,i  #aahth ,,congress  #ast ,session    
,h4 ,r4 #cidb  ,,in ,,the ,,house ,,of  
,,representatives  ,june #i1 #bjbc,mr4  
,norcross 7for himself and ,mr4         
,walberg7 introduced the following bill2
 which was referred to the ,committee on
 ,education and the ,workforce  ,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  7a7 ,in
 general ,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,a7-- 7,a7 by inserting or
 subparagraph 7,c71 as appropriate1     
after subparagraph 7,b72 and  7,b7 by   
inserting or in a covered annuity       
contract after by the ,secretary2 and   
7#b7 by adding at the end the following3

  7,c7 ,covered annuity contract  7i7   
,in general ,for purposes of this       
paragraph1 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  
notice in writing in accordance with    
clause 7ii74  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 ,notice requirement ,for the       
purposes of this subparagraph1 each     
participant or beneficiary shall be     
provided notice in writing in a manner  
that is reasonably designed to be       
understood by the average plan          
participant1 as follows3 7,i7 ,not later
 than #cj days in advance of the initial
 investment1 a notice 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       
information in writing about their      
investment alternatives2 and  7ee7 a    
description of how to obtain a copy of  
the annuity contract4  7,,ii7 ,not later
 than #cj days before the date of the   
imposition of a liquidity restriction   
described in subclause 7i77,i71 that    
includes--  7aa7 a statement explaining 
that the participant's or beneficiaries'
 contributions will shortly become      
subject to liquidity restrictions2  7bb7
 an explanation of the rights of the    
participant or beneficiary to direct or 
transfer amounts to be invested in      
alternatives under the plan2 and  7cc7  
an explanation of how a participant or  
beneficiary may obtain additional       
information about their investment      
alternatives4  7iii7 ,definition of     
annuity contract ,for purposes of this  
subparagraph1 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  4  7b7 ,effective date    
,the amendments made by subsection 7a7  
shall apply with respect to investments 
made on or after the date of enactment  
of this ,act4