualified employee with respect to any employer2 and 7#c7 who is not eligible to participate in a defined contribution plan 7within the meaning of section #dad7;i7 of the ,internal ,revenue ,code of #aihf7 maintained by any employer2 may elect to make contributions on the individual's own behalf to the ,american ,savings ,account ,fund4 ,such contributions shall be made under rules similar to the rules of section #ejba7;b77#c74 7e7 ,contribution beginning date ,for purposes of this section1 the term contribution beginning date means ,january #a of the #crd calendar year beginning after the date of the enactment of the ,american ,savings ,act4 #ejbc4 ,state retirement savings plans 7a7 ,in general ,if a ,state-- 7#a7 maintains a public retirement savings plan that allows all covered employers in the ,state to enroll all employees of the employer automatically in such plan2 or 7#b7 allows all covered employers in the ,state to make contributions to an individual retirement plan 7as defined in section #ggja7;a77#cg7 of the ,internal ,revenue ,code of #aihf7 on behalf of the employees of the employer2 such ,state may prohibit employers in the ,state from making contributions to the ,american ,savings ,account ,fund on behalf of their employees1 and section #ejbb shall not apply to covered employers to which such prohibition applies4 7b7 ,exemption ,for purposes of this ,act1 the term employee pension benefit plan shall not include a payroll deduction program established by a ,state for the purpose of making contributions to #a or more individual retirement plans 7as defined in section #ggja7;a77#cg7 of the ,internal ,revenue ,code of #aihf71 including such a program which provides for automatic enrollment4 7c7 ,waiver of penalty ,the penalty under section #ffgb7;f7 of the ,internal ,revenue ,code of #aihf shall not apply to a failure to make a contribution on behalf of a qualified employee if the employer makes contributions to a ,state plan described in subsection 7a7 or 7b7 on behalf of such employee that satisfy the applicable requirements of such ,state plan4 ,the employer shall certify to the ,secretary of the ,treasury1 in such manner as shall be determined by such ,secretary1 that such contributions have been made4 7d7 ,covered employer ,for purposes of this section1 the term covered employer means an employer-- 7#a7 that does not provide the opportunity for employees to participate in a defined contribution plan 7within the meaning of section #dad7;i7 of the ,internal ,revenue ,code of #aihf7 maintained by the employer2 and 7#b7 whose employees are not covered by a collective bargaining agreement described in section #daj7;b77#c77;,a7 of the ,internal ,revenue ,code of #aihf4 #ejbd4 ,definitions ,any term used in this subtitle which is also used in section #djh7k7 of the ,internal ,revenue ,code of #aihf has the same meaning as when used in such section4 4 7b7 ,clerical amendment ,the table of contents of the ,employee ,retirement ,income ,security ,act of #aigd is amended by adding at the end the following3 ,,title ,v--,american ,savings ,accounts,subtitle ,a--,administration,sec4 #ejja4 ,american ,savings ,account ,board of ,directors4,sec4 #ejjb4 ,responsibilities of ,american ,savings ,account ,board of ,directors4,sec4 #ejjc4 ,fiduciary responsibilities2 liability and penalties4,sec4 #ejjd4 ,american ,savings ,account ,fund ,advisory ,council4,subtitle ,b--,american ,savings ,account ,fund,sec4 #ejaa4 ,american ,savings ,account ,fund4,sec4 #ejab4 ,tax treatment of the ,american ,savings ,account ,fund4,subtitle ,c--,american ,savings ,accounts,sec4 #ejba4 ,american ,savings ,accounts4,sec4 #ejbb4 ,employer requirements4,sec4 #ejbc4 ,state retirement savings plans4,sec4 #ejbd4 ,definitions4 4 7c7 ,conforming amendment ,section #ggja of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7p7 as subsection 7q7 and by inserting after subsection 7o7 the following new subsection3 7p7 ,tax treatment of ,american ,savings ,account ,fund 7#a7 ,in general ,for purposes of this title-- 7,a7 the ,american ,savings ,account ,fund shall be treated as a trust described in section #dja7;a7 which is exempt from taxation under section #eja7;a72 7,b7 any contribution to1 or distribution from1 the ,american ,savings ,account ,fund shall be treated in the same manner as contributions to or distributions from such a trust2 7,c7 contributions to the ,american ,savings ,account ,fund shall not be treated as distributed or made available to a participant nor as a contribution made to the ,fund by an individual merely because the individual has1 under section #ejbb7;b77#a77;,c7 of the ,employee ,retirement ,income ,security ,act of #aigd1 made an election whether the contribution will be made to the ,american ,savings ,account ,fund or received by the individual in cash2 and 7,d7 the rules of section #dad7w7 shall apply with respect to ,american ,savings ,accounts1 except that paragraph 7#b77;,b7 thereof shall be applied by substituting the due date for the return of tax for the taxable year in which the first elective contribution is made with respect to the employee under the arrangement for the date which is #ij days after the date of the first elective contribution with respect to the employee under the arrangement4 7#b7 ,coordination with ,social ,security ,act ,paragraph 7#a7 shall not be construed to provide that any amount of the employee's compensation which is contributed to the ,american ,savings ,account ,fund shall not be included in the term wages for the purposes of section #bji of the ,social ,security ,act or section #caba7;a7 of this title4 7#c7 ,definitions ,for purposes of this subsection1 the terms employee and ,american ,savings ,account ,fund shall have the same respective meanings as when used in title ,v of the ,employee ,retirement ,income ,security ,act of #aigd4 7#d7 ,coordination with other provisions of law ,no provision of law not contained in this title shall apply for purposes of determining the treatment under this title of the ,american ,savings ,account ,fund or any contribution to1 or distribution from1 such ,fund4 4 7d7 ,treatment of contributions to ,american ,savings ,account ,fund 7#a7 ,in general ,part ,,iii of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #aci;,g the following new section3 #aci;,h4 ,amounts contributed to ,american ,savings ,accounts 7a7 ,in general ,gross income does not include so much of the contributions made to the ,american ,savings ,account ,fund on behalf of an individual for pay periods in the taxable year as does not exceed the limitation applicable under section #dae7;c7 of the ,internal ,revenue ,code of #aihf to contributions to a defined contribution plan4 7b7 ,american ,savings ,account ,fund ,for purposes of this section1 the term ,american ,savings ,account ,fund means the ,fund established under section #ejaa of the ,employee ,retirement ,income ,security ,act of #aigd4 4 7#b7 ,denial of deduction ,subsection 7b7 of section #bai of such ,code is amended by adding at the end the following new paragraph3 7#f7 ,special rule for ,american ,savings ,accounts ,this section shall not apply with respect to any amount contributed to an individual retirement account 7as defined in section #djh7;a77 or a ,roth ,,ira 7as defined in section #djh;,a7b77 which is an ,american ,savings ,account 7as defined in section #ejba of the ,employee ,retirement ,income ,security ,act of #aigd74 4 7#c7 ,clerical amendment ,the table of sections for part ,,iii of subchapter ,b of chapter #a of such ,code is amended by inserting after the item relating to section #aci;,g the following new item3 ,sec4 #aci;,h4 ,amounts contributed to ,american ,savings ,accounts4 4 7e7 ,treatment of distributions as separate from other ,i,r,as and ,roth ,i,r,as ,subparagraph 7,a7 of section #djh7;d77#b7 of the ,internal ,revenue ,code of #aihf is amended by striking plans and inserting plans 7other than ,american ,savings ,accounts1 within the meaning of section #ejba of the ,employee ,retirement ,income ,security ,act of #aigd74 7f7 ,effective date 7#a7 ,program ,the ,chair of the ,american ,savings ,account ,board of ,directors shall establish the ,american ,savings ,account program such that the ,american ,savings ,account ,fund is prepared to begin receiving contributions on ,january #a of the #crd calendar year beginning after the date of the enactment of this ,act4 7#b7 ,treatment of contributions ,except as provided in paragraph 7#a71 the amendments made by this section shall apply to contributions made to the ,american ,savings ,account ,fund1 as established by the amendments made by subsection 7a71 after ,december #ca of the #bnd calendar year beginning after the date of the enactment of this ,act4 #c4 ,penalty for employer noncompliance ,section #ffgb of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7f7 ,employer noncompliance with requirements of ,american ,savings ,account ,act ,except as provided in section #ejbc7;c7 of the ,employee ,retirement ,income ,security ,act of #aigd1 any employer that fails to make any contribution required by section #ejbb of such ,act shall be treated for purposes of subsection 7a7 as if the employer had willfully failed to collect a tax in the amount of such required contribution4 4 #d4 ,outreach ,the ,commissioner of ,internal ,revenue shall provide to any person filing ,form #ajii information on contributing to the ,american ,savings ,account ,fund4 #e4 ,independent contractors ,the ,secretary of ,labor shall promulgate rules allowing employers to-- 7#a7 request explicit authorization from independent contractors with such employers to contribute on behalf of such independent contractors to the ,american ,savings ,account ,fund2 and 7#b7 automatically withhold and transmit a set amount or percentage of compensation paid to such independent contractors to such ,fund4