,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #hiij  ,,in ,,the ,,house ,,of  
,,representatives  ,december #af1       
#bjbj,mr4 ,norcross 7for himself and    
,mr4 ,walberg7 introduced the following 
bill2 which was referred to the         
,committee on ,education and ,labor  ,a 
,,bill  ,to amend the ,employee         
,retirement ,income ,security ,act of   
#aigd to permit default investment      
arrangements in annuities1 and for other
 purposes4  #a4 ,short title ,this ,act 
may be cited as the ,lifetime ,income   
,for ,employees ,act4  #b4 ,default     
investment in annuity contracts ,section
 #djd7;c77#e7 of the ,employee          
,retirement ,income ,security ,act of   
#aigd 7#bi ,u4,s4,c4 #aajd7;c77#e77 is  
amended-- 7#a7 in subparagraph 7,a71 by 
adding at the end the following3        
,default investments made under this    
subparagraph may include a covered      
annuity contract42 and  7#b7 by adding  
at the end the following3  7,c7 ,covered
 annuity contract  7i7 ,in general ,the 

term covered annuity contract means an  
investment in an annuity contract that  
meets the following requirements3 7,i7  
,the annuity contract does not impose a 
liquidity restriction on the transfer of
 invested amounts during the #ahj-;day  
period beginning on the date of the     
initial investment in such contract by  
the participant or beneficiary4  7,,ii7 
,the fiduciary ensures that each        
participant or beneficiary is provided  
not later than #cj days before the date 
of the imposition of a liquidity        
restriction described in subclause 7,i7 
written notice in a manner that is      
reasonably designed to be understood by 
the average plan participant1 that      
includes-- 7aa7 an explanation of the   
circumstances under which assets in the 
account may be invested on behalf of the
 participant or beneficiary in the      
annuity contract1 including an          
explanation of the targeted range and   
maximum amount or percentage of such    
assets to be invested2  7bb7 an         

explanation of the rights1 and any      
limitations or restrictions thereon1 of 
a participant or beneficiary to direct  
or transfer amounts invested1 or to be  
invested1 in an annuity contract to     
other investment alternatives available 
under the plan2  7cc7 a general         
description of the annuity contract1    
including the duration of guaranteed    
payments and identification of the      
insurer2  7dd7 an explanation of how a  
participant or beneficiary may obtain   
additional information1 in writing or   
electronically1 about their investment  
alternatives2 and  7ee7 a copy of the   
annuity contract4  7,,iii7 ,the         
fiduciary allocates not more than #ej   
percent of any periodic contribution or1
 immediately after a rebalancing of     
account investments1 #ej percent of the 
value of the assets of the account1 to  
the annuity contract 7or1 as applicable1
 to the portion thereof to which a      
liquidity restriction applies after the 
#ahj-;day period in subclause 7,i774    

7ii7 ,definition of annuity contract    
,for purposes of this paragraph1 the    
term annuity contract means a contract  
7or provision or feature thereof7 that--
 7,i7 is issued by an insurer qualified 
to do business in a ,state2 and  7,,ii7 
provides for the payment of guaranteed  
benefits annually 7or more frequently7  
for a fixed term or for the remainder of
 the life of the participant or         
beneficiary or the joint lives of the   
participant and the participant's       
designated beneficiary4  7,d7 ,effective
 date ,the amendments made by subsection
 7a7 shall take effect on the date of   
the enactment of the ,lifetime ,income  
,for ,employees ,act4  4