,,ii #aagth ,,congress #b;d ,session ,s4 #ebga ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #ae1 #bjbb ,mr4 ,hickenlooper 7for himself and ,mr4 ,tillis7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to establish the ,american ,worker ,retirement ,plan1 improve the financial security of working ,americans by facilitating the accumulation of wealth1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,retirement ,savings for ,americans ,act of #bjbb4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,definitions4 ,sec4 #c4 ,relationship to ,social ,security4 ,sec4 #d4 ,government benefits4 ,title ,i--,the ,american ,worker ,retirement ,plan ,sec4 #aja4 ,the ,american ,worker ,retirement ,fund4 ,sec4 #ajb4 ,investment of ,american ,worker ,retirement ,fund4 ,sec4 #ajc4 ,eligibility4 ,sec4 #ajd4 ,enrollment4 ,sec4 #aje4 ,contributions4 ,sec4 #ajf4 ,distributions4 ,sec4 #ajg4 ,accounts4 ,sec4 #ajh4 ,tax treatment4 ,sec4 #aji4 ,spousal protections2 survivor rights4 ,title ,,ii--,the ,american ,worker ,retirement ,plan ,investment ,management ,system ,sec4 #bja4 ,the ,american ,worker ,retirement ,investment ,board4 ,sec4 #bjb4 ,the ,american ,worker ,retirement ,plan ,advisory ,council4 ,sec4 #bjc4 ,executive ,director4 ,sec4 #bjd4 ,investment policies and selection of asset managers4 ,sec4 #bje4 ,administrative provisions4 ,sec4 #bjf4 ,fiduciary responsibilities2 liability and penalties4 ,sec4 #bjg4 ,bonding4 ,sec4 #bjh4 ,investigative authority4 ,sec4 #bji4 ,exculpatory provisions2 insurance4 ,sec4 #baj4 ,subpoena authority4 ,title ,,iii--,government ,match ,tax ,credit ,sec4 #cja4 ,government ,match ,tax ,credit4 #b4 ,definitions ,as used in this ,act1 except as otherwise provided3 7#a7 ,account ,the term account means an account established and maintained under section #ajg4 7#b7 ,board ,the term ,board means the ,american ,worker ,retirement ,investment ,board established under section #bja4 7#c7 ,business ,the term business means any entity1 including any sole proprietor1 partnership1 limited liability company1 or corporation1 that engages in interstate commerce4 7#d7 ,earnings ,the term earnings1 when used with respect to the ,fund1 means the amount of the gain realized or yield received from the investment of sums in such ,fund4 7#e7 ,executive ,director ,the term ,executive ,director means the ,executive ,director appointed under section #bjc4 7#f7 ,existing retirement plan ,the term existing retirement plan means-- 7,a7 an eligible retirement plan1 as defined in section #djb7;c77#h77;,b7 of the ,internal ,revenue ,code of #aihf1 including any defined benefit plan2 7,b7 the ,thrift ,savings ,plan established under subchapter ,,iii of chapter #hd of title #e1 ,united ,states ,code2 and 7,c7 any other tax deferred employee retirement plan determined by the ,secretary of the ,treasury to be consistent with the purposes of this ,act4 7#g7 ,former participant ,the term former participant means a participant who has an account with the ,fund and is no longer a qualifying worker4 7#h7 ,fund ,the term ,fund means the ,american ,worker ,retirement ,fund established under section #aja7;a74 7#i7 ,investment ,advisory ,council ,the term ,investment ,advisory ,council means the council established under section #bjb4 7#aj7 ,loss ,the term loss1 as used with respect to the ,fund1 includes the amount of any loss resulting from the investment of sums in such ,fund1 or from the breach of any responsibility1 duty1 or obligation under section #bjf4 7#aa7 ,net earnings ,the term net earnings means the excess of earnings over losses4 7#ab7 ,net losses ,the term net losses means the excess of losses over earnings4 7#ac7 ,participant ,the term participant means any qualifying worker who is enrolled to participate in the ,fund under section #ajd7;a7 and has not opted out of participation under section #ajd7;b77#c74 7#ad7 ,participating employer ,the term participating employer means any business that-- 7,a7 employs a qualifying worker2 or 7,b7 contracts with an independent contractor who is a qualifying worker and opts to enroll such independent contractor to participate in the ,fund under section #ajd7;a77#b74 7#ae7 ,qualifying worker ,the term qualifying worker means-- 7,a7 an employee who-- 7i7 is employed by a business that has not established an existing retirement plan and does not provide an individual retirement plan 7as defined in section #ggja7;a77#cg7 of the ,internal ,revenue ,code of #aihf7 with an automatic enrollment payroll deduction arrangement2 or 7ii7 is not eligible to participate in any such plan or arrangement established by the business that employs the employee2 or 7,b7 an independent contractor who-- 7i7 is self-employed2 and 7ii7 has not established an existing retirement plan1 and does not have an individual retirement plan 7as defined in section #ggja7;a77#cg7 of the ,internal ,revenue ,code of #aihf7 with an automatic enrollment payroll deduction arrangement4 #c4 ,relationship to ,social ,security ,except as otherwise provided in this ,act1 the funds payable under the ,fund to participants and former participants are in addition to the benefits payable under the ,social ,security ,act 7#db ,u4,s4,c4 #cja et seq474 #d4 ,government benefits ,the funds owned by an individual in an account and any contribution made to such funds by a participant or the ,secretary of the ,treasury shall not be taken into consideration when determining the individual's eligibility for any ,federal public assistance benefit4 ,i ,the ,american ,worker ,retirement ,plan #aja4 ,the ,american ,worker ,retirement ,fund 7a7 ,establishment ,there is established in the ,treasury of the ,united ,states the ,american ,worker ,retirement ,fund4 7b7 ,purposes ,the ,fund shall consist of the sum of all amounts contributed under sections #aje and #cja1 increased by the total net earnings from investments of the sums in the ,fund or reduced by the total net losses from investments of the ,fund1 and reduced by the total amount of payments made from the ,fund 7including payments for administrative expenses under subsection 7e774 7c7 ,investment ,the sums in the ,fund shall remain available without fiscal year limitation-- 7#a7 to invest pursuant section #ajb2 7#b7 to pay the administrative expenses of the ,fund under subsection 7e72 7#c7 to make distributions as provided in section #ajf2 7#d7 to make loans as authorized under section #ajf7;h72 and 7#e7 to purchase insurance as provided in section #bji4 7d7 ,accounts ,each participant shall have an account with the ,fund4 ,amounts contributed by a participant under section #aje and by the ,secretary of the ,treasury under section #be;,f of the ,internal ,revenue ,code of #aihf shall be deposited in the ,fund and credited to the participant's account in accordance with such procedures as the ,secretary of the ,treasury may1 in consultation with the ,executive ,director1 prescribe in regulation4 7e7 ,administrative expenses ,administrative expenses 7including expenses related to financial literacy requirements under section #bja7;f77#e77 incurred to carry out this ,act shall be paid out of the net earnings of the ,fund1 including earnings attributed to returned credit amounts under section #be;,f7h7 of the ,internal ,revenue ,code of #aihf4 7f7 ,exclusive benefit 7#a7 ,in general ,subject to paragraphs 7#b7 and 7#c7 and subsection 7e71 sums in the ,fund credited to the accounts of a participant or former participant may not be used for1 or diverted to1 purposes other than for the exclusive benefit of the participant or former participant1 or a beneficiary thereof1 except as otherwise provided by law4 7#b7 ,assignment ,except as provided in paragraph 7#c71 sums in the ,fund may not be assigned or alienated and are not subject to execution1 levy1 attachment1 garnishment1 or other legal process4 ,for purposes of this paragraph1 a loan made from the ,fund to a participant shall not be considered to be an assignment or alienation4 7#c7 ,legal obligations ,moneys due or payable from the ,fund to any individual and1 in the case of an individual who is a participant or former participant1 the balance in the account of the participant or former participant shall be subject to-- 7,a7 legal process for the enforcement of the individual's legal obligation to provide child support or make alimony payments as provided in section #dei of the ,social ,security ,act 7#db ,u4,s4,c4 #fei72 7,b7 an obligation of the ,executive ,director to make a payment to another person under section #aji2 and 7,c7 any ,federal tax levy under section #fcca of the ,internal ,revenue ,code of #aihf4 ,for the purposes of this paragraph1 an amount contributed for the benefit of a participant or former participant under section #be;,f of the ,internal ,revenue ,code of #aihf 7including any earnings attributable thereto7 shall be considered part of the balance in such participant or former participant's account4 7g7 ,non-,appropriated funds ,the sums in the ,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 7h7 ,benefit to participants ,all sums contributed to the ,fund by a participant or the ,secretary of the ,treasury for the benefit of such participant and all net earnings in such ,fund in trust for such participant shall be the exclusive property of the participant4 7i7 ,nonforfeitable ,all the contributions made under section #aje and section #be;,f of the ,internal ,revenue ,code of #aihf shall be fully nonforfeitable when made1 except as provided in section #be;,f7h7 of such ,code4 #ajb4 ,investment of ,american ,worker ,retirement ,fund 7a7 ,in general ,the ,board shall establish the investment policies of the ,fund and select the investment funds1 indexes1 and other investment products that the amounts in the ,fund shall be invested in subject to the following conditions3 7#a7 ,the ,board shall provide for the following investment options for participants3 7,a7 ,a ,government ,securities ,investment ,fund under which sums in the ,fund are invested in-- 7i7 bonds issued or guaranteed by the ,united ,states ,government2 and 7ii7 bonds issued by ,government-sponsored enterprises or ,government corporations4 7,b7 ,a ,fixed-,income ,investment ,fund under which sums are in the ,fund are invested in-- 7i7 insurance contracts2 7ii7 certificates of deposit2 and 7iii7 other instruments or obligations selected by qualified professional asset managers 7as defined in section #hdch7;a77#h7 of title #e1 ,united ,states ,code71 which return the amount invested and pay interest1 at a specific rate or rates1 on that amount during a specific period of time4 7,c7 ,a ,common ,stock ,index ,investment ,fund1 as described in section #hdch7;b77#b7 of title #e1 ,united ,states ,code4 7,d7 ,a ,small ,capitalization ,stock ,index ,investment ,fund1 as described in section #hdch7;b77#c7 of title #e1 ,united ,states ,code4 7,e7 ,an ,international ,stock ,index ,investment ,fund1 as described in section #hdch7;b77#d7 of title #e1 ,united ,states ,code4 7,f7 ,a ,life-,cycle ,investment ,fund consisting of target date asset allocation portfolios4 7#b7 ,the ,board may1 in its discretion1 provide for other investment options for participants consistent with the ,board's fiduciary duty set forth in sections #bja and #bjf4 7#c7 ,the ,board shall consult with the ,investment ,advisory ,council before authorizing additional investment options for participants4 7b7 ,investments 7#a7 ,investment selection ,the ,executive ,director shall invest the sums available in the ,fund for investment as provided in the selection made under subsection 7c74 7#b7 ,default option ,if a selection has not been made with respect to any sums available for investment in the ,fund1 the ,executive ,director shall invest such sums in an age-appropriate ,life-,cycle ,investment ,fund1 as determined by the ,executive ,director4 7c7 ,investment selection ,as often as is practical1 but not less than twice per year1 a participant may select the investment funds and options referred to in subsection 7a7 into which the amounts in the ,fund credited to the participant's accounts are to be invested or reinvested4 ,a selection may be made under this subsection only in accordance with regulations prescribed by the ,executive ,director and within such period as the ,executive ,director shall provide in such regulations1 but in no event less frequently than twice a year4 7d7 ,voting rights ,participants1 former participants1 the ,board1 and the ,executive ,director may not exercise voting rights associated with the ownership of securities by the ,fund4 7e7 ,reports ,the ,board shall issue regular reports 7not less frequently than quarterly7 to participants and former participants on the performance of each investment option selected under subsection 7a71 which shall include personalized estimates of assets and income at retirement1 the additional assets and income at retirement a participant would have if the participant makes sufficient contributions to receive the maximum amount of the ,government match tax credit under section #be;,f of the ,internal ,revenue ,code of #aihf1 and any other information the ,board determines may help participants make sound financial decisions4 ,the ,board shall provide the reports required under this subsection by electronic delivery1 except that upon the request of a participant or former participant1 reports shall be provided by mail to such individual4 #ajc4 ,eligibility 7a7 ,eligibility ,a qualifying worker shall be eligible to participate in the ,fund upon completion of the enrollment process set forth in section #ajd4 7b7 ,cessation of eligibility ,a former participant shall not be eligible to contribute to the ,fund under section #aje7;a7 but shall remain the owner of the funds in the former participant's account with the ,fund 7and any net earnings attributable to such funds7 subject to the withdrawal conditions established under section #ajf1 and may exercise investment decisions with respect to such account on the same basis as a participant4 #ajd4 ,enrollment 7a7 ,enrollment 7#a7 ,in general ,the ,secretary of the ,treasury and the ,executive ,director shall jointly establish an enrollment process for participating employers to enroll qualifying workers to participate in the ,fund that incorporates1 to the extent practicable1 such enrollment and participant contributions under section #aje7;a7 into ,federal tax withholding forms and payments4 7#b7 ,independent contractors ,in the case of independent contractors who are qualifying workers1 the enrollment process shall allow businesses who have contracts with such qualifying workers to elect to enroll such qualifying workers to participate in the ,fund4 7b7 ,auto-,enrollment2 opt-,out 7#a7 ,in general ,each participating employer shall enroll each of its qualifying workers to participate in the ,fund under subsection 7a7 unless such qualifying worker elects to opt out of participating pursuant to paragraph 7#c74 ,a qualifying worker who is a sole proprietor or independent contractor shall enroll or elect to opt out of participating pursuant to paragraph 7#c74 7#b7 ,automatic contribution rates ,each qualifying worker enrolled under paragraph 7#a7 shall be automatically enrolled to make contributions under section #aje7;a7 at the default percentage of #c percent of the qualifying worker's compensation from the employer for such period as shall be established by regulation under section #aje7;a77#c74 7#c7 ,opt-out ,a qualifying worker may elect to opt out of participating in the ,fund pursuant to procedures established jointly by the ,secretary of the ,treasury and the ,executive ,director as part of the regulations governing the enrollment process set forth in subsection 7a74 ,if a qualifying worker elects to opt out of participating in the ,fund1 such qualifying worker shall not be enrolled in subsequent years unless the qualifying worker elects to participate in the ,fund4 ,the ,secretary of the ,treasury and the ,executive ,director shall determine procedures to establish accounts for qualifying workers who elect to opt out of participating in the ,fund who are determined to be eligible for automatic contributions or who would make contributions otherwise allowable by law outside the withholding process4 7c7 ,penalties 7#a7 ,penalty ,a participating employer who fails to enroll a qualifying worker pursuant to subsection 7b7 or fails to deposit in the ,fund the amount of a participant's contributions under section #aje7;a7 shall be subject to a penalty equal to the applicable penalty percentage of the amount of the contributions by the qualifying worker or participant1 as the case may be1 that the participating employer fails to deposit due to failure to enroll the qualifying worker or otherwise deposit such funds4 ,the ,secretary of the ,treasury and the ,executive ,director shall jointly prescribe regulations under which a participating employer shall be required to pay to the ,fund amounts representing lost earnings resulting from errors made by such participating employer in carrying out this section4 7#b7 ,applicable penalty percentage ,the term applicable penalty percentage means-- 7,a7 #b percent if the failure is for not more than #e days2 7,b7 #e percent if the failure is for more than #e days but not more than #ae days2 and 7,c7 #aj percent if the failure is for more than #ae days4 7#c7 ,funds ,the ,secretary of the ,treasury shall credit to the ,fund1 out of any sums in the ,treasury not otherwise appropriated1 the amount determined by the ,executive ,director to be necessary to carry out this section and section #aje7;d74 #aje4 ,contributions 7a7 ,contributions by participants 7#a7 ,in general ,pursuant to the regulations established under subsection 7d71 a participant may make contributions to the participant's account with the ,fund in any pay period in an amount not to exceed the participant's compensation for such period4 7#b7 ,catch-up contributions ,notwithstanding the limitation under paragraph 7#a71 a participant may make such additional contributions to the participant's account with the ,fund as are permitted by section #dad7v7 of the ,internal ,revenue ,code of #aihf1 and the regulations established under subsection 7d7 consistent therewith4 7#c7 ,contributions ,the ,secretary of the ,treasury and the ,executive ,director shall jointly prescribe regulations that establish a program of regular contribution under which participants may-- 7,a7 make contributions to their accounts with the ,fund under paragraph 7#a72 7,b7 modify the amount contributed under such paragraph2 or 7,c7 terminate such contributions4 7#d7 ,election ,an election to make contributions under this subsection-- 7,a7 may be made at any time2 7,b7 shall take effect on the earliest date after the election that is administratively feasible2 and 7,c7 shall remain in effect until modified or terminated4 7b7 ,contribution of ,government ,match ,tax ,credit ,a participant's account shall receive contributions in the form of the ,government ,match ,tax ,credit contributed by the ,secretary of the ,treasury under section #be;,f of the ,internal ,revenue ,code of #aihf4 7c7 ,contribution limits ,notwithstanding any other provision of this section1 no contribution may be made under this section for any year to the extent that such contribution1 when added to prior contributions for such year1 exceeds any limitation under section #bai7;b77#e7 of the ,internal ,revenue ,code of #aihf4 ,any contribution made under section #be;,f of the ,internal ,revenue ,code of #aihf shall not be taken into account for purposes of the preceding sentence4 7d7 ,treatment as ,roth contributions ,contributions under subsection 7a7 shall not be excludable from gross income and no deduction shall be allowed with respect to such contributions under section #bai of the ,internal ,revenue ,code of #aihf4 7e7 ,regulations ,the amounts contributed to the ,fund by a participant under section #aje7;a7 and on behalf of a participant by the ,secretary of the ,treasury under section #be;,f of the ,internal ,revenue ,code of #aihf shall be deposited in the ,fund and credited to the participant's account with the ,fund pursuant to regulations jointly prescribed by the ,secretary of the ,treasury and the ,executive ,director4 #ajf4 ,distributions 7a7 ,former participants ,a former participant is entitled to access the amounts in the former participant's account as provided in this section4 ,amounts in the account of a former participant shall remain in the ,fund until distributed in accordance with subsection 7b74 7b7 ,former participant withdrawal options ,subject to section #aji1 a former participant is entitled to and may elect to withdraw from the ,fund the balance of the former participant's account as-- 7#a7 an annuity2 7#b7 a single payment2 7#c7 #b or more substantially equal payments to be made not less frequently than annually2 or 7#d7 any combination of payments described in paragraphs 7#a7 through 7#c7 as the ,executive ,director may prescribe by regulation4 7c7 ,additional former participant withdrawal options 7#a7 ,in general ,in addition to the right provided under subsection 7b7 to withdraw the balance of the account1 a former participant may make #a or more withdrawals of any amount in the same manner as a single payment is made in accordance with subsection 7b77#b7 from the former participant's account4 7#b7 ,transfers to retirement plans 7,a7 ,in general ,a former participant may request that the amount withdrawn from the ,fund under paragraph 7#a7 be transferred to an existing retirement plan4 7,b7 ,transfers ,the ,executive ,director shall make each transfer directly to an existing retirement plan identified by the former participant for whom the transfer is made4 ,a transfer shall not be made under the preceding sentence until the ,executive ,director receives from the former participant the information required by the ,executive ,director specifically to identify the existing retirement plan to which the transfer is to be made4 7#c7 ,limitations ,withdrawals under this subsection shall be subject to such other limitations or conditions as the ,executive ,director may prescribe by regulation4 7d7 ,payment of annuities ,the ,board shall prescribe methods of payment of annuities under this ,act substantially similar to those provided for under section #hdcd of title #e1 ,united ,states ,code4 7e7 ,former participant changes to elections 7#a7 ,in general ,subject to section #aji1 a former participant may change an election previously made under this section1 except that in the case of an election to receive an annuity1 a former participant may not change an election under this section on or after the date on which an annuity contract is purchased to provide for the annuity elected by the former participant4 7#b7 ,distributions made ,a former participant may not return a distribution once made pursuant to an election under this section4 7f7 ,survivor rights 7#a7 ,in general ,if a participant or a former participant dies without having made an election under subsection 7b7 or after having elected an annuity under subsection 7b7 but before making an election for payments to a survivor rights under section #hdcd of title #e1 ,united ,states ,code1 an amount equal to the value of that individual's account 7as of death7 shall1 subject to any decree1 order1 or agreement referred to in section #aji1 be paid in a manner consistent with the requirements of section #aji4 7#b7 ,maintenance of account ,notwithstanding section #aji1 if a participant or former participant dies and has designated as sole or partial beneficiary the spouse of the participant or former participant at the time of death1 or1 if a participant or former participant dies with no designated beneficiary and is survived by a spouse1 the spouse may maintain the portion of the participant or former participant's account to which the spouse is entitled in accordance with the following terms3 7,a7 ,subject to the limitations of subparagraph 7,b71 the spouse shall have the same withdrawal options under subsection 7b7 as a former participant4 7,b7 ,the spouse may not make withdrawals under subsection 7h7 or 7i74 7,c7 ,the spouse may not make contributions or transfers to the account4 7,d7 ,the account shall be disbursed upon the death of the surviving spouse of the participant or former participant and shall not be maintained by a beneficiary or surviving spouse of the surviving spouse who inherited the account4 7#c7 ,regulations ,the ,executive ,director shall prescribe regulations to carry out this subsection4 7g7 ,small ,balance ,accounts ,notwithstanding subsection 7b71 if a former participant's account balance is less than an amount that the ,executive ,director prescribes by regulation1 the ,executive ,director shall pay the nonforfeitable account balance to the participant in a single payment4 ,the ,executive ,director may prescribe more than #a balance amount for payment under this subsection based on age of the former participant4 7h7 ,loans 7#a7 ,in general ,a participant or former participant may apply to the ,board for permission to borrow from the participant or former participant's account an amount not exceeding the value of that portion of such account which is attributable to contributions made by the participant or former participant4 ,before a loan is issued1 the ,executive ,director shall provide to the participant or former participant in writing with appropriate information concerning the cost of the loan relative to other sources of financing1 as well as the lifetime cost of the loan1 including the difference in interest rates between the funds offered by the ,fund and any other effect of such loan on the participant or former participant's final account balance4 7#b7 ,special rules 7,a7 ,in general ,loans under this subsection shall be available to all participant and former participants on a reasonably equivalent basis1 and shall be subject to such other conditions as the ,board may prescribe by regulation1 which shall be as equivalent as practically possible to those provided for under the ,thrift ,savings ,plan4 ,the restrictions of section #bjf7;c77#a7 shall not apply to loans made under this subsection4 7,b7 ,limitation based on tax treatment ,a loan may not be made under this subsection to the extent that the loan would be treated as a taxable distribution under section #gb7p7 of the ,internal ,revenue ,code of #aihf4 7,c7 ,spousal protections ,a loan may not be made under this subsection unless the requirements of section #aji are satisfied4 7i7 ,voluntary distributions 7#a7 ,in general ,a participant may apply1 before becoming a former participant1 to the ,board for permission to withdraw an amount from the participant's account based upon-- 7,a7 the participant having attained age #eia_/b2 or 7,b7 financial hardship4 7#b7 ,limitations ,a withdrawal under paragraph 7#a77;,b7 shall be available only for an amount not exceeding the value of that portion of such account which is attributable to contributions made by the participant4 ,withdrawals under paragraph 7#a7 shall be subject to such other limitations or conditions as the ,executive ,director may prescribe by regulation1 which shall be as equivalent as practically possible to those provided for under the ,thrift ,savings ,plan4 7#c7 ,spousal protections ,a withdrawal may not be made under this subsection unless the requirements of section #aji are satisfied4 7j7 ,involuntary distributions 7#a7 ,in general ,a participant shall receive a distribution from the ,fund if the participant's gross income for a taxable year exceeds the dollar threshold 7as adjusted by the ,secretary of the ,treasury7 established under section #dad7q77#a77;,b7 of the ,internal ,revenue ,code of #aihf4 7#b7 ,amount of distribution ,the amount of a distribution under paragraph 7#a7 shall be equal to the sum of such participant's contributions to the ,fund for the taxable year for which such distribution is required under paragraph 7#a71 increased by any gains attributable to such contributions1 and decreased by any losses attributable to such contributions1 any early withdrawal penalties1 and any expenses associated with make such distribution4 7#c7 ,process for distribution 7,a7 ,notice to participant ,the ,executive ,director shall provide notice to a participant subject to a distribution under paragraph 7#a7 not later than #g days after the ,executive ,director determines that such participant is subject to such distribution1 based on information regarding participants' gross income provided by the ,secretary of the ,treasury4 7,b7 ,method of distribution ,not later than #cj days after receiving notice under subparagraph 7,a71 a participant may elect to direct that a distribution under paragraph 7#a7 be made-- 7i7 in the case of an eligible rollover distribution 7as defined in section #djb7;c7 of the ,internal ,revenue ,code of #aihf71 to an eligible retirement plan 7as defined in such section of such code72 or 7ii7 directly to such participant4 7,c7 ,default election ,in the case of a participant who fails to make an election within the period described in subparagraph 7,b71 the ,executive ,director shall make the distribution directly to such participant4 7#d7 ,tax treatment of involuntary distribution ,a distribution made under paragraph 7#a7 directly to the participant under subparagraph 7,b77ii7 or 7,c7 shall be treated as an early distribution from a qualified retirement plan pursuant to section #gb7t7 of the ,internal ,revenue ,code of #aihf to the extent such distribution does not consist of participant contributions to the ,fund4 7k7 ,treatment as ,roth distributions ,the rules of sections #djh7;d7 and #djh;,a7d7 of the ,internal ,revenue ,code of #aihf shall apply to distributions from the ,fund in the same manner as if such ,fund were a ,roth ,,ira4 ,for purposes of the preceding sentence1 contributions made under section #be;,f of such ,code shall be treated as employer contributions which were not includible in gross income4 #ajg4 ,accounts 7a7 ,in general ,the ,executive ,director shall establish and maintain an account for each participant who makes contributions under section #aje7;a71 or for whom contributions are made under section #be;,f of the ,internal ,revenue ,code of #aihf1 to the ,fund4 7b7 ,account balances ,the balance in a participant's account is the excess of-- 7#a7 the sum of-- 7,a7 all contributions made to the ,fund by the participant under section #aje7;a72 7,b7 all contributions made to the ,fund for the benefit of the participant by the ,secretary of the ,treasury under section #be;,f of the ,internal ,revenue ,code of #aihf2 and 7,c7 the total amount of the allocations made to and reduction made in the account pursuant to subsection 7c72 over 7#b7 the amounts paid out of the ,fund with respect to such participant under this title4 7c7 ,allocation of earnings and losses ,pursuant to regulation 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 ,fund attributed to sums credited to such account1 reduced by the appropriate share of the administrative expenses paid out of the net earnings under section #aja7;e7 as determined by the ,executive ,director4 #ajh4 ,tax treatment ,except as otherwise provided in this ,act1 for purposes of the ,internal ,revenue ,code of #aihf1 rules similar to the rules that apply with respect to the ,thrift ,savings ,fund 7including the rules of section #hddj of title #e1 ,united ,states ,code7 shall apply with respect to the ,american ,worker ,retirement ,fund4 #aji4 ,spousal protections2 survivor rights ,the provisions for spousal protections and court orders under section #hdce and #hdfg of title #e1 ,united ,states ,code1 respectively1 shall apply in the same manner to governance of the ,fund and to accounts of participants and former participants as such sections are applied with respect to the ,thrift ,savings ,plan and its accounts4 ,the ,executive ,director shall issue regulations that establish spousal protections and survivor rights with respect to participants and former participants that are as equivalent as practically possible to those provided for under the ,thrift ,savings ,plan pursuant to chapter #hd of title #e1 ,united ,states ,code4 ,,ii ,the ,american ,worker ,retirement ,plan ,investment ,management ,system #bja4 ,the ,american ,worker ,retirement ,investment ,board 7a7 ,establishment ,there is established in the executive branch of the ,government the ,american ,worker ,retirement ,investment ,board4 7b7 ,composition ,the ,board shall be composed of-- 7#a7 #c members appointed by the ,president1 of whom #a shall be designated by the ,president as ,chair2 7#b7 #a member appointed by the ,president after taking into consideration the recommendation made by the majority leader of the ,senate in consultation with the minority leader of the ,senate2 and 7#c7 #a member appointed by the ,president after taking into consideration the recommendation made by the ,speaker of the ,house of ,representatives in consultation with the minority leader of the ,house of ,representatives4 7c7 ,senate confirmation ,appointments under subsection 7b7 shall be made with the advice and consent of the ,senate4 7d7 ,qualifications 7#a7 ,in general ,members of the ,board shall have substantial experience1 training1 and expertise in the management of financial investments and pension benefit plans4 7#b7 ,disqualification ,no member of the ,board may be an officer or employee of the ,federal ,government4 7e7 ,terms2 vacancies 7#a7 ,terms ,a member of the ,board shall be appointed for a term of #d years1 except that of the members first appointed under subsection 7b7-- 7,a7 the ,chair shall be appointed for a term of #d years2 7,b7 the members appointed under paragraphs 7#b7 and 7#c7 of subsection 7b7 shall be appointed for terms of #c years2 and 7,c7 the remaining members shall be appointed for terms of #b years4 7#b7 ,vacancies 7,a7 ,in general ,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 7,b7 ,term ,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 7f7 ,board duties ,the ,board shall-- 7#a7 establish policies for-- 7,a7 the investment and management of the ,fund2 and 7,b7 the administration of title ,i of this ,act2 7#b7 hire and set the compensation for the ,executive ,director2 7#c7 review the performance of investments made for the ,fund2 7#d7 review and approve the budget of the ,board2 and 7#e7 develop evidence-based financial literacy requirements for participants in the ,fund1 including requirements for financial literacy interventions to occur prior to a participant-- 7,a7 taking an early withdrawal from their account at the ,fund pursuant to section #ajf7;i72 and 7,b7 taking a loan from such account pursuant to section #ajf7;h74 7g7 ,board authorities2 investment limitations 7#a7 ,in general ,the ,board may-- 7,a7 adopt1 alter1 and use a seal2 7,b7 except as provided in paragraph 7#b71 direct the ,executive ,director to take such action as the ,board considers appropriate to carry out the provisions of this ,act and the policies of the ,board2 7,c7 upon the concurring votes of #d members1 remove the ,executive ,director from office for good cause shown2 and 7,d7 take such other action as may be necessary to carry out the functions of the ,board4 7#b7 ,exception ,except in the case of investments under section #ajb7;b77#b71 the ,board may not direct the ,executive ,director to invest or to cause to be invested any sums in the ,fund in a specific asset or to dispose of or cause to be disposed of any specific asset of such ,fund4 7h7 ,board responsibilities ,the members of the ,board shall discharge their responsibilities under this ,act solely in the interest of participants and beneficiaries4 7i7 ,budget ,the ,board shall prepare and submit to the ,president1 and1 at the same time1 to the appropriate committees of ,congress1 an annual budget of the expenses and other items relating to the ,board which shall be included as a separate item in the budget required to be transmitted to the ,congress under section #aaje of title #ca1 ,united ,states ,code4 7j7 ,legislative recommendations ,the ,board may submit to the ,president1 and1 at the same time1 shall submit to each ,house of the ,congress1 any legislative recommendations of the ,board relating to any of its functions under this title4 #bjb4 ,the ,american ,worker ,retirement ,plan ,advisory ,council 7a7 ,establishment ,the ,board shall establish an ,american ,worker ,retirement ,plan ,advisory ,council4 ,the ,council shall be composed of #g members appointed by the ,chair of the ,board in accordance with subsection 7b74 7b7 ,appointment ,the ,chair shall appoint #g members of the ,council1 of whom-- 7#a7 #c shall be appointed who have experience managing investment funds2 7#b7 #b shall be appointed who have experience operating small businesses2 and 7#c7 #b shall be appointed who have experience providing investment advice to small businesses and low-income workers4 7c7 ,head of council2 terms2 vacancies 7#a7 ,in general ,the ,chair of the ,board shall designate #a member of the ,council to serve as head of the ,council4 7#b7 ,term ,a member of the ,council shall be appointed for a term of #d years4 7#c7 ,vacancies 7,a7 ,in general ,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 ,term ,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 7d7 ,majority approval ,the ,council shall act by resolution of a majority of the members4 7e7 ,duties ,the ,council shall-- 7#a7 advise the ,board and the ,executive ,director on matters relating to-- 7,a7 investment policies for the ,fund2 and 7,b7 the administration of title ,i of this ,act2 and 7#b7 perform such other duties as the ,board may direct with respect to investment funds established in accordance with title ,i4 #bjc4 ,executive ,director 7a7 ,in general 7#a7 ,appointment ,the ,board shall appoint1 without regard to the provisions of law governing appointments in the competitive service1 an ,executive ,director by action agreed to by a majority of the members of the ,board4 7#b7 ,qualifications ,the ,executive ,director shall have substantial experience1 training1 and expertise in the management of financial investments and pension benefit plans4 7b7 ,duties ,the ,executive ,director shall-- 7#a7 carry out the policies established by the ,board2 7#b7 invest and manage the ,fund in accordance with investment policies and other policies established by the ,board2 7#c7 administer the provisions of this ,act2 7#d7 prescribe such regulations 7other than regulations relating to fiduciary responsibilities7 as may be necessary for the administration of this ,act2 7#e7 meet from time to time with the ,council upon the request of the ,council2 and 7#f7 enforce the financial literary requirements established by the ,board pursuant to #bja7;f77#e74 7c7 ,authorities ,the ,executive ,director may-- 7#a7 prescribe such regulations as may be necessary to carry out the responsibilities of the ,executive ,director under this section1 other than regulations relating to fiduciary responsibilities2 7#b7 appoint such personnel as may be necessary to carry out the provisions of this ,act2 7#c7 subject to approval by the ,board1 procure the services of experts and consultants under section #caji of title #e1 ,united ,states ,code2 7#d7 make such payments out of sums in the ,fund as the ,executive ,director determines are necessary to carry out the provisions of this ,act and the policies of the ,board2 7#e7 pay the compensation1 per diem1 and travel expenses of individuals appointed under paragraphs 7#b71 7#c71 and 7#g7 of this subsection from the ,fund2 7#f7 except as otherwise expressly prohibited by law or the policies of the ,board1 delegate any of the ,executive ,director's functions to such employees under the ,board as the ,executive ,director may designate and authorize such successive redelegations of such functions to such employees under the ,board as the ,executive ,director may consider to be necessary or appropriate2 and 7#g7 take such other actions as are appropriate to carry out the functions of the ,executive ,director4 #bjd4 ,investment policies and selection of asset managers 7a7 ,investment ,policies ,the ,board shall develop investment policies under section #bja7;f77#a7 which provide for-- 7#a7 prudent investments suitable for accumulating funds for payment of retirement income2 and 7#b7 low administrative costs4 7b7 ,asset managers ,the ,board shall select asset managers to manage the ,fund1 subject to the following conditions3 7#a7 ,the ,board shall select a number of asset managers necessary to ensure that no asset manager shall be responsible for managing the greater of-- 7,a7 #ejj1jjj1jjj1jjj2 or 7,b7 #aj percent of the ,fund's assets4 7#b7 ,the ,board shall limit any contract with an asset manager to a maximum of #e years4 #bje4 ,administrative provisions 7a7 ,board meetings ,the ,board shall meet-- 7#a7 not less than once during each month2 and 7#b7 at additional times at the call of the ,chair4 7b7 ,board governance 7#a7 ,in general ,except as provided in section #bja7;g77#a77;,c71 the ,board shall perform the functions and exercise the powers of the ,board on a majority vote of a quorum of the ,board4 7#b7 ,quorum #c members of the ,board shall constitute a quorum for the transaction of business4 7#c7 ,effect of vacancy ,a vacancy on the ,board shall not impair the authority of a quorum of the ,board to perform the functions and exercise the power of the ,board4 7c7 ,board compensation 7#a7 ,in general ,each member of the ,board shall be compensated at the daily rate of basic pay for level ,,iv of the ,executive ,schedule 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 ,payment from fund ,payments authorized under this subsection shall be paid from the ,fund as administrative expenses permitted under section #aja7;e74 #bjf4 ,fiduciary responsibilities2 liability and penalties 7a7 ,definitions ,for the purposes of this section3 7#a7 ,account ,the term account is not limited by the definition provided in section #b4 7#b7 ,adequate consideration ,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 #aicd 7#ae ,u4,s4,c4 #gh;f72 or 7ii7 if the security is not traded on such a national securities exchange1 a price not less favorable to the ,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 ,labor4 7#c7 ,fiduciary ,the term fiduciary means-- 7,a7 a member of the ,board2 7,b7 the ,executive ,director2 7,c7 any person who has or exercises discretionary authority or discretionary control over the management or disposition of the assets of the ,fund2 and 7,d7 any person who1 with respect to the ,fund1 is described in section #c7ba77;,a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7ba77;,a774 7#d7 ,party in interest ,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 ,executive ,director as a fiduciary1 any person providing services to the ,executive ,director2 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 corporation1 7ii7 the capital interest or profits interest of such partnership1 or 7iii7 the beneficial interest of such trust or estate1 is owned directly or indirectly 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 ,duties ,to the extent not inconsistent with the provisions of this ,act and the policies prescribed by the ,board1 a fiduciary shall discharge the fiduciary's responsibilities with respect to the ,fund or applicable portion thereof solely in the interest of the participants and beneficiaries and-- 7#a7 for the exclusive purpose of-- 7,a7 providing benefits to participants and their beneficiaries2 and 7,b7 defraying reasonable expenses of administering the ,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 section #ajb1 by diversifying the investments of the ,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 7c7 ,ownership jurisdictions ,no fiduciary may maintain the indicia of ownership of any assets of the ,fund outside the jurisdiction of the district courts of the ,united ,states4 7d7 ,transactions 7#a7 ,prohibited transactions ,a fiduciary shall not permit the ,fund to engage in any of the following transactions1 except in exchange for adequate consideration3 7,a7 ,a transfer of any assets of the ,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 persons4 7,b7 ,an acquisition of any property from or sale of any property to the ,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 ,fund and any person the fiduciary knows or should know to be a party in interest4 7#b7 ,prohibited actions ,notwithstanding paragraph 7#a71 a fiduciary with respect to the ,fund shall not-- 7,a7 deal with any assets of the ,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 ,fund on behalf of a party1 or representing a party1 whose interests are adverse to the interests of the ,fund or the interests of its participants or beneficiaries2 or 7,c7 receive any consideration of the fiduciary's own personal account from any party dealing with sums credited to the ,fund in connection with a transaction involving assets of the ,fund4 7#c7 ,secretary of ,labor 7,a7 ,in general ,the ,secretary of ,labor may1 in accordance with procedures which the ,secretary of ,labor shall by regulation prescribe1 grant a conditional or unconditional exemption of any fiduciary or transaction1 or class of fiduciaries or transactions1 from all or any of the restrictions imposed by paragraph 7#b74 ,an exemption granted under this subparagraph shall not relieve a fiduciary from any other applicable provision of this ,act4 7,b7 ,conditions ,the ,secretary of ,labor may not grant an exemption under subparagraph 7,a7 unless the ,secretary of ,labor finds that such exemption is-- 7i7 administratively feasible2 7ii7 in the interests of the ,fund and its participants2 and 7iii7 protective of the rights of participants and beneficiaries of such ,fund4 7,c7 ,notice ,an exemption under subparagraph 7,a7 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 of ,labor 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,b74 7,d7 ,application of ,,erisa fiduciary exemptions ,notwithstanding subparagraph 7,c71 the ,secretary of ,labor may determine that an exemption granted for any class of fiduciaries or transactions under section #djh7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajh7;a77 shall1 upon publication of notice in the ,federal ,register under this subparagraph1 constitute an exemption from the application of paragraph 7#b74 7e7 ,nonapplication ,this section does not prohibit any fiduciary from-- 7#a7 receiving any benefit which the fiduciary is entitled to receive under this ,act as a participant1 former participant1 or beneficiary2 7#b7 receiving any reasonable compensation authorized by this ,act for services rendered1 or for reimbursement of expenses properly and actually incurred1 in the performance of the fiduciary's duties under this ,act2 or 7#c7 serving as a fiduciary in addition to being an officer1 employee1 agent1 or other representative of a party in interest4 7f7 ,liability 7#a7 ,in general ,any fiduciary that breaches the responsibilities1 duties1 and obligations set out in subsection 7b7 or violates subsection 7c7 shall be personally liable to the ,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 and1 except as provided in paragraphs 7#c7 and 7#d71 shall be subject to such other equitable or remedial relief as a court considers appropriate4 ,a fiduciary may be removed for a breach referred to in the preceding sentence4 7#b7 ,civil penalties ,the ,secretary of ,labor may assess a civil penalty against a party in interest with respect to each transaction prohibited by subsection 7d7 which is engaged in by the party in interest4 ,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 of ,labor shall prescribe by regulation consistent with section #dige7;f77#e7 of such ,code7 within #ij days after the date the ,secretary of ,labor transmits notice to the party in interest 7or such longer period as the ,secretary of ,labor may permit71 such penalty may be in the amount of not more than #ajj percent of the amount involved4 7#c7 ,special rules 7,a7 ,in general ,a fiduciary shall not be liable under paragraph 7#a7-- 7i7 with respect to a breach of fiduciary duty under subsection 7b7 committed before becoming a fiduciary or after ceasing to be a fiduciary2 7ii7 for providing for the automatic enrollment of a participant in accordance with section #ajd2 7iii7 for enrolling a participant or beneficiary in a default investment fund or option in accordance with section #ajd2 or 7iv7 for allowing a participant or beneficiary to invest through the mutual fund window or for establishing restrictions applicable to participants' or beneficiaries' ability to invest through the mutual fund window4 7,b7 ,joint and several liability ,a fiduciary shall be jointly and severally liable under paragraph 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#d7 ,allocation of duties ,the ,secretary of ,labor shall prescribe1 in regulations1 procedures for allocating fiduciary responsibilities among fiduciaries1 including asset managers4 ,any fiduciary who1 pursuant to such procedures1 allocates to any person any fiduciary responsibility shall not be liable for an act or omission of such person unless such fiduciary violated subsection 7b7 with respect to the allocation1 with respect to the implementation of the procedures prescribed by the ,secretary of ,labor4 7#e7 ,other civil actions 7,a7 ,in general ,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 subparagraphs 7,b7 and 7,c74 7,b7 ,actions permitted ,a civil action may be brought in the district courts of the ,united ,states-- 7i7 by the ,secretary of ,labor against any fiduciary other than a member of the ,board or the ,executive ,director of the ,board-- 7,i7 to determine and enforce a liability under paragraph 7#a72 7,,ii7 to collect any civil penalty under paragraph 7#b72 7,,iii7 to enjoin any act or practice which violates any provision of subsection 7b7 or 7c72 7,,iv7 to obtain any appropriate equitable relief to redress a violation of any such provision2 or 7,v7 to enjoin any act or practice which violates subsection 7g77#b7 or 7h7 of section #bja2 7ii7 by any participant1 beneficiary1 or fiduciary-- 7,i7 to enjoin any act or practice which violates any provision of subsection 7b7 or 7c72 7,,ii7 to obtain any other appropriate equitable relief to redress a violation of any such provision2 or 7,,iii7 to enjoin any act or practice which violates subsection 7g77#b7 or 7h7 of section #bja2 or 7iii7 by any participant or beneficiary-- 7,i7 to recover benefits of such participant or beneficiary under the provisions of title ,i1 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 7,,ii7 to enforce a claim otherwise cognizable under sections #acdf7;b7 and #bfga through #bfhj of title #bh1 ,united ,states ,code1 except that the remedy against the ,united ,states provided by section #acdf7;b7 and #bfgb of such title #bh 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,c7 ,representation 7i7 ,in general ,in all civil actions under subparagraph 7,b77i71 attorneys appointed by the ,secretary may represent the ,secretary 7except as provided in section #eah7;a7 of title #bh1 ,united ,states ,code71 however1 all such litigation shall be subject to the direction and control of the ,attorney ,general4 7ii7 ,attorney ,general ,the ,attorney ,general shall defend any civil action or proceeding brought in any court against any fiduciary referred to in subparagraph 7,b77iii77,,ii7 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 ,executive ,director1 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 7iii7 ,certification of scope of duty ,upon certification by the ,attorney ,general that a fiduciary described in subparagraph 7,b77iii77,,ii7 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 the ,state court shall be-- 7,i7 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 7,,ii7 deemed a tort action brought against the ,united ,states under the provisions of title #bh1 ,united ,states ,code1 and all references thereto4 7iv7 ,compromise or settlement ,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 payments 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 7v7 ,certain claims ,for the purposes of subparagraph 7,b77iii77,,ii71 the provisions of section #bfhj7;h7 of title #bh1 ,united ,states ,code1 shall not apply to any claim based upon an alleged violation of subsection 7b7 or 7c74 7vi7 ,payment of awards ,notwithstanding sections #acdf7;b7 and #bfga through #bfhj of title #bh1 ,united ,states ,code1 whenever an award1 compromise1 or settlement is made under such section 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 with in the ,fund1 or where there is no such appropriate account1 to the participant or beneficiary bringing the claim4 7vii7 ,definition ,for purposes of subparagraph 7,b77iii77,,ii71 the term fiduciary includes only the members of the ,board and the ,board's ,executive ,director4 7,d7 ,limitation on monetary relief ,any relief awarded against a member of the ,board or the ,board's ,executive ,director in a civil action authorized by subparagraph 7,b7 may not include any monetary damages or any other recovery of money4 7,e7 ,time for commencement of action ,an action may not be commenced under clause 7i7 or 7ii7 of subparagraph 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-- 7i7 #f years after-- 7,i7 the date of the last action which constituted a part of the breach or violation2 or 7,,ii7 in the case of an omission1 the latest date on which the fiduciary could have cured the breach or violation2 or 7ii7 #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,f7 ,jurisdiction 7i7 ,in general ,the district courts of the ,united ,states shall have exclusive jurisdiction of civil actions under this subsection4 7ii7 ,venue ,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,g7 ,other rules 7i7 ,in general ,a copy of the complaint or petition filed in any action brought under this subsection 7other than by the ,secretary of ,labor7 shall be served on the ,executive ,director1 the ,secretary of ,labor1 and the ,secretary of the ,treasury by certified mail4 7ii7 ,intervention ,any officer referred to in clause 7i7 shall have the right in the officer's discretion to intervene in any action4 ,if the ,secretary of ,labor brings an action under subparagraph 7,b77i7 on behalf of a participant or beneficiary1 the ,secretary of ,labor shall notify the ,executive ,director and the ,secretary of the ,treasury4 7g7 ,regulations ,the ,secretary of ,labor may prescribe regulations to carry out this section4 7h7 ,audits 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 ,delegation ,an audit under this subsection may be conducted by the ,secretary of ,labor1 by contract with a qualified non-governmental organization1 or in cooperation with the ,comptroller ,general of the ,united ,states1 as the ,secretary of ,labor considers appropriate4 #bjg4 ,bonding 7a7 ,requirements 7#a7 ,in general ,except as provided in paragraph 7#b71 each fiduciary and each person who handles funds or property of the ,fund shall be bonded as provided in this section4 7#b7 ,exceptions 7,a7 ,in general ,bond shall not be required of a fiduciary 7or of any officer or employee of such fiduciary7 if such fiduciary-- 7i7 is a corporation organized and doing business under the laws of the ,united ,states or of any ,state2 7ii7 is authorized under such laws to exercise trust powers or to conduct an insurance business2 7iii7 is subject to supervision or examination by ,federal or ,state authority2 and 7iv7 has at all times a combined capital and surplus in excess of such minimum amount 7not less than #a1jjj1jjj7 as the ,secretary of ,labor prescribes in regulations4 7,b7 ,limitation ,if-- 7i7 a bank or other financial institution would1 but for this subparagraph1 not be required to be bonded under this section by reason of the application of the exception provided in subparagraph 7,a71 7ii7 the bank or financial institution is authorized to exercise trust powers1 and 7iii7 the deposits of the bank or financial institution are not insured by the ,federal ,deposit ,insurance ,corporation1 such exception shall apply to such bank or financial institution only if the bank or institution meets bonding requirements under ,state law which the ,secretary of ,labor determines are at least equivalent to those imposed on banks by ,federal law4 7b7 ,regulations 7#a7 ,in general ,the ,secretary of ,labor shall prescribe the amount of a bond under this section at the beginning of each fiscal year4 ,such amount shall not be less than #aj percent of the amount of funds handled1 except that in no case shall such bond be less than #a1jjj or more than #ejj1jjj1 or such higher amount as the ,secretary of ,labor1 after due notice and opportunity for hearing to all interested parties1 and other consideration of the record1 may prescribe4 7#b7 ,amount of funds handled ,for the purpose of prescribing the amount of a bond under paragraph 7#a71 the amount of funds handled shall be determined by reference to the amount of the funds handled by the person1 group1 or class to be covered by such bond or by their predecessor or predecessors1 if any1 during the preceding fiscal year1 or to the amount of funds to be handled during the current fiscal year by such person1 group1 or class1 estimated as provided in regulations prescribed by the ,secretary of ,labor4 7c7 ,terms ,a bond required by subsection 7a7-- 7#a7 shall include such terms and conditions as the ,secretary of ,labor considers necessary to protect the ,fund against loss by reason of acts of fraud or dishonesty on the part of the bonded person directly or through connivance with others2 7#b7 shall have as surety thereon a corporate surety company which is an acceptable surety on ,federal bonds under authority granted by the ,secretary of the ,treasury pursuant to sections #icjd through #icjh of title #ca1 ,united ,states ,code2 and 7#c7 shall be in a form or of a type approved by the ,secretary of ,labor1 including individual bonds or schedule or blanket forms of bonds which cover a group or class4 7d7 ,custody of funds 7#a7 ,in general ,it shall be unlawful for any person to whom subsection 7a7 applies1 to receive1 handle1 disburse1 or otherwise exercise custody or control of any of the funds or other property of the ,fund without being bonded as required by this section4 7#b7 ,fiduciaries ,it shall be unlawful for any fiduciary1 or any other person having authority to direct the performance of functions described in paragraph 7#a71 to permit any such function to be performed by any person to whom subsection 7a7 applies unless such person has met the requirements of such subsection4 7e7 ,exemption ,notwithstanding any other provision of law1 any person who is required to be bonded as provided in subsection 7a7 shall be exempt from any other provision of law which would1 but for this subsection1 require such person to be bonded for the handling of the funds or other property of the ,fund4 7f7 ,regulations ,the ,secretary of ,labor shall prescribe such regulations as may be necessary to carry out the provisions of this section1 including exempting a person or class of persons from the requirements of this section4 #bjh4 ,investigative authority ,any authority available to the ,secretary of ,labor under section #ejd of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aacd7 is hereby made available to the ,secretary of ,labor1 and any officer designated by the ,secretary of ,labor1 to determine whether any person has violated1 or is about to violate1 any provision of sections #bjf or #bjg4 #bji4 ,exculpatory provisions2 insurance 7a7 ,exculpatory provisions void ,any provision in an agreement or instrument which purports to relieve a fiduciary from responsibility or liability for any responsibility1 obligation1 or duty under this title shall be void4 7b7 ,insurance ,in accordance with section #aja7;e71 the sums credited to the ,fund shall be available to pay administrative expenses which may include1 at the discretion of the ,executive ,director1 the purchase of insurance to cover potential liability of persons who serve in a fiduciary capacity with respect to the ,fund1 without regard to whether a policy of insurance permits recourse by the insurer against the fiduciary in the case of a breach of a fiduciary obligation4 #baj4 ,subpoena authority 7a7 ,subpoena authority ,in order to carry out the responsibilities specified in this ,act1 the ,executive ,director may issue subpoenas commanding each person to whom the subpoena is directed to produce designated books1 documents1 records1 electronically stored information1 or tangible materials in the possession or control of that individual4 7b7 ,liability ,notwithstanding any ,federal1 ,state1 or local law1 any person1 including officers1 agents1 and employees1 receiving a subpoena under this section1 who complies in good faith with the subpoena and thus produces the materials sought1 shall not be liable in any court of any ,state or the ,united ,states to any individual1 domestic or foreign corporation or upon a partnership or other unincorporated association for such production4 7c7 ,enforcement ,when a person fails to obey a subpoena issued under this section1 the district court of the ,united ,states for the district in which the investigation is conducted or in which the person failing to obey is found1 shall on proper application issue an order directing that person to comply with the subpoena4 ,the court may punish as contempt any disobedience of its order4 7d7 ,regulations ,the ,executive ,director shall prescribe regulations to carry out subsection 7a74 ,,iii ,government ,match ,tax ,credit #cja4 ,government ,match ,tax ,credit 7a7 ,credit ,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;,e the following new section3 #be;,f4 ,government ,match ,tax ,credit 7a7 ,allowance of credit ,in the case of an eligible individual1 there shall be allowed as a credit for the taxable year an amount equal to the sum of-- 7#a7 #a percent of the eligible individual's gross income1 plus 7#b7 the applicable percentage of the participant's contributions to the ,american ,worker ,retirement ,fund during the taxable year4 7b7 ,applicable percentage ,for purposes of this section1 the applicable percentage is-- 7#a7 #ajj percent of so much of the contributions to the ,american ,worker ,retirement ,fund as do not exceed #c percent of gross income1 7#b7 #ej percent of so much of such contributions as exceeds #c percent but does not exceed #e percent of gross income1 and 7#c7 #j percent for such contributions that exceed #e percent of so much of such contributions as exceeds #e percent of gross income4 7c7 ,phaseout 7#a7 ,in general ,the credit determined under subsection 7a7 shall be reduced by #ge for each #a1jjj or portion thereof by which the eligible individual's gross income exceeds the phaseout amount4 7#b7 ,phaseout amount ,for purposes of paragraph 7#a71 the phaseout amount is-- 7,a7 in the case of a joint return1 an amount equal to #bjj percent of the ,united ,states median income for the preceding taxable year1 as determined by the ,secretary1 7,b7 in the case of a head of household 7as defined in section #b7;b771 #c_/d of the amount determined under subparagraph 7,a71 and 7,c7 in any other case1 #a_/b of the amount determined under subparagraph 7,a74 7d7 ,eligible individual ,for purposes of this section1 the term eligible individual has the meaning given the term participant by section #b7ac7 of the ,retirement ,savings for ,americans ,act of #bjbb4 7e7 ,american ,worker ,retirement ,fund ,for purposes of this section1 the ,american ,worker ,retirement ,fund is the ,fund created under section #aja7;a7 of the ,retirement ,savings for ,americans ,act of #bjbb4 7f7 ,deposit into participant's account 7#a7 ,in general ,any amount allowed as a credit under subsection 7a7-- 7,a7 shall not be allowed as a credit against any tax imposed by this subtitle1 and 7,b7 shall be treated as an overpayment under section #fdja7;b74 7#b7 ,payment ,the ,secretary shall contribute the amount treated as an overpayment under paragraph 7#a7 to the eligible individual's account with the ,american ,worker ,retirement ,fund4 7g7 ,advance payment 7#a7 ,regulations ,the ,secretary shall prescribe regulations to provide that the payments made under subsection 7f7 are made as concurrently as is reasonably possible with contributions by a taxpayer to the ,american ,worker ,retirement ,fund4 ,such regulations shall provide that1 for purposes of such payments1 the credit under subsection 7a7 may be determined on the basis of the eligible individual's gross income for the preceding taxable year4 7#b7 ,excess payments ,if the aggregate amount of payments under subsection 7f7 with respect to an eligible individual for any taxable year exceeds the amount of the credit allowed under subsection 7a7 to such individual for such taxable year1 the tax imposed by this chapter for such taxable year shall be increased by the amount of such excess4 ,any failure to so increase the tax shall be treated as arising out of a mathematical or clerical error and assessed according to section #fbac7;b77#a74 7h7 ,forfeit of amounts 7#a7 ,in general ,if any contribution described in subsection 7a7 does not remain in the ,american ,worker ,retirement ,fund for at least #f months after such contribution is made1 the amount of the credit under this section attributable to such contribution shall be forfeited as provided in paragraph 7#b74 7#b7 ,treatment of forfeited amounts ,in the case of any contribution to which paragraph 7#a7 applies-- 7,a7 the ,executive ,director of the ,american ,worker ,retirement ,fund1 as appointed under section #bjc of the ,retirement ,savings for ,americans ,act of #bjbb1 shall make a distribution from the individual's account in an amount equal to such contribution to the ,secretary for deposit into the general fund of the ,treasury1 and 7,b7 in the case of any earnings on such contribution1 such earnings shall be distributed by such ,executive ,director from the individual's account and shall be available to the ,executive ,director1 without need of further appropriation1 for administrative expenses described in section #aja7;e7 of such ,act4 7#c7 ,forfeited amounts not includible in gross income ,any distribution made under paragraph 7#b7 shall not be includible in the gross income of the individual4 4 7b7 ,clerical amendments ,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 #bf;,e the following new item3 ,sec4 #be;,f4 ,government ,match ,tax ,credit4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbb4