<enum>I</enum><header>USA Retirement funds</header><section id="id5e50e920ee0e4fd3b444ad499d62abff"><enum>101.</enum><header>Automatic USA Retirement Fund arrangements</header><subsection id="id677274e8e48547548cc5e879bb456cbe"><enum>(a)</enum><header>Requirement To provide access</header><text>Each covered employer shall make available to each qualifying employee for the calendar year an automatic USA Retirement Fund arrangement.</text></subsection><subsection id="id37771f176c584b91a0543ea61730c10f"><enum>(b)</enum><header>Covered employer</header><text>For purposes of this title—</text><paragraph id="id72521bdd82864e4ba33292095f08c794"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection and subsection (c)(2), the term <term>covered employer</term> means, with respect to any calendar year, an employer who does not maintain a qualifying plan or arrangement for any part of such year.</text></paragraph><paragraph id="id38303B3884034983B273E4A081944463"><enum>(2)</enum><header>Qualifying plan or arrangement</header><subparagraph id="id74E9963A407942F4B38D5940ADC881EB"><enum>(A)</enum><header>In general</header><text>The term <term>qualifying plan or arrangement</term> means a plan or arrangement described in <external-xref legal-doc="usc" parsable-cite="usc/26/219">section 219(g)(5)</external-xref> of the Internal Revenue Code of 1986.</text></subparagraph><subparagraph id="ida7c3446faf5b420da448a2ed6a8c26f8"><enum>(B)</enum><header>Exceptions</header><text>Such term shall not include the following:</text><clause id="idED1F213C14C24C4F8EB8083270E67630"><enum>(i)</enum><header>Frozen defined benefit plan</header><text>A defined benefit plan that had no ongoing accruals as of the first day of the preceding calendar year, unless the plan failed to have accruals only because of the application of section 206 of the Employee Retirement Income Security Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1056">29 U.S.C. 1056</external-xref>) and <external-xref legal-doc="usc" parsable-cite="usc/26/436">section 436</external-xref> of the Internal Revenue Code of 1986.</text></clause><clause id="id14F56AD1E78144AA980E2230727D9DF2"><enum>(ii)</enum><header>Defined contribution plan without lifetime income options</header><text>A defined contribution plan that does not provide participants with a distribution option that provides lifetime income.</text></clause><clause id="id86148EF547C340B591865148471C554D"><enum>(iii)</enum><header>Plans not meeting contribution requirements</header><text>A plan—</text><subclause id="id187237094F6147838DE6A1ED9919AB69"><enum>(I)</enum><text>which consists of a cash or deferred arrangement (as defined in section 401(k) of such Code) with respect to which the employer does not automatically enroll all eligible employees at contribution rates at or above those specified in subsection (d)(4); or</text></subclause><subclause id="id63EBAD793AAC43E58EBE526B345FA944"><enum>(II)</enum><text>for which the only contributions are nonelective employer contributions and with respect to which the employer’s annual contribution rate is not at or above the rates specified in subsection (d)(4).</text></subclause></clause></subparagraph></paragraph><paragraph id="id91c99fc4febf4a779832af999f5b9a96"><enum>(3)</enum><header>Exception for certain small and new employers</header><subparagraph id="idbec3d721fb59462d814b98dc1be7ea16"><enum>(A)</enum><header>In general</header><text>The term <term>covered employer</term> shall not include an employer for a calendar year if the employer—</text><clause id="id08a1360f49404b92bb728298fdc80a42"><enum>(i)</enum><text>did not employ during the preceding calendar year more than 10 employees who each received at least $5,000 of compensation (as defined in section 3401(a) of the Internal Revenue Code of 1986) from the employer for such preceding calendar year;</text></clause><clause id="id826ba4f04f9e414bbf5de8cd1a69505f"><enum>(ii)</enum><text>did not normally employ more than 10 employees on a typical business day during the preceding calendar year; or</text></clause><clause id="idccefa6747dfe47678419c628919d4be2"><enum>(iii)</enum><text>was not in existence at all times during the calendar year and the preceding calendar year.</text></clause></subparagraph><subparagraph id="idf3b08aeacd94465dabb1ede466dce6d0"><enum>(B)</enum><header>Operating rules</header><text>In determining the number of employees for purposes of subparagraph (A)—</text><clause id="idc8a58f02fa7948c7b62c47114ef17473"><enum>(i)</enum><text>rules consistent with any rules applicable in determining the number of employees for purposes of section 408(p)(2)(C) and section 4980B(d) of the Internal Revenue Code of 1986 shall apply;</text></clause><clause id="id2e16db987a5a41c4bb73fd6a381e28c3"><enum>(ii)</enum><text>all members of the same family (within the meaning of section 318(a)(1) of the Internal Revenue Code of 1986) shall be treated as 1 individual; and</text></clause><clause id="id6a1c2362bb9a4ff5a9eb3c6fd689010e"><enum>(iii)</enum><text>any reference to an employer shall include a reference to any predecessor employer.</text></clause></subparagraph></paragraph><paragraph id="idd5692efbf3f946ff8ca689acdf701214"><enum>(4)</enum><header>Exception for governments and churches</header><text>The term <term>covered employer</term> shall not include—</text><subparagraph id="id14aa75af5050480d90a88aac5c346534"><enum>(A)</enum><text>a government or entity described in <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414(d)</external-xref> of the Internal Revenue Code of 1986; or</text></subparagraph><subparagraph id="idf50e6d143a9440f2bebf87d22470db18"><enum>(B)</enum><text>a church or a convention or association of churches that is exempt from tax under section 501 of such Code.</text></subparagraph></paragraph><paragraph id="ida0dc10c2d4cf4afc9d1b74ed65becef3"><enum>(5)</enum><header>Aggregation rule</header><text>A person treated as a single employer under subsection (a) or (b) of section 52 of the Internal Revenue Code of 1986 or subsection (m) or (o) of section 414 of such Code shall be treated as a single employer.</text></paragraph></subsection><subsection id="id4aaf41581914437c9c95f042ae1a10c1"><enum>(c)</enum><header>Qualifying employee</header><text>For purposes of this title—</text><paragraph id="ide984ebfb6c08419893db10aca16cb949"><enum>(1)</enum><header>In general</header><text>The term <term>qualifying employee</term> means any employee who is not an excluded employee.</text></paragraph><paragraph id="ide9041419448e4e28bf177c66e688df85"><enum>(2)</enum><header>Plan sponsor's employees</header><text>If—</text><subparagraph id="id39cde15bb956444593086f8a7d26d964"><enum>(A)</enum><text>an employer maintains one or more qualifying plans or arrangements described in section 219(g)(5) of the Internal Revenue Code of 1986; and</text></subparagraph><subparagraph id="idf093704ffdc24c4eb14cf9cb96e6acf0"><enum>(B)</enum><text>the employees of a subsidiary, division, or other business unit are generally not eligible to participate in any such qualifying plan or arrangement,</text></subparagraph><continuation-text continuation-text-level="paragraph">for purposes of this section, the employer shall be treated as a covered employer with respect to such employees (other than excluded employees), and such employees (other than excluded employees) shall be treated as qualifying employees for the calendar year.</continuation-text></paragraph><paragraph id="idd790f9c952e5457f846362b3b0144d13"><enum>(3)</enum><header>Excluded employees</header><subparagraph commented="no" id="iddc72915486b0429f9090aef3c453b436"><enum>(A)</enum><header>In general</header><text>The term <term>excluded employee</term> means an employee who is an excludable employee and who is in a class or category that the employer excludes from treatment as qualifying employees.</text></subparagraph><subparagraph id="id170e1724f522400d9eac625368cee895"><enum>(B)</enum><header>Excludable employee</header><text>The term <term>excludable employee</term> means—</text><clause id="id050f083a5a8649349a942efebf402ed3"><enum>(i)</enum><text>an employee described in <external-xref legal-doc="usc" parsable-cite="usc/26/410">section 410(b)(3)</external-xref> of the Internal Revenue Code of 1986;</text></clause><clause id="id67130b6f65d94f18ae0d6dd729753a33"><enum>(ii)</enum><text>an employee who has not attained the age of 21 before the beginning of the calendar year;</text></clause><clause id="id0ffebe63d8ab4b06850ea86feef4fc4c"><enum>(iii)</enum><text>an employee who has not completed at least 3 months of service with the employer;</text></clause><clause id="id2217634212b740b392742469458a8563"><enum>(iv)</enum><text>in the case of an employer that maintains a qualifying plan or arrangement which excludes employees who have not satisfied the minimum age and service requirements for participation in the plan, an employee who has not satisfied such requirements;</text></clause><clause id="idd54902b34b874fedb267b73be3160d60"><enum>(v)</enum><text>in the case of an employer that maintains an annuity contract (including a custodial account or retirement income account) under section 403(b) of the Internal Revenue Code of 1986, an employee who is permitted to be excluded from any salary reduction arrangement under the contract pursuant to paragraph (12) of such section 403(b);</text></clause><clause id="idbb75c94b248f49c48b4e4c2afeccc006"><enum>(vi)</enum><text>in the case of an employer that maintains an arrangement described in section 408(p) of such Code, an employee who is not required to be eligible to participate in the arrangement under paragraph (4) of such section 408(p); and</text></clause><clause id="idd9dd901946bd456f8ac89cb901984173"><enum>(vii)</enum><text>in the case of an employer that maintains a simplified employee pension described in section 408(k) of such Code, an employee who is permitted to be excluded from participation under paragraph (2) of such section 408(k).</text></clause></subparagraph></paragraph><paragraph id="id48cf295531a24264bee096fd44ea0574"><enum>(4)</enum><header>Guidance</header><text>The Secretary of Labor (in this title referred to as the <quote>Secretary</quote>) shall issue regulations or other guidance to carry out this subsection, including—</text><subparagraph id="idfb927155da8c4b27b96ebf6107ea280c"><enum>(A)</enum><text>guidelines for determining the classes or categories of employees to be covered by a USA Retirement Fund;</text></subparagraph><subparagraph id="id0986c242a4624207bf7514bf9fbed402"><enum>(B)</enum><text>guidelines requiring employers to specify the classification or categories of employees (if any) who are excluded from the USA Retirement Fund; and</text></subparagraph><subparagraph commented="no" id="idcc68b900450b48ca95d34ac591e12633"><enum>(C)</enum><text>rules to prevent avoidance of the requirements of this section.</text></subparagraph></paragraph></subsection><subsection id="iddc6c4f827a8d4830bbebeaa236676d7a"><enum>(d)</enum><header>Automatic USA Retirement Fund arrangement</header><text>For purposes of this title—</text><paragraph id="id7eb17d1ee4b74a5e9e872b4049662fda"><enum>(1)</enum><header>In general</header><text>The term <term>automatic USA Retirement Fund arrangement</term> means an arrangement of an employer (determined without regard to whether the employer is required to maintain the arrangement)—</text><subparagraph id="id31f2f3e945d047a5a1f746428ebec66f"><enum>(A)</enum><text>that covers each qualifying employee of the covered employer for the calendar year;</text></subparagraph><subparagraph id="id4ef50f303b1747c38e014bb8bfd072be"><enum>(B)</enum><text>under which a qualifying employee—</text><clause id="idc72c8ed8f4d0490ea91bc273f76cade6"><enum>(i)</enum><text>may elect—</text><subclause id="idcdd4da99bc4a452c9d566a0d4154c420"><enum>(I)</enum><text>to contribute to an automatic USA Retirement Fund by having the employer deposit payroll deduction amounts or make other periodic direct deposits (including electronic payments) to the Fund; or</text></subclause><subclause id="id739f145c786b48df86e3d13d5e5165d7"><enum>(II)</enum><text>to have such payments paid to the employee directly in cash;</text></subclause></clause><clause id="idf9812cd80987432ebb534f337369f5d7"><enum>(ii)</enum><text>is treated as having made the election under clause (i)(I) in the amount specified in paragraph (4) unless the individual specifically elects not to have such contributions made (or specifically elects to have such contributions made at a different percentage or in a different amount); and</text></clause><clause id="id1ef7d8c15e1f47f383402ef7a1736e29"><enum>(iii)</enum><text>not more than once per calendar year, may elect to modify the selection of the USA Retirement Fund to which contributions are made for such year; and</text></clause></subparagraph><subparagraph id="idf0d370d207254243a380938e6908a657"><enum>(C)</enum><text>that meets the administrative requirements of paragraph (3), including the notice requirement of paragraph (3)(C).</text></subparagraph></paragraph><paragraph id="idfdea0e09e3234112a600263364aed954"><enum>(2)</enum><header>Automatic re-enrollment</header><text>An employee’s election not to contribute to a USA Retirement Fund (or to have such contributions made at a different percentage or in a different amount from those specified in paragraph (4)) shall expire after 2 years. After such 2-year period and absent a new election, the employee shall be treated as having made the election under paragraph (1)(B)(i)(I) in the amount specified in paragraph (4).</text></paragraph><paragraph id="id7f398ed9125d4f0590d7e2eccfe41a1d"><enum>(3)</enum><header>Administrative requirements</header><subparagraph id="id61995a0f58a349848647b2d45968bbf8"><enum>(A)</enum><header>Payments</header><text>An employer shall make the payments elected or treated as elected under paragraph (1)(B) on or before—</text><clause id="idf4015c18aeeb4080be93929c3cf9a52d"><enum>(i)</enum><text>the last day of the month following the month in which the compensation otherwise would have been payable to the employee in cash; or</text></clause><clause id="id405eb71d05ae4c21991cedb48ecb5e2b"><enum>(ii)</enum><text>such later date as the Secretary may prescribe.</text></clause></subparagraph><subparagraph id="idf7f2913299d0444a86ebe0bd4fb98f21"><enum>(B)</enum><header>Termination of employee participation</header><text>Subject to a requirement for reasonable notice, an employee may elect to terminate participation in the arrangement at any time during a calendar year. The arrangement may provide that, if an employee so terminates participation, the employee may not elect to resume participation until the beginning of the next calendar year.</text></subparagraph><subparagraph id="id61c50493c3c34e2cbfd36acb659aac2f"><enum>(C)</enum><header>Notice of election period</header><text>The employer shall notify each employee eligible to participate for a year in a USA Retirement Fund arrangement, within a reasonable period of time before the 30th day before the beginning of such year (and, for the first year the employee is so eligible, the 30th day before the first day such employee is so eligible), of—</text><clause id="idbce0095e152a41fdb533197eac7b7a87"><enum>(i)</enum><text>the payments that may be elected or treated as elected under paragraph (1)(B);</text></clause><clause id="ida5dadf01e5734532ad46c4bceda4b7ab"><enum>(ii)</enum><text>the opportunity to make the election to terminate participation in the arrangement under subparagraph (B);</text></clause><clause id="id8edcf5f84a614ed6bf3054b37744a31a"><enum>(iii)</enum><text>the opportunity to make the election under paragraph (1)(B)(ii) to have contributions or purchases made at a different percentage or in a different amount; and</text></clause><clause id="id1ddf214878b24173b5f6d3a7d78200e4"><enum>(iv)</enum><text>the opportunity under paragraph (1)(B)(iii) to modify the manner in which such amounts are invested for such year.</text></clause></subparagraph><subparagraph id="id1c712613132f4560858a50902fab22e0"><enum>(D)</enum><header>Employees may choose usa retirement fund</header><text>The arrangement shall provide that a qualified employee may elect to have contributions made to any USA Retirement Fund available to the employee.</text></subparagraph></paragraph><paragraph id="id339937aad0424f43ac79e2350473ff3e"><enum>(4)</enum><header>Amount of contributions and payments</header><text>The amount specified in this paragraph is—</text><subparagraph id="id019ea86a6a4c41eeafac309358a73030"><enum>(A)</enum><text>3 percent of compensation for the calendar year beginning on January 1, 2015;</text></subparagraph><subparagraph id="idc20cb43ce10042218a2fb2b010825a37"><enum>(B)</enum><text>4 percent of compensation for the calendar year beginning on January 1, 2016;</text></subparagraph><subparagraph id="ide03293050ba04d65b8814a429dedf573"><enum>(C)</enum><text>5 percent of compensation for the calendar year beginning on January 1, 2017; and</text></subparagraph><subparagraph id="id3122fb6a4df046a8a698f0be1267aefd"><enum>(D)</enum><text>6 percent of compensation for calendar years beginning after December 31, 2017.</text></subparagraph></paragraph><paragraph id="id7eea607a04fc46ec85745f91fe08ba76"><enum>(5)</enum><header>Coordination with withholding</header><text>The Secretary of the Treasury shall modify the withholding exemption certificate under section 3402(f) of the Internal Revenue Code of 1986 so that, in the case of any qualifying employee covered by a USA Retirement Fund arrangement, any notice and election requirements with respect to the arrangement may be met through the use of an attachment to such certificate or other modifications of the withholding exemption procedures.</text></paragraph></subsection><subsection id="iddcf8e0eb66b041699264998492860ec8"><enum>(e)</enum><header>Deposits to USA Retirement Funds</header><paragraph commented="no" id="id787f9586c8304df4acbe4ee3ccf2e6fd"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), an employer shall make all contributions on behalf of employees to the USA Retirement Fund specified by the employee.</text></paragraph><paragraph commented="no" id="idDB253447180343CFB1237C861FDBDB5B"><enum>(2)</enum><header>USA retirement funds other than those selected by employee</header><text>In the absence of an affirmative selection of a USA Retirement Fund by the employee, contributions on behalf of the employee shall be made to the USA Retirement Fund designated by the employer.</text></paragraph><paragraph commented="no" id="id3cf1ce8a262e4390bd4615061be98c23"><enum>(3)</enum><header>Regulations</header><text>The Secretary may issue such regulations as are necessary to carry out this subsection.</text></paragraph></subsection><subsection id="id4b1a91b927ba4e4bb4860b5d44466575"><enum>(f)</enum><header>Preemption of conflicting State laws</header><text>The requirements under this section preempt any law of a State that directly or indirectly prohibits or restricts the establishment or operation of an automatic USA Retirement Fund arrangement. Nothing in this section shall be construed to impair or preempt any State law to the extent such State law provides a remedy for the failure to make payroll deposit payments under any such automatic USA Retirement Fund arrangement within the period required.</text></subsection></section><section id="id81720f27d8d940da9224d72002a1ca22"><enum>102.</enum><header>Establishment of USA Retirement Funds</header><subsection id="id0f426388e81d41fa8af9158c574298bc"><enum>(a)</enum><header>Qualification as a USA Retirement Fund</header><text>For purposes of this title—</text><paragraph id="idd3fac2f85f564fa6a94c701317ca6634"><enum>(1)</enum><header>In general</header><text>The term <term>USA Retirement Fund</term> means a fund for which the Secretary has determined the requirements under this title are met.</text></paragraph><paragraph id="id8bd181becafe4f208fb4f8f1a4b2d755"><enum>(2)</enum><header>Request for determination</header><text>The board of trustees of a program established for purposes of being treated as a USA Retirement Fund under this section shall, prior to beginning operations, submit to the Secretary (at such time and in such manner as the Secretary may prescribe) a request for the Secretary to make a determination as to whether the plan meets the requirements of this title for such treatment. Such request shall include copies of the written documents establishing the plan and such other materials as the Secretary may request. The Secretary shall make such determination within 180 days of receiving such request.</text></paragraph><paragraph id="id1f48a444151249618185ef94b1ad2d7e"><enum>(3)</enum><header>Periodic review</header><text>The Secretary shall establish a process to periodically review each plan determined to be a USA Retirement Fund under paragraph (1) to ensure that the plan continues to meet the requirements of this title.</text></paragraph><paragraph id="id9ee16052f44b4b448b7faa1a139eafa4"><enum>(4)</enum><header>Public list of plans</header><text>The Secretary shall maintain a public list of plans determined by the Secretary to qualify as USA Retirement Funds. Such list shall be posted to a publicly available Internet website.</text></paragraph></subsection><subsection id="id0a43335885244fbf8552b1d6960eaa30"><enum>(b)</enum><header>Participation</header><paragraph commented="no" id="id9208913d9daf4642ad6c9a5af44082d4"><enum>(1)</enum><header>Eligibility</header><text>An individual may participate in any USA Retirement Fund for which such individual meets the eligibility requirements, individually or through an arrangement established by an employer.</text></paragraph><paragraph id="iddb5a327ed3084dc4998754b2eaa6b2d4"><enum>(2)</enum><header>Participation in other plans</header><text>An individual who participates in a USA Retirement Fund shall not be precluded from participating in a plan or arrangement described in section 219(g)(5) of the Internal Revenue Code of 1986.</text></paragraph></subsection><subsection id="id51e1e86d8f7649d986801081d9c374ed"><enum>(c)</enum><header>Governance</header><paragraph id="ida1b0ab2a50324245a037b6eb96036abe"><enum>(1)</enum><header>Assets held in trust; board of trustees</header><text>For purposes of this title—</text><subparagraph id="id407296FBD2EE4A1AB00C1660685AE775"><enum>(A)</enum><text>the assets of each USA Retirement Fund shall be held in trust, and</text></subparagraph><subparagraph id="id4493C6E65F1F41B885BBF313634D43AB"><enum>(B)</enum><text>the Fund shall be governed by a board of trustees which shall consist of at least 3 individuals who—</text><clause id="ide0059ba8709c4f0c902c422ba05788f0"><enum>(i)</enum><text>are independent of service providers to the Fund;</text></clause><clause id="id5f3b7b8276f34143ac4134dab547a9ce"><enum>(ii)</enum><text>meet the qualification requirements established under this section; and</text></clause><clause id="id0faa56eeb21949d39bf08464bf2778b6"><enum>(iii)</enum><text>are collectively able to adequately represent the interests of active participants, retirees, and contributing employers.</text></clause></subparagraph></paragraph><paragraph id="idab1740dc44f243bb8109ceec162b1ebd"><enum>(2)</enum><header>Independence requirement</header><text>An individual is not independent of Fund service providers for purposes of paragraph (1)(B)(i) if such individual—</text><subparagraph id="id3d2a286c71f140028ca7f7be1a76518d"><enum>(A)</enum><text>is an employee of any Fund service provider;</text></subparagraph><subparagraph id="id98a7012e33c84b9fa04642556fba1e66"><enum>(B)</enum><text>is a current or former officer or director of a significant Fund service provider, or is otherwise affiliated with such a provider;</text></subparagraph><subparagraph id="id077cf028a29142a39cb0723388f5e134"><enum>(C)</enum><text>is a member of the immediate family of any person who is affiliated with a significant Fund service provider;</text></subparagraph><subparagraph id="id57800b1fe19341a1a7d1fe4be98a44a6"><enum>(D)</enum><text>derives more than 1 percent of the individual's annual income from a significant Fund service provider;</text></subparagraph><subparagraph id="id0ba35db32dc441fba3776dd1c1875311"><enum>(E)</enum><text>derives more than 5 percent of the individual's annual income from any Fund service provider; or</text></subparagraph><subparagraph id="ide9fd3930ee634944b1405ba5c352e5dd"><enum>(F)</enum><text>fails to meet meets such other criteria as are specified by the Secretary to ensure the independence of the board of directors.</text></subparagraph></paragraph><paragraph id="id515c7f2873d1402c816fe9dea12462a8"><enum>(3)</enum><header>Multiple trusteeships</header><text>No individual may serve on the board of trustees of more than 1 USA Retirement Fund unless the Secretary receives attestation from the board of trustees of each applicable USA Retirement Fund and the individual that, at the time of appointment, there is no reasonably foreseeable conflict between the duties of such individual to the participants in each applicable USA Retirement Fund. In no case may an individual serve on the boards of trustees of more than 3 USA Retirement Funds.</text></paragraph><paragraph id="id1530646dd2b249139309ac36f2da49c2"><enum>(4)</enum><header>Trustee qualifications</header><text>Each trustee of a USA Retirement Fund shall attest that the trustee is knowledgeable of the trustee's duties and responsibilities as a fiduciary of a USA Retirement Fund. The Secretary may require by regulation such other qualifications and documentation as may be necessary to ensure that trustees are suitable and qualified. Such requirements may include those related to education, training, and minimum competency standards.</text></paragraph><paragraph id="idd39efbab9cc740739d9cfa95c0beb326"><enum>(5)</enum><header>Trustee selection and removal</header><subparagraph id="id675599bb09e84c76808dece94b7e1af5"><enum>(A)</enum><header>In general</header><text>Each board of trustees of a USA Retirement Fund shall establish written procedures regarding the appointment, removal, and replacement of trustees on the board. Such procedures shall—</text><clause id="id8a99c8f0a12d4588bba40d6dda5e24d9"><enum>(i)</enum><text>take effect after adoption by the majority of the board of trustees;</text></clause><clause id="id0ccbb763729d45e291a99b22c821718b"><enum>(ii)</enum><text>be readily available to participants;</text></clause><clause id="idc291ca219f984104b59699928bc97f61"><enum>(iii)</enum><text>provide participants with a reasonable opportunity to comment on, or participate in, the trustee selection process; and</text></clause><clause id="id74becdb5eb6846f581c4b591ebfd2e50"><enum>(iv)</enum><text>provide for periodic election of trustees.</text></clause></subparagraph><subparagraph id="id18deebd4cfc741fdb901964207db441d"><enum>(B)</enum><header>Removal by the secretary</header><text>The Secretary may require removal or suspension of a trustee if the conduct of the trustee is fraudulent or is causing, or can be reasonably expected to cause, significant, imminent, and irreparable harm to the participants or beneficiaries of a USA Retirement Fund.</text></subparagraph><subparagraph id="id55eed02e584c4505a80a69e473d99fae"><enum>(C)</enum><header>Funds without qualified trustees</header><text>If a board of trustees of a USA Retirement Fund has no members meeting the criteria under this subsection, the Secretary shall appoint replacement trustees.</text></subparagraph></paragraph><paragraph id="id05dc1df25a004932b8f74990fcaffc86"><enum>(6)</enum><header>Trustee compensation</header><text>Trustees of the Fund may be compensated at reasonable rates from the Fund, but only if such compensation is paid in accordance with the written board compensation policy adopted under paragraph (7)(A)(iv).</text></paragraph><paragraph id="id7c1532548d42433ea349295d319a8a46"><enum>(7)</enum><header>Transparency and participant democracy</header><subparagraph id="idb94f6a587eaf4249a7bbbc0fba8727ad"><enum>(A)</enum><header>Publicly available policies</header><text>The board of trustees of a USA Retirement Fund shall adopt and make available to participants and beneficiaries of, and employers contributing to, the USA Retirement Fund—</text><clause id="id19836bc6e0494248a98e82be20aef782"><enum>(i)</enum><text>a written investment policy statement;</text></clause><clause id="idcb5cf5683d344bde8193ab153902498e"><enum>(ii)</enum><text>a written lifetime income policy statement;</text></clause><clause id="id47d4d0b6980d4bb9a79a0fa16eaaf160"><enum>(iii)</enum><text>an annual performance assessment of the board of trustees, including an evaluation of weaknesses of the board and a plan to address such weaknesses;</text></clause><clause id="id3d6cb4d995924e21a702a1ec97dcc3b5"><enum>(iv)</enum><text>a written board compensation policy that includes current compensation levels and provides a reasonable opportunity for comment from participants, beneficiaries, and employers; and</text></clause><clause id="idb49e298df7574cbca5a0865c787e9fa8"><enum>(v)</enum><text>a written policy addressing conflicts of interests with respect to trustees.</text></clause></subparagraph><subparagraph id="id25ae4ae65a0741928811a2abbbb31f29"><enum>(B)</enum><header>Participant input regarding board of trustees</header><clause id="id6ca02157ddd24a2ebdb42bfda255a8d2"><enum>(i)</enum><header>In general</header><text>The board of trustees of a USA Retirement Fund shall establish procedures whereby a participant or beneficiary of such USA Retirement Fund may—</text><subclause id="idca1f7c87c43141978a14f8456ddbbd8f"><enum>(I)</enum><text>petition the board of trustees to remove a trustee or service provider;</text></subclause><subclause id="idab19e925ae68464c996bfb6f574846c4"><enum>(II)</enum><text>comment on the management and administration of the USA Retirement Fund; and</text></subclause><subclause id="id64e77db5091e4693bd80f7c8058c49b3"><enum>(III)</enum><text>with respect to a USA Retirement Fund with more than $250,000,000 of assets, vote to approve or disapprove the compensation of the trustees at least once every 3 years.</text></subclause></clause><clause id="id26644ed853144444a427ad97fd67095f"><enum>(ii)</enum><header>Effect of vote</header><text>If participants and beneficiaries of a USA Retirement Fund vote to disapprove the compensation of trustees under clause (i)(III)—</text><subclause id="idfbeb0260d14f40a89f6e5f3b9b4fa125"><enum>(I)</enum><text>the results of such vote shall not be binding on the board of trustees; and</text></subclause><subclause id="idf23c1ef8ed91489eb9ca6d22d2a2a447"><enum>(II)</enum><text>the board of trustees shall notify the Secretary of the results of such vote and provide an explanation of why the compensation is reasonable or anticipated changes to the compensation.</text></subclause></clause></subparagraph></paragraph><paragraph id="id60867bdb213f4cbbb04f0e7bb8bd34a5"><enum>(8)</enum><header>Liability insurance for trustees</header><text>The trustees of each USA Retirement Fund shall have fiduciary liability insurance with a per-claim limit equal to no less than the greater of—</text><subparagraph id="id298526e9ebb549e398f997bd5d1cbb32"><enum>(A)</enum><text>5 percent of plan assets; or</text></subparagraph><subparagraph id="id39cf85c78b914653aa29613da418e522"><enum>(B)</enum><text>$1,000,000.</text></subparagraph></paragraph><paragraph id="id0dba87b0370a41919bb8a3a32d0d4bf9"><enum>(9)</enum><header>Trustee duties</header><subparagraph id="idc2ec33c43818482bb9fe11442b284115"><enum>(A)</enum><header>In general</header><text>The trustees of a USA Retirement Fund shall manage the Fund with the intention of providing each participant with a cost-effective stream of income in retirement and reducing benefit level volatility (particularly for those approaching retirement).</text></subparagraph><subparagraph id="id4497fc74d49c42f3a1fbbd4621f162d0"><enum>(B)</enum><header>Applicability of other requirements</header><text>Each trustee of a USA Retirement Fund shall be a fiduciary subject to sections 404(a), 404(b), 405, 406, and 408 through 413 of the Employee Retirement Income Security Act of 1974 with respect to the Fund and participants and beneficiaries of the Fund. Each such trustee shall be subject to the standards and remedies of such sections and section 502 of such Act, as if the Fund were an employee benefit plan.</text></subparagraph></paragraph></subsection><subsection id="id8e109b4c07d44b89a520c9d4d9697d42"><enum>(d)</enum><header>Employer contribution limitation</header><paragraph id="id2f77e16299cd4cc4a63ea1cc1016b8f4"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), employers may, in addition to contributions an employee elects (or is treated as having elected) to have made, make a contribution of up to $5,000 per year to a USA Retirement Fund on behalf of each employee eligible to participate in a USA Retirement Fund, provided such contributions are made in a uniform manner (as the same dollar amount for each such employee or the same percentage of pay for each such employee) and are not intended to benefit solely highly compensated employees.</text></paragraph><paragraph id="idbde78500a2d3406b85930852272de4b6"><enum>(2)</enum><header>Annual indexing of amount</header><text>The dollar amount under paragraph (1) shall be indexed annually for inflation.</text></paragraph></subsection><subsection id="id1d916cdaeb834bb3bd1d11793c88a5da"><enum>(e)</enum><header>Benefits in the form of an annuity</header><paragraph id="idc36b2f30e1404f2cb516180e66e21a9c"><enum>(1)</enum><header>In general</header><text>A USA Retirement Fund shall pay benefits in the form of an annuity in accordance with paragraph (2). The amount of such benefits shall be dependent on the amount of contributions made by the participant, the experience of the Fund, and the form of distribution elected by the participant. The amount of an annuity may be adjusted to reflect the experience of the Fund as necessary to protect the financial integrity of the Fund, except that annuity payments for those in pay status shall not be reduced more than 5 percent per year unless the Fund is faced with a significant financial hardship and the Secretary has approved the reduction.</text></paragraph><paragraph id="id5e0f16034803412e9136440f292f2584"><enum>(2)</enum><header>Annuity</header><text>A USA Retirement Fund shall pay benefits in accordance with one of the following:</text><subparagraph id="id6A4F5587AFD04B9682522071A64307E2"><enum>(A)</enum><text>In the case of a participant who does not die before the annuity starting date, the benefit payable to such participant shall be provided in the form of a qualified joint and survivor annuity (as defined in section 205(d)(1) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1055">29 U.S.C. 1055(d)(1)</external-xref>)).</text></subparagraph><subparagraph id="idc69ee25554b34dfb89010dde8bdc20b9"><enum>(B)</enum><text>In the case of a participant who dies before the annuity starting date and who has a surviving spouse, a qualified preretirement survivor annuity (as defined in section 205(d)(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1055(d)(2))) shall be provided to the surviving spouse of such participant.</text></subparagraph><subparagraph id="id10e0956b1fe94eddb22eecd89c0f20b0"><enum>(C)</enum><text>In lieu of a qualified joint and survivor annuity form of benefit or the qualified preretirement survivor annuity form of benefit (or both), a participant may elect to receive a distribution described in subsection (f)(2) if one of the following conditions are met:</text><clause id="idC363660D1C204098A3A73F4C4A883453"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="id8F1D2D26963545B19007576C14F51D8A"><enum>(I)</enum><text>The spouse of the participant consents in writing to the election.</text></subclause><subclause id="idBCDECEE5B4DA43B5864E97EA4C3ACBE9" indent="up1"><enum>(II)</enum><text>Such election designates a beneficiary (or form of benefits) which may not be changed without spousal consent (or the consent of the spouse expressly permits designations by the participant without any requirement of further consent by the spouse).</text></subclause><subclause id="id398F5586F3274D1FAAA3B5AA3211B2B6" indent="up1"><enum>(III)</enum><text>The spouse’s consent acknowledges the effect of such election and is witnessed by a plan representative or a notary public.</text></subclause></clause><clause id="id581FA832081E4A07ADB3B556B0004659"><enum>(ii)</enum><text>It is established to the satisfaction of a Fund representative that the consent required under subclause (I) cannot be obtained because there is no spouse, because the spouse cannot be located, or because of such other circumstances as the Secretary may by regulations prescribe.</text></clause><continuation-text continuation-text-level="subparagraph">The consent of a spouse (or establishment that the consent of a spouse cannot be obtained) under this subparagraph shall be effective only with respect to such spouse.</continuation-text></subparagraph></paragraph><paragraph id="id313b9489c47244c585dc8046bcca8fe6"><enum>(3)</enum><header>Commencement of benefit payments</header><text>A participant may elect the time to start receiving benefit payments from the USA Retirement Fund, except that a participant—</text><subparagraph id="idF1C0E6F10B1245AC998CD9D59AB0D497"><enum>(A)</enum><text>except as provided in subsection (f)(2)(B), may not elect to receive benefit payments before reaching the age of 60; and</text></subparagraph><subparagraph id="id3F6EAAAA169D4371BF939B3A1A1E660D"><enum>(B)</enum><text>must begin receiving benefit payments before the age of 72.</text></subparagraph></paragraph><paragraph id="id0dd1747839bf4a1c8ece311618091bc7"><enum>(4)</enum><header>Notice</header><text>Each Fund shall provide to each participant, within a reasonable period of time before the annuity starting date, a written explanation substantially similar to that required by section 205(c)(3) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1055">29 U.S.C. 1055(c)(3)</external-xref>).</text></paragraph><paragraph id="id60689a93a5cf433b89559614825068c2"><enum>(5)</enum><header>Assignment or alienation of fund benefits</header><text>Benefits under a USA Retirement Fund shall be subject to section 206(d) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1056">29 U.S.C. 1056(d)</external-xref>).</text></paragraph></subsection><subsection id="id6a2e65f7d8f642e1859240b03cfe0091"><enum>(f)</enum><header>Limits on withdrawals and transfers</header><paragraph id="id8ac4c90e826e4db0a317e378c226fef3"><enum>(1)</enum><header>Transfers</header><text>A participant may, not more frequently than once per year, transfer such participant's benefit to another USA Retirement Fund.</text></paragraph><paragraph id="id4468af1ab6034b98b54590b1b062e9c5"><enum>(2)</enum><header>Limits on distributions</header><subparagraph id="idCA9E9DB494D14AC982C7B1CC748E9E76"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraphs (B) and (C), a participant may not take a distribution other than one described in subsection (e)(2).</text></subparagraph><subparagraph id="id6AE797DCC7204647A8A98E02EC296499"><enum>(B)</enum><header>Participants aged 59 and younger</header><text>A participant may before age 60 take a distribution of a portion of the participant's benefit if such distribution does not to exceed $5,500 and is rolled over to a qualifying plan or arrangement described in section 219(g)(5) of the Internal Revenue Code of 1986 or an individual retirement plan.</text></subparagraph><subparagraph id="id47C387EFC84C4BB798669A226C727A8D"><enum>(C)</enum><header>Participants aged 60 and older</header><text>A participant who is 60 or older but who has not entered pay status may elect one time to take a distribution of the greater of $10,000 or 50 percent of the participant's benefit if the participant demonstrates to the satisfaction of the trustees of the Fund that the participant has sufficient retirement income apart from the Fund or is facing a substantial hardship.</text></subparagraph></paragraph></subsection><subsection id="idf95bf14d935f44a0bc10b0bc37e941c5"><enum>(g)</enum><header>Methods for providing annuitized benefit payments</header><paragraph id="id9c5fe1d43c964501b055efe4880b4124"><enum>(1)</enum><header>In general</header><text>A USA Retirement Fund shall establish and maintain mechanisms for adequately securing the payment of annuity benefits from the Fund. The Fund shall include a written description of such mechanisms in the investment and lifetime income policy statements required to be disclosed to participants.</text></paragraph><paragraph id="ideacae6947efa41fe9db4085c0bae6f8e"><enum>(2)</enum><header>Specific goals</header><text>The mechanisms described in paragraph (1) shall ensure that—</text><subparagraph id="id5e82985cefdc470e8188bc4ebf448f86"><enum>(A)</enum><text>each participant receives a stream of income for life;</text></subparagraph><subparagraph id="idb5ac63ecba1c40e5b723f3648f23027d"><enum>(B)</enum><text>each participant and beneficiary has an opportunity to be protected against longevity risk; and</text></subparagraph><subparagraph id="id3570cf98740f4a59854d919524847eba"><enum>(C)</enum><text>volatility in benefit levels is minimized for participants and beneficiaries in pay status and those approaching pay status.</text></subparagraph></paragraph><paragraph id="id8f48a20076b3408680e9dd8706f96a27"><enum>(3)</enum><header>Self-annuitization</header><subparagraph id="id34C4CA2B71674FA6A0A6C1432CC30E65"><enum>(A)</enum><header>In general</header><text>Notwithstanding any other provision of law, a USA retirement Fund may self-annuitize if the Fund meets such requirements as the Secretary establishes as necessary to protect participants and beneficiaries in consideration of the recommendations of the Commission under section 103.</text></subparagraph><subparagraph id="id82464050cc114282a0d06bf7b3404124"><enum>(B)</enum><header>Duty to address emerging issues</header><text>The Secretary shall, periodically and in accordance with established procedures, update the funding requirements promulgated under this paragraph in response to changing economic and business conditions to the extent necessary to carry out the purposes of this Act, taking into consideration the recommendations of the Commission.</text></subparagraph></paragraph></subsection><subsection id="idea18670071fa41fe92952bfc2d8c767f"><enum>(h)</enum><header>Reporting and disclosure</header><paragraph id="id6b1c45352578442ea89e259c4e14f3d6"><enum>(1)</enum><header>Annual statement</header><text>The trustees of a USA Retirement Fund shall provide each participant in the Fund an annual statement of—</text><subparagraph id="id0e89a27d48ec484993804c9027f6b326"><enum>(A)</enum><text>the estimated amount of the monthly benefit which the participant or beneficiary is projected to receive from the USA Retirement Fund, in the form of the default benefit described in the plan in accordance with subsection (e)(2);</text></subparagraph><subparagraph id="id7a611c95870a417ea153fde9abc8c4ad"><enum>(B)</enum><text>an explanation, written in a manner calculated to be understood by the average plan participant, that includes interest and mortality assumptions used in calculating the estimate and a statement that actual benefits may be materially different from such estimate;</text></subparagraph><subparagraph id="id9dc07b98fb7e412db9e90be45ce71f9b"><enum>(C)</enum><text>a disclosure of Fund fees and performance that is substantially similar to the disclosures required of individual account plans under the Employee Retirement Income Security Act of 1974;</text></subparagraph><subparagraph id="id529daadde2274bb5afb3ff5a3c874ef5"><enum>(D)</enum><text>any other disclosures, including projected benefit estimates, that the board of trustees of the USA Retirement Fund determines appropriate; and</text></subparagraph><subparagraph id="id7f1a399f2a434db99bca56f44b4c749a"><enum>(E)</enum><text>such other disclosures as may be required by the Secretary.</text></subparagraph></paragraph><paragraph id="id00b6eaeaa79f43a9833b32682dd14ade"><enum>(2)</enum><header>Summary plan description</header><text>The trustees of a USA Retirement Fund shall provide participants a summary plan description (as described in section 102 of the Employee Retirement Income Security Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1022">29 U.S.C. 1022</external-xref>)) as required by section 104(b) of the Employee Retirement Income Security Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1024">29 U.S.C. 1024(b)</external-xref>).</text></paragraph><paragraph id="id61ecb7e9cb04449db4366ecaa762367f"><enum>(3)</enum><header>Annual reports</header><text>The trustees of a USA Retirement Fund shall file with the Secretary of Labor periodic reports in accordance with regulations promulgated by the Secretary.</text></paragraph><paragraph id="id0bfda90cf0594234a5c07577642ad52d"><enum>(4)</enum><header>Additional requirements</header><text>Each USA Retirement Fund shall be subject to sections 106 and 107 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1026">29 U.S.C. 1026</external-xref>, 1027).</text></paragraph></subsection></section><section id="id00e22423baf64318856bf29f143185f7"><enum>103.</enum><header>Commission on USA Retirement Funds</header><subsection id="idceaaa4e241454e5bbbee02d109d5435c"><enum>(a)</enum><header>Recognition of private commission</header><text>The Secretary shall—</text><paragraph id="idE98EC27C1D0240C1A26438E56900605F"><enum>(1)</enum><text>recognize an independent, private commission, to be known as the <quote>Commission for USA Retirement Funds Funding</quote> (referred to in this title as the <quote>Commission</quote>), and</text></paragraph><paragraph id="id65C8F88275A44324A01808E18973B26E"><enum>(2)</enum><text>in carrying out the Secretary's duties under this title, consider the recommendations of such Commission.</text></paragraph></subsection><subsection id="idbbdb0534eb234c78b113cdc47b940b83"><enum>(b)</enum><header>Commission</header><text>The Commission recognized under subsection (a) shall meet the following requirements:</text><paragraph id="idF3015EE7A0754B03B7B83610F788B501"><enum>(1)</enum><header>Membership</header><subparagraph id="ide54bce9dc8194e76aad4907fc63831e6"><enum>(A)</enum><header>Composition</header><text>The Commission shall be composed of 9 members selected by the Secretary, in consultation with the Secretary of the Treasury, of whom no more than 5 may be from one political party. The Secretary shall designate one member of the Commission as the Chairman. No person may be appointed to the Commission if, during the 2-year period preceding the date of appointment, such person was a trustee of a USA Retirement Fund.</text></subparagraph><subparagraph id="id5f60ffb910554e7e8a5afffc154f524c"><enum>(B)</enum><header>Date</header><text>The appointments of the members of the Commission shall be made not later than 90 days after the date of enactment of this Act.</text></subparagraph><subparagraph id="id67ec940cb8af468a990cd63458a4c70e"><enum>(C)</enum><header>Period of appointment; vacancies</header><text>Members shall be appointed for terms of 2 years and may be appointed for consecutive terms. Any vacancy in the Commission shall not affect its powers, and shall be filled in the same manner as the original appointment.</text></subparagraph></paragraph><paragraph id="idea6042b8eea24fa896b981d3ade1b12d"><enum>(2)</enum><header>Majority vote</header><text>The Commission may act by majority vote of its members, provided that at least 7 members are present.</text></paragraph><paragraph id="id310c908fa0ea4360b501cbca36dec762"><enum>(3)</enum><header>Commission personnel matters</header><subparagraph id="id5b3acdab0a47480eaa70c7cd1d226a22"><enum>(A)</enum><header>Compensation of members</header><text>Each member of the Commission who is not an officer or employee of the Federal Government shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level IV of the Executive Schedule under section 5315 of title 5, United States Code, for each day (including travel time) during which such member is engaged in the performance of the duties of the Commission. All members of the Commission who are officers or employees of the United States shall serve without compensation in addition to that received for their services as officers or employees of the United States.</text></subparagraph><subparagraph id="idf1537fea7b5c4e94b5911f6351551c0d"><enum>(B)</enum><header>Travel expenses</header><text>The members of the Commission shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/57">chapter 57</external-xref> of title 5, United States Code, while away from their homes or regular places of business in the performance of services for the Commission.</text></subparagraph><subparagraph id="id559baabc4f934db1a8561e634b393df1"><enum>(C)</enum><header>Staff</header><clause id="idd7dfe841bae44c0989003abc843ceb06"><enum>(i)</enum><header>In general</header><text>The Chairman of the Commission may, without regard to the civil service laws and regulations, appoint and terminate an executive director and such other additional personnel as may be necessary to enable the Commission to perform its duties. The employment of an executive director shall be subject to confirmation by the Commission.</text></clause><clause id="id3890bd8d65e141d6a69bc17406272145"><enum>(ii)</enum><header>Compensation</header><text>The Chairman of the Commission may fix the compensation of the executive director and other personnel without regard to chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating to classification of positions and General Schedule pay rates, except that the rate of pay for the executive director and other personnel may not exceed the rate payable for level V of the Executive Schedule under section 5316 of such title.</text></clause><clause id="id83f6c22de66d46e3a52fc3e09b78890a"><enum>(iii)</enum><header>Detail of government employees</header><text>Any Federal Government employee may be detailed to the Commission without reimbursement, and such detail shall be without interruption or loss of civil service status or privilege.</text></clause><clause id="id92756db12bfa49699ef93006d08f62e0"><enum>(iv)</enum><header>Procurement of temporary and intermittent services</header><text>The Chairman of the Commission may procure temporary and intermittent services under section 3109(b) of title 5, United States Code, at rates for individuals which do not exceed the daily equivalent of the annual rate of basic pay prescribed for level V of the Executive Schedule under section 5316 of such title.</text></clause></subparagraph></paragraph><paragraph id="idcf4cd3be83714d0691cd3c594bb2744b"><enum>(4)</enum><header>Recommendations and regulations on funding and distribution requirements</header><subparagraph id="idcf8b41e15ec64e64b71a1e2a509673ab"><enum>(A)</enum><header>In general</header><text>After taking into consideration the recommendations of the Commission and providing the public notice and an opportunity for comment, the Secretary shall promulgate regulations with respect to funding and distribution requirements for USA Retirement Funds, as necessary or appropriate in the public interest and for the protection of participants and beneficiaries, including regulations described in subparagraphs (B) and (C).</text></subparagraph><subparagraph commented="no" id="id45d3064dc6a747479b1fad8c0e0c03a6"><enum>(B)</enum><header>Requirements relating to annuity payments made directly by a Fund</header><text>The regulations under subparagraph (A) shall provide that in the case of annuity payments made directly by the Fund—</text><clause commented="no" id="id1CA9856E9D1749129D6C75ECAEEEC6BC"><enum>(i)</enum><text>the maximum annuity payment for a participant or beneficiary shall be determined using the mortality tables and interest rates prescribed by the Secretary under subparagraph (C) at the time benefits commence; and</text></clause><clause commented="no" id="idC27E275605D64012A05A428A67BED0EC"><enum>(ii)</enum><text>the level of benefits paid may be adjusted periodically in order to reflect the mortality experience and the investment experience of the Fund, but only after the Fund has obtained a certification from a member of the American Academy of Actuaries that the adjustment is sustainable for the remaining lifetime of participants then receiving benefits, based on the mortality tables and interest rates prescribed under subparagraph (C) by the Secretary for that time.</text></clause></subparagraph><subparagraph id="id80b0e86e78004d72a24495a33fdf21aa"><enum>(C)</enum><header>Mortality tables and interest rates used requirements</header><text>The regulations promulgated under subparagraph (A) shall include the following:</text><clause id="id68479a440ae94f65ba2fdaccc580b65a"><enum>(i)</enum><header>Mortality Tables</header><subclause id="id4EFA8388772A4603B2A3C96BEC919FA5"><enum>(I)</enum><header>In general</header><text>The Secretary shall prescribe mortality tables to be used in determining annuity payments made directly by the Fund. Such tables shall be based on the actual experience of insurance companies that issue group annuities and projected trends in such experience. In prescribing such tables, the Secretary shall take into account results of available independent studies of the mortality of individuals receiving annuities under group annuity contracts.</text></subclause><subclause id="id0A58C5C4C85E45D288D953623747BEF7"><enum>(II)</enum><header>Periodic revisions of mortality tables</header><text>The Secretary shall make revisions, to become effective as soon as practicable, in any mortality table in effect to reflect more recent actual experience of insurance companies that issue group annuities and projected trends in such experience. In revising such tables, the Secretary shall take into account the results of more recent available independent studies of the mortality and projected trends of individuals receiving annuities under group annuity contracts.</text></subclause></clause><clause id="idCE1256B0C84F41D28926A0BAD8CD7789"><enum>(ii)</enum><header>Interest Rates</header><text>The Secretary shall prescribe interest rates to be used in determining annuity payments made directly by the Fund. Such rates shall be based on the yields on investment grade corporate bonds with varying maturities and that are in the top 3 quality levels available. Interest rates shall be prescribed quarterly or more frequently, as determined by the Secretary.</text></clause></subparagraph></paragraph><paragraph id="id27EDF3F6924E4F09B4723689E2961507"><enum>(5)</enum><header>Duty to address best practices</header><text>The Commission shall prepare, and periodically update, a report that describes the best practices for the governance of boards of trustees of USA Retirement Funds, including board of trustee composition, appointment procedures, term length, term staggering, trustee qualifications, delegation of duties, and performance assessment procedures.</text></paragraph></subsection></section><section id="idb6bf400f3c944ec8a8283786cfac4257"><enum>104.</enum><header>Limitation on employer liability</header><text display-inline="no-display-inline">Section 404 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1021">29 U.S.C. 1021 et seq.</external-xref>) is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id2d1633bd75974ff4a14ce2a73fbffff1" style="OLC"><subsection id="id173b8eecad1643f8b0a062437c88c149"><enum>(e)</enum><text>An employer shall not be a fiduciary with respect to the selection, management or administration of a USA Retirement Fund solely because such employer makes available such Fund through an automatic USA Retirement Fund arrangement. Notwithstanding the preceding sentence, employers participating in a USA Retirement Fund shall be responsible for meeting the enrollment requirements and transmitting contributions, as required under the <short-title>USA Retirement Funds Act</short-title>.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="ide4adc43672af428895c37431728011f1"><enum>105.</enum><header>Enforcement and fraud prevention</header><subsection id="id208f33c938544409b22f0c30b2f015cf"><enum>(a)</enum><header>Penalty for failure To timely remit contributions to automatic USA Retirement Fund arrangements</header><paragraph id="id029cf5ed23a745cd8cddeb594275d385"><enum>(1)</enum><header>In general</header><text>If an employer is required under an automatic USA Retirement Fund arrangement to deposit amounts withheld from an employee's compensation into a USA Retirement Fund but fails to do so within the time prescribed under section 101(d)(3), such amounts shall be treated as assets of a USA Retirement Fund.</text></paragraph><paragraph id="id18eec17bb3f04aa79df6344365e610e7"><enum>(2)</enum><header>Failure to provide access to payroll savings arrangements</header><subparagraph id="id5326f3f92aff4964a57af7e7462b372c"><enum>(A)</enum><header>General rule</header><text>A covered employer who fails to meet the requirements of section 101(a) for a calendar year shall be subject to a civil money penalty of $100 per calendar year for each employee to whom such failure relates.</text></subparagraph><subparagraph id="idEBDF71368AB44FA5B3B010490318820C"><enum>(B)</enum><header>Exceptions</header><text>No civil money penalty shall be imposed under this paragraph for a failure to meet the requirements under section 101(a)—</text><clause id="id008FF98E627A433EB9A487ECA159EC8F"><enum>(i)</enum><text>during a period for which the Secretary determines that the employer subject to liability for the civil money penalty did not know that the failure existed and exercised reasonable diligence to meet the requirements of section 101(a); or</text></clause><clause id="id6A6FDD67F01B4E55A09C6B129E3AA712"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="id205030D4CEEA4A89AA2CBC4232F09F37"><enum>(I)</enum><text>the employer subject to liability for the civil money penalty exercised reasonable diligence to meet the requirements of section 101(a); and</text></subclause><subclause id="id812A0999030B4314858B34F3F27D5F36" indent="up1"><enum>(II)</enum><text>the employer provides the automatic USA Retirement Fund arrangement described to each employee eligible to participate in the arrangement by the end of the 90-day period beginning on the first date the employer knew, or exercising reasonable diligence should have known, that such failure existed.</text></subclause></clause></subparagraph><subparagraph id="id415986644cc14ca9829cb5d299a95032"><enum>(C)</enum><header>Waiver by the secretary</header><text>In the case of a failure to meet the requirements of section 101(a) that is due to reasonable cause and not to willful neglect, the Secretary may, in the sole discretion of the Secretary, waive part or all of the civil money penalty imposed under this paragraph to the extent that the payment of such civil money penalty would be excessive or otherwise inequitable relative to the failure involved.</text></subparagraph><subparagraph id="id5474421d6ba5482cb4631ff9de2477dd"><enum>(D)</enum><header>Procedures for notice</header><text>The Secretary may prescribe and implement procedures for obtaining confirmation that employers are in compliance with subsection (a). The Secretary, in the discretion of such Secretary, may prescribe that the confirmation shall be obtained on an annual or less frequent basis, and may use for this purpose the annual report or quarterly report for employment taxes, or such other means as the Secretary may deem advisable.</text></subparagraph></paragraph></subsection><subsection id="id805dc3ec689b4624aefe5b9126067795"><enum>(b)</enum><header>Civil actions and enforcement</header><paragraph id="id6045603241394d19a51077044d8cfcf0"><enum>(1)</enum><header>Administration and enforcement</header><text>Part 5 of title I of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1132">29 U.S.C. 1132 et seq.</external-xref>) shall apply to a USA Retirement Fund as if a USA Retirement Fund were an employee benefit plan.</text></paragraph><paragraph id="id8ad98e2e41a149389954fabded39deab"><enum>(2)</enum><header>Amendment</header><text>Section 502(a) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1132">29 U.S.C. 1132 et seq.</external-xref>) is amended—</text><subparagraph id="id591BDCE0671840168321EB99B12983E3"><enum>(A)</enum><text>in paragraph (9), by striking <quote>; or</quote> and inserting <quote>;</quote>;</text></subparagraph><subparagraph id="id10CDAFA0D81642DD9A91E125FA073738"><enum>(B)</enum><text>in paragraph (10), by striking the period at the end and inserting <quote>; or</quote>; and</text></subparagraph><subparagraph id="idB26F3CF58B2F4BDA8DA19776AD620532"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id0FBA04074D21436198EE938276997CF1" style="OLC"><paragraph id="id8EAA138142274B648CB82AC0309CB701"><enum>(11)</enum><text>in the event that an employer fails to make timely contributions or payments to a USA Retirement Fund established under title I of the <short-title>USA Retirement Funds Act</short-title>, by the Secretary, a participant, a beneficiary, or a fiduciary, to compel an employer to make such contributions or payments as if such contributions or payments were delinquent contributions or payments under section 515 or subsection (g)(2).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id6EDB319F2D7143139F5C74399CF91286"><enum>(3)</enum><header>Non-preemption of certain State law</header><text>Nothing in this section shall preempt State law insofar as State law relates to the enforcement of an obligation to contribute to a USA Retirement Fund.</text></paragraph></subsection><subsection id="idb3b2674b97f641feb53234881c799371"><enum>(c)</enum><header>False statements</header><paragraph id="id60BA9A4B3C7D4584987996687843B1B5"><enum>(1)</enum><header>In general</header><text>No person, in connection with a plan or other arrangement that is or purports to be a USA Retirement Fund, shall make a false statement or false representation of fact, knowing it to be false, in connection with the marketing or sale of such plan or arrangement, to any employee, any member of an employee organization, any beneficiary, any employer, any employee organization, the Secretary, or any State, or the representative or agent of any such person, State, or the Secretary, concerning—</text><subparagraph id="idd1774fb02ad8479c8c53a31f021e3ff1"><enum>(A)</enum><text>the financial condition or solvency of such fund or arrangement;</text></subparagraph><subparagraph id="id42811afdc33749549b1823338e1d0257"><enum>(B)</enum><text>the benefits provided by such fund or arrangement;</text></subparagraph><subparagraph id="idb0f12de2b67c45c6a55859aa9f1b9cae"><enum>(C)</enum><text>the regulatory status of such fund or other arrangement under any Federal or State law governing collective bargaining, labor management relations, or intern union affairs; or</text></subparagraph><subparagraph id="id31785214bad744439c3e3798aaeebc33"><enum>(D)</enum><text>the regulatory status of such fund or other arrangement.</text></subparagraph></paragraph><paragraph id="id5BF63EC45A974654ACF85D09E2FB3A7C"><enum>(2)</enum><header>Penalty</header><text>Any person who violates this subsection shall, upon conviction, be imprisoned not more than 10 years or fined under title 18, United States Code, or both.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id5fb9ccf4b26f416a87ae05b6b0ca6cf0"><enum>(d)</enum><header>Cease and desist orders</header><paragraph commented="no" display-inline="no-display-inline" id="id7BAFDAF73823449CAFFC52C0985A07F0"><enum>(1)</enum><header>Issuance of order</header><text>The Secretary may issue a cease and desist (ex parte) order under this title if the Secretary determines that the alleged conduct of a fund purporting to be a USA Retirement Fund is fraudulent, or creates an immediate danger to the public safety or welfare, or is causing or can be reasonably expected to cause significant, imminent, and irreparable public injury.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id68E3E91D27AC4CB494BEF68EC80AEEC4"><enum>(2)</enum><header>Hearings</header><subparagraph commented="no" display-inline="no-display-inline" id="idCA6E79E7287E4BD78F85C8F65FD15529"><enum>(A)</enum><header>In general</header><text>A person who is adversely affected by the issuance of a cease and desist order under paragraph (1) may request a hearing by the Secretary regarding such order. The Secretary may require that a hearing under this paragraph, including all related information and evidence, be conducted in a confidential manner.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id41A197DA54154AE79294B9721B741474"><enum>(B)</enum><header>Burden of proof</header><text>The burden of proof in any hearing conducted under subparagraph (A) shall be on the party requesting the hearing to show cause why the cease and desist order should be set aside.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3F163B8CFA9340169CE4E683A741683E"><enum>(C)</enum><header>Determination</header><text>Based upon the evidence presented at a hearing under subparagraph (A), the Secretary may affirm, modify, or set aside the cease and desist order at issue, in whole or in part.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2ED88FAD87AD47D0BE6B10EF54F2FE50"><enum>(3)</enum><header>Regulations</header><text>The Secretary may promulgate such regulations or other guidance as may be necessary or appropriate to carry out this subsection.</text></paragraph></subsection></section>

113 S1979 IS: USA Retirement Funds Act U.S. Senate 2014-01-30 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

Short title; table of contents

(a)

Short title

This Act may be cited as the

USA Retirement Funds Act

.(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—USA Retirement funds

Sec. 101. Automatic USA Retirement Fund arrangements.

Sec. 102. Establishment of USA Retirement Funds.

Sec. 103. Commission on USA Retirement Funds.

Sec. 104. Limitation on employer liability.

Sec. 105. Enforcement and fraud prevention.

TITLE II—Defined contribution plan reforms

Subtitle A—Savings enhancements

Sec. 201. Pooled employer plans.

Sec. 202. Pooled employer and multiple employer plan reporting.

Subtitle B—Participant Protections

Sec. 211. Alternative fiduciary arrangements to protect plan participants.

Sec. 212. Rollover protections.

Subtitle C—Lifetime income

Sec. 221. Lifetime income disclosure.

Sec. 222. Lifetime income safe harbor.

Sec. 223. Default investment safe harbor clarification.

Sec. 224. Administration of joint and survivor annuity requirements.

TITLE III—Defined benefit system reforms

Subtitle A—Defined benefit pension plan reforms

Sec. 301. Hybrid plans.

Sec. 302. Clarification of the normal retirement age.

Sec. 303. Moratorium on imposition of shutdown liability.

Sec. 304. Alternative funding target attainment percentage determined without regard to reduction for credit balances.

Sec. 305. Method for determining changes for quarterly contributions.

Sec. 306. Election to discount contributions from final due date.

Sec. 307. Simplification of elections and notices.

Sec. 308. Improved multiemployer plan disclosure.

Subtitle B—Improvements to the pension insurance program

Sec. 311. Modifications of technical changes made by the Pension Protection Act of 2006 to termination liability.

Sec. 312. Payment of lump sum distributions in bankruptcy.

Sec. 313. Trusteeship clarifications.

Sec. 314. Recordkeeping for terminating plans.

Sec. 315. Termination date in bankruptcy.

TITLE IV—Other systemic reforms

Sec. 401. Plan audit quality improvement.

Sec. 402. Special rules relating to treatment of qualified domestic relations orders.

Sec. 403. Correction to bonding requirement.

Sec. 404. Retaliation protections.

<enum>I</enum><header>USA Retirement funds</header><section id="id5e50e920ee0e4fd3b444ad499d62abff"><enum>101.</enum><header>Automatic USA Retirement Fund arrangements</header><subsection id="id677274e8e48547548cc5e879bb456cbe"><enum>(a)</enum><header>Requirement To provide access</header><text>Each covered employer shall make available to each qualifying employee for the calendar year an automatic USA Retirement Fund arrangement.</text></subsection><subsection id="id37771f176c584b91a0543ea61730c10f"><enum>(b)</enum><header>Covered employer</header><text>For purposes of this title—</text><paragraph id="id72521bdd82864e4ba33292095f08c794"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection and subsection (c)(2), the term <term>covered employer</term> means, with respect to any calendar year, an employer who does not maintain a qualifying plan or arrangement for any part of such year.</text></paragraph><paragraph id="id38303B3884034983B273E4A081944463"><enum>(2)</enum><header>Qualifying plan or arrangement</header><subparagraph id="id74E9963A407942F4B38D5940ADC881EB"><enum>(A)</enum><header>In general</header><text>The term <term>qualifying plan or arrangement</term> means a plan or arrangement described in <external-xref legal-doc="usc" parsable-cite="usc/26/219">section 219(g)(5)</external-xref> of the Internal Revenue Code of 1986.</text></subparagraph><subparagraph id="ida7c3446faf5b420da448a2ed6a8c26f8"><enum>(B)</enum><header>Exceptions</header><text>Such term shall not include the following:</text><clause id="idED1F213C14C24C4F8EB8083270E67630"><enum>(i)</enum><header>Frozen defined benefit plan</header><text>A defined benefit plan that had no ongoing accruals as of the first day of the preceding calendar year, unless the plan failed to have accruals only because of the application of section 206 of the Employee Retirement Income Security Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1056">29 U.S.C. 1056</external-xref>) and <external-xref legal-doc="usc" parsable-cite="usc/26/436">section 436</external-xref> of the Internal Revenue Code of 1986.</text></clause><clause id="id14F56AD1E78144AA980E2230727D9DF2"><enum>(ii)</enum><header>Defined contribution plan without lifetime income options</header><text>A defined contribution plan that does not provide participants with a distribution option that provides lifetime income.</text></clause><clause id="id86148EF547C340B591865148471C554D"><enum>(iii)</enum><header>Plans not meeting contribution requirements</header><text>A plan—</text><subclause id="id187237094F6147838DE6A1ED9919AB69"><enum>(I)</enum><text>which consists of a cash or deferred arrangement (as defined in section 401(k) of such Code) with respect to which the employer does not automatically enroll all eligible employees at contribution rates at or above those specified in subsection (d)(4); or</text></subclause><subclause id="id63EBAD793AAC43E58EBE526B345FA944"><enum>(II)</enum><text>for which the only contributions are nonelective employer contributions and with respect to which the employer’s annual contribution rate is not at or above the rates specified in subsection (d)(4).</text></subclause></clause></subparagraph></paragraph><paragraph id="id91c99fc4febf4a779832af999f5b9a96"><enum>(3)</enum><header>Exception for certain small and new employers</header><subparagraph id="idbec3d721fb59462d814b98dc1be7ea16"><enum>(A)</enum><header>In general</header><text>The term <term>covered employer</term> shall not include an employer for a calendar year if the employer—</text><clause id="id08a1360f49404b92bb728298fdc80a42"><enum>(i)</enum><text>did not employ during the preceding calendar year more than 10 employees who each received at least $5,000 of compensation (as defined in section 3401(a) of the Internal Revenue Code of 1986) from the employer for such preceding calendar year;</text></clause><clause id="id826ba4f04f9e414bbf5de8cd1a69505f"><enum>(ii)</enum><text>did not normally employ more than 10 employees on a typical business day during the preceding calendar year; or</text></clause><clause id="idccefa6747dfe47678419c628919d4be2"><enum>(iii)</enum><text>was not in existence at all times during the calendar year and the preceding calendar year.</text></clause></subparagraph><subparagraph id="idf3b08aeacd94465dabb1ede466dce6d0"><enum>(B)</enum><header>Operating rules</header><text>In determining the number of employees for purposes of subparagraph (A)—</text><clause id="idc8a58f02fa7948c7b62c47114ef17473"><enum>(i)</enum><text>rules consistent with any rules applicable in determining the number of employees for purposes of section 408(p)(2)(C) and section 4980B(d) of the Internal Revenue Code of 1986 shall apply;</text></clause><clause id="id2e16db987a5a41c4bb73fd6a381e28c3"><enum>(ii)</enum><text>all members of the same family (within the meaning of section 318(a)(1) of the Internal Revenue Code of 1986) shall be treated as 1 individual; and</text></clause><clause id="id6a1c2362bb9a4ff5a9eb3c6fd689010e"><enum>(iii)</enum><text>any reference to an employer shall include a reference to any predecessor employer.</text></clause></subparagraph></paragraph><paragraph id="idd5692efbf3f946ff8ca689acdf701214"><enum>(4)</enum><header>Exception for governments and churches</header><text>The term <term>covered employer</term> shall not include—</text><subparagraph id="id14aa75af5050480d90a88aac5c346534"><enum>(A)</enum><text>a government or entity described in <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414(d)</external-xref> of the Internal Revenue Code of 1986; or</text></subparagraph><subparagraph id="idf50e6d143a9440f2bebf87d22470db18"><enum>(B)</enum><text>a church or a convention or association of churches that is exempt from tax under section 501 of such Code.</text></subparagraph></paragraph><paragraph id="ida0dc10c2d4cf4afc9d1b74ed65becef3"><enum>(5)</enum><header>Aggregation rule</header><text>A person treated as a single employer under subsection (a) or (b) of section 52 of the Internal Revenue Code of 1986 or subsection (m) or (o) of section 414 of such Code shall be treated as a single employer.</text></paragraph></subsection><subsection id="id4aaf41581914437c9c95f042ae1a10c1"><enum>(c)</enum><header>Qualifying employee</header><text>For purposes of this title—</text><paragraph id="ide984ebfb6c08419893db10aca16cb949"><enum>(1)</enum><header>In general</header><text>The term <term>qualifying employee</term> means any employee who is not an excluded employee.</text></paragraph><paragraph id="ide9041419448e4e28bf177c66e688df85"><enum>(2)</enum><header>Plan sponsor's employees</header><text>If—</text><subparagraph id="id39cde15bb956444593086f8a7d26d964"><enum>(A)</enum><text>an employer maintains one or more qualifying plans or arrangements described in section 219(g)(5) of the Internal Revenue Code of 1986; and</text></subparagraph><subparagraph id="idf093704ffdc24c4eb14cf9cb96e6acf0"><enum>(B)</enum><text>the employees of a subsidiary, division, or other business unit are generally not eligible to participate in any such qualifying plan or arrangement,</text></subparagraph><continuation-text continuation-text-level="paragraph">for purposes of this section, the employer shall be treated as a covered employer with respect to such employees (other than excluded employees), and such employees (other than excluded employees) shall be treated as qualifying employees for the calendar year.</continuation-text></paragraph><paragraph id="idd790f9c952e5457f846362b3b0144d13"><enum>(3)</enum><header>Excluded employees</header><subparagraph commented="no" id="iddc72915486b0429f9090aef3c453b436"><enum>(A)</enum><header>In general</header><text>The term <term>excluded employee</term> means an employee who is an excludable employee and who is in a class or category that the employer excludes from treatment as qualifying employees.</text></subparagraph><subparagraph id="id170e1724f522400d9eac625368cee895"><enum>(B)</enum><header>Excludable employee</header><text>The term <term>excludable employee</term> means—</text><clause id="id050f083a5a8649349a942efebf402ed3"><enum>(i)</enum><text>an employee described in <external-xref legal-doc="usc" parsable-cite="usc/26/410">section 410(b)(3)</external-xref> of the Internal Revenue Code of 1986;</text></clause><clause id="id67130b6f65d94f18ae0d6dd729753a33"><enum>(ii)</enum><text>an employee who has not attained the age of 21 before the beginning of the calendar year;</text></clause><clause id="id0ffebe63d8ab4b06850ea86feef4fc4c"><enum>(iii)</enum><text>an employee who has not completed at least 3 months of service with the employer;</text></clause><clause id="id2217634212b740b392742469458a8563"><enum>(iv)</enum><text>in the case of an employer that maintains a qualifying plan or arrangement which excludes employees who have not satisfied the minimum age and service requirements for participation in the plan, an employee who has not satisfied such requirements;</text></clause><clause id="idd54902b34b874fedb267b73be3160d60"><enum>(v)</enum><text>in the case of an employer that maintains an annuity contract (including a custodial account or retirement income account) under section 403(b) of the Internal Revenue Code of 1986, an employee who is permitted to be excluded from any salary reduction arrangement under the contract pursuant to paragraph (12) of such section 403(b);</text></clause><clause id="idbb75c94b248f49c48b4e4c2afeccc006"><enum>(vi)</enum><text>in the case of an employer that maintains an arrangement described in section 408(p) of such Code, an employee who is not required to be eligible to participate in the arrangement under paragraph (4) of such section 408(p); and</text></clause><clause id="idd9dd901946bd456f8ac89cb901984173"><enum>(vii)</enum><text>in the case of an employer that maintains a simplified employee pension described in section 408(k) of such Code, an employee who is permitted to be excluded from participation under paragraph (2) of such section 408(k).</text></clause></subparagraph></paragraph><paragraph id="id48cf295531a24264bee096fd44ea0574"><enum>(4)</enum><header>Guidance</header><text>The Secretary of Labor (in this title referred to as the <quote>Secretary</quote>) shall issue regulations or other guidance to carry out this subsection, including—</text><subparagraph id="idfb927155da8c4b27b96ebf6107ea280c"><enum>(A)</enum><text>guidelines for determining the classes or categories of employees to be covered by a USA Retirement Fund;</text></subparagraph><subparagraph id="id0986c242a4624207bf7514bf9fbed402"><enum>(B)</enum><text>guidelines requiring employers to specify the classification or categories of employees (if any) who are excluded from the USA Retirement Fund; and</text></subparagraph><subparagraph commented="no" id="idcc68b900450b48ca95d34ac591e12633"><enum>(C)</enum><text>rules to prevent avoidance of the requirements of this section.</text></subparagraph></paragraph></subsection><subsection id="iddc6c4f827a8d4830bbebeaa236676d7a"><enum>(d)</enum><header>Automatic USA Retirement Fund arrangement</header><text>For purposes of this title—</text><paragraph id="id7eb17d1ee4b74a5e9e872b4049662fda"><enum>(1)</enum><header>In general</header><text>The term <term>automatic USA Retirement Fund arrangement</term> means an arrangement of an employer (determined without regard to whether the employer is required to maintain the arrangement)—</text><subparagraph id="id31f2f3e945d047a5a1f746428ebec66f"><enum>(A)</enum><text>that covers each qualifying employee of the covered employer for the calendar year;</text></subparagraph><subparagraph id="id4ef50f303b1747c38e014bb8bfd072be"><enum>(B)</enum><text>under which a qualifying employee—</text><clause id="idc72c8ed8f4d0490ea91bc273f76cade6"><enum>(i)</enum><text>may elect—</text><subclause id="idcdd4da99bc4a452c9d566a0d4154c420"><enum>(I)</enum><text>to contribute to an automatic USA Retirement Fund by having the employer deposit payroll deduction amounts or make other periodic direct deposits (including electronic payments) to the Fund; or</text></subclause><subclause id="id739f145c786b48df86e3d13d5e5165d7"><enum>(II)</enum><text>to have such payments paid to the employee directly in cash;</text></subclause></clause><clause id="idf9812cd80987432ebb534f337369f5d7"><enum>(ii)</enum><text>is treated as having made the election under clause (i)(I) in the amount specified in paragraph (4) unless the individual specifically elects not to have such contributions made (or specifically elects to have such contributions made at a different percentage or in a different amount); and</text></clause><clause id="id1ef7d8c15e1f47f383402ef7a1736e29"><enum>(iii)</enum><text>not more than once per calendar year, may elect to modify the selection of the USA Retirement Fund to which contributions are made for such year; and</text></clause></subparagraph><subparagraph id="idf0d370d207254243a380938e6908a657"><enum>(C)</enum><text>that meets the administrative requirements of paragraph (3), including the notice requirement of paragraph (3)(C).</text></subparagraph></paragraph><paragraph id="idfdea0e09e3234112a600263364aed954"><enum>(2)</enum><header>Automatic re-enrollment</header><text>An employee’s election not to contribute to a USA Retirement Fund (or to have such contributions made at a different percentage or in a different amount from those specified in paragraph (4)) shall expire after 2 years. After such 2-year period and absent a new election, the employee shall be treated as having made the election under paragraph (1)(B)(i)(I) in the amount specified in paragraph (4).</text></paragraph><paragraph id="id7f398ed9125d4f0590d7e2eccfe41a1d"><enum>(3)</enum><header>Administrative requirements</header><subparagraph id="id61995a0f58a349848647b2d45968bbf8"><enum>(A)</enum><header>Payments</header><text>An employer shall make the payments elected or treated as elected under paragraph (1)(B) on or before—</text><clause id="idf4015c18aeeb4080be93929c3cf9a52d"><enum>(i)</enum><text>the last day of the month following the month in which the compensation otherwise would have been payable to the employee in cash; or</text></clause><clause id="id405eb71d05ae4c21991cedb48ecb5e2b"><enum>(ii)</enum><text>such later date as the Secretary may prescribe.</text></clause></subparagraph><subparagraph id="idf7f2913299d0444a86ebe0bd4fb98f21"><enum>(B)</enum><header>Termination of employee participation</header><text>Subject to a requirement for reasonable notice, an employee may elect to terminate participation in the arrangement at any time during a calendar year. The arrangement may provide that, if an employee so terminates participation, the employee may not elect to resume participation until the beginning of the next calendar year.</text></subparagraph><subparagraph id="id61c50493c3c34e2cbfd36acb659aac2f"><enum>(C)</enum><header>Notice of election period</header><text>The employer shall notify each employee eligible to participate for a year in a USA Retirement Fund arrangement, within a reasonable period of time before the 30th day before the beginning of such year (and, for the first year the employee is so eligible, the 30th day before the first day such employee is so eligible), of—</text><clause id="idbce0095e152a41fdb533197eac7b7a87"><enum>(i)</enum><text>the payments that may be elected or treated as elected under paragraph (1)(B);</text></clause><clause id="ida5dadf01e5734532ad46c4bceda4b7ab"><enum>(ii)</enum><text>the opportunity to make the election to terminate participation in the arrangement under subparagraph (B);</text></clause><clause id="id8edcf5f84a614ed6bf3054b37744a31a"><enum>(iii)</enum><text>the opportunity to make the election under paragraph (1)(B)(ii) to have contributions or purchases made at a different percentage or in a different amount; and</text></clause><clause id="id1ddf214878b24173b5f6d3a7d78200e4"><enum>(iv)</enum><text>the opportunity under paragraph (1)(B)(iii) to modify the manner in which such amounts are invested for such year.</text></clause></subparagraph><subparagraph id="id1c712613132f4560858a50902fab22e0"><enum>(D)</enum><header>Employees may choose usa retirement fund</header><text>The arrangement shall provide that a qualified employee may elect to have contributions made to any USA Retirement Fund available to the employee.</text></subparagraph></paragraph><paragraph id="id339937aad0424f43ac79e2350473ff3e"><enum>(4)</enum><header>Amount of contributions and payments</header><text>The amount specified in this paragraph is—</text><subparagraph id="id019ea86a6a4c41eeafac309358a73030"><enum>(A)</enum><text>3 percent of compensation for the calendar year beginning on January 1, 2015;</text></subparagraph><subparagraph id="idc20cb43ce10042218a2fb2b010825a37"><enum>(B)</enum><text>4 percent of compensation for the calendar year beginning on January 1, 2016;</text></subparagraph><subparagraph id="ide03293050ba04d65b8814a429dedf573"><enum>(C)</enum><text>5 percent of compensation for the calendar year beginning on January 1, 2017; and</text></subparagraph><subparagraph id="id3122fb6a4df046a8a698f0be1267aefd"><enum>(D)</enum><text>6 percent of compensation for calendar years beginning after December 31, 2017.</text></subparagraph></paragraph><paragraph id="id7eea607a04fc46ec85745f91fe08ba76"><enum>(5)</enum><header>Coordination with withholding</header><text>The Secretary of the Treasury shall modify the withholding exemption certificate under section 3402(f) of the Internal Revenue Code of 1986 so that, in the case of any qualifying employee covered by a USA Retirement Fund arrangement, any notice and election requirements with respect to the arrangement may be met through the use of an attachment to such certificate or other modifications of the withholding exemption procedures.</text></paragraph></subsection><subsection id="iddcf8e0eb66b041699264998492860ec8"><enum>(e)</enum><header>Deposits to USA Retirement Funds</header><paragraph commented="no" id="id787f9586c8304df4acbe4ee3ccf2e6fd"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), an employer shall make all contributions on behalf of employees to the USA Retirement Fund specified by the employee.</text></paragraph><paragraph commented="no" id="idDB253447180343CFB1237C861FDBDB5B"><enum>(2)</enum><header>USA retirement funds other than those selected by employee</header><text>In the absence of an affirmative selection of a USA Retirement Fund by the employee, contributions on behalf of the employee shall be made to the USA Retirement Fund designated by the employer.</text></paragraph><paragraph commented="no" id="id3cf1ce8a262e4390bd4615061be98c23"><enum>(3)</enum><header>Regulations</header><text>The Secretary may issue such regulations as are necessary to carry out this subsection.</text></paragraph></subsection><subsection id="id4b1a91b927ba4e4bb4860b5d44466575"><enum>(f)</enum><header>Preemption of conflicting State laws</header><text>The requirements under this section preempt any law of a State that directly or indirectly prohibits or restricts the establishment or operation of an automatic USA Retirement Fund arrangement. Nothing in this section shall be construed to impair or preempt any State law to the extent such State law provides a remedy for the failure to make payroll deposit payments under any such automatic USA Retirement Fund arrangement within the period required.</text></subsection></section><section id="id81720f27d8d940da9224d72002a1ca22"><enum>102.</enum><header>Establishment of USA Retirement Funds</header><subsection id="id0f426388e81d41fa8af9158c574298bc"><enum>(a)</enum><header>Qualification as a USA Retirement Fund</header><text>For purposes of this title—</text><paragraph id="idd3fac2f85f564fa6a94c701317ca6634"><enum>(1)</enum><header>In general</header><text>The term <term>USA Retirement Fund</term> means a fund for which the Secretary has determined the requirements under this title are met.</text></paragraph><paragraph id="id8bd181becafe4f208fb4f8f1a4b2d755"><enum>(2)</enum><header>Request for determination</header><text>The board of trustees of a program established for purposes of being treated as a USA Retirement Fund under this section shall, prior to beginning operations, submit to the Secretary (at such time and in such manner as the Secretary may prescribe) a request for the Secretary to make a determination as to whether the plan meets the requirements of this title for such treatment. Such request shall include copies of the written documents establishing the plan and such other materials as the Secretary may request. The Secretary shall make such determination within 180 days of receiving such request.</text></paragraph><paragraph id="id1f48a444151249618185ef94b1ad2d7e"><enum>(3)</enum><header>Periodic review</header><text>The Secretary shall establish a process to periodically review each plan determined to be a USA Retirement Fund under paragraph (1) to ensure that the plan continues to meet the requirements of this title.</text></paragraph><paragraph id="id9ee16052f44b4b448b7faa1a139eafa4"><enum>(4)</enum><header>Public list of plans</header><text>The Secretary shall maintain a public list of plans determined by the Secretary to qualify as USA Retirement Funds. Such list shall be posted to a publicly available Internet website.</text></paragraph></subsection><subsection id="id0a43335885244fbf8552b1d6960eaa30"><enum>(b)</enum><header>Participation</header><paragraph commented="no" id="id9208913d9daf4642ad6c9a5af44082d4"><enum>(1)</enum><header>Eligibility</header><text>An individual may participate in any USA Retirement Fund for which such individual meets the eligibility requirements, individually or through an arrangement established by an employer.</text></paragraph><paragraph id="iddb5a327ed3084dc4998754b2eaa6b2d4"><enum>(2)</enum><header>Participation in other plans</header><text>An individual who participates in a USA Retirement Fund shall not be precluded from participating in a plan or arrangement described in section 219(g)(5) of the Internal Revenue Code of 1986.</text></paragraph></subsection><subsection id="id51e1e86d8f7649d986801081d9c374ed"><enum>(c)</enum><header>Governance</header><paragraph id="ida1b0ab2a50324245a037b6eb96036abe"><enum>(1)</enum><header>Assets held in trust; board of trustees</header><text>For purposes of this title—</text><subparagraph id="id407296FBD2EE4A1AB00C1660685AE775"><enum>(A)</enum><text>the assets of each USA Retirement Fund shall be held in trust, and</text></subparagraph><subparagraph id="id4493C6E65F1F41B885BBF313634D43AB"><enum>(B)</enum><text>the Fund shall be governed by a board of trustees which shall consist of at least 3 individuals who—</text><clause id="ide0059ba8709c4f0c902c422ba05788f0"><enum>(i)</enum><text>are independent of service providers to the Fund;</text></clause><clause id="id5f3b7b8276f34143ac4134dab547a9ce"><enum>(ii)</enum><text>meet the qualification requirements established under this section; and</text></clause><clause id="id0faa56eeb21949d39bf08464bf2778b6"><enum>(iii)</enum><text>are collectively able to adequately represent the interests of active participants, retirees, and contributing employers.</text></clause></subparagraph></paragraph><paragraph id="idab1740dc44f243bb8109ceec162b1ebd"><enum>(2)</enum><header>Independence requirement</header><text>An individual is not independent of Fund service providers for purposes of paragraph (1)(B)(i) if such individual—</text><subparagraph id="id3d2a286c71f140028ca7f7be1a76518d"><enum>(A)</enum><text>is an employee of any Fund service provider;</text></subparagraph><subparagraph id="id98a7012e33c84b9fa04642556fba1e66"><enum>(B)</enum><text>is a current or former officer or director of a significant Fund service provider, or is otherwise affiliated with such a provider;</text></subparagraph><subparagraph id="id077cf028a29142a39cb0723388f5e134"><enum>(C)</enum><text>is a member of the immediate family of any person who is affiliated with a significant Fund service provider;</text></subparagraph><subparagraph id="id57800b1fe19341a1a7d1fe4be98a44a6"><enum>(D)</enum><text>derives more than 1 percent of the individual's annual income from a significant Fund service provider;</text></subparagraph><subparagraph id="id0ba35db32dc441fba3776dd1c1875311"><enum>(E)</enum><text>derives more than 5 percent of the individual's annual income from any Fund service provider; or</text></subparagraph><subparagraph id="ide9fd3930ee634944b1405ba5c352e5dd"><enum>(F)</enum><text>fails to meet meets such other criteria as are specified by the Secretary to ensure the independence of the board of directors.</text></subparagraph></paragraph><paragraph id="id515c7f2873d1402c816fe9dea12462a8"><enum>(3)</enum><header>Multiple trusteeships</header><text>No individual may serve on the board of trustees of more than 1 USA Retirement Fund unless the Secretary receives attestation from the board of trustees of each applicable USA Retirement Fund and the individual that, at the time of appointment, there is no reasonably foreseeable conflict between the duties of such individual to the participants in each applicable USA Retirement Fund. In no case may an individual serve on the boards of trustees of more than 3 USA Retirement Funds.</text></paragraph><paragraph id="id1530646dd2b249139309ac36f2da49c2"><enum>(4)</enum><header>Trustee qualifications</header><text>Each trustee of a USA Retirement Fund shall attest that the trustee is knowledgeable of the trustee's duties and responsibilities as a fiduciary of a USA Retirement Fund. The Secretary may require by regulation such other qualifications and documentation as may be necessary to ensure that trustees are suitable and qualified. Such requirements may include those related to education, training, and minimum competency standards.</text></paragraph><paragraph id="idd39efbab9cc740739d9cfa95c0beb326"><enum>(5)</enum><header>Trustee selection and removal</header><subparagraph id="id675599bb09e84c76808dece94b7e1af5"><enum>(A)</enum><header>In general</header><text>Each board of trustees of a USA Retirement Fund shall establish written procedures regarding the appointment, removal, and replacement of trustees on the board. Such procedures shall—</text><clause id="id8a99c8f0a12d4588bba40d6dda5e24d9"><enum>(i)</enum><text>take effect after adoption by the majority of the board of trustees;</text></clause><clause id="id0ccbb763729d45e291a99b22c821718b"><enum>(ii)</enum><text>be readily available to participants;</text></clause><clause id="idc291ca219f984104b59699928bc97f61"><enum>(iii)</enum><text>provide participants with a reasonable opportunity to comment on, or participate in, the trustee selection process; and</text></clause><clause id="id74becdb5eb6846f581c4b591ebfd2e50"><enum>(iv)</enum><text>provide for periodic election of trustees.</text></clause></subparagraph><subparagraph id="id18deebd4cfc741fdb901964207db441d"><enum>(B)</enum><header>Removal by the secretary</header><text>The Secretary may require removal or suspension of a trustee if the conduct of the trustee is fraudulent or is causing, or can be reasonably expected to cause, significant, imminent, and irreparable harm to the participants or beneficiaries of a USA Retirement Fund.</text></subparagraph><subparagraph id="id55eed02e584c4505a80a69e473d99fae"><enum>(C)</enum><header>Funds without qualified trustees</header><text>If a board of trustees of a USA Retirement Fund has no members meeting the criteria under this subsection, the Secretary shall appoint replacement trustees.</text></subparagraph></paragraph><paragraph id="id05dc1df25a004932b8f74990fcaffc86"><enum>(6)</enum><header>Trustee compensation</header><text>Trustees of the Fund may be compensated at reasonable rates from the Fund, but only if such compensation is paid in accordance with the written board compensation policy adopted under paragraph (7)(A)(iv).</text></paragraph><paragraph id="id7c1532548d42433ea349295d319a8a46"><enum>(7)</enum><header>Transparency and participant democracy</header><subparagraph id="idb94f6a587eaf4249a7bbbc0fba8727ad"><enum>(A)</enum><header>Publicly available policies</header><text>The board of trustees of a USA Retirement Fund shall adopt and make available to participants and beneficiaries of, and employers contributing to, the USA Retirement Fund—</text><clause id="id19836bc6e0494248a98e82be20aef782"><enum>(i)</enum><text>a written investment policy statement;</text></clause><clause id="idcb5cf5683d344bde8193ab153902498e"><enum>(ii)</enum><text>a written lifetime income policy statement;</text></clause><clause id="id47d4d0b6980d4bb9a79a0fa16eaaf160"><enum>(iii)</enum><text>an annual performance assessment of the board of trustees, including an evaluation of weaknesses of the board and a plan to address such weaknesses;</text></clause><clause id="id3d6cb4d995924e21a702a1ec97dcc3b5"><enum>(iv)</enum><text>a written board compensation policy that includes current compensation levels and provides a reasonable opportunity for comment from participants, beneficiaries, and employers; and</text></clause><clause id="idb49e298df7574cbca5a0865c787e9fa8"><enum>(v)</enum><text>a written policy addressing conflicts of interests with respect to trustees.</text></clause></subparagraph><subparagraph id="id25ae4ae65a0741928811a2abbbb31f29"><enum>(B)</enum><header>Participant input regarding board of trustees</header><clause id="id6ca02157ddd24a2ebdb42bfda255a8d2"><enum>(i)</enum><header>In general</header><text>The board of trustees of a USA Retirement Fund shall establish procedures whereby a participant or beneficiary of such USA Retirement Fund may—</text><subclause id="idca1f7c87c43141978a14f8456ddbbd8f"><enum>(I)</enum><text>petition the board of trustees to remove a trustee or service provider;</text></subclause><subclause id="idab19e925ae68464c996bfb6f574846c4"><enum>(II)</enum><text>comment on the management and administration of the USA Retirement Fund; and</text></subclause><subclause id="id64e77db5091e4693bd80f7c8058c49b3"><enum>(III)</enum><text>with respect to a USA Retirement Fund with more than $250,000,000 of assets, vote to approve or disapprove the compensation of the trustees at least once every 3 years.</text></subclause></clause><clause id="id26644ed853144444a427ad97fd67095f"><enum>(ii)</enum><header>Effect of vote</header><text>If participants and beneficiaries of a USA Retirement Fund vote to disapprove the compensation of trustees under clause (i)(III)—</text><subclause id="idfbeb0260d14f40a89f6e5f3b9b4fa125"><enum>(I)</enum><text>the results of such vote shall not be binding on the board of trustees; and</text></subclause><subclause id="idf23c1ef8ed91489eb9ca6d22d2a2a447"><enum>(II)</enum><text>the board of trustees shall notify the Secretary of the results of such vote and provide an explanation of why the compensation is reasonable or anticipated changes to the compensation.</text></subclause></clause></subparagraph></paragraph><paragraph id="id60867bdb213f4cbbb04f0e7bb8bd34a5"><enum>(8)</enum><header>Liability insurance for trustees</header><text>The trustees of each USA Retirement Fund shall have fiduciary liability insurance with a per-claim limit equal to no less than the greater of—</text><subparagraph id="id298526e9ebb549e398f997bd5d1cbb32"><enum>(A)</enum><text>5 percent of plan assets; or</text></subparagraph><subparagraph id="id39cf85c78b914653aa29613da418e522"><enum>(B)</enum><text>$1,000,000.</text></subparagraph></paragraph><paragraph id="id0dba87b0370a41919bb8a3a32d0d4bf9"><enum>(9)</enum><header>Trustee duties</header><subparagraph id="idc2ec33c43818482bb9fe11442b284115"><enum>(A)</enum><header>In general</header><text>The trustees of a USA Retirement Fund shall manage the Fund with the intention of providing each participant with a cost-effective stream of income in retirement and reducing benefit level volatility (particularly for those approaching retirement).</text></subparagraph><subparagraph id="id4497fc74d49c42f3a1fbbd4621f162d0"><enum>(B)</enum><header>Applicability of other requirements</header><text>Each trustee of a USA Retirement Fund shall be a fiduciary subject to sections 404(a), 404(b), 405, 406, and 408 through 413 of the Employee Retirement Income Security Act of 1974 with respect to the Fund and participants and beneficiaries of the Fund. Each such trustee shall be subject to the standards and remedies of such sections and section 502 of such Act, as if the Fund were an employee benefit plan.</text></subparagraph></paragraph></subsection><subsection id="id8e109b4c07d44b89a520c9d4d9697d42"><enum>(d)</enum><header>Employer contribution limitation</header><paragraph id="id2f77e16299cd4cc4a63ea1cc1016b8f4"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), employers may, in addition to contributions an employee elects (or is treated as having elected) to have made, make a contribution of up to $5,000 per year to a USA Retirement Fund on behalf of each employee eligible to participate in a USA Retirement Fund, provided such contributions are made in a uniform manner (as the same dollar amount for each such employee or the same percentage of pay for each such employee) and are not intended to benefit solely highly compensated employees.</text></paragraph><paragraph id="idbde78500a2d3406b85930852272de4b6"><enum>(2)</enum><header>Annual indexing of amount</header><text>The dollar amount under paragraph (1) shall be indexed annually for inflation.</text></paragraph></subsection><subsection id="id1d916cdaeb834bb3bd1d11793c88a5da"><enum>(e)</enum><header>Benefits in the form of an annuity</header><paragraph id="idc36b2f30e1404f2cb516180e66e21a9c"><enum>(1)</enum><header>In general</header><text>A USA Retirement Fund shall pay benefits in the form of an annuity in accordance with paragraph (2). The amount of such benefits shall be dependent on the amount of contributions made by the participant, the experience of the Fund, and the form of distribution elected by the participant. The amount of an annuity may be adjusted to reflect the experience of the Fund as necessary to protect the financial integrity of the Fund, except that annuity payments for those in pay status shall not be reduced more than 5 percent per year unless the Fund is faced with a significant financial hardship and the Secretary has approved the reduction.</text></paragraph><paragraph id="id5e0f16034803412e9136440f292f2584"><enum>(2)</enum><header>Annuity</header><text>A USA Retirement Fund shall pay benefits in accordance with one of the following:</text><subparagraph id="id6A4F5587AFD04B9682522071A64307E2"><enum>(A)</enum><text>In the case of a participant who does not die before the annuity starting date, the benefit payable to such participant shall be provided in the form of a qualified joint and survivor annuity (as defined in section 205(d)(1) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1055">29 U.S.C. 1055(d)(1)</external-xref>)).</text></subparagraph><subparagraph id="idc69ee25554b34dfb89010dde8bdc20b9"><enum>(B)</enum><text>In the case of a participant who dies before the annuity starting date and who has a surviving spouse, a qualified preretirement survivor annuity (as defined in section 205(d)(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1055(d)(2))) shall be provided to the surviving spouse of such participant.</text></subparagraph><subparagraph id="id10e0956b1fe94eddb22eecd89c0f20b0"><enum>(C)</enum><text>In lieu of a qualified joint and survivor annuity form of benefit or the qualified preretirement survivor annuity form of benefit (or both), a participant may elect to receive a distribution described in subsection (f)(2) if one of the following conditions are met:</text><clause id="idC363660D1C204098A3A73F4C4A883453"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="id8F1D2D26963545B19007576C14F51D8A"><enum>(I)</enum><text>The spouse of the participant consents in writing to the election.</text></subclause><subclause id="idBCDECEE5B4DA43B5864E97EA4C3ACBE9" indent="up1"><enum>(II)</enum><text>Such election designates a beneficiary (or form of benefits) which may not be changed without spousal consent (or the consent of the spouse expressly permits designations by the participant without any requirement of further consent by the spouse).</text></subclause><subclause id="id398F5586F3274D1FAAA3B5AA3211B2B6" indent="up1"><enum>(III)</enum><text>The spouse’s consent acknowledges the effect of such election and is witnessed by a plan representative or a notary public.</text></subclause></clause><clause id="id581FA832081E4A07ADB3B556B0004659"><enum>(ii)</enum><text>It is established to the satisfaction of a Fund representative that the consent required under subclause (I) cannot be obtained because there is no spouse, because the spouse cannot be located, or because of such other circumstances as the Secretary may by regulations prescribe.</text></clause><continuation-text continuation-text-level="subparagraph">The consent of a spouse (or establishment that the consent of a spouse cannot be obtained) under this subparagraph shall be effective only with respect to such spouse.</continuation-text></subparagraph></paragraph><paragraph id="id313b9489c47244c585dc8046bcca8fe6"><enum>(3)</enum><header>Commencement of benefit payments</header><text>A participant may elect the time to start receiving benefit payments from the USA Retirement Fund, except that a participant—</text><subparagraph id="idF1C0E6F10B1245AC998CD9D59AB0D497"><enum>(A)</enum><text>except as provided in subsection (f)(2)(B), may not elect to receive benefit payments before reaching the age of 60; and</text></subparagraph><subparagraph id="id3F6EAAAA169D4371BF939B3A1A1E660D"><enum>(B)</enum><text>must begin receiving benefit payments before the age of 72.</text></subparagraph></paragraph><paragraph id="id0dd1747839bf4a1c8ece311618091bc7"><enum>(4)</enum><header>Notice</header><text>Each Fund shall provide to each participant, within a reasonable period of time before the annuity starting date, a written explanation substantially similar to that required by section 205(c)(3) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1055">29 U.S.C. 1055(c)(3)</external-xref>).</text></paragraph><paragraph id="id60689a93a5cf433b89559614825068c2"><enum>(5)</enum><header>Assignment or alienation of fund benefits</header><text>Benefits under a USA Retirement Fund shall be subject to section 206(d) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1056">29 U.S.C. 1056(d)</external-xref>).</text></paragraph></subsection><subsection id="id6a2e65f7d8f642e1859240b03cfe0091"><enum>(f)</enum><header>Limits on withdrawals and transfers</header><paragraph id="id8ac4c90e826e4db0a317e378c226fef3"><enum>(1)</enum><header>Transfers</header><text>A participant may, not more frequently than once per year, transfer such participant's benefit to another USA Retirement Fund.</text></paragraph><paragraph id="id4468af1ab6034b98b54590b1b062e9c5"><enum>(2)</enum><header>Limits on distributions</header><subparagraph id="idCA9E9DB494D14AC982C7B1CC748E9E76"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraphs (B) and (C), a participant may not take a distribution other than one described in subsection (e)(2).</text></subparagraph><subparagraph id="id6AE797DCC7204647A8A98E02EC296499"><enum>(B)</enum><header>Participants aged 59 and younger</header><text>A participant may before age 60 take a distribution of a portion of the participant's benefit if such distribution does not to exceed $5,500 and is rolled over to a qualifying plan or arrangement described in section 219(g)(5) of the Internal Revenue Code of 1986 or an individual retirement plan.</text></subparagraph><subparagraph id="id47C387EFC84C4BB798669A226C727A8D"><enum>(C)</enum><header>Participants aged 60 and older</header><text>A participant who is 60 or older but who has not entered pay status may elect one time to take a distribution of the greater of $10,000 or 50 percent of the participant's benefit if the participant demonstrates to the satisfaction of the trustees of the Fund that the participant has sufficient retirement income apart from the Fund or is facing a substantial hardship.</text></subparagraph></paragraph></subsection><subsection id="idf95bf14d935f44a0bc10b0bc37e941c5"><enum>(g)</enum><header>Methods for providing annuitized benefit payments</header><paragraph id="id9c5fe1d43c964501b055efe4880b4124"><enum>(1)</enum><header>In general</header><text>A USA Retirement Fund shall establish and maintain mechanisms for adequately securing the payment of annuity benefits from the Fund. The Fund shall include a written description of such mechanisms in the investment and lifetime income policy statements required to be disclosed to participants.</text></paragraph><paragraph id="ideacae6947efa41fe9db4085c0bae6f8e"><enum>(2)</enum><header>Specific goals</header><text>The mechanisms described in paragraph (1) shall ensure that—</text><subparagraph id="id5e82985cefdc470e8188bc4ebf448f86"><enum>(A)</enum><text>each participant receives a stream of income for life;</text></subparagraph><subparagraph id="idb5ac63ecba1c40e5b723f3648f23027d"><enum>(B)</enum><text>each participant and beneficiary has an opportunity to be protected against longevity risk; and</text></subparagraph><subparagraph id="id3570cf98740f4a59854d919524847eba"><enum>(C)</enum><text>volatility in benefit levels is minimized for participants and beneficiaries in pay status and those approaching pay status.</text></subparagraph></paragraph><paragraph id="id8f48a20076b3408680e9dd8706f96a27"><enum>(3)</enum><header>Self-annuitization</header><subparagraph id="id34C4CA2B71674FA6A0A6C1432CC30E65"><enum>(A)</enum><header>In general</header><text>Notwithstanding any other provision of law, a USA retirement Fund may self-annuitize if the Fund meets such requirements as the Secretary establishes as necessary to protect participants and beneficiaries in consideration of the recommendations of the Commission under section 103.</text></subparagraph><subparagraph id="id82464050cc114282a0d06bf7b3404124"><enum>(B)</enum><header>Duty to address emerging issues</header><text>The Secretary shall, periodically and in accordance with established procedures, update the funding requirements promulgated under this paragraph in response to changing economic and business conditions to the extent necessary to carry out the purposes of this Act, taking into consideration the recommendations of the Commission.</text></subparagraph></paragraph></subsection><subsection id="idea18670071fa41fe92952bfc2d8c767f"><enum>(h)</enum><header>Reporting and disclosure</header><paragraph id="id6b1c45352578442ea89e259c4e14f3d6"><enum>(1)</enum><header>Annual statement</header><text>The trustees of a USA Retirement Fund shall provide each participant in the Fund an annual statement of—</text><subparagraph id="id0e89a27d48ec484993804c9027f6b326"><enum>(A)</enum><text>the estimated amount of the monthly benefit which the participant or beneficiary is projected to receive from the USA Retirement Fund, in the form of the default benefit described in the plan in accordance with subsection (e)(2);</text></subparagraph><subparagraph id="id7a611c95870a417ea153fde9abc8c4ad"><enum>(B)</enum><text>an explanation, written in a manner calculated to be understood by the average plan participant, that includes interest and mortality assumptions used in calculating the estimate and a statement that actual benefits may be materially different from such estimate;</text></subparagraph><subparagraph id="id9dc07b98fb7e412db9e90be45ce71f9b"><enum>(C)</enum><text>a disclosure of Fund fees and performance that is substantially similar to the disclosures required of individual account plans under the Employee Retirement Income Security Act of 1974;</text></subparagraph><subparagraph id="id529daadde2274bb5afb3ff5a3c874ef5"><enum>(D)</enum><text>any other disclosures, including projected benefit estimates, that the board of trustees of the USA Retirement Fund determines appropriate; and</text></subparagraph><subparagraph id="id7f1a399f2a434db99bca56f44b4c749a"><enum>(E)</enum><text>such other disclosures as may be required by the Secretary.</text></subparagraph></paragraph><paragraph id="id00b6eaeaa79f43a9833b32682dd14ade"><enum>(2)</enum><header>Summary plan description</header><text>The trustees of a USA Retirement Fund shall provide participants a summary plan description (as described in section 102 of the Employee Retirement Income Security Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1022">29 U.S.C. 1022</external-xref>)) as required by section 104(b) of the Employee Retirement Income Security Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1024">29 U.S.C. 1024(b)</external-xref>).</text></paragraph><paragraph id="id61ecb7e9cb04449db4366ecaa762367f"><enum>(3)</enum><header>Annual reports</header><text>The trustees of a USA Retirement Fund shall file with the Secretary of Labor periodic reports in accordance with regulations promulgated by the Secretary.</text></paragraph><paragraph id="id0bfda90cf0594234a5c07577642ad52d"><enum>(4)</enum><header>Additional requirements</header><text>Each USA Retirement Fund shall be subject to sections 106 and 107 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1026">29 U.S.C. 1026</external-xref>, 1027).</text></paragraph></subsection></section><section id="id00e22423baf64318856bf29f143185f7"><enum>103.</enum><header>Commission on USA Retirement Funds</header><subsection id="idceaaa4e241454e5bbbee02d109d5435c"><enum>(a)</enum><header>Recognition of private commission</header><text>The Secretary shall—</text><paragraph id="idE98EC27C1D0240C1A26438E56900605F"><enum>(1)</enum><text>recognize an independent, private commission, to be known as the <quote>Commission for USA Retirement Funds Funding</quote> (referred to in this title as the <quote>Commission</quote>), and</text></paragraph><paragraph id="id65C8F88275A44324A01808E18973B26E"><enum>(2)</enum><text>in carrying out the Secretary's duties under this title, consider the recommendations of such Commission.</text></paragraph></subsection><subsection id="idbbdb0534eb234c78b113cdc47b940b83"><enum>(b)</enum><header>Commission</header><text>The Commission recognized under subsection (a) shall meet the following requirements:</text><paragraph id="idF3015EE7A0754B03B7B83610F788B501"><enum>(1)</enum><header>Membership</header><subparagraph id="ide54bce9dc8194e76aad4907fc63831e6"><enum>(A)</enum><header>Composition</header><text>The Commission shall be composed of 9 members selected by the Secretary, in consultation with the Secretary of the Treasury, of whom no more than 5 may be from one political party. The Secretary shall designate one member of the Commission as the Chairman. No person may be appointed to the Commission if, during the 2-year period preceding the date of appointment, such person was a trustee of a USA Retirement Fund.</text></subparagraph><subparagraph id="id5f60ffb910554e7e8a5afffc154f524c"><enum>(B)</enum><header>Date</header><text>The appointments of the members of the Commission shall be made not later than 90 days after the date of enactment of this Act.</text></subparagraph><subparagraph id="id67ec940cb8af468a990cd63458a4c70e"><enum>(C)</enum><header>Period of appointment; vacancies</header><text>Members shall be appointed for terms of 2 years and may be appointed for consecutive terms. Any vacancy in the Commission shall not affect its powers, and shall be filled in the same manner as the original appointment.</text></subparagraph></paragraph><paragraph id="idea6042b8eea24fa896b981d3ade1b12d"><enum>(2)</enum><header>Majority vote</header><text>The Commission may act by majority vote of its members, provided that at least 7 members are present.</text></paragraph><paragraph id="id310c908fa0ea4360b501cbca36dec762"><enum>(3)</enum><header>Commission personnel matters</header><subparagraph id="id5b3acdab0a47480eaa70c7cd1d226a22"><enum>(A)</enum><header>Compensation of members</header><text>Each member of the Commission who is not an officer or employee of the Federal Government shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level IV of the Executive Schedule under section 5315 of title 5, United States Code, for each day (including travel time) during which such member is engaged in the performance of the duties of the Commission. All members of the Commission who are officers or employees of the United States shall serve without compensation in addition to that received for their services as officers or employees of the United States.</text></subparagraph><subparagraph id="idf1537fea7b5c4e94b5911f6351551c0d"><enum>(B)</enum><header>Travel expenses</header><text>The members of the Commission shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/57">chapter 57</external-xref> of title 5, United States Code, while away from their homes or regular places of business in the performance of services for the Commission.</text></subparagraph><subparagraph id="id559baabc4f934db1a8561e634b393df1"><enum>(C)</enum><header>Staff</header><clause id="idd7dfe841bae44c0989003abc843ceb06"><enum>(i)</enum><header>In general</header><text>The Chairman of the Commission may, without regard to the civil service laws and regulations, appoint and terminate an executive director and such other additional personnel as may be necessary to enable the Commission to perform its duties. The employment of an executive director shall be subject to confirmation by the Commission.</text></clause><clause id="id3890bd8d65e141d6a69bc17406272145"><enum>(ii)</enum><header>Compensation</header><text>The Chairman of the Commission may fix the compensation of the executive director and other personnel without regard to chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating to classification of positions and General Schedule pay rates, except that the rate of pay for the executive director and other personnel may not exceed the rate payable for level V of the Executive Schedule under section 5316 of such title.</text></clause><clause id="id83f6c22de66d46e3a52fc3e09b78890a"><enum>(iii)</enum><header>Detail of government employees</header><text>Any Federal Government employee may be detailed to the Commission without reimbursement, and such detail shall be without interruption or loss of civil service status or privilege.</text></clause><clause id="id92756db12bfa49699ef93006d08f62e0"><enum>(iv)</enum><header>Procurement of temporary and intermittent services</header><text>The Chairman of the Commission may procure temporary and intermittent services under section 3109(b) of title 5, United States Code, at rates for individuals which do not exceed the daily equivalent of the annual rate of basic pay prescribed for level V of the Executive Schedule under section 5316 of such title.</text></clause></subparagraph></paragraph><paragraph id="idcf4cd3be83714d0691cd3c594bb2744b"><enum>(4)</enum><header>Recommendations and regulations on funding and distribution requirements</header><subparagraph id="idcf8b41e15ec64e64b71a1e2a509673ab"><enum>(A)</enum><header>In general</header><text>After taking into consideration the recommendations of the Commission and providing the public notice and an opportunity for comment, the Secretary shall promulgate regulations with respect to funding and distribution requirements for USA Retirement Funds, as necessary or appropriate in the public interest and for the protection of participants and beneficiaries, including regulations described in subparagraphs (B) and (C).</text></subparagraph><subparagraph commented="no" id="id45d3064dc6a747479b1fad8c0e0c03a6"><enum>(B)</enum><header>Requirements relating to annuity payments made directly by a Fund</header><text>The regulations under subparagraph (A) shall provide that in the case of annuity payments made directly by the Fund—</text><clause commented="no" id="id1CA9856E9D1749129D6C75ECAEEEC6BC"><enum>(i)</enum><text>the maximum annuity payment for a participant or beneficiary shall be determined using the mortality tables and interest rates prescribed by the Secretary under subparagraph (C) at the time benefits commence; and</text></clause><clause commented="no" id="idC27E275605D64012A05A428A67BED0EC"><enum>(ii)</enum><text>the level of benefits paid may be adjusted periodically in order to reflect the mortality experience and the investment experience of the Fund, but only after the Fund has obtained a certification from a member of the American Academy of Actuaries that the adjustment is sustainable for the remaining lifetime of participants then receiving benefits, based on the mortality tables and interest rates prescribed under subparagraph (C) by the Secretary for that time.</text></clause></subparagraph><subparagraph id="id80b0e86e78004d72a24495a33fdf21aa"><enum>(C)</enum><header>Mortality tables and interest rates used requirements</header><text>The regulations promulgated under subparagraph (A) shall include the following:</text><clause id="id68479a440ae94f65ba2fdaccc580b65a"><enum>(i)</enum><header>Mortality Tables</header><subclause id="id4EFA8388772A4603B2A3C96BEC919FA5"><enum>(I)</enum><header>In general</header><text>The Secretary shall prescribe mortality tables to be used in determining annuity payments made directly by the Fund. Such tables shall be based on the actual experience of insurance companies that issue group annuities and projected trends in such experience. In prescribing such tables, the Secretary shall take into account results of available independent studies of the mortality of individuals receiving annuities under group annuity contracts.</text></subclause><subclause id="id0A58C5C4C85E45D288D953623747BEF7"><enum>(II)</enum><header>Periodic revisions of mortality tables</header><text>The Secretary shall make revisions, to become effective as soon as practicable, in any mortality table in effect to reflect more recent actual experience of insurance companies that issue group annuities and projected trends in such experience. In revising such tables, the Secretary shall take into account the results of more recent available independent studies of the mortality and projected trends of individuals receiving annuities under group annuity contracts.</text></subclause></clause><clause id="idCE1256B0C84F41D28926A0BAD8CD7789"><enum>(ii)</enum><header>Interest Rates</header><text>The Secretary shall prescribe interest rates to be used in determining annuity payments made directly by the Fund. Such rates shall be based on the yields on investment grade corporate bonds with varying maturities and that are in the top 3 quality levels available. Interest rates shall be prescribed quarterly or more frequently, as determined by the Secretary.</text></clause></subparagraph></paragraph><paragraph id="id27EDF3F6924E4F09B4723689E2961507"><enum>(5)</enum><header>Duty to address best practices</header><text>The Commission shall prepare, and periodically update, a report that describes the best practices for the governance of boards of trustees of USA Retirement Funds, including board of trustee composition, appointment procedures, term length, term staggering, trustee qualifications, delegation of duties, and performance assessment procedures.</text></paragraph></subsection></section><section id="idb6bf400f3c944ec8a8283786cfac4257"><enum>104.</enum><header>Limitation on employer liability</header><text display-inline="no-display-inline">Section 404 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1021">29 U.S.C. 1021 et seq.</external-xref>) is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id2d1633bd75974ff4a14ce2a73fbffff1" style="OLC"><subsection id="id173b8eecad1643f8b0a062437c88c149"><enum>(e)</enum><text>An employer shall not be a fiduciary with respect to the selection, management or administration of a USA Retirement Fund solely because such employer makes available such Fund through an automatic USA Retirement Fund arrangement. Notwithstanding the preceding sentence, employers participating in a USA Retirement Fund shall be responsible for meeting the enrollment requirements and transmitting contributions, as required under the <short-title>USA Retirement Funds Act</short-title>.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="ide4adc43672af428895c37431728011f1"><enum>105.</enum><header>Enforcement and fraud prevention</header><subsection id="id208f33c938544409b22f0c30b2f015cf"><enum>(a)</enum><header>Penalty for failure To timely remit contributions to automatic USA Retirement Fund arrangements</header><paragraph id="id029cf5ed23a745cd8cddeb594275d385"><enum>(1)</enum><header>In general</header><text>If an employer is required under an automatic USA Retirement Fund arrangement to deposit amounts withheld from an employee's compensation into a USA Retirement Fund but fails to do so within the time prescribed under section 101(d)(3), such amounts shall be treated as assets of a USA Retirement Fund.</text></paragraph><paragraph id="id18eec17bb3f04aa79df6344365e610e7"><enum>(2)</enum><header>Failure to provide access to payroll savings arrangements</header><subparagraph id="id5326f3f92aff4964a57af7e7462b372c"><enum>(A)</enum><header>General rule</header><text>A covered employer who fails to meet the requirements of section 101(a) for a calendar year shall be subject to a civil money penalty of $100 per calendar year for each employee to whom such failure relates.</text></subparagraph><subparagraph id="idEBDF71368AB44FA5B3B010490318820C"><enum>(B)</enum><header>Exceptions</header><text>No civil money penalty shall be imposed under this paragraph for a failure to meet the requirements under section 101(a)—</text><clause id="id008FF98E627A433EB9A487ECA159EC8F"><enum>(i)</enum><text>during a period for which the Secretary determines that the employer subject to liability for the civil money penalty did not know that the failure existed and exercised reasonable diligence to meet the requirements of section 101(a); or</text></clause><clause id="id6A6FDD67F01B4E55A09C6B129E3AA712"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="id205030D4CEEA4A89AA2CBC4232F09F37"><enum>(I)</enum><text>the employer subject to liability for the civil money penalty exercised reasonable diligence to meet the requirements of section 101(a); and</text></subclause><subclause id="id812A0999030B4314858B34F3F27D5F36" indent="up1"><enum>(II)</enum><text>the employer provides the automatic USA Retirement Fund arrangement described to each employee eligible to participate in the arrangement by the end of the 90-day period beginning on the first date the employer knew, or exercising reasonable diligence should have known, that such failure existed.</text></subclause></clause></subparagraph><subparagraph id="id415986644cc14ca9829cb5d299a95032"><enum>(C)</enum><header>Waiver by the secretary</header><text>In the case of a failure to meet the requirements of section 101(a) that is due to reasonable cause and not to willful neglect, the Secretary may, in the sole discretion of the Secretary, waive part or all of the civil money penalty imposed under this paragraph to the extent that the payment of such civil money penalty would be excessive or otherwise inequitable relative to the failure involved.</text></subparagraph><subparagraph id="id5474421d6ba5482cb4631ff9de2477dd"><enum>(D)</enum><header>Procedures for notice</header><text>The Secretary may prescribe and implement procedures for obtaining confirmation that employers are in compliance with subsection (a). The Secretary, in the discretion of such Secretary, may prescribe that the confirmation shall be obtained on an annual or less frequent basis, and may use for this purpose the annual report or quarterly report for employment taxes, or such other means as the Secretary may deem advisable.</text></subparagraph></paragraph></subsection><subsection id="id805dc3ec689b4624aefe5b9126067795"><enum>(b)</enum><header>Civil actions and enforcement</header><paragraph id="id6045603241394d19a51077044d8cfcf0"><enum>(1)</enum><header>Administration and enforcement</header><text>Part 5 of title I of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1132">29 U.S.C. 1132 et seq.</external-xref>) shall apply to a USA Retirement Fund as if a USA Retirement Fund were an employee benefit plan.</text></paragraph><paragraph id="id8ad98e2e41a149389954fabded39deab"><enum>(2)</enum><header>Amendment</header><text>Section 502(a) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1132">29 U.S.C. 1132 et seq.</external-xref>) is amended—</text><subparagraph id="id591BDCE0671840168321EB99B12983E3"><enum>(A)</enum><text>in paragraph (9), by striking <quote>; or</quote> and inserting <quote>;</quote>;</text></subparagraph><subparagraph id="id10CDAFA0D81642DD9A91E125FA073738"><enum>(B)</enum><text>in paragraph (10), by striking the period at the end and inserting <quote>; or</quote>; and</text></subparagraph><subparagraph id="idB26F3CF58B2F4BDA8DA19776AD620532"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id0FBA04074D21436198EE938276997CF1" style="OLC"><paragraph id="id8EAA138142274B648CB82AC0309CB701"><enum>(11)</enum><text>in the event that an employer fails to make timely contributions or payments to a USA Retirement Fund established under title I of the <short-title>USA Retirement Funds Act</short-title>, by the Secretary, a participant, a beneficiary, or a fiduciary, to compel an employer to make such contributions or payments as if such contributions or payments were delinquent contributions or payments under section 515 or subsection (g)(2).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id6EDB319F2D7143139F5C74399CF91286"><enum>(3)</enum><header>Non-preemption of certain State law</header><text>Nothing in this section shall preempt State law insofar as State law relates to the enforcement of an obligation to contribute to a USA Retirement Fund.</text></paragraph></subsection><subsection id="idb3b2674b97f641feb53234881c799371"><enum>(c)</enum><header>False statements</header><paragraph id="id60BA9A4B3C7D4584987996687843B1B5"><enum>(1)</enum><header>In general</header><text>No person, in connection with a plan or other arrangement that is or purports to be a USA Retirement Fund, shall make a false statement or false representation of fact, knowing it to be false, in connection with the marketing or sale of such plan or arrangement, to any employee, any member of an employee organization, any beneficiary, any employer, any employee organization, the Secretary, or any State, or the representative or agent of any such person, State, or the Secretary, concerning—</text><subparagraph id="idd1774fb02ad8479c8c53a31f021e3ff1"><enum>(A)</enum><text>the financial condition or solvency of such fund or arrangement;</text></subparagraph><subparagraph id="id42811afdc33749549b1823338e1d0257"><enum>(B)</enum><text>the benefits provided by such fund or arrangement;</text></subparagraph><subparagraph id="idb0f12de2b67c45c6a55859aa9f1b9cae"><enum>(C)</enum><text>the regulatory status of such fund or other arrangement under any Federal or State law governing collective bargaining, labor management relations, or intern union affairs; or</text></subparagraph><subparagraph id="id31785214bad744439c3e3798aaeebc33"><enum>(D)</enum><text>the regulatory status of such fund or other arrangement.</text></subparagraph></paragraph><paragraph id="id5BF63EC45A974654ACF85D09E2FB3A7C"><enum>(2)</enum><header>Penalty</header><text>Any person who violates this subsection shall, upon conviction, be imprisoned not more than 10 years or fined under title 18, United States Code, or both.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id5fb9ccf4b26f416a87ae05b6b0ca6cf0"><enum>(d)</enum><header>Cease and desist orders</header><paragraph commented="no" display-inline="no-display-inline" id="id7BAFDAF73823449CAFFC52C0985A07F0"><enum>(1)</enum><header>Issuance of order</header><text>The Secretary may issue a cease and desist (ex parte) order under this title if the Secretary determines that the alleged conduct of a fund purporting to be a USA Retirement Fund is fraudulent, or creates an immediate danger to the public safety or welfare, or is causing or can be reasonably expected to cause significant, imminent, and irreparable public injury.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id68E3E91D27AC4CB494BEF68EC80AEEC4"><enum>(2)</enum><header>Hearings</header><subparagraph commented="no" display-inline="no-display-inline" id="idCA6E79E7287E4BD78F85C8F65FD15529"><enum>(A)</enum><header>In general</header><text>A person who is adversely affected by the issuance of a cease and desist order under paragraph (1) may request a hearing by the Secretary regarding such order. The Secretary may require that a hearing under this paragraph, including all related information and evidence, be conducted in a confidential manner.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id41A197DA54154AE79294B9721B741474"><enum>(B)</enum><header>Burden of proof</header><text>The burden of proof in any hearing conducted under subparagraph (A) shall be on the party requesting the hearing to show cause why the cease and desist order should be set aside.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3F163B8CFA9340169CE4E683A741683E"><enum>(C)</enum><header>Determination</header><text>Based upon the evidence presented at a hearing under subparagraph (A), the Secretary may affirm, modify, or set aside the cease and desist order at issue, in whole or in part.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2ED88FAD87AD47D0BE6B10EF54F2FE50"><enum>(3)</enum><header>Regulations</header><text>The Secretary may promulgate such regulations or other guidance as may be necessary or appropriate to carry out this subsection.</text></paragraph></subsection></section><enum>II</enum><header>Defined contribution plan reforms</header><subtitle id="id688426A9305748FF9B6A62B61F551354" style="OLC"><enum>A</enum><header>Savings enhancements</header><section id="idc45084c26ad74390a92b6cdb5d28ae08"><enum>201.</enum><header>Pooled employer plans</header><subsection id="id519441F32F3B4721A51BFDEE98845AF5"><enum>(a)</enum><header>No common interest required for pooled employer plans</header><text display-inline="yes-display-inline">Section 3(2) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1002">29 U.S.C. 1002(2)</external-xref>) is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id7C374883CA05471CA7402A4FB48E4909" style="OLC"><subparagraph commented="no" display-inline="no-display-inline" id="id099E623BA12E484B8850BF37BBA0C26B"><enum>(C)</enum><text display-inline="yes-display-inline">A pooled employer plan shall be treated as a single employee pension benefit plan or single pension plan without regard to whether the participating employers share a common interest other than participation in the plan.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="idD0A77B136EF1432E982A34E902F24A29"><enum>(b)</enum><header>Pooled employer plan and provider defined</header><text display-inline="yes-display-inline">Section 3 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1002">29 U.S.C. 1002</external-xref>) is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id533a21ff67b441ca819866445989fd79" style="OLC"><paragraph id="id57997e715cd74b508cc9c7939e6e5da8"><enum>(43)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="idF5DD7E6C67494130A6AE68B4ADFF7DA5"><enum>(A)</enum><text>The term <term>pooled employer plan</term> means a pension plan (without regard to whether any participating employers share a common interest other than participation in the plan) that is a single individual account plan established or maintained for the purpose of providing benefits to the employees of 2 or more employers but only if—</text><clause id="id38268F4600794069B339470F49D4089E" indent="up1"><enum>(i)</enum><text>the terms of the plan designate a pooled plan provider,</text></clause><clause id="id37A47AFFFF6B4D7DBC1DA7DB0D5AF02E" indent="up1"><enum>(ii)</enum><text>under the plan each participating employer retains fiduciary responsibility for—</text><subclause id="id3D664BA54B794936BCD4D13F2F30AE72"><enum>(I)</enum><text>the prudent selection and monitoring of the person designated as the pooled employer plan provider and, if different from the provider, the person designated as the plan’s named fiduciary, and</text></subclause><subclause id="idE60392AC063C4AFA98CC408EE2594E77"><enum>(II)</enum><text>to the extent not otherwise delegated to another fiduciary, the investment and management of that portion of the plan’s assets attributable to the employees of that participating employer,</text></subclause></clause><clause id="idAB6C9020E2B84DAEBCF5066D3132F942" indent="up1"><enum>(iii)</enum><text>under the plan a participating employer is not subject to unreasonable restrictions, fees, or penalties with regard to ceasing participation or otherwise transferring assets of the plan in accordance with section 414(l) of the Internal Revenue Code of 1986, and</text></clause><clause id="id62DFB183CD0F4883A9AF6DF24CC74CF6" indent="up1"><enum>(iv)</enum><text>the pooled employer plan provider provides to participating employers any disclosures or other information as the Secretary may require.</text></clause></subparagraph><subparagraph id="idD0420BE0399F4BD0805B62EE4B71666D" indent="up1"><enum>(B)</enum><text>The term <term>pooled employer plan</term> does not include—</text><clause id="idE89A8E23818B437F8BDA83383BA52B3A"><enum>(i)</enum><text>a multiemployer plan, or</text></clause><clause id="id5200C0D1770C46348D2C4A334715DA9B"><enum>(ii)</enum><text>a plan established before January 1, 2014, or any successor thereof.</text></clause></subparagraph></paragraph><paragraph id="idb88f0a0d00fd4641862531be026eac0b"><enum>(44)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id05F4CF6143134433A6DC65896043C3FF"><enum>(A)</enum><text>The term <term>pooled plan provider</term> means a person who—</text><clause id="idD7CBA164109242778FE37F96289F12EF" indent="up1"><enum>(i)</enum><text>is designated by the terms of a pooled employer plan as a pooled plan provider;</text></clause><clause id="idDDBBFF79DF594BF589C4D75E9174D7ED" indent="up1"><enum>(ii)</enum><text>registers as a pooled plan provider with the Secretary and provides such other identifying information to the Secretary as the Secretary may require; and</text></clause><clause id="id7E14FB24E39D4DEC938BFADDFD7FA499" indent="up1"><enum>(iii)</enum><text>has such educational or professional qualifications as the Secretary may require.</text></clause></subparagraph><subparagraph id="idC433D42D381E4836A4061795DF31776E" indent="up1"><enum>(B)</enum><text>The Secretary may perform examinations and investigations of pooled plan providers as may be necessary to enforce and carry out the purposes of the Act.</text></subparagraph><subparagraph id="idE1D299FD546B494F911B7A00363A08E9" indent="up1"><enum>(C)</enum><text>For purposes of this section, the following shall be treated as a single pooled plan provider:</text><clause id="idB3CD77F9EDE340BA84213A43C49F6337"><enum>(i)</enum><text>All corporations that provide services to a plan and are members of a controlled group of corporations within the meaning of section 1563(a) of the Internal Revenue Code of 1986 (determined without regard to subsection (a)(4) of such section 1563).</text></clause><clause id="idBA0D3D72B5A3402D96D6DD59AFF829A5"><enum>(ii)</enum><text>All persons treated as a single employer under section 210(d).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="id18855953153046EC9B8776DFEA2CDE05"><enum>(c)</enum><header>Technical amendment</header><text>Section 3 of such Act is amended by striking the second paragraph (41).</text></subsection></section><section id="id28B5BC0A474B4A969FB5949BF2F6056D"><enum>202.</enum><header>Pooled employer and multiple employer plan reporting</header><subsection id="id6a00e9d36b6942108438880f9d206c2d"><enum>(a)</enum><header>Additional information</header><text>Section 103 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1023">29 U.S.C. 1023</external-xref>) is amended—</text><paragraph id="id3d3c6305f3764393ab0c7e242f233ace"><enum>(1)</enum><text>in subsection (a)(1)(B), by striking <quote>applicable subsections (d), (e), and (f)</quote> and inserting <quote>applicable subsections (d), (e), (f), and (g)</quote>; and</text></paragraph><paragraph id="id9aba00d4ceea4fabb406266a089c9808"><enum>(2)</enum><text>by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="idc335fbe8d8b5427bb6b08aebc58c7c9f" style="OLC"><subsection id="id95eb050601324a51917cb5e54711e7db"><enum>(g)</enum><header>Additional information with respect to pooled employer and multiple employer plans</header><text>An annual report under this section for a plan year shall include—</text><paragraph id="id9C2B9F7F54794F1A9BC976EB5D7E9FD0"><enum>(1)</enum><text>with respect to any pooled employer plan or other pension plan maintained by more than one employer (other than a multiemployer plan), a list of participating employers and a good faith estimate of the percentage of the total contributions made, or expected to be made, by each such participating employer for the plan year, and</text></paragraph><paragraph id="idBD13C8BFC1854A65B30F8ED5AFAE3BAA"><enum>(2)</enum><text>with respect to a pooled employer plan, the identifying information for the person designated under the terms of the plan as the pooled plan provider.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id2ddf74115b9248ce9fcd9ea680e0df20"><enum>(b)</enum><header>Simplified annual reports</header><text>Section 104(a) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1024">29 U.S.C. 1024(a)</external-xref>) is amended by striking paragraph (2)(A) and inserting the following:</text><quoted-block display-inline="no-display-inline" id="idc13d89578dae4f909b343e65b9be32e1" style="OLC"><paragraph id="idF1EEE7E2FBD34820B744975A1B9E5B38"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id001E7D186A604C649FB56BB2C82F39D0"><enum>(A)</enum><text>With respect to annual reports required to be filed with the Secretary under this part, the Secretary may by regulation prescribe simplified annual reports for any pension plan that—</text><clause id="id03E4613875154068B70514C78CD3206E" indent="up1"><enum>(i)</enum><text>covers fewer than 100 participants, or</text></clause><clause id="id42ACE3D9B0374C28AC696A73D771EEB8" indent="up1"><enum>(ii)</enum><text>is a pooled employer plan (as defined in section 3(43)) that covers fewer than 1,000 participants but only if no single participating employer has more than 100 participants covered by the plan.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id20C6696BCABC42B4A5BA450F0735E68A"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to annual reports for plan years beginning after December 31, 2014.</text></subsection></section></subtitle><subtitle id="idA79ECB69F48A4155B5F5F52391547527" style="OLC"><enum>B</enum><header>Participant Protections</header><section id="id58aa0f92fd984d0f93cd4547e85ae52c"><enum>211.</enum><header>Alternative fiduciary arrangements to protect plan participants</header><text display-inline="no-display-inline">Section 405 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1105">29 U.S.C. 1105</external-xref>) is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="idAFAA21B24FFC4DC69DA1F3D848BA3CEC" style="OLC"><subsection id="idb09d21fa319d4318bdedae9add1f3119"><enum>(e)</enum><header>Small employer plan alternative fiduciary arrangements</header><paragraph id="idd67ea811d77846c580e2b4e3a27e8cd3"><enum>(1)</enum><header>In general</header><text>A small employer that is a plan sponsor of an employee pension benefit plan shall not be liable for a breach of fiduciary responsibility of a small employer plan service provider with respect to the same plan if the requirements of the following subparagraphs are met:</text><subparagraph id="id3f6c90fe264d4371877cb3f90074dbf1"><enum>(A)</enum><header>Small employer plan sponsor requirements</header><text>The requirements of this subparagraph are met if the small employer prudently selects and monitors the small employer plan named fiduciary.</text></subparagraph><subparagraph id="id00af58271df444ff8f59af7c1413f29b"><enum>(B)</enum><header>Small employer plan named fiduciary requirements</header><text>The requirements of this subparagraph are met if the small employer plan named fiduciary—</text><clause id="id6f26c4b04f73437385dd6ef986fa6ad7"><enum>(i)</enum><text>engages a small employer plan service provider with respect to the employee pension benefit plan;</text></clause><clause id="id0919534222a944629d00af089b6c2f90"><enum>(ii)</enum><text>registers as a small employer plan named fiduciary with the Secretary in accordance with paragraph (2)(A);</text></clause><clause id="id49AE4805554643B19C5EE8CF4D76E915"><enum>(iii)</enum><text>has such educational or professional qualifications as the Secretary may require;</text></clause><clause id="id8ABF1CDC9B224B8CBE0643240046E26D"><enum>(iv)</enum><text>provides to employers disclosures or other information as may be required by the Secretary by regulations to facilitate monitoring of the named fiduciary;</text></clause><clause id="id39f9c11eff234e05a1307d8276fb5b38"><enum>(v)</enum><text>is bonded in accordance with section 412; and</text></clause><clause id="idD8DBE27D38E541F9B324F38BBFF2D5DD"><enum>(vi)</enum><text>meets the financial responsibility requirements of paragraph (2)(B).</text></clause></subparagraph></paragraph><paragraph id="idE837540A48F947948A440491120BF351"><enum>(2)</enum><header>Rules relating to named fiduciary requirements</header><subparagraph commented="no" id="ide2b11cf763964ca5ada56f51485beafe"><enum>(A)</enum><header>Reporting by small employer plan named fiduciary</header><text>For purposes of paragraph (1)(B)(ii), the small employer plan named fiduciary shall file the required registration with the Secretary—</text><clause commented="no" id="id41FB5E4BBD2747B8BB5DBA63CC6A7B5A"><enum>(i)</enum><text>before the date upon which the safe harbor provided in this subsection first applies to a small employer plan sponsor and at such other times as the Secretary may prescribe by regulations, and</text></clause><clause commented="no" id="idBB08FF999E3E4F90B63724F0E8300381"><enum>(ii)</enum><text>in such form and manner, and containing such information, as the Secretary determines necessary or appropriate to carry out the purposes of this Act.</text></clause></subparagraph><subparagraph id="id0B409216737843F1A5081B267B79CE89"><enum>(B)</enum><header>Financial responsibility requirements</header><text>For purposes of paragraph (1)(B)(vi), a small employer plan named fiduciary shall meet the requirements of this subparagraph if the fiduciary either—</text><clause id="idFEA5D96815A94F8A9A30BBE5F295675B"><enum>(i)</enum><text>has fiduciary liability insurance with a per-claim limit equal to no less than—</text><subclause id="id9227C5504876405891331749304EC851"><enum>(I)</enum><text>the greater of 5 percent of plan assets or $1,000,000; or</text></subclause><subclause id="idD8FE4233EDEC4233B103D141221A4872"><enum>(II)</enum><text>such other amount as is determined by the Secretary by regulation; or</text></subclause></clause><clause id="id52B9EF56C4CB49A2919E8A34BE218504"><enum>(ii)</enum><text>is—</text><subclause id="idAD1A2BFE4C474836AB6C1D371BD56894"><enum>(I)</enum><text>a bank, as defined in section 202(a)(2) of the Investment Advisers Act of 1940, that has the power to manage, acquire, or dispose of assets of a plan, and that has, as of the last day of its most recent fiscal year, equity capital in excess of $1,000,000;</text></subclause><subclause id="id042BE9D9FACE49B494EF82EAA4739633"><enum>(II)</enum><text>a savings and loan association, the accounts of which are insured by the Federal Savings and Loan Insurance Corporation, that has made application for and been granted trust powers to manage, acquire, or dispose of assets of a plan by a State or Federal authority having supervision over savings and loan associations, and that has, as of the last day of its most recent fiscal year, equity capital or net worth in excess of $1,000,000;</text></subclause><subclause id="id1B707E8A926B4511BFC1CEEEF8F71EEF"><enum>(III)</enum><text>an insurance company that is subject to supervision and examination by a State authority having supervision over insurance companies, that is qualified under the laws of more than one State to manage, acquire, or dispose of assets of a plan, and that has, as of the last day of its most recent fiscal year, net worth in excess of $1,000,000; or</text></subclause><subclause id="id434F0EDC52C643A0816CCD25066BFCCA"><enum>(IV)</enum><text>an investment adviser registered under the Investment Advisers Act of 1940 that, as of the last day of its most recent fiscal year, has total client assets under its management and control in excess of $85,000,000 and shareholders' or partners' equity in excess of $1,000,000.</text></subclause></clause></subparagraph><subparagraph id="id32AA3E8C840648D990F1100C061FB70C"><enum>(C)</enum><header>Adjustment of amounts</header><text>The Secretary may by regulation adjust the dollar amounts under subparagraph (B)(ii).</text></subparagraph></paragraph><paragraph id="id461802170fe447078b2e6c6f709bc656"><enum>(3)</enum><header>Administrative summary cease and desist orders and summary seizure orders against small employer plan named fiduciary</header><subparagraph id="id6d782bbb298e486fb9697c640b5469ac"><enum>(A)</enum><header>In general</header><text>The Secretary may issue an ex parte cease and desist order under this title if the Secretary—</text><clause id="idA1904A27F0C84C2D9B80626C462BCFF7"><enum>(i)</enum><text>determines that a small plan named fiduciary or small employer plan service provider has not met the requirements under paragraph (1) or (2); or</text></clause><clause id="id1290534D640149C4ACB46EA53602BC22"><enum>(ii)</enum><text>has reasonable cause to believe that the named fiduciary or service provider has engaged in or is about to engage in conduct that is a violation of this title or that the Secretary determines to be contrary to accepted standards of plan operations that might result in abnormal risk to the plan or participants and beneficiaries of the plan.</text></clause></subparagraph><subparagraph id="id02b9ed1c55a8482abeb312caa60f7cd4"><enum>(B)</enum><header>Hearings</header><clause id="id398438CAC0F64C11B67680E94300EECB"><enum>(i)</enum><header>In general</header><text>A person that is adversely affected by the issuance of a cease and desist order under subparagraph (A) may request a hearing by the Secretary regarding such order.</text></clause><clause id="idAAB3CB45B1F14994A653D380936F9013"><enum>(ii)</enum><header>Confidentiality</header><text>The Secretary may require that a hearing under this subparagraph, including all related information and evidence, be conducted in a confidential manner.</text></clause><clause id="id2b7753fcb170475c8462af9175d1e17e"><enum>(iii)</enum><header>Burden of proof</header><text>The burden of proof in any hearing conducted under this subparagraph shall be on the party requesting the hearing to show cause why the cease and desist order should be set aside.</text></clause><clause id="id5a0275cf86e04260aeaa03ac54a14824"><enum>(iv)</enum><header>Determination</header><text>Based upon the evidence presented at a hearing under this subparagraph, the Secretary may affirm, modify, or set aside the cease and desist order, in whole or in part.</text></clause></subparagraph><subparagraph id="idcfeaf17139bf466a916d475463e76cf3"><enum>(C)</enum><header>Seizure</header><text>The Secretary may issue a summary seizure order under this subtitle if the Secretary determines that a small employer plan named fiduciary or small employer plan service provider is in a financially hazardous condition.</text></subparagraph><subparagraph commented="no" id="id305b3e3bd10f48c2aef6fd3704c1ea8d"><enum>(D)</enum><header>Regulations</header><text>The Secretary may promulgate such regulations or other guidance as may be necessary or appropriate to carry out this paragraph.</text></subparagraph><subparagraph id="id290dc9a2ea2c4eeaa698934cd88afc99"><enum>(E)</enum><header>Exception</header><text>This paragraph shall not apply to any named fiduciary that is not a named fiduciary under paragraph (1)(A) or small employer plan service provider under paragraph (1)(B)(i).</text></subparagraph><subparagraph id="idCF4EBB918A3B40BB8EDCDE27DD505639"><enum>(F)</enum><header>Savings clause</header><text>The Secretary’s authority under this paragraph shall not be construed to limit the Secretary’s ability to exercise enforcement or investigatory authority under any other provision of this title. The Secretary may, in the sole discretion of the Secretary, initiate court proceedings without using the procedures in this paragraph.</text></subparagraph></paragraph><paragraph id="id9c69612934ff4cf8a9181717375db500"><enum>(4)</enum><header>Definitions</header><text>For purposes of this subsection—</text><subparagraph id="id1b7cf76227f84b5d8357e5c34167988a"><enum>(A)</enum><header>Small employer</header><clause id="ide21c268351c045c1b6fdb03074fe8cd3"><enum>(i)</enum><header>In general</header><text>The term <term>small employer</term> means, with respect to any year, an employer that did not have more than 50 employees on any day during the preceding year.</text></clause><clause id="idabff401e3d654c20a9cdc7b8f6b7decf"><enum>(ii)</enum><header>2-Year grace period</header><text>A small employer that establishes and maintains an employee pension benefit plan for 1 or more years and that is not a small employer for any subsequent year shall be treated as a small employer for the 2 years following the last year the employer was a small employer. If such employer is not a small employer as described in the preceding sentence on account of an acquisition, disposition, or similar transaction involving a small employer, the preceding sentence shall not apply.</text></clause></subparagraph><subparagraph id="id2ce839eb28e9458fb0365f322b0d9e15"><enum>(B)</enum><header>Small employer plan named fiduciary</header><text>The term <term>small employer plan named fiduciary</term> means the fiduciary that is designated as the small employer plan named fiduciary in the instrument under which an employee pension benefit plan is maintained.</text></subparagraph><subparagraph id="idadd5b717b0be4334a4ad6af4123f391a"><enum>(C)</enum><header>Small employer plan service provider</header><text>The term <term>small employer plan service provider</term> means—</text><clause id="id8004ce92988840a382579d070c39e1fe"><enum>(i)</enum><text>an administrator (as defined in section 3(16)(A));</text></clause><clause id="idc42fc19f3a9a4c4e99f0ef7166c737e0"><enum>(ii)</enum><text>a fiduciary (as defined in section 3(21)(A)); or</text></clause><clause id="idee655a03267a4c938056de3a389b6978"><enum>(iii)</enum><text>an investment manager (as defined in section 3(38)),</text></clause><continuation-text continuation-text-level="subparagraph">that is independent from the small employer plan named fiduciary.</continuation-text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="idd15f2b3448894948a1934d154100a369"><enum>212.</enum><header>Rollover protections</header><subsection id="idf7fa84f55add4e73b2b01f22cfc8fa9b"><enum>(a)</enum><header>Sense of congress</header><text>It is the sense of Congress that a person may be providing investment advice within the meaning of section 3(21) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(21)) when such person advises a plan participant to take a permissible plan distribution and such distribution advice is combined with a recommendation as to how the distribution should be invested.</text></subsection><subsection id="id40b7961022f048658870e95a6fdfb096"><enum>(b)</enum><header>Guidance</header><text>Not later than 90 days after the date of enactment of this Act, the Secretary of Labor shall issue guidance consistent with subsection (a) clarifying the applicability of section 3(21) of the Employee Retirement Income Security Act of 1974 to investment advice provided in connection with distribution recommendations.</text></subsection><subsection id="id5c72a58c3ce54c5eafa843d0991628aa"><enum>(c)</enum><header>Fiduciary and prohibited transaction awareness</header><text>The Comptroller General of the United States shall study the extent to which advisors, broker-dealers, and other financial professionals dealing with individual and employer-provided retirement plans are aware of, and receive ongoing training regarding, the requirements of part 4 of subtitle B of title I of the Employee Retirement Income Security Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1101">29 U.S.C. 1101 et seq.</external-xref>) and <external-xref legal-doc="usc" parsable-cite="usc/26/4975">section 4975</external-xref> of the Internal Revenue Code of 1986. The Comptroller General shall submit a report to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and the Workforce of the House of Representatives summarizing its findings and including recommendations regarding ways to improve awareness of and compliance with the fiduciary and prohibited transaction rules.</text></subsection></section></subtitle><subtitle id="id75C907EE0A5F443896E072F920E7AEB7" style="OLC"><enum>C</enum><header>Lifetime income</header><section id="idc518e8cd382948b7a12c8c966ceb0076"><enum>221.</enum><header>Lifetime income disclosure</header><subsection id="id21e3dc7f0ef64528b4a47ac493621f70"><enum>(a)</enum><header>Requirements To provide pension benefit statements</header><text>Section 105(a)(2)(B) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1025(a)(2)(B)) is amended—</text><paragraph id="id967edd7e089948e2b571377c7ecadb13"><enum>(1)</enum><text>in clause (i), by striking <quote>and</quote> at the end;</text></paragraph><paragraph id="id860f573cb3454b338bb0a1c8a90ab063"><enum>(2)</enum><text>in clause (ii), by striking the period at the end and inserting <quote>, and</quote>; and</text></paragraph><paragraph id="idb04f1dc627cc4d04ae42353a01365f4a"><enum>(3)</enum><text>by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="idc3ee1777a44d41b6a1fccc68dc746b3c" style="OLC"><clause id="idec468bdb93394ae6966bb5cea6c5ca82"><enum>(iii)</enum><text>an illustration of the participant’s benefit as an estimated lifetime income stream beginning at retirement determined in accordance with assumptions and requirements established by regulation.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id1ff75af7374d443885bd69a2d47246ff"><enum>(b)</enum><header>Limitation on liability</header><text>Section 404 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1104">29 U.S.C. 1104</external-xref>), as amended by section 105, is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id3f77b6cdc5cf4f77ace2bf9d6850ac80" style="OLC"><subsection id="idb0c3930e34874e8681c160b08cb0cb42"><enum>(f)</enum><header>Limitation on liability</header><text>No plan fiduciary, plan sponsor, or other person shall have any liability under this title solely by reason of providing an illustration as required under section 105(a)(2)(B)(iii).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="id5f5090066dab4e7fbe5eb17cafc228e7"><enum>(c)</enum><header>Regulations</header><text>Not later than 1 year after the date of the enactment of this Act, the Secretary of Labor shall issue regulations implementing the amendments made by subsections (a) and (b).</text></subsection><subsection commented="no" id="id3B67DB90291849969CAC2F9FE96AB26A"><enum>(d)</enum><header>Clarification</header><text>The requirement under section 105(a)(2)(B)(iii) of the Employee Retirement Income Security Act of 1974, as added by subsection (a)(3), shall apply to pension benefit statements furnished more than 1 year after the issuance of the final rules implementing section 105(a)(2)(B)(iii) of such Act.</text></subsection></section><section id="id9d02a5064e2f40acb4ca466ac50b0ca8"><enum>222.</enum><header>Lifetime income safe harbor</header><text display-inline="no-display-inline">Section 404 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1104">29 U.S.C. 1104</external-xref>), as amended by sections 105 and 221(b), is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id69d970526f15441e93797cc894c41230" style="OLC"><subsection id="id784cb252c4cf4e439de43b0579061277"><enum>(g)</enum><header>Safe harbor for annuity selection</header><paragraph id="idb2a72f6dc2484a7bac7321a30afeb41e"><enum>(1)</enum><header>In general</header><text>With respect to the selection of a lifetime retirement income contract as part of an individual account plan, a fiduciary will be deemed to satisfy the requirements of subsection (a)(1)(B) with respect to the selection of an insurer and lifetime retirement income contract if the fiduciary engages in an objective, thorough, and analytical search for the purpose of identifying insurers from which to purchase lifetime retirement income contracts and appropriately concludes that—</text><subparagraph id="id0cca0881d3bb475ea2003b805d4ec5ff"><enum>(A)</enum><text>at the time of the selection, the insurer is financially capable of satisfying its obligations under the lifetime income contract; and</text></subparagraph><subparagraph id="idd5211c59637f4d60984245f77bd9f7de"><enum>(B)</enum><text>the cost (including fees, surrender penalties, and commissions) of the selected lifetime retirement income contract is reasonable in relation to the benefits and product features of the contract and the administrative services to be provided under such contract.</text></subparagraph></paragraph><paragraph id="id39e0c932f4a94b56b943a2a6e6afda53"><enum>(2)</enum><header>Fiduciaries</header><text>A fiduciary meets the requirements of paragraph (1)(A) if the fiduciary meets all of the following conditions:</text><subparagraph id="id294e6fcce03c4190bb88b4772cbeeaf6"><enum>(A)</enum><text>The fiduciary obtains written representations from the insurer that—</text><clause id="id739ef8130659461fbc2d7895cd9d624f"><enum>(i)</enum><text>the insurer is licensed to offer lifetime retirement income contracts;</text></clause><clause id="id4f98c2154efe48c2afb126edd6280fa0"><enum>(ii)</enum><text>the insurer, at the time of selection and for each of the immediately preceding 10 years—</text><subclause id="id8e8ffab62e714c2faba67e7783496c50"><enum>(I)</enum><text>operates under a certificate of authority from the Insurance Commissioner of its domiciliary state that has not been revoked or suspended;</text></subclause><subclause id="id0c68be0395d848e58b091c89efc71765"><enum>(II)</enum><text>has filed financial statements in accordance with the laws of its domiciliary state under applicable statutory accounting principles;</text></subclause><subclause id="id67e7a5ae04834207b9318013c1bf8b88"><enum>(III)</enum><text>maintains reserves that satisfy all the statutory requirements of all States where the insurer does business; and</text></subclause><subclause id="id9967b109b4c44650be59b8fff99a54fd"><enum>(IV)</enum><text>is not operating under an order of supervision, rehabilitation, or liquidation;</text></subclause></clause><clause id="idf5d3c22083ce4cb79bb13d21d792214f"><enum>(iii)</enum><text>the insurer undergoes, at least every 5 years, a financial examination (within the meaning of the law of the State in which the insurer is domiciled) by the insurance commissioner of the domiciliary State (or any representative, designee, or other party approved thereby);</text></clause><clause id="idfb13ffd5839e4f7c80918a966945efea"><enum>(iv)</enum><text>if, following the issuance of the representations described in clauses (i) through (iii), there is any change that would preclude the insurer from making such representations at the time of issuance of the lifetime retirement income contract, the insurer will inform the fiduciary that the fiduciary can no longer rely on one or more of the representations; and</text></clause><clause id="idb0d964a0e72b40a6b84610f0b1d88680"><enum>(v)</enum><text>meet such other requirements specified by the Secretary by regulation.</text></clause></subparagraph><subparagraph id="id43e5c61b899a4d60a26de4bd632ed842"><enum>(B)</enum><text>The fiduciary has not received the notification described in clause (iv) of subparagraph (A) and has no other facts that would cause the fiduciary to question the representations described in clauses (i) through (iii) of subparagraph (A).</text></subparagraph><subparagraph id="ida610cf1134d44b1695d7f33c563c9894"><enum>(C)</enum><text>The fiduciary inquires about additional protections that might be available through a State guaranty association for the lifetime retirement income contract.</text></subparagraph><subparagraph id="id16dced322ebd4c64baa5b71538a3fd05"><enum>(D)</enum><text>The fiduciary obtains evidence from the insurer that, not more than 1 year prior to the time of selection, the insurer has obtained written confirmation from the insurance commissioner of the domiciliary State of such insurer that, at the time the confirmation is issued, the insurer met the conditions of clauses (i) and (ii) of subparagraph (A).</text></subparagraph></paragraph><paragraph id="id29ecacc4d5f34aa9b528d9ed2cf4d296"><enum>(3)</enum><header>Time of selection</header><text>For purposes of this subsection, the <term>time of selection</term> is—</text><subparagraph id="idaf1ef610576642589dc2226ffd3ff39a"><enum>(A)</enum><text>the time that the insurer and contract are selected for distribution of benefits to a specific participant or beneficiary; or</text></subparagraph><subparagraph id="idc575c507e22247cb9244bd489c3e8b21"><enum>(B)</enum><text>the time that the insurer and contract are selected to provide benefits at future dates to participants or beneficiaries, but only if the selecting fiduciary periodically reviews the continuing appropriateness of the conclusion described in paragraph (1)(A).</text></subparagraph></paragraph><paragraph id="idc9fd369639cd4c64ba920fea48197369"><enum>(4)</enum><header>Periodic review</header><text>For purposes of paragraph (3)(B), a fiduciary is not required to review the appropriateness of the conclusion under paragraph (1)(A) before or after the purchase of any contract for specific participants or beneficiaries. A fiduciary will be deemed to have conducted a periodic review of the financial capability of the insurer if the fiduciary obtains the written representations described in clauses (i) through (iii) of paragraph (2)(A) on an annual basis, unless, in the interim, the fiduciary becomes aware of facts that would cause the fiduciary to question such representations.</text></paragraph><paragraph id="id316f6a3f17fa41ee8c77a542679bdb91"><enum>(5)</enum><header>Definitions</header><text>For purposes of this subsection—</text><subparagraph id="idC7C28FCA1F494BE8B58B75A5EA0845B5"><enum>(A)</enum><text>the term <term>insurer</term> means an insurance company, insurance service, or insurance organization qualified to do business in a State and includes affiliates of such companies to the extent the affiliate is licensed to offer lifetime retirement income contracts; and</text></subparagraph><subparagraph id="id40ccfd69342c425fa3a2462536832e50"><enum>(B)</enum><text>the term <term>lifetime retirement income contract</term> means an annuity contract or a contract (or provision or feature thereof) that provides a participant fixed or variable benefits for a fixed term or the remainder of the life of the participant or the joint lives of the participant and the designated beneficiary of the participant.</text></subparagraph></paragraph><paragraph id="id0bc7b9b1b9704910933a60b0c0fd3911"><enum>(6)</enum><header>Savings clause</header><text>Nothing in this subsection shall be construed to establish minimum requirements or the exclusive means for a fiduciary to satisfy the fiduciary duties under subsection (a)(1)(B). Nothing in this subsection shall be construed to require a fiduciary to select the lowest cost contract. A fiduciary may consider the value, including features and benefits of the contract and attributes of the insurer, in conjunction with the contract’s cost. Attributes of the insurer that may be considered may include, without limitation, the issuer’s financial strength.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="idfdf17e4b93024a54a1ec4de18be0f288"><enum>223.</enum><header>Default investment safe harbor clarification</header><subsection id="idbaa1f38aed8f4a8db04bb851dc1d191d"><enum>(a)</enum><header>In general</header><text>Section 404(c)(5) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1104">29 U.S.C. 1104(c)(5)</external-xref>) is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="ide7e19b23530142d587dcc2152aab52f7" style="OLC"><subparagraph id="iddfd1c276e9fe4eb6803ed5f9c5d5bc4e"><enum>(C)</enum><header>Availability of options</header><text>The availability of annuity purchase rights, death benefit guarantees, investment guarantees, or other features in insurance contracts will not, in and of themselves, affect the status of a fund, product, or portfolio as a default investment under this paragraph.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="idf62aaa59d25b4ddf916e1ba3760404ac"><enum>(b)</enum><header>Rules of construction</header><text>The amendment made by subsection (a) shall be construed to codify existing law and shall not be construed as modifying the regulations promulgated by the Secretary of Labor under section 404(c)(5) of Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1104">29 U.S.C. 1104(c)(5)</external-xref>), as in effect before the amendment made by this section.</text></subsection></section><section id="id52750a293a084deb9f3999ec36af3b4a"><enum>224.</enum><header>Administration of joint and survivor annuity requirements</header><subsection id="id61761a99bd9f4f0cbe4782a63fce378c"><enum>(a)</enum><header>Option To appoint annuity administrators</header><text>Section 402(c) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1102">29 U.S.C. 1102(c)</external-xref>) is amended—</text><paragraph id="id700e9f8af3294d01a209d124ed656592"><enum>(1)</enum><text>in paragraph (2), by striking <quote>or</quote> at the end,</text></paragraph><paragraph id="id924df99c8ea14c0486a4d406f2a77933"><enum>(2)</enum><text>in paragraph (3), by striking the period at the end and inserting <quote>; or</quote>, and</text></paragraph><paragraph id="idcb91f98623fe419abbc93acffd4a56fa"><enum>(3)</enum><text>by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="id2c57a1c63be249bd81803b80398b1ce2" style="OLC"><paragraph id="idb73da587ca4447c8a99513c192b20b1e"><enum>(4)</enum><text>that a named fiduciary, or a fiduciary designated by a named fiduciary pursuant to a plan procedure described in section 405(c)(1), may appoint an annuity administrator or administrators with responsibility for administration of an individual account plan in accordance with the requirements of section 205 and payment of any annuity required thereunder.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id38090d65371c433090947d43f51407ba"><enum>(b)</enum><header>Liability of annuity administrator</header><text>Section 405 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1105">29 U.S.C. 1105</external-xref>), as amended by section 211(a), is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id7f94b5be53e04bf2b22e4bdeb916329d" style="OLC"><subsection id="idaee32bc273bb4caf9543f97b46fb7d68"><enum>(f)</enum><header>Annuity Administrator</header><text>If 1 or more persons has been appointed under section 402(c)(4) as an annuity administrator or administrators of an individual account plan, and each such person acknowledges in writing that such person is the annuity administrator and a fiduciary under the plan with respect to appointed duties, neither the named fiduciary nor any appointing fiduciary shall be liable for any act or omission of the annuity administrator except to the extent that—</text><paragraph id="id5c70661ea598463fb7f17a80ed49aa87"><enum>(1)</enum><text>the named fiduciary or appointing fiduciary violated section 404(a)(1)—</text><subparagraph id="id6db77a3d527b4053992da38e8cecbb0c"><enum>(A)</enum><text>with respect to such appointment; or</text></subparagraph><subparagraph id="id376b8fec670a46679da4712541aaa8b0"><enum>(B)</enum><text>in continuing the appointment;</text></subparagraph></paragraph><paragraph id="id43213366cf2b4f32b94267ff47d3d1c3"><enum>(2)</enum><text>the named fiduciary or appointing fiduciary would otherwise be liable in accordance with subsection (a); or</text></paragraph><paragraph id="idd7660156ef6c454ab4153bda05e4b90f"><enum>(3)</enum><text>the entity appointed to be the annuity administrator is not an insurance company or approved to be an annuity administrator by the Secretary.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section></subtitle><enum>III</enum><header>Defined benefit system reforms</header><subtitle id="idEDEC25C0AD454D279468614B2981FABA" style="OLC"><enum>A</enum><header>Defined benefit pension plan reforms</header><section id="id0b90f46fdbc048c684b6e17ff6cf19aa"><enum>301.</enum><header>Hybrid plans</header><subsection id="id22f7bcee9b1b43ea99537028ebdba3fd"><enum>(a)</enum><header>Amendments to ERISA</header><paragraph id="id9d2bd1a611b0425d95abb2d2e3701df2"><enum>(1)</enum><header>Reasonable minimum rates disregarded</header><text>Section 204(b)(5)(B)(i) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1054(b)(5)(B)(i)) is amended—</text><subparagraph id="idc9f9401b89a74651ba6653d07af525ad"><enum>(A)</enum><text>in subclause (I), by adding at the end the following new sentence: <quote>Any rate described in subclause (IV) or (V) shall be disregarded in determining whether a plan is treated as satisfying the requirements of the first sentence of this subclause.</quote>; and</text></subparagraph><subparagraph id="id0f2994fdc1084a3ab3295f3908e8c109"><enum>(B)</enum><text>by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id9097920cc9344527b8e4d07baa149ec1" style="OLC"><subclause id="idDEED084CFACC47A49580E971FC25E5FA"><enum>(IV)</enum><header>Reasonable minimum guaranteed rates for investment-based interest credits</header><text>In the case of an interest credit (or equivalent amount) that is based on an actual investment (or on an index that is structured to have effects similar to the effects of an actual investment), a fixed annual crediting rate equal to 3 percent (or a lower rate not less than zero that is specified in the plan) with respect to all contribution credits credited to a participant’s account balance or similar amount during the guarantee period shall be treated as a reasonable minimum guaranteed rate of return. For purposes of this subclause, the guarantee period begins on the prospective date that such reasonable minimum guaranteed rate applies to the participant’s benefit under the plan and ends on the date that such reasonable minimum guaranteed rate ceases to apply to the participant’s benefit.</text></subclause><subclause id="id647e5d3e8b3447de8eb199253d0ea0e7"><enum>(V)</enum><header>Reasonable minimum rates for other interest crediting bases</header><text>In the case of an interest credit (or equivalent amount) that is not described in subclause (IV), an annual interest rate equal to the lowest interest rate permitted with respect to any plan under section 415(b)(2)(E)(i) of the Internal Revenue Code of 1986 (without regard to section 415(b)(2)(E)(ii) of such Code) shall be treated as a reasonable minimum guaranteed rate of return described in such subclause.</text></subclause><after-quoted-block>. </after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="iddd964669a8f54dd79fcec62615791aed"><enum>(2)</enum><header>Permitted fixed rates</header><text>Section 204(b)(5)(B)(i) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1054">29 U.S.C. 1054(b)(5)(B)(i)</external-xref>), as amended by paragraph (1)(B), is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id1273cda6a3834453a37db8725d6f6a39" style="OLC"><subclause id="id69C5CF05EDBB40B3AB12D728D603EBAD"><enum>(VI)</enum><header>Permitted fixed rate of return</header><text>An annual interest crediting rate that is a fixed annual crediting rate and that does not exceed the rate described in subclause (V) plus one percentage point shall be deemed to satisfy the requirements of subclause (I).</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id90f441de59ea489ba2bbc4661adc3cb3"><enum>(3)</enum><header>Protecting plan participants from losing access to market rates</header><subparagraph id="id6dda1a4c17064094abb9e4b728c4249a"><enum>(A)</enum><header>In general</header><text>Section 204(b)(5)(B) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1054">29 U.S.C. 1054(b)(5)(B)(i)(III)</external-xref>) is amended by adding at the end the following new clause:</text><quoted-block display-inline="no-display-inline" id="idbed915445da04202b1803deb877f722c" style="OLC"><clause id="idA2E653B981DB4CE6B5696D4F55FEE5F0"><enum>(iii)</enum><header>Special rules relating to market rate of return</header><text>For purposes of clause (i)(III)—</text><subclause id="id0EFD07D287F94D82B26C0400255FBC28"><enum>(I)</enum><header>In general</header><text>Except as provided in this subclause, any rate of return available in the market, shall, under the regulation under clause (i)(III), be permitted as a market rate of return under clause (i)(I).</text></subclause><subclause id="idC12982726C2E4B8FA0C3335371BE05E7"><enum>(II)</enum><header>Secretarial authority</header><text>Except as provided in subclause (III), the Secretary of the Treasury may prescribe by regulation that a rate of return available in the market is not permitted under clause (i)(I) if such rate is designed to evade the purposes of clause (i)(I) and is not consistent with the purposes of a defined benefit plan. Such authority shall apply only to a rate of return based exclusively or primarily on the returns on employer securities (as defined in section 407(d)(1)), on alternative investments generally not appropriate as an exclusive or primary investment for retirement, or on other similar investments.</text></subclause><subclause id="id15353ACEAE8F41CFB1A935575EF8CA4F"><enum>(III)</enum><header>Specified safe harbor rates</header><text>The following rates of return and any combination of such rates shall be deemed to be market rates of return that satisfy clause (i)(I):</text><item id="id33c17ec88d7e483aae1ba47659288a9d"><enum>(aa)</enum><text>The first, second, or third segment rate (as defined in section 430(h)(2)(C) of the Internal Revenue Code of 1986 (without regard to clause (iv) thereof)) or any combination of such rates.</text></item><item id="id2630dc7dd3894c6bb99fdda5ccee6002"><enum>(bb)</enum><text>The discount rate on 3-month, 6-month, and 12-month Treasury bills with appropriate margins determined under regulations prescribed by the Secretary of the Treasury.</text></item><item id="id535d32817ab34ab0bf781190f382a522"><enum>(cc)</enum><text>The yield on 1-year, 2-year, 3-year, 5-year, 7-year, 10-year, and 30-year Treasury Constant Maturities with appropriate margins determined under regulations prescribed by the Secretary of the Treasury.</text></item><item id="id983a38138bfa4da3bbb50964709c0df4"><enum>(dd)</enum><text>The actual return on all or a diversified portion of the assets of the plan.</text></item><item id="id12b60b75384749ff940cebe15009aba2"><enum>(ee)</enum><text>Any total return index or price index commonly used as an investment benchmark, as determined under regulations prescribed by the Secretary of the Treasury.</text></item><item id="idb1fa9287798240f58f72ccfb39396f47"><enum>(ff)</enum><text>The rate of return on an annuity contract for a participant issued by an insurance company licensed under the laws of a State.</text></item><item id="id59eb66b1918f4d23999536d150ba0bf0"><enum>(gg)</enum><text>A cost of living index with appropriate margin, as determined under regulations promulgated by the Secretary of the Treasury.</text></item><item id="id35c7d60faabd4e94858bb31cf7189d70"><enum>(hh)</enum><text>The rate of return on a broad-based regulated investment company, as determined under regulations promulgated by the Secretary of the Treasury.</text></item><item id="idc5bb3b7dc58c4df185a768baabcdab72"><enum>(ii)</enum><text>Any investment in which participants may elect to invest under a defined contribution plan maintained by the sponsor of the plan other than an investment with a rate of return prohibited under clause (i), a stable value fund, or an investment available only through a brokerage account (or similar arrangement).</text></item></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="id6e9f1445c2d942479b784bade392ca3d"><enum>(b)</enum><header>Amendments to 1986 Code</header><paragraph id="id312c16ac43ae4247874080785870c040"><enum>(1)</enum><header>Reasonable minimum rates disregarded</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/411">Section 411(b)(5)(B)(i)</external-xref> of the Internal Revenue Code of 1986 is amended—</text><subparagraph id="idB185CBC34E34463C96107A2AA4B582F7"><enum>(A)</enum><text>in subclause (I), by adding at the end the following new sentence: <quote>Any rate described in subclause (IV) or (V) shall be disregarded in determining whether a plan is treated as satisfying the requirements of the first sentence of this subclause.</quote>; and</text></subparagraph><subparagraph id="id54290622aa054e059f853c702a09cbde"><enum>(B)</enum><text>by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="idf8443fb73c214495ab92aeeb115384e1" style="OLC"><subclause id="id8F88043B0D06417180232AE3CFAE7D7F"><enum>(IV)</enum><header>Reasonable minimum guaranteed rates for investment-based interest credits</header><text>In the case of an interest credit (or equivalent amount) that is based on an actual investment (or on an index that is structured to have effects similar to the effects of an actual investment), a fixed annual crediting rate equal to 3 percent (or a lower rate not less than zero that is specified in the plan) with respect to all contribution credits credited to a participant’s account balance or similar amount during the guarantee period shall be treated as a reasonable minimum guaranteed rate of return. For purposes of this subclause, the guarantee period begins on the prospective date that such reasonable minimum guaranteed rate applies to the participant’s benefit under the plan and ends on the date that such reasonable minimum guaranteed rate ceases to apply to the participant’s benefit.</text></subclause><subclause id="id39c85f2cc6a14d6e8696e2f14eafa1c5"><enum>(V)</enum><header>Reasonable minimum rates for other interest crediting bases</header><text>In the case of an interest credit (or equivalent amount) that is not described in subclause (IV), an annual interest rate equal to the lowest interest rate permitted with respect to any plan under section 415(b)(2)(E)(i) (without regard to section 415(b)(2)(E)(ii)) shall be treated as a reasonable minimum guaranteed rate of return described in such subclause.</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id8761dd3a15ac46c88ee84e0765c9292f"><enum>(2)</enum><header>Permitted fixed rates</header><text>Section 411(b)(5)(B)(i) of such Code, as amended by paragraph (1)(B), is further amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id17ABA3228A6F4DB9BD1EF11F912F5B57" style="OLC"><subclause id="id5D302ECB806C43CF962D373442376BE3"><enum>(VI)</enum><header>Permitted fixed rate of return</header><text>An annual interest crediting rate that is a fixed annual crediting rate and that does not exceed the rate described in subclause (V) plus one percentage point shall be deemed to satisfy the requirements of subclause (I).</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="idc6156c19f7c74c5a82705fb725dff7c8"><enum>(3)</enum><header>Protecting plan participants from losing access to market rates</header><subparagraph id="id987ab14fc93046a0ac310c5094e305a4"><enum>(A)</enum><header>In general</header><text>Section 411(b)(5)(B) of such Code is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="idBD4999471DEB44FEA883B7EDB28080CD" style="OLC"><clause id="id9EE874CB33C8490F8A2A2A59AD86A434"><enum>(iii)</enum><header>Special rules relating to market rate of return</header><text>For purposes of clause (i)(III)—</text><subclause id="idB3F5FDA7DF4C469AAF041080C55521C6"><enum>(I)</enum><header>In general</header><text>Except as provided in this subclause, any rate of return available in the market, shall, under the regulation under clause (i)(III), be permitted as a market rate of return under clause (i)(I).</text></subclause><subclause id="id0234DA0B61194F63841AC2E4408E3569"><enum>(II)</enum><header>Secretarial authority</header><text>Except as provided in subclause (III), the Secretary may prescribe by regulation that a rate of return available in the market is not permitted under clause (i)(I) if such rate is designed to evade the purposes of clause (i)(I) and is not consistent with the purposes of a defined benefit plan. Such authority shall apply only to a rate of return based exclusively or primarily on the returns on employer securities (as defined in section 407(d)(1)), on alternative investments generally not appropriate as an exclusive or primary investment for retirement, or on other similar investments.</text></subclause><subclause id="idC6A3AAEE49D9480D863AABF427DEA15D"><enum>(III)</enum><header>Specified safe harbor rates</header><text>The following rates of return and any combination of such rates shall be deemed to be market rates of return that satisfy clause (i)(I):</text><item id="id2148F5EA539C4910B1D85EC2B47060F8"><enum>(aa)</enum><text>The first, second, or third segment rate (as defined in section 430(h)(2)(C) (without regard to clause (iv) thereof)) or any combination of such rates.</text></item><item id="idCBBA0FFC088D4A4AB8B2700E03D4CCA3"><enum>(bb)</enum><text>The discount rate on 3-month, 6-month, and 12-month Treasury bills with appropriate margins determined under regulations prescribed by the Secretary.</text></item><item id="id762D5FC222E840599A89024A23CA3898"><enum>(cc)</enum><text>The yield on 1-year, 2-year, 3-year, 5-year, 7-year, 10-year, and 30-year Treasury Constant Maturities with appropriate margins determined under regulations prescribed by the Secretary.</text></item><item id="id1C79856E226F4B4E807C07557732D34E"><enum>(dd)</enum><text>The actual return on all or a diversified portion of the assets of the plan.</text></item><item id="id3DED1CE4DB6C4227B9C2F6FA85EEDC5F"><enum>(ee)</enum><text>Any total return index or price index commonly used as an investment benchmark, as determined under regulations prescribed by the Secretary.</text></item><item id="idAC3F9970F4A0469BA070F8B4CB3D3D5A"><enum>(ff)</enum><text>The rate of return on an annuity contract for a participant issued by an insurance company licensed under the laws of a State.</text></item><item id="id309D0B8D7BDE40A486E8B123BA141E7E"><enum>(gg)</enum><text>A cost of living index with appropriate margin, as determined under regulations promulgated by the Secretary.</text></item><item id="id0211A83266044BEF91E3F3656A0BD20E"><enum>(hh)</enum><text>The rate of return on a broad-based regulated investment company, as determined under regulations promulgated by the Secretary.</text></item><item id="id5B4D8C8B7F154D2698E6DF7EBB4C6EE6"><enum>(ii)</enum><text>Any investment in which participants may elect to invest under a defined contribution plan maintained by the sponsor of the plan other than an investment with a rate of return prohibited under clause (i), a stable value fund, or an investment available only through a brokerage account (or similar arrangement).</text></item></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="id7a178ef723eb4a94b59634ceedb819ce"><enum>(c)</enum><header>Protecting plan participants from retroactive benefit decreases</header><paragraph id="id8B0024107629451E9201CFA682F09385"><enum>(1)</enum><header>In general</header><text>If an interest credit (or equivalent amount) under a plan subject to section 411(b)(5)(B)(i)(I) of the Internal Revenue Code of 1986 or section 204(b)(5)(B)(i)(I) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1054(b)(5)(B)(i)(I)) was reasonable in relation to market rates in existence when such interest credit (or equivalent amount) was established (disregarding any minimum rates of return that were reasonable when established), such interest credit (or equivalent amount) shall be treated as satisfying the requirements of section 411(b)(5)(B)(i)(I) of such Code and section 204(b)(5)(B)(i)(I) of such Act for the transition period.</text></paragraph><paragraph id="id764D5DDF04554BF0A3ED92A0AC3B7875"><enum>(2)</enum><header>Transition period</header><text>For purposes of paragraph (1), the transition period, with respect to any plan, begins on the date that section 411(b)(5)(B)(i)(I) of such Code or section 204(b)(5)(B)(i)(I) of such Act first applied to such plan and ends on the effective date of comprehensive final regulations under such sections prescribed by the Secretary of the Treasury.</text></paragraph></subsection><subsection id="id4eaa534325b748a2bdad07d8e2b6eaee"><enum>(d)</enum><header>Ensuring fairness when interest credits are required To be decreased</header><paragraph id="id34f0b318af084286a5ff7e155cdc4104"><enum>(1)</enum><header>In general</header><text>In the case of an interest credit (or equivalent amount) under a plan subject to section 411(b)(5)(B)(i)(I) of the Internal Revenue Code of 1986 or section 204(b)(5)(B)(i)(I) of the Employee Retirement Income Security Act of 1974 that is in effect for the last plan year prior to the effective date of comprehensive final regulations under such section of such Code but does not comply with such regulations determined after application of subsection (c), the Secretary of the Treasury shall provide an exception from the requirements of section 411(d)(6) of such Code and section 204(g) of such Act for a reduction in such interest credit (or equivalent amendment) that is made pursuant to such comprehensive final regulations.</text></paragraph><paragraph id="id9851ce3dc2284273a185c3f25e6c50ed"><enum>(2)</enum><header>Exception</header><text>The exception under paragraph (1) from section 204(g) of such Act and section 411(d)(6) of such Code shall be issued through regulations to ensure the opportunity of interested persons to make comments through a public notice and comment process. Such exception shall permit any interest credit (or equivalent amount) to which this subsection applies to be modified to be the maximum fixed rate of return permitted under section 204(b)(5)(B)(i)(VI) of such Act or section 411(b)(5)(B)(i)(VI) of such Code or to be the maximum rate permitted under any rate of return deemed to be a market rate of return pursuant to section 204(b)(5)(B)(i)(III) of such Act or section 411(b)(5)(B)(i)(III) of such Code. The Secretary of the Treasury shall further structure the exception to ensure that there are clear and simple methods for plans to comply with the requirements of section 204(b)(5)(B)(i)(I) of such Act and section 411(b)(5)(B)(i)(I) of such Code.</text></paragraph></subsection><subsection id="idc1e0e9b4d007456abf951b6d313f1db3"><enum>(e)</enum><header>Protecting participants from plan freezes through appropriate transition rules</header><paragraph id="id39566d3675f7403b9a15ab6e01a80226"><enum>(1)</enum><header>In general</header><text>In the case of any defined benefit plan to which this subsection applies, comprehensive regulations under sections 203(f)(1) and 204(b)(5)(B)(i) of the Employee Retirement Income Security Act of 1974 or sections 411(a)(13)(A) and 411(b)(5)(B)(i) of the Internal Revenue Code of 1986 shall not take effect before the first plan year beginning at least 1 year after the later of—</text><subparagraph id="idaf72a7f06296452dabe18e6f5a54ffc8"><enum>(A)</enum><text>the date of publication of such regulations; or</text></subparagraph><subparagraph id="idd0f9fa724d8e46509775ab418aae216b"><enum>(B)</enum><text>the date of publication of the regulations described in subsection (d).</text></subparagraph></paragraph><paragraph id="id6cdd4930c846457e9aeabbdb3a1a196c"><enum>(2)</enum><header>Pension equity plans</header><text>This subsection applies to any defined benefit plan that—</text><subparagraph id="ida1c76147df1c4195a9681bd9d9f2b1d6"><enum>(A)</enum><text>is subject to section 204(b)(5) of the Employee Retirement Income Security Act of 1974 or section 411(b)(5) of the Internal Revenue Code of 1986;</text></subparagraph><subparagraph id="idc770d180b86045ca9207d2a438f2e79c"><enum>(B)</enum><text>expresses any portion of any participant’s benefit as a current value equal to an accumulated percentage of the employee’s final average compensation; and</text></subparagraph><subparagraph id="idfc464c5f1fd34aea928fe89a5a613c8a"><enum>(C)</enum><text>in the absence of guidance from the Secretary of the Treasury or the Secretary of Labor, has been structured in a reasonable, good faith manner to comply with the requirements of such Code and such Act with respect to benefits described in subparagraph (B).</text></subparagraph></paragraph><paragraph id="id4b4006dce1d74480a23e61ba1be151a7"><enum>(3)</enum><header>Period prior to effective date of regulations</header><text>In the case of a plan to which this subsection applies, no rule shall be issued and no adverse enforcement action shall be taken by the Secretary of the Treasury or the Secretary of Labor with respect to a plan described in paragraph (2) regarding the structure of the benefits described in paragraph (2)(B) for any period prior to the effective date of comprehensive final regulations issued by the Secretary of the Treasury with respect to such benefits. Such final regulations shall not be effective before the first plan year beginning at least 1 year after publication of such regulations.</text></paragraph></subsection><subsection id="id84a160becc174981b1eb78053fd2e865"><enum>(f)</enum><header>Effective date</header><paragraph id="ida44e7db355354200994ab0b5b7364577"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided, the amendments and other provisions of this section shall take effect as if included in section 701 of the Pension Protection Act of 2006 (<external-xref legal-doc="public-law" parsable-cite="pl/109/280">Public Law 109–280</external-xref>; 120 Stat. 981).</text></paragraph><paragraph id="idd823a838cb2147ecac8b83192a8e393e"><enum>(2)</enum><header>Hold harmless</header><text>With respect to any period prior to the effective date of the comprehensive regulations described in subsection (e), no plan shall fail to comply with any requirement of the Employee Retirement Income Security Act of 1974 or of the Internal Revenue Code of 1986 by reason of complying with the law in effect without regard to the amendments made by subsections (a) and (b).</text></paragraph></subsection></section><section id="id47a112226b7e4063a0182197b40c4426"><enum>302.</enum><header>Clarification of the normal retirement age</header><subsection id="IDa4c6d63671584fd4b3cdbb327facd604"><enum>(a)</enum><header>Amendments to ERISA</header><text>Section 204 of the Employee Retirement Income Security Act of 1974 is amended by redesignating subsection (k) as subsection (l) and by inserting after subsection (j) the following new subsection:</text><quoted-block display-inline="no-display-inline" id="id873CC1FE13C34E6887C1C91D34643934" style="OLC"><subsection id="id59AC44C57C534BECA9F7430BC0C3544E"><enum>(k)</enum><header>Special rule for determining normal retirement age for certain existing defined benefit plans</header><paragraph id="idF69512E41448411783AD76F45AB8C20D"><enum>(1)</enum><header>In general</header><text>For purposes of section 3(24), an applicable plan shall not be treated as failing to meet any requirement of this title, or as failing to have a uniform normal retirement age for purposes of this title, solely because the plan has adopted the normal retirement age described in paragraph (2).</text></paragraph><paragraph id="idE2BA6B52E582453BAC60F75620B86E11"><enum>(2)</enum><header>Applicable plan</header><text>For purposes of this subsection—</text><subparagraph id="id72E12F67A9604CD992A586165BF3A789"><enum>(A)</enum><header>In general</header><text>The term <term>applicable plan</term> means a defined benefit plan that, on the date of the introduction of this subsection, has adopted a normal retirement age which is the earlier of—</text><clause id="id518DBA51E3EB4EDE9F2BD7C4C44A2AD2"><enum>(i)</enum><text>an age otherwise permitted under section 2(24), or</text></clause><clause id="id40DDB7137E7E48E7BBF27B06FE18CBE8"><enum>(ii)</enum><text>the age at which a participant completes the number of years (not less than 30 years) of benefit accrual service specified by the plan.</text></clause><continuation-text continuation-text-level="subparagraph">A plan shall not fail to be treated as an applicable plan solely because, as of such date, the normal retirement age described in the preceding sentence only applied to certain participants or to certain employers participating in the plan.</continuation-text></subparagraph><subparagraph id="id32AFDD62A6064871AB082BA46F32F620"><enum>(B)</enum><header>Expanded application</header><text>If, after the date described in subparagraph (A), an applicable plan expands the application of the normal retirement age described in subparagraph (A) to additional participants or participating employers, such plan shall also be treated as an applicable plan with respect to such participants or participating employers.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="ID295d49112dfc44c8ac5b0aee7dacc321"><enum>(b)</enum><header>Amendment to 1986 Code</header><text>Section 411 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text><quoted-block display-inline="no-display-inline" id="idE597426467394C67975847F732A9917C" style="OLC"><subsection id="id3C8DE213E6F04DD2BC1A84FD9FEEF2D3"><enum>(f)</enum><header>Special rule for determining normal retirement age for certain existing defined benefit plans</header><paragraph id="id6E26BDB7D48B470D8314024F464AA4C6"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a)(8)(A), an applicable plan shall not be treated as failing to meet any requirement of this subchapter, or as failing to have a uniform normal retirement age for purposes of this subchapter, solely because the plan has adopted the normal retirement age described in paragraph (2).</text></paragraph><paragraph id="id6169334C73B74AEB9C4A10AFF29175D2"><enum>(2)</enum><header>Applicable plan</header><text>For purposes of this subsection—</text><subparagraph id="id09116F2AA7C64392B314A9F4DBE124B9"><enum>(A)</enum><header>In general</header><text>The term <term>applicable plan</term> means a defined benefit plan that, on the date of the introduction of this subsection, has adopted a normal retirement age which is the earlier of—</text><clause id="id00AA2BE9C52F469DA767A2D0AE9D5644"><enum>(i)</enum><text>an age otherwise permitted under subsection (a)(8)(A), or</text></clause><clause id="idD195BB84876A43AFB74D9446D72D8C11"><enum>(ii)</enum><text>the age at which a participant completes the number of years (not less than 30 years) of benefit accrual service specified by the plan.</text></clause><continuation-text continuation-text-level="subparagraph">A plan shall not fail to be treated as an applicable plan solely because, as of such date, the normal retirement age described in the preceding sentence only applied to certain participants or to certain employers participating in the plan.</continuation-text></subparagraph><subparagraph id="id81453C4CA68D4ECAB0E0E7956FFC39C8"><enum>(B)</enum><header>Expanded application</header><text>If, after the date described in subparagraph (A), an applicable plan expands the application of the normal retirement age described in subparagraph (A) to additional participants or participating employers, such plan shall also be treated as an applicable plan with respect to such participants or participating employers.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section id="id89249b4d62654c4ab34a5121856e5368"><enum>303.</enum><header>Moratorium on imposition of shutdown liability</header><subsection id="idC461E82FE6CB4AB188788014231DF8E9"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Pension Benefit Guaranty Corporation shall not bring any new action against a plan sponsor to enforce subsection (e) of section 4062 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1362">29 U.S.C. 1362</external-xref>) before January 30, 2016.</text></subsection><subsection id="id4DAE7C0A164243ECAD615D330040E27A"><enum>(b)</enum><header>Study</header><text>The Comptroller General of the United States shall study the effectiveness, fairness, and utility of section 4062(e) of the Employee Retirement Income Security Act (29 U.S.C. 1101 et seq.). No later than January 30, 2015, the Comptroller General shall submit a report to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and the Workforce of the House of Representatives summarizing its findings and including recommendations for alternative ways to protect retirees and the Pension Benefit Guaranty Corporation from cessations of operations while encouraging employers to both continue to offer defined benefit pension plans and to restructure as may be necessary to ensure the ongoing viability of the business.</text></subsection></section><section id="ida8ddd1710e2d40c58f1a014a056cb620"><enum>304.</enum><header>Alternative funding target attainment percentage determined without regard to reduction for credit balances</header><subsection id="idef649b70c2624eefb1727dffe727642f"><enum>(a)</enum><header>Amendments to ERISA</header><text>Section 206(g) of Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1056">29 U.S.C. 1056(g)</external-xref>) is amended—</text><paragraph id="id2d7c5353acb94c9792c555f8c70f106a"><enum>(1)</enum><text>in paragraph (5), by striking subparagraph (C); and</text></paragraph><paragraph id="idC5C8738E5C7E4B2F8F583CC0C9547EA2"><enum>(2)</enum><text>in paragraph (9)—</text><subparagraph id="id07e4d4f8dd2d4110861d36d61356b8ac"><enum>(A)</enum><text>in subparagraph (B)—</text><clause id="idccf2193c3f1b4ab18f3798cf2caa4b0f"><enum>(i)</enum><text>by striking the period at the end and inserting <quote>; and</quote>;</text></clause><clause id="id2b3295de2854489e9f196fd2f9dac875"><enum>(ii)</enum><text>by striking <quote>under subparagraph (A) by increasing</quote> and inserting the following:</text><quoted-block display-inline="yes-display-inline" id="idD151189D67BE447B93D01998F55A9495" style="OLC"><text>under subparagraph (A)—</text><clause id="id0ffcca811a004787906dc078c6ddc731"><enum>(i)</enum><text>by increasing</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></clause><clause id="id5b282bf2e317420d844261d026d34be4"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id1F59423ACD424D2288980066E334496E" style="OLC"><clause id="id24fa75c1b356473e8ad0a04268f2e50b"><enum>(ii)</enum><text>without regard to the reduction under section 303(f)(4)(B).</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id2D62E73039684E8F96417D044656798B"><enum>(B)</enum><text>by striking subparagraphs (C) and (D).</text></subparagraph></paragraph></subsection><subsection id="id913621b8705e45dc9bdcabde58b10b9c"><enum>(b)</enum><header>Amendments to 1986 Code</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/436">Section 436</external-xref> of the Internal Revenue Code of 1986 is amended—</text><paragraph id="idb8d8281c15e54ce9b6a356ff78bf4831"><enum>(1)</enum><text>in subsection (f), by striking paragraph (3); and</text></paragraph><paragraph id="idB2B63F9B16F248FAB92E5BC39C101C93"><enum>(2)</enum><text>in subsection (j)—</text><subparagraph id="id81b24170c72f424483230ef270dede34"><enum>(A)</enum><text>in paragraph (2)—</text><clause id="idfe500eb4fe1647f79f2417be25368be7"><enum>(i)</enum><text>by striking the period at the end and inserting <quote>, and</quote>; and</text></clause><clause id="idb4e95c8775cf441d92c403e3bad824c9"><enum>(ii)</enum><text>by striking <quote>under paragraph (1) by increasing</quote> and inserting the following:</text><quoted-block display-inline="yes-display-inline" id="idf254d320fc454f8fb57f349f064089b6" style="OLC"><text>under subparagraph (A)—</text><subparagraph id="id2B6DB0226B434341B6E9C8009F43B4F2"><enum>(A)</enum><text>by increasing</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause><clause id="ide105ad638d9446d2b4996e7d6590a297"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="idC338E9931C194D43A393504065484EB3" style="OLC"><subparagraph id="id9c66ca2a37624fb8b0b2d6b3929e5436"><enum>(B)</enum><text>without regard to the reduction under section 430(f)(4)(B).</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id349501E71122482DAF26D9282D1271FD"><enum>(B)</enum><text>by striking the first and second paragraph (3).</text></subparagraph></paragraph></subsection><subsection id="id0C47C74E6C5C436DA69B39250DDCA58B"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2014.</text></subsection></section><section id="id51760a9e796542eaac1cef1b788c8da3"><enum>305.</enum><header>Method for determining changes for quarterly contributions</header><subsection id="id6d2a1dc4226942d39d8b63411768d22a"><enum>(a)</enum><header>Amendment to ERISA</header><text>Section 303(j)(3)(A) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1083(j)(3)(A)) is amended by inserting <quote>(determined without regard to the reduction under subsection (f)(4)(B))</quote> after <quote>preceding plan year</quote>.</text></subsection><subsection id="id67621be1a5744f98b12cc3f9decd8386"><enum>(b)</enum><header>Amendment to 1986 Code</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/430">Section 430(j)(3)</external-xref> of the Internal Revenue Code of 1986 is amended by inserting <quote>(determined without regard to the reduction under subsection (f)(4)(B))</quote> after <quote>preceding plan year</quote>.</text></subsection><subsection id="id5D4469C27D8048B5BAB6D308E32A53BB"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2014.</text></subsection></section><section id="ide5d905372a9840c39513dce670280f8c"><enum>306.</enum><header>Election to discount contributions from final due date</header><subsection id="id6e3cef7d0c8c45ed8649c50c3e5551df"><enum>(a)</enum><header>Amendment to ERISA</header><text>Section 303(j)(2) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1083">29 U.S.C. 1083(j)(2)</external-xref>) is amended by adding at the end the following: <quote>For purposes of this paragraph, a plan sponsor may elect to treat all payments made after the valuation date as having been made on the last day permissible under paragraph (1).</quote>.</text></subsection><subsection id="id7bf35382ad18459ba36fed4bc5346ee6"><enum>(b)</enum><header>Amendment to 1986 Code</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/430">Section 430(j)(2)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following: <quote>For purposes of this paragraph, a plan sponsor may elect to treat all payments made after the valuation date as having been made on the last day permissible under paragraph (1).</quote>.</text></subsection><subsection id="id01E71E8CB63E4D9C81C0A455301950BD"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2014.</text></subsection></section><section id="idd971718dea1744619045a70b0a606555"><enum>307.</enum><header>Simplification of elections and notices</header><subsection id="idb8151b3a90f04bc598d368732740d142"><enum>(a)</enum><header>Amendments to ERISA</header><paragraph id="idBA4F28C5F9494C8C9340561698660B8C"><enum>(1)</enum><header>Timeliness of elections</header><text>Section 303 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1083">29 U.S.C. 1083</external-xref>) is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="idacbb76fb82bb4f338aa7bb6d91e20bdf" style="OLC"><subsection id="id07684ced89a1445492076574871e4ae2"><enum>(m)</enum><header>Timeliness of elections</header><text>An election required to be made by the plan sponsor under this section, including an election made under rules prescribed by the Secretary of the Treasury to implement this section, shall be deemed to have been timely made if the election is made on or before the due date specified in subsection (j)(1) or, if later, the due date of the actuarial report required under section 103(d).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id7949a156a36945f8b83be5fdd5fe62e2"><enum>(2)</enum><header>Time for providing notice</header><text>Section 101(f)(3)(B) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1021(f)(3)(B)) is amended—</text><subparagraph id="id82fb5707857c435588375e434ad45f1c"><enum>(A)</enum><text>in the heading, by striking <quote><header-in-text level="subparagraph" style="OLC">for small plans</header-in-text></quote>;</text></subparagraph><subparagraph id="id14E8A5A31CF34AA693C704935274FC20"><enum>(B)</enum><text>by inserting <quote>a plan with an adjusted funding target attainment percentage of more than 80 percent for the prior year or</quote> after <quote>In the case of</quote>;</text></subparagraph><subparagraph id="idC84CDB02C6D74375BF432E1F96AF1EDE"><enum>(C)</enum><text>by striking <quote>(as such term is used under section 303(g)(2)(B))</quote>; and</text></subparagraph><subparagraph id="id9D5BB27B9E1647EAB381C0859CD9368E"><enum>(D)</enum><text>by striking <quote>upon</quote> and inserting <quote>not later than 2 months after</quote>.</text></subparagraph></paragraph></subsection><subsection id="id56d5d5c78aa04bfbb041e3fb533704aa"><enum>(b)</enum><header>Amendment to 1986 Code</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/430">Section 430</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id760da2c568174930b99348eea086e452" style="OLC"><subsection id="id17131d7bed224e299f08df4e0231ae81"><enum>(m)</enum><header>Timeliness of elections</header><text>An election required to be made by the plan sponsor under this section, including an election made under rules prescribed by the Secretary to implement this section, shall be deemed to have been timely made if the election is made on or before the due date specified in subsection (j)(1) or, if later, the due date of the actuarial report required under section 6059.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id03BD881A8F014C418D1BB6AD26059485"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2014.</text></subsection></section><section commented="no" id="idC23EFEABC8944EC18DBE74C8AADBDC3C"><enum>308.</enum><header>Improved multiemployer plan disclosure</header><subsection commented="no" id="idED2D27BB20E445958E3C16B841EB1DEA"><enum>(a)</enum><header>Disclosure and reporting by multiemployer plans</header><paragraph commented="no" id="id9673DFF6C0F24F6F8A93F71E1B09BC84"><enum>(1)</enum><header>Plan funding notices</header><text display-inline="yes-display-inline">Section 101(f) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1021">29 U.S.C. 1021(f)</external-xref>) is amended—</text><subparagraph commented="no" id="id2757DBF0D65E4279AE41EB3D25DD843A"><enum>(A)</enum><text>in paragraph (2)(B)—</text><clause commented="no" id="idFCCEABBBD15447A19CF94113F192EF91"><enum>(i)</enum><text>by striking clause (v);</text></clause><clause commented="no" id="id2960196D65A74601B5D8DCD8AE8A82A9"><enum>(ii)</enum><text>by redesignating clauses (vi) through (x) as clauses (v) through (ix), respectively;</text></clause><clause commented="no" id="idC9ADF79427C1444590879AACAF56CDB1"><enum>(iii)</enum><text>in clause (vi), as so redesignated—</text><subclause commented="no" id="id87E4A3132EDD48F7821620AD81A5E862"><enum>(I)</enum><text>by striking <quote>(I) in the case of</quote> and inserting <quote>in the case of</quote>;</text></subclause><subclause commented="no" id="idCCDB3ACB999E4669BD91474895C70EAD"><enum>(II)</enum><text>by striking <quote>, or</quote> and inserting a comma; and</text></subclause><subclause commented="no" id="idBEEEE15A9CDE4010B283D482D673C3C8"><enum>(III)</enum><text>by striking subclause (II); and</text></subclause></clause><clause commented="no" id="idBBE63D54FCC94BC1B06477C9BBFB5CB7"><enum>(iv)</enum><text>by amending clause (vii), as so redesignated, to read as follows:</text><quoted-block display-inline="no-display-inline" id="idBEFC1E4A84C84FC8996B6D988F18E1BD" style="OLC"><clause commented="no" id="id3F8F33241CE041508698EADBF031FBB2"><enum>(vii)</enum><subclause commented="no" display-inline="yes-display-inline" id="idD9BF5EE73A6A468CBB19C1BC50170339"><enum>(I)</enum><text>in the case of a single-employer plan, a general description of the benefits under the plan which are eligible to be guaranteed by the Pension Benefit Guaranty Corporation, and an explanation of the limitations on the guarantee and the circumstances under which such limitations apply, and</text></subclause><subclause commented="no" id="id9A5E107FF08742BCB8FF047B2D3E7DFE" indent="up1"><enum>(II)</enum><text>in the case of a multiemployer plan, a statement that eligible benefits are guaranteed by the Pension Benefit Guaranty Corporation, and a statement of how to obtain both a general description of the benefits under the plan which are eligible to be guaranteed by the Pension Benefit Guaranty Corporation and an explanation of the limitations on the guarantee and the circumstances under which such limitations apply,</text></subclause></clause><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph commented="no" id="idC6F52D68038B42D1B52EB9FEA361D71A"><enum>(B)</enum><text>in paragraph (4)(C)—</text><clause commented="no" id="idF03FF2DCDD3E45A9B64092C5F0C6EF23"><enum>(i)</enum><text>by striking <quote>(C) may be provided</quote> and inserting <quote>(C)(i) subject to clause (ii), may be provided</quote>; and</text></clause><clause commented="no" id="id3CFFBAAAFF80474FABF9EAABE827283F"><enum>(ii)</enum><text>by striking the period and inserting the following:</text><quoted-block display-inline="no-display-inline" id="idD8A5EDEB6ED4418B83B788E914CFCD5E" style="OLC"><clause commented="no" id="id2DAC16D85F1F4A7CBBAAE6A668E5EC62" indent="up1"><enum>(ii)</enum><text>in the case of such a notice provided to the Pension Benefit Guaranty Corporation, shall be in an electronic format in such manner prescribed in regulations of such Corporation.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph><paragraph commented="no" id="id7B16A99B0E8149E6BB7D24810229062D"><enum>(2)</enum><header>Disclosures by plans regarding status</header><subparagraph commented="no" id="id19D741E2825C492DA4A82258DA7DB788"><enum>(A)</enum><header>Amendments to ERISA</header><text>Section 305(b)(3) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1085">29 U.S.C. 1085(b)(3)</external-xref>) is amended—</text><clause commented="no" id="idC7FF9985AC224631B4B267D4EC503D0E"><enum>(i)</enum><text>in the paragraph heading, by striking <quote><header-in-text level="paragraph" style="OLC">by plan actuary</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">and report</header-in-text></quote>;</text></clause><clause commented="no" id="id28F1D0BDCBF04EBEBB0DECD9B60F0B1C"><enum>(ii)</enum><text>by amending subparagraph (A) to read as follows:</text><quoted-block display-inline="no-display-inline" id="id1E3C2C7F17404A18A32E6C4EA3DA8AF0" style="OLC"><subparagraph commented="no" id="id2F7D5F680C614322B704C5D6E47D6CD8"><enum>(A)</enum><header>In general</header><text>Not later than the 90th day of each plan year of a multiemployer plan, the plan sponsor shall file, in accordance with regulations prescribed by the ERISA agencies, a report that contains—</text><clause commented="no" id="id9216652BFFD44638A177BA16F0D2E2E0"><enum>(i)</enum><text>documentation from the plan actuary certifying to the ERISA agencies and to the plan sponsor—</text><subclause commented="no" id="ID7286fde7a1c242b8acdf46542d60341d"><enum>(I)</enum><text>whether or not the plan is in endangered status for such plan year and whether or not the plan is or will be in critical status for such plan year or any of the 5 succeeding plan years,</text></subclause><subclause commented="no" id="IDb16e126e08324439b320ddfa98122d9e"><enum>(II)</enum><text>in the case of a plan which is in a funding improvement or rehabilitation period, whether or not the plan is making the scheduled progress in meeting the requirements of its funding improvement or rehabilitation plan and, if not, a summary of the primary reasons the plan is not making the scheduled progress,</text></subclause><subclause commented="no" id="ID8e5e7bab7f374e8393bdb4485e25c4db"><enum>(III)</enum><text>the funded percentage of the plan determined as of the first day of the current plan year and the value of assets and liabilities used to calculate such funded percentage,</text></subclause><subclause commented="no" id="IDbedc7bf18818406494ab68048a3fd64f"><enum>(IV)</enum><text>a projection of the funding standard account on a year-by-year basis for the current plan year and the nine succeeding plan years and a statement of the actuarial assumptions for such projections, and</text></subclause><subclause commented="no" id="ID1c1fa704c7da4121b24e83221fd3f11f"><enum>(V)</enum><item commented="no" display-inline="yes-display-inline" id="id91E251E852AE43BA847250A7FA06EF4B"><enum>(aa)</enum><text>subject to item (bb), a projection of the cash flow of the plan and actuarial assumptions for the current plan year and six succeeding plan years, and</text></item><item commented="no" id="id75049222D743405F8A97A6A42567D498" indent="up1"><enum>(bb)</enum><text>in the case in which it is certified that a multiemployer plan is or will be in endangered or critical status for a plan year, the projection of the cash flow of the plan and actuarial assumptions for the current year and ten succeeding plan years,</text></item></subclause></clause><clause commented="no" id="ID7ac957d2aebc43b2a98d6f2301b977cc"><enum>(ii)</enum><text>as of the last day of the prior plan year, a good faith determination of—</text><subclause commented="no" id="IDc9a4457f2e8447c8bcaece26fc068259"><enum>(I)</enum><text>the fair market value of the assets of the plan,</text></subclause><subclause commented="no" id="ID7bba222a467b4ab994914100d02f65d7"><enum>(II)</enum><text>the number of participants who are—</text><item commented="no" id="IDb1911e6bc0d64369888fe1dabc71407c"><enum>(aa)</enum><text>retired or separated from service and are receiving benefits,</text></item><item commented="no" id="IDd55ebfa861dd47e8aa152040004ca881"><enum>(bb)</enum><text>retired or separated participants entitled to future benefits, and</text></item><item commented="no" id="IDe73ca0c6a2c543569108e10b3951e308"><enum>(cc)</enum><text>active participants under the plan,</text></item></subclause><subclause commented="no" id="ID06db731a1888426ca97e6574845de1ea"><enum>(III)</enum><text>the total value of all benefits paid during the prior plan year,</text></subclause><subclause commented="no" id="IDb17780f60ca34bbba3ec2a2532e6e49c"><enum>(IV)</enum><text>the total value of all contributions made to the plan during the prior plan year, and</text></subclause><subclause commented="no" id="IDf9eb8e42fc324556a8b7cd758b02b0bb"><enum>(V)</enum><text>the total value of all investment gains or losses during the prior plan year,</text></subclause></clause><clause commented="no" id="ID5aea6398dab94c90bfea262e996bdfe4"><enum>(iii)</enum><text>a description of any material changes during the previous plan year to the rates at which participants accrue benefits or the rate at which employers contribute,</text></clause><clause commented="no" id="IDe392d68a530e4a16b3dccfec55239fdf"><enum>(iv)</enum><text>a copy of any funding improvement plan, rehabilitation plan, and any update thereto or modification thereof, that was adopted under this section prior to the filing of the report for the current plan year in accordance with this subparagraph and, if applicable, after the filing of the report required by this subparagraph for the prior plan year,</text></clause><clause commented="no" id="ID42da8400975940e6b6bdab3434ea8e92"><enum>(v)</enum><text>in the case of any plan amendment, scheduled benefit increase or reduction, or other known event taking effect in the current plan year and having a material effect on plan liabilities or assets for the year (as defined in regulations by the ERISA agencies), an explanation of the amendment, scheduled increase or reduction, or event, and a projection to the end of such plan year of the effect of the amendment, scheduled increase or reduction, or event on plan liabilities,</text></clause><clause commented="no" id="IDb7680bb9e939405cb009b7902a6d8b35"><enum>(vi)</enum><text>in the case of a multiemployer plan certified to be in critical status for which the plan sponsor has determined that, based on reasonable actuarial assumptions and upon exhaustion of all reasonable measures, the plan cannot reasonably be expected to emerge from critical status by the end of the rehabilitation period, a description of all reasonable measures, whether or not such measures were implemented, and a summary of the consideration of such measures,</text></clause><clause commented="no" id="IDe7c315090fa84029904d61a392b93da9"><enum>(vii)</enum><text>a good faith statement describing—</text><subclause commented="no" id="ID74b51f7f9b9a41538889ee1ce327986f"><enum>(I)</enum><text>the withdrawal of any employer during the prior plan year and the percentage of total contributions made by that employer during the prior plan year,</text></subclause><subclause commented="no" id="ID5b54945927a149309a9e9c75c5606367"><enum>(II)</enum><text>any material reduction in total contributions or withdrawal liability payments of any employers and the reason for such reduction,</text></subclause><subclause commented="no" id="ID7ba362f22bf74c42963a215974320840"><enum>(III)</enum><text>any significant reduction in the number of active plan participants and the reason for such reduction, and</text></subclause><subclause commented="no" id="id88B2289B18C04BEF81BEC32E0BDBD584"><enum>(IV)</enum><text>the annual withdrawal liability payment each employer is obligated to pay to the plan for the plan year, whether that amount was collected by the plan (and if not, the amount that was collected), and the remaining years on the employer's obligation to make withdrawal liability payments, and</text></subclause></clause><clause commented="no" id="IDd668b343563e4f43a7bb41612e74666c"><enum>(viii)</enum><text>such other information as may be required by the ERISA agencies by regulation.</text></clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></clause><clause commented="no" id="id11B601F65BD44EAA89A081042FAB5809"><enum>(iii)</enum><text>by striking subparagraph (C) and inserting the following:</text><quoted-block display-inline="no-display-inline" id="idB9ECD1F349464A9C96CC07F118B487B2" style="OLC"><subparagraph commented="no" id="idDAD2E8C0969545CF8DB93AA0C8E4FFEC"><enum>(C)</enum><header>Form and manner</header><text>The report required by subparagraph (A) shall be filed electronically in accordance with regulations prescribed by the ERISA agencies.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause><clause commented="no" id="id879DC286CB2945D9870EA41CF9A7D8A1"><enum>(iv)</enum><text>in subparagraph (D)—</text><subclause commented="no" id="id80F70A20C02845A7BCEEC92091F38CAA"><enum>(I)</enum><text>by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), respectively;</text></subclause><subclause commented="no" id="idE224CDCB52FC4BB5851F13850E223DAF"><enum>(II)</enum><text>by inserting after clause (i) the following:</text><quoted-block display-inline="no-display-inline" id="idE845D7DF6AC049DF96E9A60D1CA7DA68" style="OLC"><clause commented="no" id="id544E5B7C1F6B445C83A74BFC7D8246D2"><enum>(ii)</enum><header>Plans in endangered or critical status</header><text>If it is certified under subparagraph (A) that a multiemployer plan is or will be in endangered or critical status, the plan sponsor shall include in the notice under clause (i)—</text><subclause commented="no" id="IDb6d0786c5b9d49218283b4d076ae9ea5"><enum>(I)</enum><text>a statement describing how a person may obtain a copy of the plan's funding improvement or rehabilitation plan, as appropriate, adopted under this section and the actuarial and financial data that demonstrate any action taken by the plan toward fiscal improvement,</text></subclause><subclause commented="no" id="ID8f227076084b4ee6ae5daf64af108645"><enum>(II)</enum><text>a summary of any funding improvement plan, rehabilitation plan, and any update thereto or modification thereof, adopted under this section prior to the furnishing of such notice,</text></subclause><subclause commented="no" id="ID464ec2abfaad4377963dbbba5dd310e0"><enum>(III)</enum><text>a summary of the rules governing reorganization or insolvency, including the limitations on benefit payments, and</text></subclause><subclause commented="no" id="ID6b217d2a223648e7b7536d17718c33d6"><enum>(IV)</enum><text>a general description of the benefits under the plan which are eligible to be guaranteed by the Pension Benefit Guaranty Corporation and an explanation of the limitations on the guarantee and the circumstances under which such limitations apply.</text></subclause></clause><after-quoted-block>;</after-quoted-block></quoted-block></subclause><subclause commented="no" id="id709B084183AC412C955E7AAF854FFA68"><enum>(III)</enum><text>in clause (iv), as so redesignated—</text><item commented="no" id="id1DC8EEDE04204AE58285D58D0B9E1BBB"><enum>(aa)</enum><text>by striking <quote>The Secretary of the Treasury, in consultation with the Secretary</quote> and inserting <quote>The ERISA agencies</quote>; and</text></item><item commented="no" id="id42C47423101B452A942F75DDBF317726"><enum>(bb)</enum><text>by striking <quote>clause (ii)</quote> and inserting <quote>clauses (ii) and (iii)</quote>; and</text></item></subclause><subclause commented="no" id="id877272FDC9B84912B411582A7B32C678"><enum>(IV)</enum><text>by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id3558F4E12F7543FAA74803AB37271832" style="OLC"><subparagraph commented="no" id="id997556FA849C440EAA6FC2C15D9A2929"><enum>(E)</enum><header>Designation and coordination</header><text>The ERISA agencies shall—</text><clause commented="no" id="id2C02F868EACC4C6B835F030544957497"><enum>(i)</enum><text>designate one ERISA agency to receive the report described in subparagraph (A) on behalf of all the ERISA agencies, which shall each have full access to such report; and</text></clause><clause commented="no" id="idFE84563F04FF4C83A5B5E513D8454F15"><enum>(ii)</enum><text>consult with each other and develop rules, regulations, practices, and forms, which to the extent appropriate for the efficient administration of the provisions of this paragraph are designed to replace duplication of effort, duplication of reporting, conflicting or overlapping requirements, and the burden of compliance with such provisions by plan administrators and plan sponsors.</text></clause></subparagraph><subparagraph commented="no" id="id5C5DF642F1CB4A7F91A1A401C2CAC580"><enum>(F)</enum><header>ERISA agencies</header><text>In this paragraph, the term <term>ERISA agencies</term> means the Secretary of Labor, the Secretary of the Treasury, and the Pension Benefit Guaranty Corporation.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subclause></clause></subparagraph><subparagraph commented="no" id="id095563B9AB574975BCE38DF0D3BC3F26"><enum>(B)</enum><header>Amendments to 1986 Code</header><text>Section 432(b)(3) of the Internal Revenue Code of 1986 is amended—</text><clause commented="no" id="idACB7CC9371374B16980219141E8FFF2E"><enum>(i)</enum><text>in the paragraph heading, by striking <quote><header-in-text level="paragraph" style="OLC">by plan actuary</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">and report</header-in-text></quote>;</text></clause><clause commented="no" id="id6919D66846BD4CD19438E6FA2102569F"><enum>(ii)</enum><text>by amending subparagraph (A) to read as follows:</text><quoted-block display-inline="no-display-inline" id="id4342CDA9D6FE46469514F9D52F073158" style="OLC"><subparagraph commented="no" id="id8D298AF72639411BA9606F3E8DD6EC3A"><enum>(A)</enum><header>In general</header><text>Not later than the 90th day of each plan year of a multiemployer plan, the plan sponsor shall file, in accordance with regulations prescribed by the ERISA agencies, a report that contains—</text><clause commented="no" id="id268F7693FFC54D3EB9D739CC17739D60"><enum>(i)</enum><text>documentation from the plan actuary certifying to the ERISA agencies and to the plan sponsor—</text><subclause commented="no" id="id2650476F41FD4745BF37A7C840BDD481"><enum>(I)</enum><text>whether or not the plan is in endangered status for such plan year and whether or not the plan is or will be in critical status for such plan year or any of the 5 succeeding plan years,</text></subclause><subclause commented="no" id="id2FAB8479CBEF473781216873BCEE8DFE"><enum>(II)</enum><text>in the case of a plan which is in a funding improvement or rehabilitation period, whether or not the plan is making the scheduled progress in meeting the requirements of its funding improvement or rehabilitation plan and, if not, a summary of the primary reasons the plan is not making the scheduled progress,</text></subclause><subclause commented="no" id="id080CF0B40F224533991FDE249C3A1084"><enum>(III)</enum><text>the funded percentage of the plan determined as of the first day of the current plan year and the value of assets and liabilities used to calculate such funded percentage,</text></subclause><subclause commented="no" id="id3A22A56BE34145A78D38D04A1D1869E9"><enum>(IV)</enum><text>a projection of the funding standard account on a year-by-year basis for the current plan year and the nine succeeding plan years and a statement of the actuarial assumptions for such projections, and</text></subclause><subclause commented="no" id="idBF195BFB25254EE3B3474D448117ED2E"><enum>(V)</enum><item commented="no" display-inline="yes-display-inline" id="id22E9D280D0084B77B7AA400A6BB7186D"><enum>(aa)</enum><text>subject to item (bb), a projection of the cash flow of the plan and actuarial assumptions for the current plan year and six succeeding plan years, and</text></item><item commented="no" id="id6DBC020EA5F44E3E9C4847C8BF15F886" indent="up1"><enum>(bb)</enum><text>in the case in which it is certified that a multiemployer plan is or will be in endangered or critical status for a plan year, the projection of the cash flow of the plan and actuarial assumptions for the current year and ten succeeding plan years,</text></item></subclause></clause><clause commented="no" id="id73B7371FA7DE49DAA3AA9C039E3CF46D"><enum>(ii)</enum><text>as of the last day of the prior plan year, a good faith determination of—</text><subclause commented="no" id="id226C4462D1204F81A3C29371728F1B80"><enum>(I)</enum><text>the fair market value of the assets of the plan,</text></subclause><subclause commented="no" id="id4E991F1E38524FA78D5C55C05CD5BDA4"><enum>(II)</enum><text>the number of participants who are—</text><item commented="no" id="idA73D09B4670345E78B4FCC8586CAE67C"><enum>(aa)</enum><text>retired or separated from service and are receiving benefits,</text></item><item commented="no" id="id30D9089ACF2448B2A6E56DED30C729E4"><enum>(bb)</enum><text>retired or separated participants entitled to future benefits, and</text></item><item commented="no" id="id81E800D35EBA4493AA7FE4114A2538F9"><enum>(cc)</enum><text>active participants under the plan,</text></item></subclause><subclause commented="no" id="idBB89DC5E820244FE9583B73B4203EDD0"><enum>(III)</enum><text>the total value of all benefits paid during the prior plan year,</text></subclause><subclause commented="no" id="idF67F6383C1D2445481E88120AA26580B"><enum>(IV)</enum><text>the total value of all contributions made to the plan during the prior plan year, and</text></subclause><subclause commented="no" id="idDD7DA02690C64CB4B8566D69A165F875"><enum>(V)</enum><text>the total value of all investment gains or losses during the prior plan year,</text></subclause></clause><clause commented="no" id="id1626F8CAD6C1443BA3FE272C13A2D77C"><enum>(iii)</enum><text>a description of any material changes during the previous plan year to the rates at which participants accrue benefits or the rate at which employers contribute,</text></clause><clause commented="no" id="idD608F9AD41404624A42AB9382EAD4EF6"><enum>(iv)</enum><text>a copy of any funding improvement plan, rehabilitation plan, and any update thereto or modification thereof, that was adopted under this section prior to the filing of the report for the current plan year in accordance with this subparagraph and, if applicable, after the filing of the report required by this subparagraph for the prior plan year,</text></clause><clause commented="no" id="id87AA28343E40447EAE885506CC1E10B2"><enum>(v)</enum><text>in the case of any plan amendment, scheduled benefit increase or reduction, or other known event taking effect in the current plan year and having a material effect on plan liabilities or assets for the year (as defined in regulations by the ERISA agencies), an explanation of the amendment, scheduled increase or reduction, or event, and a projection to the end of such plan year of the effect of the amendment, scheduled increase or reduction, or event on plan liabilities,</text></clause><clause commented="no" id="id601898977E96486389C3CAC6E410926D"><enum>(vi)</enum><text>in the case of a multiemployer plan certified to be in critical status for which the plan sponsor has determined that, based on reasonable actuarial assumptions and upon exhaustion of all reasonable measures, the plan cannot reasonably be expected to emerge from critical status by the end of the rehabilitation period, a description of all reasonable measures, whether or not such measures were implemented, and a summary of the consideration of such measures,</text></clause><clause commented="no" id="id1C14DCEB4EAF4E62970251308E76D8AC"><enum>(vii)</enum><text>a good faith statement describing—</text><subclause commented="no" id="idC458FB93D4A94588A73AB6315C16F461"><enum>(I)</enum><text>the withdrawal of any employer during the prior plan year and the percentage of total contributions made by that employer during the prior plan year,</text></subclause><subclause commented="no" id="id8F90306FD92847CA99D1C2F962809560"><enum>(II)</enum><text>any material reduction in total contributions or withdrawal liability payments of any employers and the reason for such reduction,</text></subclause><subclause commented="no" id="id2B1F6B0E611049DB8749219D9FAF886E"><enum>(III)</enum><text>any significant reduction in the number of active plan participants and the reason for such reduction, and</text></subclause><subclause commented="no" id="id0A47C810F1F343188BB4874EBBE74D1F"><enum>(IV)</enum><text>the annual withdrawal liability payment each employer is obligated to pay to the plan for the plan year, whether that amount was collected by the plan (and if not, the amount that was collected), and the remaining years on the employer's obligation to make withdrawal liability payments, and</text></subclause></clause><clause commented="no" id="idA1CC019EE5C64A4EBC578B1F0D505052"><enum>(viii)</enum><text>such other information as may be required by the ERISA agencies by regulation.</text></clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></clause><clause commented="no" id="id3125B010D63041DB8787459AB2E954E3"><enum>(iii)</enum><text>by striking subparagraph (C) and inserting the following:</text><quoted-block display-inline="no-display-inline" id="id308E7CF99B7049A5A681178E833EFBCF" style="OLC"><subparagraph commented="no" id="id1307663EB8FE4AEBBE6D1359ADB2605A"><enum>(C)</enum><header>Form and manner</header><text>The report required by subparagraph (A) shall be filed electronically in accordance with regulations prescribed by the ERISA agencies.</text></subparagraph><after-quoted-block>; </after-quoted-block></quoted-block></clause><clause commented="no" id="id911FB0D8E01D48F9BF8999FF6CD3B338"><enum>(iv)</enum><text>in subparagraph (D)—</text><subclause commented="no" id="idF91BFC05D8F042E88D1A0B7C2A94B6EE"><enum>(I)</enum><text>by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), respectively;</text></subclause><subclause commented="no" id="id283D889BEFE5471AB38B0357AD8F2C98"><enum>(II)</enum><text>by inserting after clause (i) the following:</text><quoted-block display-inline="no-display-inline" id="idEC2DB1A265B3449DAF3F6884F3BE1F2C" style="OLC"><clause commented="no" id="idA7CEB4944963428796ECA3D00BE60696"><enum>(ii)</enum><header>Plans in endangered or critical status</header><text>If it is certified under subparagraph (A) that a multiemployer plan is or will be in endangered or critical status, the plan sponsor shall include in the notice under clause (i)—</text><subclause commented="no" id="id49DF2BAF6FED468FB9250068C04EEC17"><enum>(I)</enum><text>a statement describing how a person may obtain a copy of the plan's funding improvement or rehabilitation plan, as appropriate, adopted under this section and the actuarial and financial data that demonstrate any action taken by the plan toward fiscal improvement,</text></subclause><subclause commented="no" id="id2B2720FC59AC422084F22220A72F751F"><enum>(II)</enum><text>a summary of any funding improvement plan, rehabilitation plan, and any update thereto or modification thereof, adopted under this section prior to the furnishing of such notice,</text></subclause><subclause commented="no" id="id18FDF84D45A24CC28BA71240D37E88AB"><enum>(III)</enum><text>a summary of the rules governing reorganization or insolvency, including the limitations on benefit payments, and</text></subclause><subclause commented="no" id="id8AF13013B3524182ABD34B9389D402BE"><enum>(IV)</enum><text>a general description of the benefits under the plan which are eligible to be guaranteed by the Pension Benefit Guaranty Corporation and an explanation of the limitations on the guarantee and the circumstances under which such limitations apply.</text></subclause></clause><after-quoted-block>; and</after-quoted-block></quoted-block></subclause><subclause commented="no" id="id50F6FF3B25A1431AAF3FCF181F59E838"><enum>(III)</enum><text>in clause (iv), as so redesignated—</text><item commented="no" id="idD8B9A7944E7D4A64A80CE9DA7731AB7D"><enum>(aa)</enum><text>by striking <quote>The Secretary, in consultation with the Secretary of Labor</quote> and inserting <quote>The ERISA agencies</quote>; and</text></item><item commented="no" id="id38BA79A5D3034F8AB9948884761E3086"><enum>(bb)</enum><text>by striking <quote>clause (ii)</quote> and inserting <quote>clauses (ii) and (iii)</quote>; and</text></item></subclause></clause><clause commented="no" id="id7ECB831033434A73B0E4677183CD6EBD"><enum>(v)</enum><text>by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id8792EF87623445FE8DD2568EBAAF8691" style="OLC"><subparagraph commented="no" id="id822F8E878C4449A69564E95B3C47E298"><enum>(E)</enum><header>Designation and coordination</header><text>The ERISA agencies shall—</text><clause commented="no" id="idD1EB07CBD5A84D949599B85CE0FDFF47"><enum>(i)</enum><text>designate one ERISA agency to receive the report described in subparagraph (A) on behalf of all the ERISA agencies, which shall each have full access to such report; and</text></clause><clause commented="no" id="id8E977A83FB5448C29DAF43DE05B61904"><enum>(ii)</enum><text>consult with each other and develop rules, regulations, practices, and forms, which to the extent appropriate for the efficient administration of the provisions of this paragraph are designed to replace duplication of effort, duplication of reporting, conflicting or overlapping requirements, and the burden of compliance with such provisions by plan administrators and plan sponsors.</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD058D043B5E44F709724A33C468EFA26"><enum>(F)</enum><header>ERISA agencies</header><text>In this paragraph, the term <term>ERISA agencies</term> means the Secretary of Labor, the Secretary of the Treasury, and the Pension Benefit Guaranty Corporation.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph commented="no" id="idEE417DD472D84C48A382EACA40522DE3"><enum>(C)</enum><header>Disclosures by plans regarding status</header><text>Section 4003 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1303">29 U.S.C. 1303</external-xref>) is amended—</text><clause commented="no" id="id33F9193C37A2485C8C4295F8613F7572"><enum>(i)</enum><text>in the section heading, by inserting <quote><header-in-text level="section" style="OLC">; Multiemployer Plan Information</header-in-text></quote> after <quote><header-in-text level="section" style="OLC">Actions</header-in-text></quote>; and</text></clause><clause commented="no" id="id7D6D784605BD434EAA042287D88BCF2B"><enum>(ii)</enum><text>by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id89BF02623046467EA8DBAC79597891EA" style="OLC"><subsection commented="no" id="idF6CE99F4B857452AAEF150A1A9B85FE3"><enum>(g)</enum><text>The corporation is authorized to require such information as it deems necessary to investigate or review any facts, conditions, or other matters related to the actuarial certification and report by multiemployer plans under section 305(b)(3)(A), or to obtain such information as any duly authorized committee or subcommittee of the Congress may request with respect to such plans. The preceding sentence shall be considered a statute described in section 552(b)(3) of title 5, United States Code, and the information received pursuant to such sentence shall be exempt from disclosure under such section 552(b).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph><paragraph commented="no" id="id842FE0D82B5F4EE4ACF7091ED06F6F90"><enum>(3)</enum><header>Civil enforcement</header><subparagraph commented="no" id="idABEFEBFA6BD146049B291A0488EBC314"><enum>(A)</enum><header>In general</header><text>Section 502(c) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1132">29 U.S.C. 1132</external-xref>) is amended—</text><clause commented="no" id="id9C1AFC4219334A76859F948F0AB92E03"><enum>(i)</enum><text>in paragraph (7)—</text><subclause commented="no" id="id11F0C9E4A2364930A14FA3DA23A993BC"><enum>(I)</enum><text>by striking <quote>(7) The Secretary</quote> and inserting <quote>(7)(A) The Secretary</quote>; and</text></subclause><subclause commented="no" id="idBE93866739E8471186AC6E992C2FCD1E"><enum>(II)</enum><text>by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="idDA9A92EA4B3842618334CD44888D9B5D" style="OLC"><subparagraph commented="no" id="id464006944320456093633202A4EE5EB0" indent="up2"><enum>(B)</enum><text>The Secretary may assess a civil penalty against a plan administrator (or plan sponsor with respect to the notice of endangered or critical status) of up to $110 per day from the date of the plan administrator’s or sponsor’s failure or refusal to provide the relevant notices under section 101(f) or section 305(b)(3)(D) to a recipient other than the Secretary or the Pension Benefit Guaranty Corporation. For purposes of this paragraph, each violation with respect to any single recipient shall be treated as a separate violation.</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subclause></clause><clause commented="no" id="idFA05641C92934B419DC85A2303DAB336"><enum>(ii)</enum><text>by redesignating the second paragraph (10) (regarding coordinating enforcement under section 502(c) of such Act with enforcement under section 1144(c)(8) of the Social Security Act) as paragraph (12); and</text></clause><clause commented="no" id="id6B297C5B72874956A4FAAE34441A627C"><enum>(iii)</enum><text>by inserting after paragraph (10) (regarding enforcement authority relating to use of genetic information) the following:</text><quoted-block display-inline="no-display-inline" id="id69009AC1ECA44543830B2BAE6ECB990D" style="OLC"><paragraph commented="no" id="id0B50D767CFCA4ACCBF2621A0FD496E8D"><enum>(11)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="idAF642FB9B513419EAF2E860A2B01043B"><enum>(A)</enum><text>The Secretary may assess a civil penalty against any plan sponsor of up to $1,100 per day from the date of the plan sponsor’s failure to file with the Secretary the notice required under section 305(b)(3)(D) or with the Pension Benefit Guaranty Corporation the notice required under section 101(f).</text></subparagraph><subparagraph commented="no" id="id96011494D83D492CB521DCA0930ADEF6" indent="up1"><enum>(B)</enum><text>The Secretary may assess a civil penalty against any plan sponsor of up to $1,100 per day from the date of the plan sponsor’s failure to file with the ERISA agency designated in accordance with subparagraph (E) of section 305(b)(3) the report under subparagraph (A) of such section.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph commented="no" id="idC2C7B5B23B904F8EA52020DF01A1AAEA"><enum>(B)</enum><header>Conforming amendment</header><text>Section 502(a)(6) of such Act is amended by striking <quote>or (9)</quote> and inserting <quote>(9), (10), or (11)</quote>.</text></subparagraph></paragraph></subsection><subsection commented="no" id="idA1658E093C9E4FF2BD4BE86F59F60F0D"><enum>(b)</enum><header>Coordination with respect to multiemployer plans</header><paragraph commented="no" id="idCA6848EFBD694AE1A0CB037ED73F993E"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Subtitle A of title III of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1201 et seq.) is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id0A75C1C8A3404C5EBACAF1F69B050F4E" style="OLC"><section commented="no" id="id792ECE7CDB3744BB8B6A93DB9F885DF4"><enum>3005.</enum><header>Database of multiemployer plan information</header><subsection commented="no" id="id006E7C2F64EA4DA78FCB7A5D91711527"><enum>(a)</enum><header>In general</header><text>The Secretary of Labor, the Secretary of the Treasury, and the Pension Benefit Guaranty Corporation shall jointly establish an electronic database that contains the following information:</text><paragraph commented="no" id="id425D9955A75A42159295FEE42BD7FE4B"><enum>(1)</enum><text>Each defined benefit plan funding notice submitted to the Pension Benefit Guaranty Corporation by a multiemployer plan under section 101(f).</text></paragraph><paragraph commented="no" id="id6669AEDE429F4EFCAA11F0EDFBA0C429"><enum>(2)</enum><text>Each report submitted by a multiemployer plan under section 305(b)(3)(A).</text></paragraph><paragraph commented="no" id="id99D2F50F9C1B4E81A96F590A728D6B5E"><enum>(3)</enum><text>Each notice submitted to the Secretary of Labor and the Pension Benefit Guaranty Corporation by a multiemployer plan under section 305(b)(3)(D).</text></paragraph></subsection><subsection commented="no" id="idF8BAC700CA3546E5831559A86E717239"><enum>(b)</enum><header>Shared access to database</header><text>Subject to the agreement described in subsection (c), the Secretary of Labor, the Secretary of the Treasury, and the Pension Benefit Guaranty Corporation shall have full access to the data in the database established under subsection (a). To avoid unnecessary expense and duplication of functions among the agencies, the Secretary of Labor, the Secretary of the Treasury, and the Pension Benefit Guaranty Corporation may make such arrangements and agreements for cooperation or mutual assistance with respect to access to and utilization of the data in the database.</text></subsection><subsection commented="no" id="idEDA8A4BC4D1143A4BD3923E6A7316798"><enum>(c)</enum><header>Shared cost of database</header><text>The Secretary of Labor, the Secretary of the Treasury, and the Pension Benefit Guaranty Corporation shall execute a cost sharing agreement to equitably allocate the design, implementation, and maintenance costs of the database established under subsection (a).</text></subsection><subsection commented="no" id="idD83A6840182B42A392A1ED164A457BAB"><enum>(d)</enum><header>Exemption</header><text>The information contained in the report described under subsection (a)(2) shall be exempt from disclosure under <external-xref legal-doc="usc" parsable-cite="usc/5/552">section 552(b)</external-xref> of title 5, United States Code. For purposes of such <external-xref legal-doc="usc" parsable-cite="usc/5/552">section 552</external-xref> of title 5, United States Code, this subsection shall be considered a statute described in subsection (b)(3) of such section 552.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="idBCD095D424D442B6A68F2F7B793BF257"><enum>(2)</enum><header>Clerical amendment</header><text>The table of sections for subtitle A of title III of the Employee Retirement Income Security Act of 1974 is amended by adding at the end the following new item:</text><quoted-block display-inline="no-display-inline" id="idC5317E1CCEE64EA292A1EE1E117BE805" style="OLC"><toc><toc-entry bold="off" level="section">3005. Database of multiemployer plan information.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idBDD0242275E6477A801072D8EA5CBE72"><enum>(c)</enum><header>Applicability</header><text display-inline="yes-display-inline">This section (and the amendments made by this section) shall apply to plan years beginning after the date that is 1 year after the date of enactment of this Act.</text></subsection></section></subtitle><subtitle id="id549CF5BE4B7A4A049028A47E3ABA46B4" style="OLC"><enum>B</enum><header>Improvements to the pension insurance program</header><section id="idc3e3ddeb5e3749599b0e6345cacf8f14"><enum>311.</enum><header>Modifications of technical changes made by the Pension Protection Act of 2006 to termination liability</header><subsection id="idE5B5F0CF2B244418AC1FF2B2AA860257"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 4062(c) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1362">29 U.S.C. 1362(c)</external-xref>) is amended by striking paragraphs (1) and (2) and inserting the following:</text><quoted-block display-inline="no-display-inline" id="ide2757a33c1604c88b15ed013458e8a64" style="OLC"><paragraph id="ided4a3f8bde594dab84eafdd9988e2359"><enum>(1)</enum><text>the aggregate unpaid minimum required contributions (within the meaning of section 4971(c)(4) of the Internal Revenue Code of 1986) of the plan (if any) for the plan year in which the termination date occurs and for all preceding plan years, including, for purposes of this paragraph, the amount of any increase in such aggregate unpaid minimum required contributions that would result if—</text><subparagraph id="idABD4A891502B427CA0AADBB4921FCC68"><enum>(A)</enum><text>all pending applications for waivers of the minimum funding standard under section 302(c) of this Act and section 412(c) of such Code with respect to such plan were denied, and</text></subparagraph><subparagraph id="id298825AEBD924FD28CEF8EF74419B2F3"><enum>(B)</enum><text>no additional contributions (other than those already made by the termination date) were made for the plan year in which the termination date occurs or for any previous plan year, and</text></subparagraph></paragraph><paragraph id="id4613bac848f5405eb00a4d750d23fb13"><enum>(2)</enum><text>the unamortized portion (if any) of any amounts waived for the plan under section 302(c) of this Act and section 412(c) of such Code for—</text><subparagraph id="idEE49639FA0BD4B9F9CEE383B5F292455"><enum>(A)</enum><text>the plan year in which the termination date occurs, and</text></subparagraph><subparagraph id="id7FA08370DCE64D29AE1C2D7F93558137"><enum>(B)</enum><text>all preceding plan years,</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id53422DF9D04B4981A091941CD2D950CF"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall take effect as if included in section 107 of the Pension Protection Act of 2006 (<external-xref legal-doc="public-law" parsable-cite="pl/109/280">Public Law 109–280</external-xref>; 120 Stat. 816).</text></subsection></section><section id="id10c3fee8f51a4ef887ecf6569b6bc414"><enum>312.</enum><header>Payment of lump sum distributions in bankruptcy</header><subsection id="id435a434568f34159ab87dad7c3e7b57b"><enum>(a)</enum><header>Amendments to ERISA</header><text>The second sentence of section 206(g)(3)(B) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1056">29 U.S.C. 1056(g)(3)</external-xref>) is amended to read as follows: <quote>The preceding sentence shall not apply on or after the date on which the enrolled actuary of the plan certifies that the adjusted funding target attainment percentage of such plan (determined by not taking into account any adjustment of segment rates under section 303(h)(2)(C)(iv)) is not less than 100 percent.</quote>.</text></subsection><subsection id="id7a8c358a93a6484fb8b99c105deb78cc"><enum>(b)</enum><header>Amendments to 1986 Code</header><text>The second sentence of <external-xref legal-doc="usc" parsable-cite="usc/26/436">section 436(d)(2)</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows: <quote>The preceding sentence shall not apply on or after the date on which the enrolled actuary of the plan certifies that the adjusted funding target attainment percentage of such plan (determined by not taking into account any adjustment of segment rates under section 430(h)(2)(C)(iv)) is not less than 100 percent.</quote>.</text></subsection><subsection id="idF7025E9B65014AAEA669BF39633C9945"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall take effect as of July 6, 2012.</text></subsection></section><section id="id0136f2bf3db84bf0bf43c9022f9aec1f"><enum>313.</enum><header>Trusteeship clarifications</header><subsection id="idBE30F71070A043CCA567886670AF0C66"><enum>(a)</enum><header>Appointment of trustees in plan termination instituted by PBGC</header><paragraph id="idEC4C054359A24C4EB136709F1C07F591"><enum>(1)</enum><header>In general</header><text>Subsections (a) and (b) of section 4002 (<external-xref legal-doc="usc" parsable-cite="usc/29/1342">29 U.S.C. 1342</external-xref>) are amended to read as follows:</text><quoted-block display-inline="no-display-inline" id="id7C26C5F5F3DB4DE0B9014E19317EF293" style="OLC"><subsection id="id4EF50DA75B554C9C958764C1E8D7F9B5"><enum>(a)</enum><header>Authority To institute proceedings To terminate a plan</header><paragraph id="idd26d8a81a09c46d9a7c5a826c1824e44"><enum>(1)</enum><header>In general</header><text>The corporation may institute proceedings under this section to terminate a plan whenever it determines that the plan must be terminated in order to protect the interests of the participants or to avoid any unreasonable deterioration of the financial condition of the plan or any unreasonable increase in the liability of the corporation, as shown by one or more of the following conditions:</text><subparagraph id="id708279994FD24918849CA92CAE2C66D6"><enum>(A)</enum><text>The plan has not met the minimum funding standard required under section 412 of the Internal Revenue Code of 1986, or has been notified by the Secretary of the Treasury that a notice of deficiency under section 6212 of such Code has been mailed with respect to the tax imposed under section 4971(a) of such Code.</text></subparagraph><subparagraph id="idBBE7329AF7CC41449504F1A10D36AD16"><enum>(B)</enum><text>The plan will be unable to pay benefits when due.</text></subparagraph><subparagraph id="idF00F18340E484D46BCD430CAC7162B09"><enum>(C)</enum><text>The reportable event described in section 4043(c)(7) has occurred.</text></subparagraph><subparagraph id="idBAD60649F9C64B0296280E9294812691"><enum>(D)</enum><text>The possible long-run loss of the corporation with respect to the plan may reasonably be expected to increase unreasonably if the plan is not terminated.</text></subparagraph></paragraph><paragraph id="id07E3092A6A50409482F623FBABC643A6"><enum>(2)</enum><header>Requirement</header><text>The corporation shall, as soon as practicable, institute proceedings under this section to terminate a single-employer plan whenever the corporation determines that the plan does not have assets available to pay benefits which are currently due under the terms of the plan. Notwithstanding any other provision of this subchapter, the corporation shall, to the extent practicable, pool assets of terminated plans for purposes of administration, investment, payment of liabilities of all such terminated plans, and such other purposes as the corporation determines to be appropriate in the administration of this title.</text></paragraph></subsection><subsection id="idc077d11ecdb14c4589482e7d88ed486c"><enum>(b)</enum><header>Appointment of the Corporation To Administer Plan</header><paragraph id="id649e2eb6b7da473cb0fe43dad4f7346a"><enum>(1)</enum><header>In general</header><text>Whenever the corporation makes a determination under subsection (a) with respect to a plan or is required under subsection (a) to institute proceedings under this section, the corporation may, upon notice to the plan, apply to the appropriate United States district court to appoint the corporation as the person to administer the plan with respect to which the determination is made pending the issuance of a decree under subsection (c) ordering the termination of the plan. If, within 3 business days after the filing of an application under this subsection (or such other period as the court may order), the administrator of the plan consents to the appointment of the corporation to administer the plan, or fails to show why the corporation should not be so appointed, the court may grant the application and appoint the corporation to administer the plan in accordance with its terms until the corporation determines that the plan should be terminated or that termination is unnecessary.</text></paragraph><paragraph id="idd6af66c368364622a8a59ec3d45cd4ea"><enum>(2)</enum><header>Appointment</header><text>Notwithstanding any other provision of this title—</text><subparagraph id="idaf5df4794b09451c985bed7f662b91af"><enum>(A)</enum><text>upon the petition of a plan administrator or the corporation, the appropriate United States district court may appoint the corporation to administer the plan in accordance with the provisions of this section if the interests of the plan participants would be better served by such appointment, and</text></subparagraph><subparagraph id="idd1809afb9fba4a79904020ef67132619"><enum>(B)</enum><text>upon the petition of the corporation, the appropriate United States district court shall appoint a trustee proposed by the corporation for a multiemployer plan which is in reorganization to which section 4041A(d) applies, unless such appointment would be adverse to the interests of the plan participants and beneficiaries in the aggregate.</text></subparagraph></paragraph><paragraph id="id51b03879d51e43488a10e2209d8fa89a"><enum>(3)</enum><header>Agreement to appointment</header><text>The corporation and plan administrator may agree to the appointment of the corporation to administer the plan without proceeding in accordance with the requirements of paragraphs (1) and (2).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id2E8685DFEEFF461C9649F42A2B013C35"><enum>(2)</enum><header>Conforming amendments</header><subparagraph id="idff78b29cbb8844c0bdfd8554c94584d9"><enum>(A)</enum><text>Subsection (c) of such section 4042 is amended—</text><clause id="idF481320034EF4AA783EA41562F1B1EF2"><enum>(i)</enum><text>by striking <quote>(c)(1)</quote> and all that follows through the end of paragraph (1) and inserting the following:</text><quoted-block display-inline="no-display-inline" id="idFF108FE7C89F4BFDA6370A11C1556A98" style="OLC"><subsection id="id579cca6468974ac08d4522701708fe80"><enum>(c)</enum><header>Decree enforcing determination that plan must be terminated</header><paragraph id="id92702636159a4aa9962310cc528a7758"><enum>(1)</enum><header>Court decree</header><subparagraph id="id014F9C138BA34BD0A76BC7037A6BFA26"><enum>(A)</enum><header>Application</header><text>If the corporation is required under subsection (a) to commence proceedings under this section with respect to a plan or, after issuing a notice under this section to a plan administrator, has determined that the plan should be terminated, the corporation may, upon notice to the plan administrator, apply to the appropriate United States district court for a decree enforcing the corporation's determination that the plan be terminated.</text></subparagraph><subparagraph id="idDFE64C2A584B4D009BBBC9905E3EC3E2"><enum>(B)</enum><header>Decree</header><clause id="idBCD9255DCF61408D9EA519BF90D5BC7D"><enum>(i)</enum><header>In general</header><text>The district court shall issue the decree under subparagraph (A) unless such court finds, upon review of the administrative record of the corporation’s determination under subsection (a), that such determination was arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.</text></clause><clause id="id05013290DE0C4E03AC25A3E2F061542F"><enum>(ii)</enum><header>Effect of decree</header><text>Upon granting a decree for which the corporation has applied under this subsection, the court shall authorize the corporation if appointed under subsection (b) (or appoint the corporation if such corporation has not been appointed under such subsection and authorize the corporation) to terminate the plan in accordance with the provisions of this subtitle.</text></clause></subparagraph><subparagraph id="idC6C78270691E4435964665C650B19EDB"><enum>(C)</enum><header>Waiver of application</header><text>If the corporation and the plan administrator agree that a plan should be terminated and agree to the appointment of the corporation to carry out the termination of the plan without proceeding in accordance with the requirements of this subsection (other than this subparagraph), the corporation shall have the power described in subsection (d)(1) and shall be subject to the duties described in subsection (d)(3) and any other duties imposed on the corporation under any other provision of law or by agreement between the corporation and the plan administrator.</text></subparagraph></paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></clause><clause id="id77C4A0FFAA3C4875A18D9750D23289F2"><enum>(ii)</enum><text>in paragraph (2), by striking <quote>(2) In the case of</quote> and inserting <quote>(2) <header-in-text level="paragraph" style="OLC">Providing of information</header-in-text>.—In the case of </quote>.</text></clause></subparagraph><subparagraph id="id420703dd32d34d40a6c4e017bbc4defd"><enum>(B)</enum><text>Subsection (d) of such section 4042 is amended—</text><clause id="idc03b8bf0febd4d16b445028acde1f5f5"><enum>(i)</enum><text>in paragraph (1)(A)—</text><subclause id="id79E92C14990E499F82466FA42B379720"><enum>(I)</enum><text>by striking <quote>A trustee appointed under subsection (b)</quote> and inserting <quote>If the corporation is appointed to administer a plan under subsection (b), the corporation</quote>;</text></subclause><subclause id="id71DFD267F8704CBFA2AED3CED2E6E236"><enum>(II)</enum><text>in clause (ii), by striking <quote>himself as trustee</quote> and inserting <quote>the corporation</quote>;</text></subclause><subclause id="id7fb8306b0f6841c5a92d15db5d9f2d0f"><enum>(III)</enum><text>in clause (iii), by striking <quote>he</quote> and inserting <quote>the corporation</quote>;</text></subclause><subclause id="id645d3cf532d54ed3b5f7db7c9f9a0f26"><enum>(IV)</enum><text>in clause (iv), by striking <quote>his appointment</quote> and inserting <quote>the appointment of the corporation</quote>;</text></subclause><subclause id="idB04BDF69ECED4F0988E0C688525B0CB3"><enum>(V)</enum><text>in clause (vi), by striking <quote>he</quote> and inserting <quote>the corporation</quote>;</text></subclause><subclause id="id73CB803E88F64C5198FFB2834B201069"><enum>(VI)</enum><text>in clause (vii), by striking <quote>trustee</quote> and inserting <quote>corporation</quote>; and</text></subclause><subclause id="id01fb76775ded4b8fa585e4b5178762a8"><enum>(VII)</enum><text>by striking the flush language after clause (vii) and inserting the following:</text><quoted-block display-inline="no-display-inline" id="id5ca5550748104a4986fccb6b12bc9cd9" style="OLC"><quoted-block-continuation-text quoted-block-continuation-text-level="subparagraph">If the court to which application is made under subsection (c) dismisses the application with prejudice, or if the corporation fails to apply for a decree under subsection (c), within 30 days after the date on which the corporation is appointed under subsection (b), the corporation shall transfer all assets and records of the plan held by such corporation to the plan administrator not later than 3 business days after such dismissal or the expiration of such 30-day period, and shall not be liable to the plan or any other person for the acts of the corporation in administering the plan except for willful misconduct or gross negligence. The 30-day period described in the preceding sentence may be extended as provided by agreement between the plan administrator and the corporation or by court order.</quoted-block-continuation-text><after-quoted-block>;</after-quoted-block></quoted-block></subclause></clause><clause id="id733b4db2253d4098b7a47fe9a5117543"><enum>(ii)</enum><text>in paragraph (1)(B)—</text><subclause id="id5474D4D483804EF68D6221CBBBF92992"><enum>(I)</enum><text>in the matter preceding clause (i), by striking <quote>trustee</quote> and inserting <quote>corporation</quote>;</text></subclause><subclause id="idb43e5ee5bc21467f82316237839f4158"><enum>(II)</enum><text>by striking clauses (iii) and (v);</text></subclause><subclause id="id3F0BF9832D34435890FE22D1B181E404"><enum>(III)</enum><text>by redesignating clause (iv) as clause (iii); and</text></subclause><subclause id="id03B6E650CE834F838E5E827549B7C244"><enum>(IV)</enum><text>by redesignating clauses (vi) through (viii) as clauses (iv) through (vi), respectively;</text></subclause></clause><clause id="id8aebdbd9ea674e098c9cc9d65c17fbfe"><enum>(iii)</enum><text>in paragraph (2)—</text><subclause id="id9CCBB1A3357748E5B924F73E61BDC3BB"><enum>(I)</enum><text>in the matter preceding subparagraph (A) by striking <quote>his appointment, the trustee</quote> and inserting <quote>the appointment of the corporation to administer the plan, the corporation</quote>; and</text></subclause><subclause id="id3506964ebf7a416893b4bfdf2afdc9cf"><enum>(II)</enum><text>in subparagraph (D) by striking <quote>section</quote>; and</text></subclause></clause><clause id="idd533d0fdd32d43dc9e443943fd29293c"><enum>(iv)</enum><text>by striking paragraph (3) and inserting the following:</text><quoted-block display-inline="no-display-inline" id="id5b4de1ef8a9f4ee18a91fb3b7b8adef0" style="OLC"><paragraph id="idb6c0947a44714718ae14ee6417ecbc0b"><enum>(3)</enum><text>Except to the extent inconsistent with the provisions of this Act, the corporation, as appointed under this section, shall be subject to the same duties as those of a trustee under <external-xref legal-doc="usc" parsable-cite="usc/11/704">section 704</external-xref> of title 11, United States Code, and shall be, with respect to the plan, a fiduciary within the meaning of section 3(21) (except to the extent that the provisions of this title are inconsistent with the requirements applicable under part 4 of subtitle B of title I). Notwithstanding any references in this section to administering a plan, the corporation shall not be considered a plan administrator within the meaning of section 3 and shall not be subject to the duties of a plan administrator under title I, including the duty to file reports on behalf of the plan.</text></paragraph><paragraph id="idB2E2CE6D0150451EA150C33E703DEE3C"><enum>(4)</enum><text>When appointed under subsection (b) to administer a plan or granted a decree to terminate a plan under subsection (c), the corporation shall, within 30 days of the receipt of a written request from any participant or beneficiary of the plan (or as soon as practicable thereafter), furnish a copy of the plan document, summary plan description, and other instruments under which the plan is established or operated that relate to the participant’s or beneficiary’s benefit under the plan. The corporation may charge a reasonable fee to cover the cost of furnishing complete copies.</text></paragraph><after-quoted-block>. </after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="ide63fa11b7ab246668dfec9333bc068c0"><enum>(C)</enum><text>Subsection (f) of such section 4042 is amended to read as follows:</text><quoted-block display-inline="no-display-inline" id="ide868c5ee08e74e33a88c7b51548dc7d5" style="OLC"><subsection id="id7d951208a7ba41ada547a0c380f9354f"><enum>(f)</enum><text>Upon the filing of an application for the appointment of the corporation to administer a plan or the issuance of a decree under this section, the court to which an application is made shall have exclusive jurisdiction of the plan involved and property of the plan, wherever located, with the powers, to the extent consistent with the purposes of this section, of a court of the United States having jurisdiction over cases under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/11/11">chapter 11</external-xref> of title 11, United States Code. Pending an adjudication under subsection (c), such court shall stay, and upon appointment of the corporation to carry out the termination of the plan under this section, such court shall continue the stay of any pending mortgage foreclosure, equity receivership, or other proceeding to reorganize, conserve, or liquidate the plan or the property of the plan and any other suit against any receiver, conservator, or trustee of the plan or property of the plan. Pending such adjudication and upon the appointment of the corporation to carry out the termination of the plan, the court may stay any proceeding to enforce a lien against property of the plan or any other suit against the plan.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph id="idadeedee2bc0f4e839e098094f88bb28b"><enum>(D)</enum><text>Such section 4042 is amended by striking subsection (h).</text></subparagraph></paragraph></subsection><subsection id="idC9E744ABAD554375B09EA187697C199F"><enum>(b)</enum><header>Other conforming and technical amendments</header><paragraph id="idd55b9e6c4c5b4c4fb79a55d83160dcae"><enum>(1)</enum><text>Section 4002(h)(1) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1302">29 U.S.C. 1302(h)(1)</external-xref>) is amended—</text><subparagraph id="id795e01118ab84fa1b46804fb99d42436"><enum>(A)</enum><text>in the first sentence—</text><clause id="id7B8CE0AE73AD4B0596D3F79998ABB94F"><enum>(i)</enum><text>in subparagraph (A), by striking <quote>the appointment of trustees in termination proceedings</quote> and inserting <quote>the appointment of the corporation to administer or carry out a termination of a plan under section 4042</quote>; and</text></clause><clause id="id733D8152613A44F88EEE91FEF578FF6E"><enum>(ii)</enum><text>in subparagraph (C), by striking <quote>under a trustee</quote> and inserting <quote>under the corporation</quote>; and</text></clause></subparagraph><subparagraph id="ide55a8ea3394e40e4a2093b4ce033687e"><enum>(B)</enum><text>in the second sentence—</text><clause id="id6C86DFF879E8454CAD8792869BED8A85"><enum>(i)</enum><text>by striking <quote>recommend persons for appointment as trustees in termination proceedings,</quote>;</text></clause><clause id="id1C0156EC7AF64637AA5E007B02E8F486"><enum>(ii)</enum><text>by striking the comma after <quote>funds</quote>; and</text></clause><clause id="id0958C5C0BDFC4B9AAC650D0EAEA6550F"><enum>(iii)</enum><text>by striking <quote>under a trustee</quote> and inserting <quote>under the corporation</quote>.</text></clause></subparagraph></paragraph><paragraph id="idc44cd14c091a4cdba83e46641d2e63dd"><enum>(2)</enum><text>Section 4003 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1303">29 U.S.C. 1303</external-xref>) is amended—</text><subparagraph id="id55BD0ED829224B96ACA668CBF11C66F5"><enum>(A)</enum><text>in subsection (e)(6)(B), by amending clause (ii) to read as follows:</text><quoted-block display-inline="no-display-inline" id="id19DA76D62C5D4AE38C449CCF6E0923AE" style="OLC"><clause id="idF920A9C5FEC74FB6A5B958D534A9DCD2" indent="up2"><enum>(ii)</enum><text>If the corporation brings the action on behalf of a plan that the corporation was appointed to administer or terminate under section 4042, the applicable date specified in this subparagraph is the date on which the corporation was so appointed if such date is later than the date described in clause (i).</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph id="id34ffe8cd49374980b5ef34b6c0519253"><enum>(B)</enum><text>in subsection (f)(4), by striking <quote>the corporation in its capacity as a trustee under section 4042 or 4049</quote> and inserting <quote>the corporation in its capacity as a trustee under section 4049 or in its capacity in administering a plan pursuant to its appointment under section 4042(b) or carrying out the termination of a plan pursuant to its appointment under section 4042(c)</quote>.</text></subparagraph></paragraph><paragraph id="iddfd2832c8813407c8107a0bf066d39d8"><enum>(3)</enum><text>Section 4004(b) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1304">29 U.S.C. 1304(b)</external-xref>) is amended—</text><subparagraph id="id13239199F330435F8079B879A3E2D61D"><enum>(A)</enum><text>in paragraph (1), by striking <quote>pension plans trusteed by the corporation</quote> and inserting <quote>pension plans for which the corporation has been appointed under section 4042 to carry out their termination</quote>; and</text></subparagraph><subparagraph id="id34bbc09d2feb4488a3c396e9138c566d"><enum>(B)</enum><text>in paragraph (2), by striking <quote>plans trusteed by the corporation</quote> and inserting <quote>plans for which the corporation has been appointed under section 4042 to carry out their termination</quote>.</text></subparagraph></paragraph><paragraph id="id26fea20f7f4b496db98a630a21a30fdd"><enum>(4)</enum><text>Section 4005(b)(1)(B) of such Act (29 U.S.C. 1305(b)(1)(B)) is amended by striking <quote>a plan administered under section 4042 by a trustee</quote> and inserting <quote>a plan that the corporation has been appointed to terminate under section 4042</quote>.</text></paragraph><paragraph id="id3efff54398b349738d8475b4903b2c15"><enum>(5)</enum><text>Section 4007(a) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1307">29 U.S.C. 1307(a)</external-xref>) is amended by striking <quote>a trustee</quote> and inserting <quote>the corporation</quote>.</text></paragraph><paragraph id="id64aad01f05654a76956c4dca8197ace3"><enum>(6)</enum><text>Section 4044 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1344">29 U.S.C. 1344</external-xref>) is amended—</text><subparagraph id="id02CE5D3104FC4231811B370293BE7DC0"><enum>(A)</enum><text>in subsection (c), by striking <quote>the date a trustee is appointed under section 4042(b)</quote> and inserting <quote>the date the corporation is appointed under section 4042(b) to administer the plan</quote>; and</text></subparagraph><subparagraph id="id756563ce5517475d8bf57e5c7040ee52"><enum>(B)</enum><text>in subsection (f)—</text><clause id="idB7C5CCA1019F4CDA9CDC0A202D644CBC"><enum>(i)</enum><text>in paragraph (2)(C)(ii), by striking <quote>the trustee appointed under section 4042(b) or (c)</quote> and inserting <quote>the corporation, for the account of the plan</quote>; and</text></clause><clause id="idaaccc727c2bb43b89afb983624db527a"><enum>(ii)</enum><text>in paragraph (3), by amending subparagraph (B) to read as follows:</text><quoted-block display-inline="no-display-inline" id="id2A7BBFA1AFCF4F40BA8FA3309B02175B" style="OLC"><subparagraph id="id8563535A3C564B068D716CEC78C3EF46"><enum>(B)</enum><text>the amount of any liability to the corporation under section 4062(b) or (c).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph><paragraph id="idf56a4f77824345cb85b19ad310aab38d"><enum>(7)</enum><text>Section 4045 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1345">29 U.S.C. 1345</external-xref>) is amended by striking <quote>trustee</quote> each place such term appears in subsections (a) and (c) and inserting <quote>corporation</quote>.</text></paragraph><paragraph id="id7166f9047d8a4667a5eb6ae2b237780f"><enum>(8)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id27897FB2576F4D6AB6E61650FB695D3C"><enum>(A)</enum><text>Section 4046 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1346">29 U.S.C. 1346</external-xref>) is repealed.</text></subparagraph><subparagraph id="id92FB3284F39444189FFB06F268D2E26E" indent="up1"><enum>(B)</enum><text>The table of sections for subtitle C of title IV of such Act is amended by striking the item relating to section 4046.</text></subparagraph></paragraph><paragraph id="id1dd8ad3a63f740238fa95475b3484470"><enum>(9)</enum><text>Section 4048 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1348">29 U.S.C. 1348</external-xref>) is amended—</text><subparagraph id="idC1764FB8F63B4443B0C6FE62542F1524"><enum>(A)</enum><text>in subsection (a)(4), by striking <quote>(or the trustee)</quote>; and</text></subparagraph><subparagraph id="id1556bacc484b4a62aedd63c639612c1a"><enum>(B)</enum><text>in subsection (b)(2), by striking <quote>(or the trustee appointed under section 4042(b)(2), if any)</quote>.</text></subparagraph></paragraph><paragraph id="idb75e38d2a96848e0a4c0b867008b23df"><enum>(10)</enum><text>Section 4050(a)(2) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1350">29 U.S.C. 1350(a)(2)</external-xref>) is amended by striking <quote>to the corporation as trustee, and shall be held with assets of terminated plans for which the corporation is trustee under section 4042</quote> and inserting <quote>to the corporation, as appointed under section 4042 to carry out the termination of a plan, and shall be held with assets of terminated plans that the corporation has been appointed to terminate under section 4042</quote>.</text></paragraph><paragraph id="idc7fd5bbf5ea64d4eb0075c8d165e3c12"><enum>(11)</enum><text>Section 4062 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1362">29 U.S.C. 1362</external-xref>), as amended by sections 303 and 321, is amended—</text><subparagraph id="id4d9c6cf2bc5a4e5cba95111107ba2148"><enum>(A)</enum><text>in subsection (a), by striking paragraphs (1) and (2) and inserting the following:</text><quoted-block display-inline="no-display-inline" id="id87f617614e80423584d63c0064a6a288" style="OLC"><paragraph id="id3e0c2cdc4a7e4e81909465026c772e1b"><enum>(1)</enum><text>liability to the corporation, for the account of the corporation, to the extent provided in subsection (b), and</text></paragraph><paragraph id="idddd15ac381704535ab060b7f17b585e3"><enum>(2)</enum><text>liability to the corporation, for the account of the plan, to the extent provided in subsection (c).</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph id="id7bf3e1788e404a5ab42181929b1ad272"><enum>(B)</enum><text>in the heading of subsection (b), by inserting <quote><header-in-text level="subsection" style="OLC">for its own account</header-in-text></quote> after <quote><header-in-text level="subsection" style="OLC">corporation</header-in-text></quote>; and</text></subparagraph><subparagraph id="id14af87517bf648e18196141495e217cf"><enum>(C)</enum><text>in subsection (c)—</text><clause id="idc850f20e2cf741d49e95906f65c988af"><enum>(i)</enum><text>in the heading, by striking <quote><header-in-text level="subsection" style="OLC">section 4042 trustee</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">the Corporation for the Account of the Plan</header-in-text></quote>; and</text></clause><clause id="ida7a69a5eb25c47f5a0a7649265e7f03b"><enum>(ii)</enum><text>in the matter preceding paragraph (1), by striking <quote>the trustee appointed under subsection (b) or (c) of section 4042</quote> and inserting <quote>the corporation, for the account of the plan, as appointed under section 4042 to carry out the termination of the plan</quote>.</text></clause></subparagraph></paragraph></subsection></section><section id="id99d11a62a1dc4849bd5feb7947c18056"><enum>314.</enum><header>Recordkeeping for terminating plans</header><subsection id="id96B611DB1EB14A5281191CC91BAFF92E"><enum>(a)</enum><header>Single-Employer plan benefits guaranteed</header><text display-inline="yes-display-inline">Section 4022 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1322">29 U.S.C. 1322</external-xref>) is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id9CB639C9832E47C28B0F3E22DF31DA51" style="OLC"><subsection id="id434DE034AAF846FDB03A8B01C65C8B79"><enum>(i)</enum><header>Recordkeeping</header><text display-inline="yes-display-inline">The Corporation may issue regulations to require plan sponsors or plan administrators to maintain records necessary to enable the to determine benefits as of the termination date. Such regulations may require plan sponsors or plan administrators to certify to the corporation that such records are being maintained.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id1EACD55D468844DD941E0AC5AD1CD64B"><enum>(b)</enum><header>Allocation of assets</header><text display-inline="yes-display-inline">Section 4044 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1344">29 U.S.C. 1344</external-xref>) is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id8B91C6525E644E9684FCEF522B18DF86" style="OLC"><subsection id="id3AA1979FDA5E4F75832B0676A6162724"><enum>(g)</enum><header>Recordkeeping</header><text>The Corporation may issue regulations to require plan sponsors or plan administrators to maintain records necessary to enable the Corporation to determine benefits as of the termination date. Such regulations may require plan sponsors or plan administrators to certify to the corporation that such records are being maintained.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section commented="no" display-inline="no-display-inline" id="idd91986a0e3e74c7994c30d46ce15e4cc" section-type="subsequent-section"><enum>315.</enum><header>Termination date in bankruptcy</header><text display-inline="no-display-inline">Sections 4022(g) and 4044(e) of the Employee Retirement Income Security Act of 1974, as added by section 404 of the Pension Protection Act of 2006 (<external-xref legal-doc="public-law" parsable-cite="pl/109/280">Public Law 109–280</external-xref>; 120 Stat. 928), are repealed as of December 31, 2014, and shall not apply with respect to proceedings initiated under title 11, United States Code, or under any similar Federal law or law of a State or political subdivision, on or after such date.</text></section></subtitle><enum>IV</enum><header>Other systemic reforms</header><section id="ida279888a70dd46518fd30d31853eb5b3"><enum>401.</enum><header>Plan audit quality improvement</header><subsection id="id39a28bd8e38e4574a80e7dba81646770"><enum>(a)</enum><header>Annual reports</header><text>Section 103(a)(3) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1023">29 U.S.C. 1023(a)(3)</external-xref>) is amended—</text><paragraph id="ida765e5e83b0748b3a39592ee80e08c37"><enum>(1)</enum><text>in subparagraph (A), by striking <quote>in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Such examination shall be conducted in accordance with generally accepted auditing standards, and shall involve such tests of the books and records of the plan as are considered necessary by the independent qualified public accountant.</quote> and inserting <quote>in conformity with generally accepted accounting principles, as superseded or modified by the Secretary in regulations, applied on a basis consistent with that of the preceding year. Such examination shall be conducted in accordance with generally accepted auditing standards, except as superseded or modified by the Secretary in regulations, and shall involve such tests of the books and records of the plan as are considered necessary by the independent qualified public accountant.</quote>; and</text></paragraph><paragraph id="ideb995f92634e46f98a1f9ae6a082564b"><enum>(2)</enum><text>by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="id1EB7A067505E44929AABC3368D8C47B3" style="OLC"><subparagraph id="id41750207F91A4A08AC35831784BE029E"><enum>(E)</enum><text>Persons described in subparagraphs (i) through (iii) of subparagraph (D) shall be subject to such additional standards regarding conflicts of interest, qualifications, and direct reporting of certain events such as fraud and other irregularities as the Secretary may prescribe in regulations.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id4ff45ee9d0bc4cc8a827806ef467169c"><enum>(b)</enum><header>Civil enforcement</header><text>Section 502(c)(2) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1132">29 U.S.C. 1132(c)(2)</external-xref>) is amended by adding at the end the following new sentence: <quote>If the Secretary rejects an annual report in whole or in part due to the failure to comply with a requirement of section 103 imposed on an accountant, actuary, or other person, the Secretary may assess all or part of the civil penalty against such person. The Secretary may require remediation in place of assessing all or part of a penalty.</quote>.</text></subsection><subsection id="id3eb299c5421348a0a3ba65067261e9c7"><enum>(c)</enum><header>Debarment for deficient audits or for failing To meet qualification standards</header><paragraph id="id84DAB8CECCFE402CBBD6D65C751A594F"><enum>(1)</enum><header>In general</header><text>Part 5 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1131 et seq.) is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="idd859eecfd97c4194993dab6ab626601d" style="OLC"><section id="id1b5c9443d33a4ce8993f49076bc4fb41"><enum>522.</enum><header>Debarment for deficient audits or for failing to meet qualification standards</header><subsection id="id4140ab3b1d724019866df5743dbc62c1"><enum>(a)</enum><header>In general</header><text>If the Secretary finds, after notice and opportunity for a hearing, that an accountant or accounting firm has engaged in any act or practice, or failed to act, in violation of section 103 relating to the preparation and issuance of audit reports, or with professional standards, the Secretary may issue an order to bar an accountant or accounting firm (or division or component of such firm), on a temporary or permanent basis, from directly or indirectly engaging in specified activities relating to performing or supervising plan audits required under section 103.</text></subsection><subsection id="id8182253770d24bb3a3abefb5d3aadd93"><enum>(b)</enum><header>Hearings</header><text>The subject of a debarment order may request a hearing and file an answer not later than 30 days after the date of service of the notice of the debarment order, in accordance with regulations prescribed by the Secretary. Failure to request a hearing within such 30-day period shall constitute a waiver of the right to appear and contest the facts alleged in the debarment order and an admission of the facts alleged in the order for purposes of any related proceedings under this part. Such order shall then become a final agency action under section 704 of title 5, United States Code.</text></subsection><subsection id="idee2b2bf86a874690a17e6f7b9446696b"><enum>(c)</enum><header>Modification or termination of orders</header><text>The Secretary may modify or terminate an order issued under this section, upon the request of the subject of the order and pursuant to procedures established by the Secretary, if the Secretary determines that such modification or termination is in the interest of plan participants and beneficiaries.</text></subsection><subsection id="ide79258a594da47d4943c0c8475870f72"><enum>(d)</enum><header>Publicity of orders</header><text>The Secretary shall make all final orders under this section (including modified orders) public and shall notify applicable State regulatory organizations upon the issuance of such final orders (including modified orders).</text></subsection><subsection id="id3a02763a36d34765a66bb0b5c77fdd8b"><enum>(e)</enum><header>Jurisdiction</header><text>Lawsuits by the subject of an order to review the final order of the Secretary may be brought only in the district court of the United States for the district where the subject of the order has its principal office or in the United States District Court for the District of Columbia.</text></subsection><subsection commented="no" id="id2728655047014af4b803e7326604b945"><enum>(f)</enum><header>Regulations</header><text>The Secretary may promulgate such regulations or other guidance as may be necessary or appropriate to carry out this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="idE6C9E5382D9E4B9C944E27EE9B3E1005"><enum>(2)</enum><header>Clerical amendment</header><text>The table of sections for part 5 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 is amended by adding at the end the following new item:</text><quoted-block display-inline="no-display-inline" id="idA12B73623C64487BA1C25FD12B9A83EB" style="OLC"><toc><toc-entry bold="off" level="section">522. Debarment for deficient audits or for failing to meet qualification standards.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="ida91e5ea6f8114c22b555ac8df559ce57"><enum>(d)</enum><header>Exception</header><paragraph id="id144B997F4257433E9718D5E74FE16026"><enum>(1)</enum><header>In general</header><text>Section 103(a)(3)(C) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1023(a)(3)(C)) is amended by striking <quote>if such statements are certified by the bank, similar institution, or insurance carrier as accurate and are made part of the annual report.</quote> and inserting <quote>except to the extent required under regulations promulgated by the Secretary.</quote>.</text></paragraph><paragraph id="id117C4DB5093C47CE856215B488CAB83A"><enum>(2)</enum><header>Effective date</header><text>The amendment made by paragraph (1) shall not become effective until the Secretary has promulgated final regulations with respect to such amendment.</text></paragraph></subsection></section><section id="id110f856b0ebd4bd8b6d2fd0b962a84d7"><enum>402.</enum><header>Special rules relating to treatment of qualified domestic relations orders</header><subsection id="id55811bdc8ee34ca480b987b8cfeee3ef"><enum>(a)</enum><header>Preservation of Assets</header><paragraph id="id8c07017daaed4c0eb42ce8e3c891a23c"><enum>(1)</enum><header>Amendments to ERISA</header><text>Section 206(d)(3) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1056">29 U.S.C. 1056(d)(3)</external-xref>) is amended—</text><subparagraph id="id13C491D306E1456999DFCC0808F6FB01"><enum>(A)</enum><text>by redesignating subparagraph (N) as subparagraph (O); and</text></subparagraph><subparagraph id="id4D41B69E1CCC4127895403C78DE07F6F"><enum>(B)</enum><text>by inserting after subparagraph (M) the following:</text><quoted-block display-inline="no-display-inline" id="idf1bfd2465c0545faae1f8db0318c4a1c" style="OLC"><subparagraph id="id2e08cc63b8444d528c7ae5c9ffb64689"><enum>(N)</enum><header>Preservation of assets</header><clause id="id7F79211081CC477FBC59917B4DBB58B1"><enum>(i)</enum><header>In general</header><text>If a spouse or former spouse of a participant—</text><subclause id="id9AC7175177DC44198F1B9DAAC3D9CAF7"><enum>(I)</enum><text>notifies a plan in writing that—</text><item id="idbc289c4cbe0a4fd68b106c709f7627a8"><enum>(aa)</enum><text>an action is pending pursuant to a State domestic relations law (including a community property law), and</text></item><item id="idf2f1743b5f184edc88b83e4696c6fca2"><enum>(bb)</enum><text>all or a portion of the benefits payable with respect to the participant under the plan are a subject of such action, and</text></item></subclause><subclause id="idFF6C69B98E2442FC900F5B0BA35C7091"><enum>(II)</enum><text>includes with the notice evidence of the pendency of the action,</text></subclause><continuation-text continuation-text-level="clause">the plan administrator shall, during the segregation period, separately account for 50 percent of such benefits. Any amounts so separately accounted for may not be distributed by the plan during the segregation period.</continuation-text></clause><clause id="id175ff25b79b648aeb5f52bb5fefa71ab"><enum>(ii)</enum><header>Segregation period</header><subclause id="idCBDEDCD5DBFA46DA8D0BFFFA5565EB40"><enum>(I)</enum><header>In general</header><text>For purposes of clause (i), the term <term>segregation period</term> means the period—</text><item id="idB525161F14D745CF807D639FE5E5239A"><enum>(aa)</enum><text>beginning on the date of receipt by the plan of the notice under clause (i), and</text></item><item id="idAB60A2DDA8FB4EA590B260340F1E9AF9"><enum>(bb)</enum><text>ending on the earlier of—</text><subitem id="id6A6105C55F564E3EB2EF0AEEE4C2375C"><enum>(AA)</enum><text>90 days after the date of receipt of such notice, or</text></subitem><subitem id="id53BD02841CCD4D33942A8062857CD72F"><enum>(BB)</enum><text>the date of receipt of a domestic relations order with respect to the participant and the prospective alternate payee or the date on which the action is no longer pending.</text></subitem></item></subclause><subclause id="id54B9A8072BDF431F8CE32F6B8AACB21C"><enum>(II)</enum><header>Extension of segregation period</header><text>The segregation period shall be extended for 1 or more additional periods described in subclause (I) upon notice by the spouse or former spouse that the action described in clause (i)(I)(aa) is still pending as of the close of any prior segregation period.</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="idbe51e213dcac41f0a27fe48fd23f0662"><enum>(2)</enum><header>Amendments to 1986 code</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/414">Section 414(p)</external-xref> of the Internal Revenue Code of 1986 is amended—</text><subparagraph id="id9E662B77665042D88D9EDC68D87D6368"><enum>(A)</enum><text>by redesignating paragraph (13) as paragraph (14); and</text></subparagraph><subparagraph id="id8BEE39B12386414490B18B04CFEB4B76"><enum>(B)</enum><text>by inserting after paragraph (12) the following:</text><quoted-block display-inline="no-display-inline" id="id760e7857efe44c77be6dd8588db119fd" style="OLC"><paragraph id="id8e24e0121ee64f8dae702a7c775179fd"><enum>(13)</enum><header>Preservation of assets</header><subparagraph id="idC87A89057FCB41FDB6924191049BE5A2"><enum>(A)</enum><header>In general</header><text>If a spouse or former spouse of a participant—</text><clause id="id57C5CEDE94B947988CE9D10C688CEEAC"><enum>(i)</enum><text>notifies a plan in writing that—</text><subclause id="idca05cee42ec54bd8ad3b2aa9e0c634f3"><enum>(I)</enum><text>an action is pending pursuant to a State domestic relations law (including a community property law), and</text></subclause><subclause id="id394b589572cd4a41bcee7caeec37373e"><enum>(II)</enum><text>all or a portion of the benefits payable with respect to the participant under the plan are a subject of such action, and</text></subclause></clause><clause id="id456276F8A14B44D3AC890EFE611FE0D2"><enum>(ii)</enum><text>includes with the notice evidence of the pendency of the action,</text></clause><continuation-text continuation-text-level="subparagraph">the plan administrator shall, during the segregation period, separately account for 50 percent of such benefits. Any amounts so separately accounted for may not be distributed by the plan during the segregation period.</continuation-text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block><quoted-block display-inline="no-display-inline" id="id178da90e32a049c7bafce4470f4eb331" style="OLC"><subparagraph id="idf17f932d94874d369db013493bcf1e0a"><enum>(B)</enum><header>Segregation period</header><clause id="id7C98D679876C4C59A3DE1468FEB062FA"><enum>(i)</enum><header>In general</header><text>For purposes of subparagraph (A), the term <term>segregation period</term> means the period—</text><subclause id="id7eaf792f67e2423db533035939feea6d"><enum>(I)</enum><text>beginning on the date of receipt by the plan of the notice under clause (i), and</text></subclause><subclause id="idb3dd0c7a70ff4ab890d471fcf484a639"><enum>(II)</enum><text>ending on the earlier of—</text><item id="idE332C253245D41F4A3F30DF70181453B"><enum>(aa)</enum><text>90 days after the date of receipt of such notice, or</text></item><item id="idAA6CA8BEED01477BA2791C5F3E62A1AD"><enum>(bb)</enum><text>the date of receipt of a domestic relations order with respect to the participant and the prospective alternate payee or the date on which the action is no longer pending.</text></item></subclause></clause><clause id="id46A710ECAC3843F5A48E130C68DAFABE"><enum>(ii)</enum><header>Extension of segregation period</header><text>The segregation period shall be extended for 1 or more additional periods described in clause (i) upon notice by the spouse or former spouse that the action described in subparagraph (A)(i)(I) is still pending as of the close of any prior segregation period.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="id342523227ac84ab0bbaf32679680c723"><enum>(b)</enum><header>Penalty for failure To provide information regarding alternate payees</header><paragraph id="idD1AFB5D6CF8F4C2481A640B2B55F87E9"><enum>(1)</enum><header>In general</header><text>Section 502(c), as amended by section 312, of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1132">29 U.S.C. 1132(c)</external-xref>) is amended—</text><subparagraph id="id423BABC5267C4A67B166348C1E668D0D"><enum>(A)</enum><text>by redesignating paragraphs (8), (9), (10), (11), and (12) as paragraphs (9), (10), (11), (12), and (13) respectively; and</text></subparagraph><subparagraph id="id8B3A013FB0864B3FBFF4C9BDD10467BC"><enum>(B)</enum><text>by inserting after paragraph (7) the following:</text><quoted-block display-inline="no-display-inline" id="id6cf7fdd7d7804397af1976c052cc61cf" style="OLC"><paragraph id="id3d26ec4c5e6a484a88e9371eaa0aa656"><enum>(8)</enum><header>Failure to provide information regarding alternate payees</header><text>The plan administrator shall provide information regarding the benefit to prospective alternative payees under a domestic relations order under section 206(d)(3) or any representative of a prospective alternative payee in connection with such an order. The Secretary may assess a civil penalty against any plan administrator of up to $100 a day from the date of the plan administrator's failure or refusal to provide such information.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id23915748E6894EB396E1B66EE9AD4B52"><enum>(2)</enum><header>Conforming amendment</header><text>Section 502(a)(6) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1132">29 U.S.C. 1132(a)(6)</external-xref>), as so amended, is amended by striking <quote>or (11)</quote> and inserting <quote>(11), or (12)</quote>.</text></paragraph></subsection><subsection id="idd6fe94c95905423b852d948b36af6c0d"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2014.</text></subsection></section><section id="id1589DFC925A546A799F8F079EE2877D0"><enum>403.</enum><header>Correction to bonding requirement</header><text display-inline="no-display-inline">Section 412(a)(3)(D) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1112(a)(3)(D)) is amended by striking <quote>Paragraph (2)</quote> and inserting <quote>This paragraph</quote>.</text></section><section commented="no" display-inline="no-display-inline" id="idC7911E9043FC4E9CBCCEDFE86499A780" section-type="subsequent-section"><enum>404.</enum><header>Retaliation protections</header><text display-inline="no-display-inline">Section 510 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1140">29 U.S.C. 1140</external-xref>) is amended by inserting <quote>, has filed or made any oral or written complaint (including to a fiduciary, an employer, or the Secretary),</quote> after <quote>given information</quote>.</text></section>