,i #aafth ,,congress #ast ,session ,h4 ,r4 #babj ,,in ,,the ,,house ,,of ,,representatives ,april #h1 #bjai ,mr4 ,peters 7for himself1 ,mrs4 ,mc,bath1 and ,ms4 ,blunt ,rochester7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,education and ,labor1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to establish a universal personal savings program1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,saving for the ,future ,act4 #b4 ,findings ,congress finds as follows3 7#a7 ,three out of #aj private-sector workers lack access to any workplace retirement plan1 according to a ,bureau of ,labor ,statistics report in ,march #bjah4 7#b7 ,a retirement study conducted by the ,government ,accountability ,office found that #eb percent of households age #ee-;and-older have no retirement savings in a defined contribution plan or individual retirement account1 and nearly #cj percent of households age #ee-;and-older have no retirement savings and no defined benefit plan4 7#c7 ,a #bjae report on the economic well-being of ,united ,states households conducted by the ,federal ,reserve found that #ca percent of non-retirees reportedly have no retirement savings or pension whatsoever1 and that nearly one-half of non-retirees with self-directed retirement accounts are either not confident or slightly confident in their ability to make the right investment decisions when investing in such accounts4 #c4 ,universal personal savings 7a7 ,in general ,subtitle ,b of title ,i of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajba et seq47 is amended by adding at the end the following3 #h ,universal ,personal ,savings #hja4 ,definitions ,for purposes of this part3 7#a7 ,applicable employer ,the term applicable employer means an employer-- 7,a7 with at least #aj full-time equivalent employees2 and 7,b7 that has employed at least #aj full-time equivalent employees for not less than #b years4 7#b7 ,board ,the term ,board means the ,federal ,universal ,personal ,savings ,investment ,board established under section #hjc4 7#c7 ,employee ,the term employee1 unless specified otherwise1 includes full-time and part-time employees of an applicable employer4 7#d7 ,executive ,director ,the term ,executive ,director means the ,executive ,director of the ,,up ,account ,board appointed under section #hjc4 7#e7 ,full time ,the term full time1 with respect to employment1 means #dj hours per week4 7#f7 ,full-time equivalent employee ,the term full-time equivalent employee means the sum of-- 7,a7 the number of employees working full time2 and 7,b7 the full-time equivalent of the number of employees working part-time1 as defined and calculated in the manner determined most appropriate by the ,secretary4 #hjb4 ,employer contribution requirements 7a7 ,minimum employer contribution 7#a7 ,in general ,beginning in the first full taxable year following the date of enactment of the ,saving for the ,future ,act1 each applicable employer shall contribute to a qualifying plan1 on behalf of each employee that is not enrolled in an active1 defined benefit pension plan sponsored by such employer1 the applicable minimum amount described in paragraph 7#b74 7#b7 ,minimum employer contribution 7,a7 ,initial amounts ,for the first year in which the requirements of paragraph 7#a7 apply1 and the #a year immediately following such first year1 the minimum amount an applicable employer is required to contribute for each full-time employee is #j4ej per hour worked by the employee4 7,b7 ,third and fourth years ,for the #b years immediately following the period during which subparagraph 7,a7 applies1 the minimum amount an applicable employer is required to contribute for each full-time employee is 4#fj per hour worked by the employee4 7,c7 ,subsequent years ,the ,secretary shall increase the amounts described in subparagraph 7,b7 for the year immediately following the period during which subparagraph 7,b7 applies1 and every #c years thereafter1 by an amount proportional to growth in average nonsupervisory wages4 7#c7 ,noncompliance ,in the case of an applicable employer that is found to be in violation of the requirement under paragraph 7#a71 such employer shall be required to make the contributions required under paragraph 7#a71 plus interest1 at an interest rate set by the ,secretary through rulemaking4 7b7 ,qualifying plans 7#a7 ,in general ,each applicable employer shall provide a pension plan for all employees4 7#b7 ,types of plans ,the pension plan required under paragraph 7#a7-- 7,a7 7i7 in the case of an applicable employer with #ajj or more full-time equivalent employees1 shall be an employer plan1 which may be a plan described in section #dja7k7 of the ,internal ,revenue ,code of #aihf1 defined benefit pension plan1 or any other plan described in section #bai7;g77#e7 of the ,internal ,revenue ,code of #aihf2 and 7ii7 in the case of an applicable employer with fewer than #ajj full-time equivalent employees1 shall be a plan described in subparagraph 7,a71 a simple retirement account under section #djh7p7 of the ,internal ,revenue ,code of #aihf or an automatic payroll deduction individual retirement account or multiple employer plan1 including any current or prospective ,state-established and -facilitated payroll deduction or automatic individual retirement account1 or an ,,up ,account described in section #hjd2 or 7,b7 in the case of an applicable employer who does not provide an employer contribution but offers a ,state-established or -facilitated program described in subparagraph 7,a77ii71 such employer shall provide an ,,up ,retirement ,account to which the employer makes contributions1 and any employee contributions shall be directed to the ,state plan4 7#c7 ,clarification of employer obligations with respect to certain employees ,in the case of an applicable employer that offers an ,,up ,retirement ,account plan and any other type of plan described in subparagraph 7,a77i71 7,a77ii71 or 7,b71 as applicable1 of paragraph 7#b71 to employees1 with respect to employees for whom the employer is not required under this ,act to offer participation in such other type of plan1 the requirements of this part may be met by allowing such employees to participate in such other plan4 7c7 ,standard notice ,the board shall develop a standard notice that employers with fewer than #aj workers electing not to make contributions are required to provide to each employee upon hire1 and annually thereafter4 ,such notice shall provide instructions on how to set up an account1 make contributions1 and claim the individual credit under section #be;,,bb of the ,internal ,revenue ,code of #aihf4 #hjc4 ,,up ,account ,board 7a7 ,establishment of ,board ,there is established a ,federal ,universal ,personal ,savings ,investment ,board1 an independent government agency for the purpose of overseeing ,,up ,accounts4 7b7 ,membership 7#a7 ,appointment of members ,the ,president shall appoint1 by and with the consent of the ,senate1 #e members to serve on the ,board4 ,such members shall have substantial experience1 training1 and expertise in the management of financial investments and pension benefit plans4 7#b7 ,executive director ,the ,board shall hire an ,executive ,director of the ,board4 7#c7 ,terms ,each member shall serve a term of #e years1 except that1 of the members first appointed1 one shall serve a term of #a year1 one shall serve a term of #b years1 one shall serve a term of #c years1 one shall serve a term of #d years1 and one shall serve a term of #e years4 ,each member of the ,board may serve up to #b consecutive terms4 7c7 ,funding ,administrative expenses incurred to carry out this part shall be paid first out net earnings in the ,,up ,account ,fund4 #hjd4 ,,up ,account ,fund 7a7 ,in general ,there is established in the ,treasury of the ,united ,states an ,,up ,account ,fund4 7b7 ,funds ,the ,,up ,account ,fund shall consist of all amounts contributed by participants1 and employees on behalf of participants1 into ,,up ,retirement ,accounts and ,,up ,savings ,accounts1 increased by the total net earnings from investments of sums in the ,,up ,account ,fund or reduced by the total net losses from investments of the ,,up ,account ,fund1 and reduced by the total amount of payments made from the ,,up ,account ,fund 7including payments for administrative expenses74 7c7 ,permissible uses of funds ,the sums in the ,,up ,account ,fund are appropriated and shall remain available without fiscal year limitation-- 7#a7 to invest in accordance with section #hje7;h72 7#b7 to pay benefits or purchase annuity contracts under this subchapter2 and 7#c7 to pay administrative expenses4 #hje4 ,,up ,retirement ,accounts 7a7 ,in general ,the ,board shall establish ,,up ,retirement ,accounts that are portable1 defined contribution pension plans4 7b7 ,rollovers 7#a7 ,definitions ,for purposes of this subsection-- 7,a7 the term eligible rollover distribution has the meaning given such term by section #djb7;c77#d7 of the ,internal ,revenue ,code of #aihf2 and 7,b7 the term qualified trust has the meaning given such term by section #djb7;c77#h7 of the ,internal ,revenue ,code of #aihf4 7#b7 ,rollovers ,a participant may contribute to the ,,up ,retirement ,account an eligible rollover that a qualified trust could accept under the ,internal ,revenue ,code of #aihf4 ,a contribution made under this subsection shall be made in the form described in section #dja7;a77#ca7 of the ,internal ,revenue ,code of #aihf4 ,in the case of an eligible rollover distribution1 the maximum amount transferred to the ,up ,account ,fund shall not exceed the amount which would otherwise have been included in the participant's gross income for ,federal income tax purposes4 7#c7 ,regulations ,the ,executive ,director shall prescribe regulations to carry out this subsection4 7c7 ,administration ,the ,board shall contract with one or more private investment firms to administer the ,,up ,accounts4 ,the ,board shall contract with multiple private investment firms1 as necessary to ensure that no single firm administers more than #ejj1jjj1jjj1jjj in ,,up ,account assets4 7d7 ,individual eligibility 7#a7 ,in general ,an employee is eligible to participate in an ,,up ,retirement ,account if-- 7,a7 the employee's employer establishes an ,,up ,retirement ,account on the employee's behalf2 or 7,b7 the employee demonstrates to the ,board that the employee works for a employer that is not an applicable employer4 7#b7 ,maintenance of account ,an individual who becomes a participant in an ,,up ,retirement ,account as described in paragraph 7#a7 may maintain such account and may continue to make individual contributions to such account1 regardless of such individual's subsequent employment status1 provided that the individual is not a participant in another plan described in section #hjb7;b77#b74 7e7 ,quarterly statements ,the ,board shall provide participants with a quarterly statement explaining each participant's projected income in retirement under different distribution scenarios and identifying the total dollar amount paid in fees for the year4 7f7 ,employee and employer contributions 7#a7 ,employee contributions 7,a7 ,in general ,applicable employers making contributions required under section #hjb to an ,,up ,retirement ,account shall auto-enroll all employees in such an account with an employee contribution that is equal to #d percent of the employee's wages1 with the option for any such employee to elect a different employee contribution level or to opt out of such account at any time4 7,b7 ,auto-escalation ,employees making contributions to an ,,up ,retirement ,account shall have their contributions automatically escalated by half a percentage point at the conclusion of each full year during which such employer is so enrolled1 until reaching the level of a #aj percent employee contribution4 ,any employee may opt out of such automatic escalation4 7,c7 ,default elections in the case of changes in employment ,in the case of an employee who was enrolled in an ,,up ,retirement ,account through one employer and subsequently ceases to work for such employer1 if the employee subsequently is employed by another applicable employer1 the employee's default contribution level under this paragraph shall be the same level that it was on the last day of employment with the previous employer4 7#b7 ,employer contributions 7,a7 ,in general ,applicable employers may contribute more to an employee's ,,up ,retirement ,account than is required under section #hjb1 but may not contribute more than #a_/b the amount in effect under section #djb7;g77#a77;,b7 of the ,internal ,revenue ,code of #aihf for the taxable year4 7,b7 ,default rules ,any employer matching requirements under this part shall apply to any employer contributions that are in addition to the minimum employer contribution4 7,c7 ,fiduciary duties ,an applicable employer's fiduciary duties with respect to an employee's ,,up ,retirement ,account extend only to the full and timely payment of contributions to their employees' ,,up ,retirement ,accounts4 ,for all other purposes1 the members of the ,board are the fiduciaries of such accounts4 7g7 ,participant accounts 7#a7 ,in general ,the ,executive ,director shall establish and maintain an account for each individual who makes contributions or for whom contributions are made under this section4 7#b7 ,balances ,the balance in a participant's account at any time is the excess of-- 7,a7 the sum of-- 7i7 all contributions made to the ,,up ,retirement ,account by the participant2 7ii7 all contributions made to such ,account for the benefit of the participant2 and 7iii7 the total amount of the allocations made to and reductions made in the account pursuant to paragraph 7#c71 over 7,b7 the amounts paid out of the ,,up ,retirement ,account with respect to such participant4 7#c7 ,adjustments ,pursuant to regulations prescribed by the ,executive ,director1 the ,executive ,director shall allocate to each account an amount equal to a pro rata share of the net earnings and net losses from each investment of sums in the ,,up ,account ,fund attributable to sums credited to such account1 reduced by an appropriate share of the administrative expenses paid out of the net earnings1 as determined by the ,executive ,director4 7h7 ,investments ,the following investment rules shall apply with respect to an ,,up ,retirement ,account3 7#a7 ,the ,board shall make available a reasonable menu of investment products1 including low-fee index funds1 sufficient to provide participants with the opportunity to diversify their ,,up ,retirement ,accounts in order to minimize the risk of large losses4 7#b7 ,the default investment option for participants shall minimize fees1 be diversified1 and automatically reduce risk to the participant as the participant approaches retirement age4 7#c7 ,,up ,retirement ,accounts shall allow participants to change or customize investment allocation4 7#d7 ,the board shall select investments solely in the interests of participants and beneficiaries and for the exclusive purpose of providing benefits and deferring reasonable expenses with the prevailing care1 skill1 prudence1 and diligence that a prudent individual acting in a like capacity and familiar with such matters would use4 7i7 ,distributions 7#a7 ,in general ,the ,board shall ensure that investors are offered forms of distribution that include-- 7,a7 monthly income for life for the participant or surviving spouse1 if applicable2 7,b7 monthly income until the normal or maximum ,social ,security retirement age for the participant or surviving spouse1 if applicable2 and 7,c7 automatic1 regular withdrawals1 under which a set percentage of initial capital is withdrawn each year1 on a monthly basis4 7#b7 ,death of participant ,in case of death of a participant1 a lump sum shall be paid to designated beneficiary4 #hjf4 ,,up ,savings ,accounts 7a7 ,in general ,in addition to a standard ,,up ,retirement ,account under section #hje1 a participant may maintain an ,,up ,savings ,account1 established by the ,board1 and designed as safe1 short- to medium-term savings vehicles4 7b7 ,contributions2 maximum balance 7#a7 ,in general ,participants may make contributions to their ,,up ,savings ,account until the account reaches the maximum balance amount described in paragraph 7#a74 ,any contributions a participant wishes to make after the participant's account reaches such maximum balance amount shall be credited to the participant's ,,up ,retirement ,account established under section #hje4 ,an ,,up ,savings ,account may grow past the maximum balance amount due to accumulation without penalty4 7#b7 ,increased amounts ,the ,board shall establish the maximum balance amount for purposes of paragraph 7#a7 as follows3 7,a7 ,for the first fiscal year that begins after the date of enactment of the ,saving for the ,future ,act1 the maximum balance amount shall be #b1ejj4 7,b7 ,for fiscal year immediately following the fiscal year described in subparagraph 7,a71 and each fiscal year thereafter1 the ,board shall increase the maximum balance amount from the previous year1 in increments of #ajj that most closely reflects the average wage growth during the applicable #ab-month period4 7#c7 ,default rule ,any contributions a participant makes pursuant to accounts established under this part shall be credited to the participant's ,,up ,savings ,account1 until such has reached the maximum balance amount1 unless the participant specifies otherwise4 ,once the maximum balance is reached1 additional contributions will go to a participant's ,,up ,retirement ,account4 7c7 ,investment ,the ,board may invest contributions to ,,up ,savings ,account only in cash1 money market funds1 certificates of deposit1 or government bonds4 7d7 ,withdrawals ,participants may withdraw amounts from their ,,up ,savings ,account when experiencing a specific financial situation that requires a non-routine use of money1 as determined by the ,board 7in rules similar to the rules governing hardship distributions from a trust described in section #dja7;a7 of the ,internal ,revenue ,code of #aihf which is exempt from taxation under section #eja7;a7 of such ,code74 ,such situations may include a major reduction in earnings1 an on-the-job injury1 disability1 family or medical leave1 a large medical bill1 the down payment for a home1 and the beginning of a training or educational experience4 ,the ,board shall determine the rules regarding such withdrawals1 including allowable needs1 and demonstration of the need1 but shall not impose a withdrawal penalty or impose a repayment requirement4 ,loans to investors shall not be permitted4 7e7 ,other pension plans ,any pension plan may offer a safe1 short- to medium-term savings account with terms similar to the terms that apply to ,,up ,savings ,accounts described in this section4 ,for purposes of this ,act1 any such account shall be considered part of the pension plan4 #hjg4 ,tax treatment of ,,up ,accounts 7a7 ,in general ,for purposes of the ,internal ,revenue ,code of #aihf-- 7#a7 the ,,up ,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 ,,up ,account ,fund shall be treated in the same manner as contributions to or distributions from such a trust2 and 7#c7 subject to section #dja7k77#d77;,b7 of such ,code and any dollar limitation on the application of section #djb7;a77#h7 of such ,code1 contributions to the ,,up ,account ,fund shall not be treated as distributed or made available to an employee or ,member nor as a contribution made to the ,fund by an employee or ,member merely because the employee or ,member has1 under the provisions of this part1 an election whether the contribution will be made to the ,,up ,account ,fund or received by the employee or ,member in cash4 7b7 ,nondiscrimination requirements ,notwithstanding any other provision of law1 the ,,up ,account ,fund is not subject to the nondiscrimination requirements applicable to arrangements described in section #dja7k7 of the ,internal ,revenue ,code of #aihf1 or to matching contributions 7as described in section #dja7m7 of such ,code71 so long as it meets the requirements of this section4 7c7 ,rule of construction ,subsection 7a7 shall not be construed to provide that any amount of the employee's or ,member's basic pay which is contributed to the ,,up ,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 #hjh4 ,qualified ,roth contribution program 7a7 ,definitions ,for purposes of this section-- 7#a7 the term qualified ,roth contribution program means a program described in paragraph 7#a7 of section #djb;,a7b7 of the ,internal ,revenue ,code of #aihf which meets the requirements of paragraph 7#b7 of such section2 and 7#b7 the terms designated ,roth contribution and elective deferral have the meanings given such terms in section #djb;,a of the ,internal ,revenue ,code of #aihf4 7b7 ,authority ,to establish ,the ,executive ,director shall by regulation provide for the inclusion in the ,,up ,accounts of a qualified ,roth contribution program1 under such terms and conditions as the ,board may prescribe4 7c7 ,required provisions ,the regulations under subsection 7b7 shall include-- 7#a7 provisions under which an election to make designated ,roth contributions may be made by any individual who is eligible to make contributions to an ,,up ,account under section #hje7;d72 and 7#b7 any other provisions which may be necessary to carry out this section4 #hji4 ,survivor annuities ,the rules on survivor annuities under subchapter ,,iv of chapter #hd of title #e1 ,united ,states ,code1 that are applicable to the ,thrift ,savings ,plan1 shall apply to ,,up ,accounts4 ,the ,executive ,director shall promulgate regulations to provide for the application of such rules to ,,up ,accounts1 as appropriate4 4 7b7 ,clerical amendment ,the table of contents in section #a of the ,employee ,retirement ,income ,security ,act of #aigd is amended by inserting after the item relating to section #gcd the following new items3 ,part #h--,universal ,personal ,savings ,sec4 #hja4 ,definitions4 ,sec4 #hjb4 ,employer contribution requirements4 ,sec4 #hjc4 ,,up ,account ,board4 ,sec4 #hjd4 ,,up ,account ,fund4 ,sec4 #hje4 ,,up ,retirement ,accounts4 ,sec4 #hjf4 ,,up ,savings ,accounts4 ,sec4 #hjg4 ,tax treatment of ,,up ,accounts4 ,sec4 #hjh4 ,qualified ,roth contribution program4 ,sec4 #hji4 ,survivor annuities4 4 #d4 ,increase in credit for small employer pension plan startup costs 7a7 ,in general ,paragraph 7#a7 of section #de;,e7b7 of the ,internal ,revenue ,code of #aihf is amended by striking #ejj and inserting #b1jjj4 7b7 ,eligible employers ,paragraph 7#a7 of section #de;,e7c7 of the ,internal ,revenue ,code of #aihf is amended by inserting 1 applied by substituting #bej for #ajj after #djh7p77#b77;,c77i74 7c7 ,penalty for noncompliant employers ,subsection 7c7 of section #de;,e of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#c7 ,employers failing to make required contributions ,such term shall not include an employer subject to the requirement of section #hjb7;a77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd that fails1 within the time prescribed by the ,secretary1 to make any required contribution under such section #hjb for the taxable year or any of the #d taxable years preceding such year4 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #e4 ,credit for minimum employer contributions 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de,t4 ,credit for minimum employer contributions 7a7 ,general rule ,for purposes of section #ch1 the minimum employer contribution credit determined under this section for any taxable year is an amount equal to the applicable percentage of the qualified retirement contributions paid or incurred by the taxpayer during the taxable year4 7b7 ,applicable percentage ,for purposes of subsection 7a71 the applicable percentage is-- 7#a7 #ej percent1 in the case of contributions made with respect to not more than #ae employees of the employer 7or the number of employees of the employer which is the equivalent of #ae full-time employees71 and 7#b7 #be percent1 in the case of contributions made with respect to so many of the employees of the employer 7or the equivalent of so many full-time employees7 as exceeds #ae but does not exceed #cj4 7c7 ,qualified retirement contributions ,for purposes of this section-- 7#a7 ,in general ,the term qualified retirement contributions means-- 7,a7 contributions made by an employer as required under section #hjb of the ,employee ,retirement ,income ,security ,act of #aigd1 and 7,b7 contributions to a plan described in section #hjb7;b77#b7 of such ,act made by an employer which is not subject to the requirement of section #hjb7;a77#a7 of such ,act4 7#b7 ,only required contribution amount taken into account ,the term qualified retirement contributions does not include any amount in excess of-- 7,a7 the amount determined under section #hjb7;a77#b7 of the ,employee ,retirement ,income ,security ,act with respect to each employee of the employer1 or 7,b7 the amount which would be so determined if the employer were subject to the requirement of section #hjb7;a77#a7 of such ,act4 7d7 ,employers excluded for failure ,to make contributions ,subsection 7a7 shall not apply to any employer which fails1 within the time prescribed by the ,secretary1 to make any contribution required to be made by such employer under section #hjb of the ,employee ,retirement ,income ,security ,act of #aigd for the taxable year or any of the #d taxable years preceding such year4 7e7 ,special rules ,for purposes of this section-- 7#a7 ,aggregation rules1 etc ,rules similar to the rules of section #de;,e7e7 shall apply4 7#b7 ,denial of double benefit ,no credit shall be allowed under this section for any taxable year in which the credit under section #de;,e is allowed with respect to the taxpayer4 7f7 ,credit made available to tax-,exempt eligible employers 7#a7 ,in general ,in the case of a tax-exempt eligible employer1 there shall be treated as a credit allowable under subpart ,c 7and not allowable under this subpart7 the lesser of-- 7,a7 the amount of the credit determined under this section with respect to such employer1 or 7,b7 the amount of the payroll taxes of the employer during the calendar year in which the taxable year begins4 7#b7 ,tax-exempt eligible employer ,for purposes of this section1 the term tax-exempt eligible employer means an eligible employer which is any organization described in section #eja7;c7 which is exempt from taxation under section #eja7;a74 7#c7 ,payroll taxes ,for purposes of this subsection-- 7,a7 ,in general ,the term payroll taxes means-- 7i7 amounts required to be withheld from the employees of the tax-exempt eligible employer under section #cdja7;a71 7ii7 amounts required to be withheld from such employees under section #caja7;b71 and 7iii7 amounts of the taxes imposed on the tax-exempt eligible employer under section #caaa7;b74 7,b7 ,special rule ,a rule similar to the rule of section #bd7;d77#b77;,c7 shall apply for purposes of subparagraph 7,a74 4 7b7 ,credit ,to be made part of business credit ,subsection 7b7 of section #ch of the ,internal ,revenue ,code of #aihf is amended by striking plus at the end of paragraph 7#ca71 by striking the period at the end of paragraph 7#cb7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cc7 in the case of an eligible employer1 the minimum employer contribution credit determined under section #de,t7a74 4 7c7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #de,s the following new item3 ,sec4 #de,t4 ,credit for minimum employer contributions4 4 7d7 ,transfers to ,federal ,old-,age and ,survivors ,insurance ,trust ,fund ,there are hereby appropriated to the ,federal ,old-,age and ,survivors ,trust ,fund and the ,federal ,disability ,insurance ,trust ,fund established under section #bja of the ,social ,security ,act 7#db ,u4,s4,c4 #dja7 amounts equal to the reduction in revenues to the ,treasury by reason of the enactment of section #de,t7f7 of the ,internal ,revenue ,code of #aihf4 ,amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such ,trust ,fund had such amendments not been enacted4 7e7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #f4 ,additional credit for individuals making retirement contributions 7a7 ,in general ,subpart ,a of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #be;,b the following new section3 #be;,,bb4 ,additional credit for certain individuals making retirement contributions 7a7 ,allowance of credit ,in the case of an eligible individual1 there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to #ej percent of so much of the qualified retirement contributions of the individual for the taxable year as do not exceed the base amount4 7b7 ,eligible individual ,for purposes of this section1 the term eligible individual means an individual whose employer does not provide a defined benefit plan 7as defined in section #dad7;j771 defined contribution plan 7as defined in section #dad7;i771 or participation in an ,,up ,account under section #hje of the ,employee ,retirement ,income ,security ,act of #aigd1 or who is not employed1 at the time the qualified retirement contributions are made4 7c7 ,qualified retirement contributions1 ,etc ,for purposes of this section-- 7#a7 ,in general ,the term qualified retirement contributions means1 with respect to any taxable year1 any amounts paid in cash by an individual to-- 7,a7 an individual retirement plan1 or 7,b7 an ,,up ,account established under section #hje of the ,employee ,retirement ,income ,security ,act of #aigd1 for the benefit of the individual4 7#b7 ,base amount ,the base amount for any taxable year is an amount equal to the amount in effect under section #hjb7;a77#c77;i7 of the ,employee ,retirement ,income ,security ,act of #aigd for such year4 7d7 ,special rules 7#a7 ,investment in the contract ,rules similar to the rules of section #be;,b7f7 shall apply for purposes of this section4 7#b7 ,coordination with saver's credit ,the credit under this section and the credit under section #be;,b shall each be determined without regard to the other4 4 7b7 ,clerical amendment ,the table of sections for subpart ,a of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #be;,b the following new item3 ,sec4 #be;,,bb4 ,additional credit for certain individuals making retirement contributions4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #g4 ,increase in highest individual income tax rate 7a7 ,in general ,each of the tables contained in subparagraphs 7,a71 7,b71 7,c71 7,d71 and 7,e7 of section #a7;j77#b7 of the ,internal ,revenue ,code of #aihf is amended by striking #cg in the last line and inserting #ci4f4 7b7 ,conforming amendment ,clause 7iii7 of section #a7;j77#d77;,b7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking #cg percent and inserting #ci4f percent1 7#b7 by striking #cg-percent in subclause 7,,ii7 and inserting #ci4f-percent1 and 7#c7 by striking #cg-percent in the heading and inserting #ci4f-percent4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #h4 ,increase in corporate income tax rate 7a7 ,in general ,subsection 7b7 of section #aa of the ,internal ,revenue ,code of #aihf is amended by striking #ba percent and inserting #bc percent4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4