118 S3102 IS: Retirement Savings for Americans Act of 2023
U.S. Senate
2023-10-19
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.
1.Short title; table of contents(a)This Act may be cited as the Retirement Savings for Americans Act of 2023
.(b)The table of contents for this Act is as follows:Sec. 1. Short title; table of contents.Sec. 2. Definitions.Sec. 3. Relationship to Social Security.Sec. 4. Government benefits.Title I—The American Worker Retirement PlanSec. 101. The American Worker Retirement Fund.Sec. 102. Investment of American Worker Retirement Fund.Sec. 103. Eligibility.Sec. 104. Enrollment.Sec. 105. Contributions.Sec. 106. Distributions.Sec. 107. Accounts.Sec. 108. Tax treatment.Sec. 109. Spousal protections; survivor rights.Title II—The American Worker Retirement Plan Investment Management SystemSec. 201. The American Worker Retirement Investment Board.Sec. 202. The American Worker Retirement Plan Advisory Council.Sec. 203. Executive Director.Sec. 204. Investment policies and selection of asset managers.Sec. 205. Administrative provisions.Sec. 206. Fiduciary responsibilities; liability and penalties.Sec. 207. Bonding.Sec. 208. Investigative authority.Sec. 209. Exculpatory provisions; insurance.Sec. 210. Subpoena authority.Title III—Government Match Tax CreditSec. 301. Government Match Tax Credit.2.As used in this Act, except as otherwise provided:(1)The term account
means an account established and maintained under section 107.(2)The term Board
means the American Worker Retirement Investment Board established under section 201.(3)The term business
means any entity, including any sole proprietor, partnership, limited liability company, or corporation, that engages in interstate commerce.(4)The term earnings
, when used with respect to the Fund, means the amount of the gain realized or yield received from the investment of sums in such Fund.(5)The term Executive Director
means the Executive Director appointed under section 203.(6)The term existing retirement plan
means—(A)an eligible retirement plan, as defined in section 402(c)(8)(B) of the Internal Revenue Code of 1986, including any defined benefit plan;(B)the Thrift Savings Plan established under subchapter III of chapter 84 of title 5, United States Code; and(C)any other tax deferred employee retirement plan determined by the Secretary of the Treasury to be consistent with the purposes of this Act.(7)(A)The term former participant
means a participant who has an account with the Fund and is no longer a qualifying worker.(B)Individuals becoming qualifying workers againSuch term shall not include an individual who (without regard to this subparagraph) is a former participant but who subsequently becomes a qualifying worker and enrolls again under section 104(a) to participate in the Fund. This subparagraph shall apply until such individual is no longer a qualifying worker.(8)The term Fund
means the American Worker Retirement Fund established under section 101(a).(9)Investment Advisory CouncilThe term Investment Advisory Council
means the council established under section 202.(10)The term loss
, as used with respect to the Fund, includes the amount of any loss resulting from the investment of sums in such Fund, or from the breach of any responsibility, duty, or obligation under section 206.(11)The term net earnings
means the excess of earnings over losses.(12)The term net losses
means the excess of losses over earnings.(13)The term participant
means any qualifying worker who is enrolled to participate in the Fund under section 104(a) and has not opted out of participation under section 104(b)(3).(14)The term participating employer
means any business that—(A)employs a qualifying worker; or(B)contracts with an independent contractor who is a qualifying worker and opts to enroll such independent contractor to participate in the Fund under section 104(a)(2).(15)The term qualifying worker
means—(A)an employee who—(i)is employed by a business that has not established an existing retirement plan and does not provide an individual retirement plan (as defined in section 7701(a)(37) of the Internal Revenue Code of 1986) with an automatic enrollment payroll deduction arrangement; or(ii)is not eligible to participate in any such plan or arrangement established by the business that employs the employee; or(B)an independent contractor who—(i)is self-employed; and(ii)has not established an existing retirement plan, and does not have an individual retirement plan (as defined in section 7701(a)(37) of the Internal Revenue Code of 1986) with an automatic enrollment payroll deduction arrangement. 3.Relationship to Social SecurityExcept as otherwise provided in this Act, the funds payable under the Fund to participants and former participants are in addition to the benefits payable under the Social Security Act (42 U.S.C. 301 et seq.).4.The funds owned by an individual in an account and any contribution made to such funds by a participant or the Secretary of the Treasury shall not be taken into consideration when determining the individual’s eligibility for any Federal public assistance benefit.<enum>I</enum><header>The American Worker Retirement Plan</header><section id="H13866F6D50644026B4AD0D0B646FEB78"><enum>101.</enum><header>The American Worker Retirement Fund</header><subsection id="H522FFF9ADF2C433D9DADF38CCCACEE62"><enum>(a)</enum><header>Establishment</header><text>There is established in the Treasury of the United States the American Worker Retirement Fund.</text></subsection><subsection id="HB0A5D909FFE0412689CB50C483915D4F"><enum>(b)</enum><header>Purposes</header><text>The Fund shall consist of the sum of all amounts contributed under sections 105 and 301, increased by the total net earnings from investments of the sums in the Fund or reduced by the total net losses from investments of the Fund, and reduced by the total amount of payments made from the Fund (including payments for administrative expenses under subsection (e)).</text></subsection><subsection commented="no" id="H0B27013A506A4A53A00FF3D900814366"><enum>(c)</enum><header>Investment</header><text>The sums in the Fund shall remain available without fiscal year limitation—</text><paragraph commented="no" id="H14E892A58B254F98BFF5753DCC112A81"><enum>(1)</enum><text>to invest pursuant to section 102;</text></paragraph><paragraph commented="no" id="HEB14A75C060B4DCCAB7D40DB3AB035E6"><enum>(2)</enum><text>to pay the administrative expenses of the Fund under subsection (e);</text></paragraph><paragraph commented="no" id="HEF1AC4A8958249F4B28CBA70D476E115"><enum>(3)</enum><text>to make distributions as provided in section 106;</text></paragraph><paragraph commented="no" id="HD6E00FF20ED5453383A4BB038A53A16A"><enum>(4)</enum><text>to make loans as authorized under section 106(h); and</text></paragraph><paragraph commented="no" id="HA46A49BC39454145933B835C13B8D6B1"><enum>(5)</enum><text>to purchase insurance as provided in section 209.</text></paragraph></subsection><subsection id="H1BE703E82E6D45868DEC8D66EDE7967A"><enum>(d)</enum><header>Accounts</header><text>Each participant shall have an account with the Fund. Amounts contributed by a participant under section 105 and by the Secretary of the Treasury under <external-xref legal-doc="usc" parsable-cite="usc/26/25F">section 25F</external-xref> of the Internal Revenue Code of 1986 shall be deposited in the Fund and credited to the participant’s account in accordance with such procedures as the Secretary of the Treasury may, in consultation with the Executive Director, prescribe in regulation.</text></subsection><subsection id="H494D4D4DD7654B858E6F099860CF4181"><enum>(e)</enum><header>Administrative expenses</header><text>Administrative expenses (including expenses related to financial literacy requirements under section 201(f)(5)) incurred to carry out this Act shall be paid out of the net earnings of the Fund, including earnings attributed to returned credit amounts under <external-xref legal-doc="usc" parsable-cite="usc/26/25F">section 25F(h)</external-xref> of the Internal Revenue Code of 1986.</text></subsection><subsection id="HD24B2EF028764F08A37247C4E7A9413C"><enum>(f)</enum><header>Exclusive benefit</header><paragraph id="H38E0CF27260B4CA3A07B00E5822CD371"><enum>(1)</enum><header>In general</header><text>Subject to paragraphs (2) and (3) and subsection (e), sums in the Fund credited to the accounts of a participant or former participant may not be used for, or diverted to, purposes other than for the exclusive benefit of the participant or former participant, or a beneficiary thereof, except as otherwise provided by law.</text></paragraph><paragraph id="H6C808C7831CE41B9B8D86BE88BDB22B0"><enum>(2)</enum><header>Assignment</header><text>Except as provided in paragraph (3), sums in the Fund may not be assigned or alienated and are not subject to execution, levy, attachment, garnishment, or other legal process. For purposes of this paragraph, a loan made from the Fund to a participant shall not be considered to be an assignment or alienation.</text></paragraph><paragraph id="H7F519C28F1A1436E8B5CACEF90FBC7C2"><enum>(3)</enum><header>Legal obligations</header><text>Moneys due or payable from the Fund to any individual and, in the case of an individual who is a participant or former participant, the balance in the account of the participant or former participant shall be subject to—</text><subparagraph id="H339F1014A2354150AABBAE67517C1A44"><enum>(A)</enum><text>legal process for the enforcement of the individual’s legal obligation to provide child support or make alimony payments as provided in section 459 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/659">42 U.S.C. 659</external-xref>);</text></subparagraph><subparagraph id="HF93DC5AD4FAD4E61915B95680F630E00"><enum>(B)</enum><text>an obligation of the Executive Director to make a payment to another person under section 109; and</text></subparagraph><subparagraph id="H9A35991996A34748B688F2D79AFCAB8D"><enum>(C)</enum><text>any Federal tax levy under <external-xref legal-doc="usc" parsable-cite="usc/26/6331">section 6331</external-xref> of the Internal Revenue Code of 1986. </text></subparagraph><continuation-text continuation-text-level="paragraph">For the purposes of this paragraph, an amount contributed for the benefit of a participant or former participant under <external-xref legal-doc="usc" parsable-cite="usc/26/25F">section 25F</external-xref> of the Internal Revenue Code of 1986 (including any earnings attributable thereto) shall be considered part of the balance in such participant or former participant’s account.</continuation-text></paragraph></subsection><subsection id="H27457B75C1294725B2ABE9E69ABD06A3"><enum>(g)</enum><header>Non-Appropriated funds</header><text>The sums in the Fund shall not be appropriated for any purpose other than the purposes specified in this section and may not be used for any other purpose.</text></subsection><subsection id="H9A382053DD14472498DE2C0B8F6FB5B6"><enum>(h)</enum><header>Benefit to participants</header><text>All sums contributed to the Fund by a participant or the Secretary of the Treasury for the benefit of such participant and all net earnings in such Fund in trust for such participant shall be the exclusive property of the participant.</text></subsection><subsection id="H12DADD3C6C23421AA4040C6174086519"><enum>(i)</enum><header>Nonforfeitable</header><text>All the contributions made under section 105 and <external-xref legal-doc="usc" parsable-cite="usc/26/25F">section 25F</external-xref> of the Internal Revenue Code of 1986 shall be fully nonforfeitable when made, except as provided in section 25F(h) of such Code.</text></subsection></section><section id="H54DD19BF40574909830BC599C5FA469F"><enum>102.</enum><header>Investment of American Worker Retirement Fund</header><subsection id="H50E1D0669F944D5080E0B9EB46CC4EEA"><enum>(a)</enum><header>In general</header><text>The Board shall establish the investment policies of the Fund and select the investment funds, indexes, and other investment products that the amounts in the Fund shall be invested in subject to the following conditions:</text><paragraph id="H27095E082144411A9FBE9CAC0F150C3E"><enum>(1)</enum><text>The Board shall provide for the following investment options for participants:</text><subparagraph id="HEE1AC99DEA0F4189859800EA106816FF"><enum>(A)</enum><text>A Government Securities Investment Fund under which sums in the Fund are invested in—</text><clause id="H241D912EB54246E499C7E679849FBEC4"><enum>(i)</enum><text>bonds issued or guaranteed by the United States Government; and</text></clause><clause id="HF7F4082C23C8443E984295A2241F8353"><enum>(ii)</enum><text>bonds issued by Government-sponsored enterprises or Government corporations.</text></clause></subparagraph><subparagraph id="HE33A32C5676D4C1791C6F5EC9DFDDD7F"><enum>(B)</enum><text>A Fixed-Income Investment Fund under which sums are in the Fund are invested in—</text><clause id="HAEACE636DA9C4FC3A19E73B15EFC8626"><enum>(i)</enum><text>insurance contracts;</text></clause><clause id="HA3F5E3DF555E416CABC53F5D891C59D6"><enum>(ii)</enum><text>certificates of deposit; and</text></clause><clause id="H62C303088C7E4469B6992D2EE1ED1341"><enum>(iii)</enum><text>other instruments or obligations selected by qualified professional asset managers (as defined in section 8438(a)(8) of title 5, United States Code),</text></clause><continuation-text continuation-text-level="subparagraph">which return the amount invested and pay interest, at a specific rate or rates, on that amount during a specific period of time.</continuation-text></subparagraph><subparagraph id="H97CAD504CAE54021B074D493B0599E24"><enum>(C)</enum><text display-inline="yes-display-inline">A Common Stock Index Investment Fund, as described in section 8438(b)(2) of title 5, United States Code.</text></subparagraph><subparagraph id="HCEA4AB4FCB4A436DBAAE1F67F47101AE"><enum>(D)</enum><text display-inline="yes-display-inline">A Small Capitalization Stock Index Investment Fund, as described in section 8438(b)(3) of title 5, United States Code.</text></subparagraph><subparagraph id="H624632983FE044EB933A91269E803C07"><enum>(E)</enum><text display-inline="yes-display-inline">An International Stock Index Investment Fund, as described in section 8438(b)(4) of title 5, United States Code.</text></subparagraph><subparagraph id="H2B8565262C0B440698765158E25F9EAB"><enum>(F)</enum><text>A Life-Cycle Investment Fund consisting of target date asset allocation portfolios. </text></subparagraph></paragraph><paragraph id="H81143C05A5AA4DC98C1BE6BC11D95CB6"><enum>(2)</enum><text>The Board may, in its discretion, provide for other investment options for participants consistent with the Board’s fiduciary duty set forth in sections 201 and 206.</text></paragraph><paragraph id="H4B363055FA33435DBE5084EF8ACEBA78"><enum>(3)</enum><text>The Board shall consult with the Investment Advisory Council before authorizing additional investment options for participants.</text></paragraph></subsection><subsection id="HD70D912AAE5C4F17BADAF1B0E21BFA28"><enum>(b)</enum><header>Investments</header><paragraph id="HCFBF48B056B6445A8587903F097E6AD7"><enum>(1)</enum><header>Investment selection</header><text display-inline="yes-display-inline">The Executive Director shall invest the sums available in the Fund for investment as provided in the selection made under subsection (c).</text></paragraph><paragraph id="HA55655FA331748C3AA359D639C363EB6"><enum>(2)</enum><header>Default option</header><text>If a selection has not been made with respect to any sums available for investment in the Fund, the Executive Director shall invest such sums in an age-appropriate Life-Cycle Investment Fund, as determined by the Executive Director. </text></paragraph></subsection><subsection id="HB0326ED595BF4B5F9C9FB7B4EC424F48"><enum>(c)</enum><header>Investment selection</header><text display-inline="yes-display-inline">As often as is practical, but not less than twice per year, a participant may select the investment funds and options referred to in subsection (a) into which the amounts in the Fund credited to the participant’s accounts are to be invested or reinvested. A selection may be made under this subsection only in accordance with regulations prescribed by the Executive Director and within such period as the Executive Director shall provide in such regulations, but in no event less frequently than twice a year.</text></subsection><subsection id="H972BFA4EA55143888EC5F18B75A220D7"><enum>(d)</enum><header>Voting rights</header><text>Participants, former participants, the Board, and the Executive Director may not exercise voting rights associated with the ownership of securities by the Fund. </text></subsection><subsection id="H2A6E8624C17347BB9C2239E1AF4CDE85"><enum>(e)</enum><header>Reports</header><text>The Board shall issue regular reports (not less frequently than quarterly) to participants and former participants on the performance of each investment option selected under subsection (a), which shall include personalized estimates of assets and income at retirement, the additional assets and income at retirement a participant would have if the participant makes sufficient contributions to receive the maximum amount of the Government match tax credit under <external-xref legal-doc="usc" parsable-cite="usc/26/25F">section 25F</external-xref> of the Internal Revenue Code of 1986, and any other information the Board determines may help participants make sound financial decisions. The Board shall provide the reports required under this subsection by electronic delivery, except that upon the request of a participant or former participant, reports shall be provided by mail to such individual.</text></subsection></section><section id="H66F2C65B306844A9A557D80ED83D349F"><enum>103.</enum><header>Eligibility</header><subsection id="H412EE522D14B46949C787B4A361442F0"><enum>(a)</enum><header>Eligibility</header><text>A qualifying worker shall be eligible to participate in the Fund upon completion of the enrollment process set forth in section 104.</text></subsection><subsection id="HC448F2625F6E450FBEC1F8E5B7BFDC2D"><enum>(b)</enum><header>Cessation of eligibility</header><text>A former participant shall not be eligible to contribute to the Fund under section 105(a) but shall remain the owner of the funds in the former participant’s account with the Fund (and any net earnings attributable to such funds) subject to the withdrawal conditions established under section 106, and may exercise investment decisions with respect to such account on the same basis as a participant.</text></subsection></section><section id="H3F886B5500A24200A904CB80929D6EB2"><enum>104.</enum><header>Enrollment</header><subsection id="H8436959A60544B509E594C9A37A9F0DC"><enum>(a)</enum><header>Enrollment</header><paragraph commented="no" id="HA5D82789DB6F477C9F82F128A8A67EF3"><enum>(1)</enum><header>In general</header><text>The Secretary of the Treasury and the Executive Director shall jointly establish an enrollment process for participating employers to enroll qualifying workers to participate in the Fund that incorporates, to the extent practicable, such enrollment and participant contributions under section 105(a) into Federal tax withholding forms and payments. Such process shall provide that a business operating on the date of the establishment of the Fund shall complete such enrollment process for any qualifying worker as of such time no later than the date that is 1 year from such date.</text></paragraph><paragraph id="H1BA8B3BD48D94059B037B96B428AD0AB"><enum>(2)</enum><header>Independent contractors</header><subparagraph commented="no" display-inline="no-display-inline" id="id5376c0d69b2b4a9aa5d2f2bce030f075"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of independent contractors who are qualifying workers, the enrollment process shall allow businesses who have contracts with such qualifying workers to elect to enroll such qualifying workers to participate in the Fund.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id78088355d9ce40d9985d56d62d2305a2"><enum>(B)</enum><header>Classification</header><text>An election (or failure to make an election) by a business under subparagraph (A) with respect to any independent contractor who is a qualifying worker shall not be relevant to the classification of such worker as an independent contractor under any Federal, State, or local law.</text></subparagraph></paragraph></subsection><subsection id="H040D53ED1FE3440BB2AA004FAF10E91F"><enum>(b)</enum><header>Auto-Enrollment; opt-Out</header><paragraph id="HAD25F9A028EF482CA78D57294266B9AC"><enum>(1)</enum><header>In general</header><text>Each participating employer shall enroll each of its qualifying workers to participate in the Fund under subsection (a) unless such qualifying worker elects to opt out of participating pursuant to paragraph (3). A qualifying worker who is a sole proprietor or independent contractor shall enroll or elect to opt out of participating pursuant to paragraph (3).</text></paragraph><paragraph id="H2A2BB36D3A3F41D981C6A088186657FA"><enum>(2)</enum><header>Automatic contribution rates</header><text>Each qualifying worker enrolled under paragraph (1) shall be automatically enrolled to make contributions under section 105(a) at the default percentage of 3 percent of the qualifying worker’s compensation from the employer for such period as shall be established by regulation under section 105(a)(3).</text></paragraph><paragraph id="H85292A60C797427C85EA0A72AFE2378D"><enum>(3)</enum><header>Opt-out</header><text>A qualifying worker may elect to opt out of participating in the Fund pursuant to procedures established jointly by the Secretary of the Treasury and the Executive Director as part of the regulations governing the enrollment process set forth in subsection (a). If a qualifying worker elects to opt out of participating in the Fund, such qualifying worker shall not be enrolled in subsequent years unless the qualifying worker elects to participate in the Fund. The Secretary of the Treasury and the Executive Director shall determine procedures to establish accounts for qualifying workers who elect to opt out of participating in the Fund who are determined to be eligible for automatic contributions or who would make contributions otherwise allowable by law outside the withholding process.</text></paragraph></subsection><subsection id="HFA14D7E651F24302B5084D1D730230FE"><enum>(c)</enum><header>Penalties</header><paragraph commented="no" id="H932404B331BB4F63AFDEB8E05100B9E8"><enum>(1)</enum><header>Penalty</header><text>A participating employer who fails to enroll a qualifying worker pursuant to subsection (b) or fails to deposit in the Fund the amount of a participant’s contributions under section 105(a) shall be subject to a penalty equal to the applicable penalty percentage of the amount of the contributions by the qualifying worker or participant, as the case may be, that the participating employer fails to deposit due to failure to enroll the qualifying worker or otherwise deposit such funds. The Secretary of the Treasury and the Executive Director shall jointly prescribe regulations under which a participating employer shall be required to pay to the Fund amounts representing lost earnings resulting from errors made by such participating employer in carrying out this section.</text></paragraph><paragraph id="HD56E4AD2BEFA42FABE58EDAA9F1FCECB"><enum>(2)</enum><header>Applicable penalty percentage</header><text>The term <quote>applicable penalty percentage</quote> means—</text><subparagraph id="HF0AC919F2B244CA3A9CB1F4B0406392C"><enum>(A)</enum><text>2 percent if the failure is for not more than 5 days;</text></subparagraph><subparagraph id="HBA9FD46D226B4779B38C3863F38D43B1"><enum>(B)</enum><text>5 percent if the failure is for more than 5 days but not more than 15 days; and</text></subparagraph><subparagraph id="HE69EFD5DC48849B0AEC483065073BC44"><enum>(C)</enum><text>10 percent if the failure is for more than 15 days.</text></subparagraph></paragraph><paragraph id="H043450268F254470AD9E4211989F54C7"><enum>(3)</enum><header>Funds</header><text>The Secretary of the Treasury shall credit to the Fund, out of any sums in the Treasury not otherwise appropriated, the amount determined by the Executive Director to be necessary to carry out this section and section 105(d).</text></paragraph></subsection></section><section id="H10DE875A01D241DFA01B3BB8055D4800"><enum>105.</enum><header>Contributions</header><subsection id="H98006F77784E4103A3E50D8E639E6220"><enum>(a)</enum><header>Contributions by participants</header><paragraph id="H2AC467EF23F942A5A5FF67D94A31F71C"><enum>(1)</enum><header>In general</header><text>Pursuant to the regulations established under paragraph (3) and subsection (e), a participant may make contributions to the participant’s account with the Fund in any pay period in an amount not to exceed the participant’s compensation for such period.</text></paragraph><paragraph id="HEC89BEE2CFAD4D3494CB098C975BBB0C"><enum>(2)</enum><header>Other participant contributions</header><subparagraph commented="no" display-inline="no-display-inline" id="id328c7f391ca84d7490f36db9aaaff621"><enum>(A)</enum><header>Catch-up contributions</header><text display-inline="yes-display-inline">Notwithstanding the limitation under paragraph (1) or subsection (c), a participant may make such additional contributions to the participant’s account with the Fund as are permitted by <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414(v)</external-xref> of the Internal Revenue Code of 1986, and the regulations established under subsection (e) consistent therewith.</text></subparagraph><subparagraph id="id6bcb719ec83c4278b52acd772257a66b"><enum>(B)</enum><header>Contributions of tax refunds</header><clause commented="no" display-inline="no-display-inline" id="id0dd3950cd86540c2a46f2dfb9cdf3e42"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text>Subject to the limits of subsection (c), a participant may elect, at such time and in such manner as the Secretary of the Treasury may prescribe, to contribute to the participant's account any portion of such participant's overpayment of tax which is to be refunded to such participant under <external-xref legal-doc="usc" parsable-cite="usc/26/6402">section 6402</external-xref> of the Internal Revenue Code of 1986.</text></clause><clause commented="no" display-inline="no-display-inline" id="ida0d6a2ea902044d9b0c27993429dba77"><enum>(ii)</enum><header>Special rules</header><text display-inline="yes-display-inline">For purposes of clause (i)—</text><subclause commented="no" display-inline="no-display-inline" id="idb53d37e730a2402b8d4951af6d7d7d20"><enum>(I)</enum><text display-inline="yes-display-inline">the amount of the overpayment which may be contributed under clause (i) shall be determined without regard to any overpayment attributable to the amount contributed to the account by the Secretary of the Treasury under <external-xref legal-doc="usc" parsable-cite="usc/26/25F">section 25F</external-xref> of the Internal Revenue Code of 1986, and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id2e8d7801461d44b99e8cee8324499c59"><enum>(II)</enum><text display-inline="yes-display-inline">any contribution described in clause (i) shall be treated as made for the taxable year of the overpayment and shall be taken into account in determining the amount of the credit under section 25F for such taxable year.</text></subclause></clause></subparagraph></paragraph><paragraph id="H338D62302B9F4DAD84A63571174C7D64"><enum>(3)</enum><header>Contributions</header><text>The Secretary of the Treasury and the Executive Director shall jointly prescribe regulations that establish a program of regular contribution under which participants may—</text><subparagraph id="H5061900F498241938224F59E49562568"><enum>(A)</enum><text>make contributions to their accounts with the Fund under paragraph (1);</text></subparagraph><subparagraph id="H61EA908EE4C3427F81C92C31676C6722"><enum>(B)</enum><text>modify the amount contributed under such paragraph; or</text></subparagraph><subparagraph id="H78693FAB3B994218BD1A3253B05C0086"><enum>(C)</enum><text>terminate such contributions.</text></subparagraph></paragraph><paragraph id="HB033D4FA91334E2EAC2CACA941B26B3C"><enum>(4)</enum><header>Election</header><text>An election to make contributions under this subsection—</text><subparagraph id="H2F55CB8822BA4EE29F3348CB7B34B037"><enum>(A)</enum><text>may be made at any time;</text></subparagraph><subparagraph id="H899073F62676476F819F6FD4AC22CDB3"><enum>(B)</enum><text>shall take effect on the earliest date after the election that is administratively feasible; and</text></subparagraph><subparagraph id="HF350977FC93A4CAF8E36052E383A8821"><enum>(C)</enum><text>shall remain in effect until modified or terminated.</text></subparagraph><continuation-text continuation-text-level="paragraph">Any such election shall be subject to the contribution limits under this section.</continuation-text></paragraph></subsection><subsection commented="no" id="HAE441F9CA48F495B803E50B45FB20761"><enum>(b)</enum><header>Contribution of Government Match Tax Credit</header><text>A participant’s account shall receive contributions in the form of the Government Match Tax Credit contributed by the Secretary of the Treasury under <external-xref legal-doc="usc" parsable-cite="usc/26/25F">section 25F</external-xref> of the Internal Revenue Code of 1986.</text></subsection><subsection id="H1E04D6F030C9488A9BA7252B8BF24E50"><enum>(c)</enum><header>Contribution limits</header><text>Notwithstanding any other provision of this section, no contribution may be made under this section for any year to the extent that such contribution, when added to prior contributions for such year, exceeds any limitation under <external-xref legal-doc="usc" parsable-cite="usc/26/219">section 219(b)(5)</external-xref> of the Internal Revenue Code of 1986. Any contribution made under <external-xref legal-doc="usc" parsable-cite="usc/26/25F">section 25F</external-xref> of the Internal Revenue Code of 1986 shall not be taken into account for purposes of the preceding sentence.</text></subsection><subsection commented="no" id="H8D2E5531D91148ECB220957A5DB3E720"><enum>(d)</enum><header>Treatment as Roth contributions</header><text>Contributions under subsection (a) shall not be excludable from gross income and no deduction shall be allowed with respect to such contributions under <external-xref legal-doc="usc" parsable-cite="usc/26/219">section 219</external-xref> of the Internal Revenue Code of 1986.</text></subsection><subsection id="H4ACC32BDC34E4C5D82B5DE415AFE6B3D"><enum>(e)</enum><header>Regulations</header><text>The amounts contributed to the Fund by a participant under section 105(a) and on behalf of a participant by the Secretary of the Treasury under <external-xref legal-doc="usc" parsable-cite="usc/26/25F">section 25F</external-xref> of the Internal Revenue Code of 1986 shall be deposited in the Fund and credited to the participant’s account with the Fund pursuant to regulations jointly prescribed by the Secretary of the Treasury and the Executive Director.</text></subsection></section><section id="H2E5FE7708F8845AA84A04696A01E6E25"><enum>106.</enum><header>Distributions</header><subsection id="HDBFDB2CE4A594C27B2A607BC7CF1F8D9"><enum>(a)</enum><header>Former participants</header><text display-inline="yes-display-inline">A former participant is entitled to access the amounts in the former participant’s account as provided in this section. Amounts in the account of a former participant shall remain in the Fund until distributed in accordance with subsection (b).</text></subsection><subsection id="H8104C4C015B840A481041C0F2FDA3FA4"><enum>(b)</enum><header>Former participant withdrawal options</header><text>Subject to section 109, a former participant is entitled to and may elect to withdraw from the Fund the balance of the former participant’s account as—</text><paragraph id="HA3EE485D3EA744C4A1B82C09C68C7A8A"><enum>(1)</enum><text>an annuity;</text></paragraph><paragraph id="H8098815C51DF40B4A4BDFC47AE25F875"><enum>(2)</enum><text>a single payment;</text></paragraph><paragraph id="H1F121795A3FC47E8A6534FF315A13AAC"><enum>(3)</enum><text>2 or more substantially equal payments to be made not less frequently than annually; or</text></paragraph><paragraph id="H45F6E0D94B6F487290C4B6CEB9CFF00A"><enum>(4)</enum><text>any combination of payments described in paragraphs (1) through (3) as the Executive Director may prescribe by regulation.</text></paragraph></subsection><subsection id="HF0897C2CB18242FAA1A175072CBA0690"><enum>(c)</enum><header>Additional former participant withdrawal options</header><paragraph id="HA984DC2FDD594527B3316CFE16670A4F"><enum>(1)</enum><header>In general</header><text>In addition to the right provided under subsection (b) to withdraw the balance of the account, a former participant may make 1 or more withdrawals of any amount in the same manner as a single payment is made in accordance with subsection (b)(2) from the former participant’s account.</text></paragraph><paragraph id="H69F487DA674C41B5A78A7F06386696D0"><enum>(2)</enum><header>Transfers to retirement plans</header><subparagraph id="H061EAFAB394F4BB6B3C8AC7C39867DEB"><enum>(A)</enum><header>In general</header><text>A former participant may request that the amount withdrawn from the Fund under paragraph (1) be transferred to an existing retirement plan.</text></subparagraph><subparagraph id="H6A4413D6A2FF4E55AAD5BDEC0D418A04"><enum>(B)</enum><header>Transfers</header><text>The Executive Director shall make each transfer directly to an existing retirement plan identified by the former participant for whom the transfer is made. A transfer shall not be made under the preceding sentence until the Executive Director receives from the former participant the information required by the Executive Director specifically to identify the existing retirement plan to which the transfer is to be made.</text></subparagraph></paragraph><paragraph id="HF870AA3FDEE04BFA92A98FDEF20DEFD6"><enum>(3)</enum><header>Limitations</header><text>Withdrawals under this subsection shall be subject to such other limitations or conditions as the Executive Director may prescribe by regulation.</text></paragraph></subsection><subsection id="HCB2866D7DABC44A5A8E1AC18F6986606"><enum>(d)</enum><header>Payment of annuities</header><text>The Board shall prescribe methods of payment of annuities under this Act substantially similar to those provided for under section 8434 of title 5, United States Code.</text></subsection><subsection id="H40ECC467EDFF42A6BBF4315506191C43"><enum>(e)</enum><header>Former participant changes to elections</header><paragraph id="H73BD1CAE6DEA47DB97AB9F9A05D5DD40"><enum>(1)</enum><header>In general</header><text>Subject to section 109, a former participant may change an election previously made under this section, except that in the case of an election to receive an annuity, a former participant may not change an election under this section on or after the date on which an annuity contract is purchased to provide for the annuity elected by the former participant.</text></paragraph><paragraph id="H134DAC6446BA4FB6BBF569995DC87396"><enum>(2)</enum><header>Distributions made</header><text>A former participant may not return a distribution once made pursuant to an election under this section.</text></paragraph></subsection><subsection id="H969F74841D564E9A98CF905415148C68"><enum>(f)</enum><header>Survivor rights</header><paragraph id="H0D4EF9CCAF7846DDA63C64D506FBBC9C"><enum>(1)</enum><header>In general</header><text>If a participant or a former participant dies without having made an election under subsection (b) or after having elected an annuity under subsection (b) but before making an election for payments to a survivor rights under section 8434 of title 5, United States Code, an amount equal to the value of that individual’s account (as of death) shall, subject to any decree, order, or agreement referred to in section 109, be paid in a manner consistent with the requirements of section 109.</text></paragraph><paragraph id="H87CCA652B401467AA167C67320F57CB8"><enum>(2)</enum><header>Maintenance of account</header><text>Notwithstanding section 109, if a participant or former participant dies and has designated as sole or partial beneficiary the spouse of the participant or former participant at the time of death, or, if a participant or former participant dies with no designated beneficiary and is survived by a spouse, the spouse may maintain the portion of the participant or former participant’s account to which the spouse is entitled in accordance with the following terms:</text><subparagraph id="H4673E2925DA740CE97CE3741762C0617"><enum>(A)</enum><text>Subject to the limitations of subparagraph (B), the spouse shall have the same withdrawal options under subsection (b) as a former participant.</text></subparagraph><subparagraph id="H132C076F2C76434396B9C563D7173B13"><enum>(B)</enum><text>The spouse may not make withdrawals under subsection (h) or (i).</text></subparagraph><subparagraph id="HE3E428493ACD4D2E84A7D73F10A81C14"><enum>(C)</enum><text>The spouse may not make contributions or transfers to the account.</text></subparagraph><subparagraph id="HD383ED081B92496EA4A5A2FD832108ED"><enum>(D)</enum><text>The account shall be disbursed upon the death of the surviving spouse of the participant or former participant and shall not be maintained by a beneficiary or surviving spouse of the surviving spouse who inherited the account.</text></subparagraph></paragraph><paragraph id="H3CCDBC2B4CD1433FA31114A7B852B76B"><enum>(3)</enum><header>Regulations</header><text>The Executive Director shall prescribe regulations to carry out this subsection.</text></paragraph></subsection><subsection id="H5A1183F1108D4F56876ED66248AEE510"><enum>(g)</enum><header>Small Balance Accounts</header><text>Notwithstanding subsection (b), if a former participant’s account balance is less than an amount that the Executive Director prescribes by regulation, the Executive Director shall pay the nonforfeitable account balance to the participant in a single payment. The Executive Director may prescribe more than 1 balance amount for payment under this subsection based on age of the former participant.</text></subsection><subsection id="HF88BB31F411F44BD94BB8E17F1B6BE61"><enum>(h)</enum><header>Loans</header><paragraph id="H68E59902ABEF4B1A9C4176572DF2A197"><enum>(1)</enum><header>In general</header><text>A participant or former participant may apply to the Board for permission to borrow from the participant or former participant’s account an amount not exceeding the value of that portion of such account which is attributable to contributions made by the participant or former participant. Before a loan is issued, the Executive Director shall provide to the participant or former participant in writing with appropriate information concerning the cost of the loan relative to other sources of financing, as well as the lifetime cost of the loan, including the difference in interest rates between the funds offered by the Fund and any other effect of such loan on the participant or former participant’s final account balance.</text></paragraph><paragraph id="HE1C846B58365409091F7B0F28D959F38"><enum>(2)</enum><header>Special rules</header><subparagraph id="H6AC4F0502D77445AAEFB154765D5ACED"><enum>(A)</enum><header>In general</header><text>Loans under this subsection shall be available to all participant and former participants on a reasonably equivalent basis, and shall be subject to such other conditions as the Board may prescribe by regulation, which shall be as equivalent as practically possible to those provided for under the Thrift Savings Plan. The restrictions of section 206(c)(1) shall not apply to loans made under this subsection.</text></subparagraph><subparagraph id="H9F628F3C94214037B3A96AA1409E29DB"><enum>(B)</enum><header>Limitation based on tax treatment</header><text>A loan may not be made under this subsection to the extent that the loan would be treated as a taxable distribution under <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(p)</external-xref> of the Internal Revenue Code of 1986.</text></subparagraph><subparagraph id="H1D5C16E3114C49C3BAEA529FA94569C7"><enum>(C)</enum><header>Spousal protections</header><text>A loan may not be made under this subsection unless the requirements of section 109 are satisfied.</text></subparagraph></paragraph></subsection><subsection id="HBC9542DD15524F4B98077DD5492ABF30"><enum>(i)</enum><header>Voluntary distributions</header><paragraph id="H286668857A9E44D1A6436C9AF9466792"><enum>(1)</enum><header>In general</header><text>A participant may apply, before becoming a former participant, to the Board for permission to withdraw an amount from the participant’s account based upon—</text><subparagraph id="HD09565F64BC1469AAA8E5BB49226E3B0"><enum>(A)</enum><text>the participant having attained age 59<fraction>1/2</fraction>; or</text></subparagraph><subparagraph id="HA8E3EC6A3F3648158C9F499901BF6043"><enum>(B)</enum><text>financial hardship.</text></subparagraph></paragraph><paragraph id="H69D5148BFD5A4E698FBD7E83E0E6B52A"><enum>(2)</enum><header>Limitations</header><text>A withdrawal under paragraph (1)(B) shall be available only for an amount not exceeding the value of that portion of such account which is attributable to contributions made by the participant. Withdrawals under paragraph (1) shall be subject to such other limitations or conditions as the Executive Director may prescribe by regulation, which shall be as equivalent as practically possible to those provided for under the Thrift Savings Plan.</text></paragraph><paragraph id="HFAF15FACF450436EBFC2D1E9FA9E96FA"><enum>(3)</enum><header>Spousal protections</header><text>A withdrawal may not be made under this subsection unless the requirements of section 109 are satisfied.</text></paragraph></subsection><subsection commented="no" id="HFC8701CB4E8844C485D7B50631B7DDE7"><enum>(j)</enum><header>Involuntary distributions</header><paragraph commented="no" id="H54EAC5DC7885468B9C6AAAC7BE666779"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">A participant shall receive a distribution from the Fund if the participant’s gross income for a taxable year exceeds the dollar threshold (as adjusted by the Secretary of the Treasury) established under <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414(q)(1)(B)</external-xref> of the Internal Revenue Code of 1986.</text></paragraph><paragraph commented="no" id="H2276B584858642F1BEFADE7308672856"><enum>(2)</enum><header>Amount of distribution</header><text>The amount of a distribution under paragraph (1) shall be equal to the sum of such participant’s contributions to the Fund for the taxable year for which such distribution is required under paragraph (1), increased by any gains attributable to such contributions, and decreased by any losses attributable to such contributions, any early withdrawal penalties, and any expenses associated with making such distribution.</text></paragraph><paragraph commented="no" id="HA68D20AD828D4D718324E0C9592A4540"><enum>(3)</enum><header>Process for distribution</header><subparagraph commented="no" id="H7F7342F081AC4C51A1B0782BBA8B3DC4"><enum>(A)</enum><header>Notice to participant</header><text display-inline="yes-display-inline">The Executive Director shall provide notice to a participant subject to a distribution under paragraph (1) not later than 7 days after the Executive Director determines that such participant is subject to such distribution, based on information regarding participants' gross income provided by the Secretary of the Treasury. </text></subparagraph><subparagraph commented="no" id="H26BB91DBEF234491A1413D2689DE0C7F"><enum>(B)</enum><header>Method of distribution</header><text display-inline="yes-display-inline">Not later than 30 days after receiving notice under subparagraph (A), a participant may elect to direct that a distribution under paragraph (1) be made—</text><clause commented="no" id="HBEEB0345CBAF46AE9F73BC075D36C58B"><enum>(i)</enum><text>in the case of an eligible rollover distribution (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/402">section 402(c)</external-xref> of the Internal Revenue Code of 1986), to an eligible retirement plan (as defined in such section of such code); or</text></clause><clause commented="no" id="H21B30ADBF5CE42D7954383DEE5DB1685"><enum>(ii)</enum><text display-inline="yes-display-inline">directly to such participant.</text></clause></subparagraph><subparagraph commented="no" id="H08694DE2109041DA9641A214DA7DE0FE"><enum>(C)</enum><header>Default election</header><text display-inline="yes-display-inline">In the case of a participant who fails to make an election within the period described in subparagraph (B), the Executive Director shall make the distribution directly to such participant.</text></subparagraph></paragraph><paragraph commented="no" id="H7A1EFDBD6D7745F18FD916DFF702A94E"><enum>(4)</enum><header>Tax treatment of involuntary distribution</header><text display-inline="yes-display-inline">A distribution made under paragraph (1) directly to the participant under subparagraph (B)(ii) or (C) shall be treated as an early distribution from a qualified retirement plan pursuant to <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(t)</external-xref> of the Internal Revenue Code of 1986 to the extent such distribution does not consist of participant contributions to the Fund.</text></paragraph></subsection><subsection commented="no" id="H28249CA8EEAF4998B4E530C5DDFDAFAE"><enum>(k)</enum><header>Treatment as Roth distributions</header><text display-inline="yes-display-inline">The rules of sections 408(d) and 408A(d) of the Internal Revenue Code of 1986 shall apply to distributions from the Fund in the same manner as if such Fund were a Roth IRA. For purposes of the preceding sentence, contributions made under section 25F of such Code shall be treated as employer contributions which were not includible in gross income.</text></subsection></section><section id="H6075B6C182294473A045F536297CF111"><enum>107.</enum><header>Accounts</header><subsection display-inline="no-display-inline" id="H786D25660AAF4CB786263041F4C5579C"><enum>(a)</enum><header>In general</header><text>The Executive Director shall establish and maintain an account for each participant who makes contributions under section 105(a), or for whom contributions are made under <external-xref legal-doc="usc" parsable-cite="usc/26/25F">section 25F</external-xref> of the Internal Revenue Code of 1986, to the Fund.</text></subsection><subsection id="H978A633006084A5BA02F1A07456D37C7"><enum>(b)</enum><header>Account balances</header><text display-inline="yes-display-inline">The balance in a participant’s account is the excess of—</text><paragraph id="HD56C228CA2D144528F44C921FE755AEB"><enum>(1)</enum><text>the sum of—</text><subparagraph id="HBB1079ACD5924A7D9DB06D4A46DFD590"><enum>(A)</enum><text>all contributions made to the Fund by the participant under section 105(a);</text></subparagraph><subparagraph id="H4C278F98DE42450C9BE519C22CD2E781"><enum>(B)</enum><text>all contributions made to the Fund for the benefit of the participant by the Secretary of the Treasury under <external-xref legal-doc="usc" parsable-cite="usc/26/25F">section 25F</external-xref> of the Internal Revenue Code of 1986; and</text></subparagraph><subparagraph id="H3FE9E8CA6C474DC88E943C3F4EF2DAFF"><enum>(C)</enum><text>the total amount of the allocations made to and reduction made in the account pursuant to subsection (c); over</text></subparagraph></paragraph><paragraph id="HD717278331EE4C228F775C728FF3CF72"><enum>(2)</enum><text>the amounts paid out of the Fund with respect to such participant under this title.</text></paragraph></subsection><subsection id="HBF4F0DFCA46149C29316070BF5641C01"><enum>(c)</enum><header>Allocation of earnings and losses</header><text>Pursuant to regulation prescribed by the Executive Director, the Executive Director shall allocate to each account an amount equal to a pro rata share of the net earnings and net losses from each investment of sums in the Fund attributed to sums credited to such account, reduced by the appropriate share of the administrative expenses paid out of the net earnings under section 101(e) as determined by the Executive Director.</text></subsection></section><section id="H50175BB75F2447FAAFC8FFB60220D648"><enum>108.</enum><header>Tax treatment</header><text display-inline="no-display-inline">Except as otherwise provided in this Act, for purposes of the Internal Revenue Code of 1986, rules similar to the rules that apply with respect to the Thrift Savings Fund (including the rules of section 8440 of title 5, United States Code) shall apply with respect to the American Worker Retirement Fund. </text></section><section id="HFE8CBDE785C741F78347D8273A4B070C"><enum>109.</enum><header>Spousal protections; survivor rights</header><text display-inline="no-display-inline">The provisions for spousal protections and court orders under section 8435 and 8467 of title 5, United States Code, respectively, shall apply in the same manner to governance of the Fund and to accounts of participants and former participants as such sections are applied with respect the Thrift Savings Plan and its accounts. The Executive Director shall issue regulations that establish spousal protections and survivor rights with respect to participants and former participants that are as equivalent as practically possible to those provided for under the Thrift Savings Plan pursuant to <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/84">chapter 84</external-xref> of title 5, United States Code.</text></section><enum>II</enum><header>The American Worker Retirement Plan Investment Management System</header><section id="H842680DDB8E64E92B7C53D0D48DD680A"><enum>201.</enum><header>The American Worker Retirement Investment Board</header><subsection id="H99F7F5A318C047DC8685DB10BEAA0687"><enum>(a)</enum><header>Establishment</header><text>There is established in the executive branch of the Government the American Worker Retirement Investment Board.</text></subsection><subsection id="H2BB5E12FCEDD4306804F02C55EAFF6AA"><enum>(b)</enum><header>Composition</header><text>The Board shall be composed of—</text><paragraph id="H206FC5DEA26B4A58BDA2A926CC7B8506"><enum>(1)</enum><text>3 members appointed by the President, of whom 1 shall be designated by the President as Chair;</text></paragraph><paragraph id="HD1F846343FE44DBC9B16F148C37FDCDE"><enum>(2)</enum><text>1 member appointed by the President after taking into consideration the recommendation made by the majority leader of the Senate in consultation with the minority leader of the Senate; and</text></paragraph><paragraph id="H5B7AB0F1DB49463EBDADF7B2B23A2266"><enum>(3)</enum><text>1 member appointed by the President after taking into consideration the recommendation made by the Speaker of the House of Representatives in consultation with the minority leader of the House of Representatives.</text></paragraph></subsection><subsection id="HD938999F021047F3B51BA8CBD156AA81"><enum>(c)</enum><header>Senate confirmation</header><text>Appointments under subsection (b) shall be made with the advice and consent of the Senate.</text></subsection><subsection id="H5467023050BD4DB1B8170A30191E9A3A"><enum>(d)</enum><header>Qualifications</header><paragraph id="HE6683C9A01CB4850ADB5A5647DDAC8DA"><enum>(1)</enum><header>In general</header><text>Members of the Board shall have substantial experience, training, and expertise in the management of financial investments and pension benefit plans.</text></paragraph><paragraph id="H40AF9F56F9AE462A8C8E02018A0EC9D5"><enum>(2)</enum><header>Disqualification</header><text>No member of the Board may be an officer or employee of the Federal Government.</text></paragraph></subsection><subsection id="H064B2B3FE3EA4D61A597D63E4E6F3D15"><enum>(e)</enum><header>Terms; vacancies</header><paragraph id="H3B00EFEF5F114954BFC79DD7FFA7E5F5"><enum>(1)</enum><header>Terms</header><text display-inline="yes-display-inline">A member of the Board shall be appointed for a term of 4 years, except that of the members first appointed under subsection (b)—</text><subparagraph id="HF519B2A6947140469317943DC7469886"><enum>(A)</enum><text>the Chair shall be appointed for a term of 4 years;</text></subparagraph><subparagraph id="HC469C503511E42DB83DFF9271AEC876B"><enum>(B)</enum><text>the members appointed under paragraphs (2) and (3) of subsection (b) shall be appointed for terms of 3 years; and</text></subparagraph><subparagraph id="HBF3B00A5227D49ACBCA62B8E9D623A3D"><enum>(C)</enum><text>the remaining members shall be appointed for terms of 2 years.</text></subparagraph></paragraph><paragraph id="HBD2FCEA152D34156BAA3B54B6F0F4A7A"><enum>(2)</enum><header>Vacancies</header><subparagraph id="HCD692F922C1B41B8A3630D1E4240333E"><enum>(A)</enum><header>In general</header><text>A vacancy on the Board shall be filled in the manner in which the original appointment was made and shall be subject to any conditions which applied with respect to the original appointment.</text></subparagraph><subparagraph id="H571CF7408EE649C5B2120144E1691BA3"><enum>(B)</enum><header>Term</header><text>An individual chosen to fill a vacancy shall be appointed for the unexpired term of the member replaced.</text></subparagraph><subparagraph id="H23A2267CECD64BCF83BAFF1093D639C0"><enum>(C)</enum><header>Expiration</header><text>The term of any member shall not expire before the date on which the member’s successor takes office.</text></subparagraph></paragraph></subsection><subsection id="H073750229A884F9184EE1C78FB09DEE9"><enum>(f)</enum><header>Board duties</header><text>The Board shall—</text><paragraph id="H95D3497993BA4442AF5E8FA83796AEC8"><enum>(1)</enum><text>establish policies for—</text><subparagraph id="H30FB48A5AF72434E985CD9483C3334A9"><enum>(A)</enum><text>the investment and management of the Fund; and</text></subparagraph><subparagraph commented="no" id="H0B9973FDDC1F4D0D811D38735818EEC6"><enum>(B)</enum><text>the administration of title I of this Act;</text></subparagraph></paragraph><paragraph id="H243E64464B1A4453A619130B008A0E6C"><enum>(2)</enum><text>hire and set the compensation for the Executive Director;</text></paragraph><paragraph id="H374C682524574D40B584FEA1ACAE507A"><enum>(3)</enum><text>review the performance of investments made for the Fund;</text></paragraph><paragraph id="HD7EE2545FFDF44B0BB1418A111A21320"><enum>(4)</enum><text>review and approve the budget of the Board; and</text></paragraph><paragraph commented="no" id="H86458E80F7224B0AA20518B127A5978E"><enum>(5)</enum><text>develop evidence-based financial literacy requirements for participants in the Fund, including requirements for financial literacy interventions to occur prior to a participant—</text><subparagraph commented="no" id="H14CF1CA840854011BA45B6D1CF97514A"><enum>(A)</enum><text>taking an early withdrawal from their account at the Fund pursuant to section 106(i); and</text></subparagraph><subparagraph commented="no" id="HF581D6AFADAA4C92AB97D68BBF150F23"><enum>(B)</enum><text>taking a loan from such account pursuant to section 106(h).</text></subparagraph></paragraph></subsection><subsection id="H538A65B865F9480C98E7A9C915CC5070"><enum>(g)</enum><header>Board authorities; investment limitations</header><paragraph id="H480AA958CAD64878A300EB0A5D0F3592"><enum>(1)</enum><header>In general</header><text>The Board may—</text><subparagraph id="HA3F1ED216B7F435DB5D4D20903DC9D7A"><enum>(A)</enum><text>adopt, alter, and use a seal;</text></subparagraph><subparagraph id="H3477BBC764DD4E588267592A77CC2250"><enum>(B)</enum><text>except as provided in paragraph (2), direct the Executive Director to take such action as the Board considers appropriate to carry out the provisions of this Act and the policies of the Board;</text></subparagraph><subparagraph id="H58DD21E876FA4A7AB728DC37B7F18082"><enum>(C)</enum><text>upon the concurring votes of 4 members, remove the Executive Director from office for good cause shown; and</text></subparagraph><subparagraph id="H938F5F9252C5440BA827EA52044B36C8"><enum>(D)</enum><text>take such other action as may be necessary to carry out the functions of the Board.</text></subparagraph></paragraph><paragraph id="H5931E0A88C94482D9D9FFF807C2C9431"><enum>(2)</enum><header>Exception</header><text>Except in the case of investments under section 102(b)(2), the Board may not direct the Executive Director to invest or to cause to be invested any sums in the Fund in a specific asset or to dispose of or cause to be disposed of any specific asset of such Fund.</text></paragraph></subsection><subsection id="HDC69549AAB244FD6BA2D6B9C6378F200"><enum>(h)</enum><header>Board responsibilities</header><text>The members of the Board shall discharge their responsibilities under this Act solely in the interest of participants and beneficiaries.</text></subsection><subsection id="H6C56CFF8B9FE4FF3A1E0F5183AF409E8"><enum>(i)</enum><header>Budget</header><text>The Board shall prepare and submit to the President, and, at the same time, to the appropriate committees of Congress, an annual budget of the expenses and other items relating to the Board which shall be included as a separate item in the budget required to be transmitted to the Congress under section 1105 of title 31, United States Code.</text></subsection><subsection id="H1E24D584C6444BD99F189339DC562A1E"><enum>(j)</enum><header>Legislative recommendations</header><text>The Board may submit to the President, and, at the same time, shall submit to each House of the Congress, any legislative recommendations of the Board relating to any of its functions under this title.</text></subsection></section><section id="HCCD3C227D6434A10A155028852F9F9A0"><enum>202.</enum><header>The American Worker Retirement Plan Advisory Council</header><subsection id="H593EBC86ED33407B9FE5D0C99E586541"><enum>(a)</enum><header>Establishment</header><text>The Board shall establish an American Worker Retirement Plan Advisory Council. The Council shall be composed of 7 members appointed by the Chair of the Board in accordance with subsection (b).</text></subsection><subsection id="H1F1FB7B75781446793E490F5CAC41101"><enum>(b)</enum><header>Appointment</header><text>The Chair shall appoint 7 members of the Council, of whom—</text><paragraph id="H9845360DF2AB459985FBBD5596346B5E"><enum>(1)</enum><text>3 shall be appointed who have experience managing investment funds;</text></paragraph><paragraph id="H0B71DD8CB7AE49B7A0FDFC21CE1F766D"><enum>(2)</enum><text>2 shall be appointed who have experience operating small businesses; and</text></paragraph><paragraph id="H74786921E22F41189725FCC8F383F8FC"><enum>(3)</enum><text>2 shall be appointed who have experience providing investment advice to small businesses and low-income workers.</text></paragraph></subsection><subsection id="HD8AC15D33E604ED38FFB4EAB09B9A940"><enum>(c)</enum><header>Head of council; terms; vacancies</header><paragraph id="H519B5246DCED42E89E820DC6A0F2E747"><enum>(1)</enum><header>In general</header><text>The Chair of the Board shall designate 1 member of the Council to serve as head of the Council.</text></paragraph><paragraph id="HD081B45A5AE448D0BAD1D7CA6E33CA9E"><enum>(2)</enum><header>Term</header><text>A member of the Council shall be appointed for a term of 4 years.</text></paragraph><paragraph id="HB6574BF46E5B4C2EB6EF089D94F7E0DC"><enum>(3)</enum><header>Vacancies</header><subparagraph display-inline="no-display-inline" id="H74D388FDE3B0487587C1695277255B96"><enum>(A)</enum><header>In general</header><text>A vacancy in the Council shall be filled in the manner in which the original appointment was made and shall be subject to any conditions which applied with respect to the original appointment.</text></subparagraph><subparagraph id="HC5ECE860569A4B049FAA70EC5F7C9C3E"><enum>(B)</enum><header>Term</header><text>An individual chosen to fill a vacancy shall be appointed for the unexpired term of the member replaced.</text></subparagraph><subparagraph id="H500EE63EDAFE48269A6984C2215655B9"><enum>(C)</enum><header>Expiration</header><text>The term of any member shall not expire before the date on which the member’s successor takes office.</text></subparagraph></paragraph></subsection><subsection id="H4EE6A681E2B9458A8B0AB8BF98E62CF7"><enum>(d)</enum><header>Majority approval</header><text>The Council shall act by resolution of a majority of the members.</text></subsection><subsection id="HAF17FEE7B5F64EE5AE864CE0597EB8BA"><enum>(e)</enum><header>Duties</header><text>The Council shall—</text><paragraph id="H43B7FDAF88184A2C9DDDCA79149B83A5"><enum>(1)</enum><text>advise the Board and the Executive Director on matters relating to—</text><subparagraph id="HA0D8A5BD03A74455A8C4505D31F7198D"><enum>(A)</enum><text>investment policies for the Fund; and</text></subparagraph><subparagraph id="HE44262B09825492EBFC60BE61A733EF8"><enum>(B)</enum><text>the administration of title I of this Act; and</text></subparagraph></paragraph><paragraph id="HE4345DFC26E84A9C91F3E8E2B3564566"><enum>(2)</enum><text>perform such other duties as the Board may direct with respect to investment funds established in accordance with title I.</text></paragraph></subsection></section><section id="H29FA485DBB6C4E63B6CADE43EDFC2AFD"><enum>203.</enum><header>Executive Director</header><subsection id="H07177A9075D046E29A83172C7173AD32"><enum>(a)</enum><header>In general</header><paragraph id="H1EDEEEC6AD354C1582F795BB724944F5"><enum>(1)</enum><header>Appointment</header><text>The Board shall appoint, without regard to the provisions of law governing appointments in the competitive service, an Executive Director by action agreed to by a majority of the members of the Board.</text></paragraph><paragraph id="H7580C13128F645889446E3C197A46359"><enum>(2)</enum><header>Qualifications</header><text>The Executive Director shall have substantial experience, training, and expertise in the management of financial investments and pension benefit plans.</text></paragraph></subsection><subsection id="HAAC4ACE075E64D7B8B5F1BD01BC78EBE"><enum>(b)</enum><header>Duties</header><text>The Executive Director shall—</text><paragraph id="H3FEF96351B8E4F7CA4D52E2708B08AF8"><enum>(1)</enum><text>carry out the policies established by the Board;</text></paragraph><paragraph id="HF0A9017F7EAC4D1F92839A18C0262661"><enum>(2)</enum><text>invest and manage the Fund in accordance with investment policies and other policies established by the Board;</text></paragraph><paragraph id="H83ABF41B6D7C4E95B43BA647985C262B"><enum>(3)</enum><text>administer the provisions of this Act;</text></paragraph><paragraph id="HF2BDE0DF87E944DDBD1BD98E2CF484DF"><enum>(4)</enum><text>prescribe such regulations (other than regulations relating to fiduciary responsibilities) as may be necessary for the administration of this Act;</text></paragraph><paragraph id="HFD4C7CABF91E42A99BDDBD1FE173BCA1"><enum>(5)</enum><text>meet from time to time with the Council upon the request of the Council; and</text></paragraph><paragraph commented="no" id="H6657DFF445F64A3ABF084BCF0903D83A"><enum>(6)</enum><text display-inline="yes-display-inline">enforce the financial literary requirements established by the Board pursuant to 201(f)(5).</text></paragraph></subsection><subsection id="HE402BAAE393442D39CC9920FA46FBC4A"><enum>(c)</enum><header>Authorities</header><text>The Executive Director may—</text><paragraph id="H4E59B975144D4FDF87D57628746E0D4E"><enum>(1)</enum><text>prescribe such regulations as may be necessary to carry out the responsibilities of the Executive Director under this section, other than regulations relating to fiduciary responsibilities;</text></paragraph><paragraph id="H12AD460F32334686B06C8F4B8326C506"><enum>(2)</enum><text>appoint such personnel as may be necessary to carry out the provisions of this Act;</text></paragraph><paragraph id="H13D8BBB8241048EF87248AFCD6C97CD9"><enum>(3)</enum><text>subject to approval by the Board, procure the services of experts and consultants under section 3109 of title 5, United States Code;</text></paragraph><paragraph id="H9EB389B6BFFA4E188F5C78CAF76182C4"><enum>(4)</enum><text>make such payments out of sums in the Fund as the Executive Director determines are necessary to carry out the provisions of this Act and the policies of the Board;</text></paragraph><paragraph id="H1F5778BAF063439590655D89F1C03C44"><enum>(5)</enum><text>pay the compensation, per diem, and travel expenses of individuals appointed under paragraphs (2), (3), and (7) of this subsection from the Fund;</text></paragraph><paragraph id="H1247A7F2A9444883B2D28DCA5AD6CB90"><enum>(6)</enum><text>except as otherwise expressly prohibited by law or the policies of the Board, delegate any of the Executive Director’s functions to such employees under the Board as the Executive Director may designate and authorize such successive redelegations of such functions to such employees under the Board as the Executive Director may consider to be necessary or appropriate; and</text></paragraph><paragraph id="H258018BCB73045148FAA2E17C26C7335"><enum>(7)</enum><text>take such other actions as are appropriate to carry out the functions of the Executive Director.</text></paragraph></subsection></section><section id="H5B68798CDA3944DDBAF6BD80A54EFB6E"><enum>204.</enum><header>Investment policies and selection of asset managers</header><subsection id="H853FFC72514A465893EBFF226A754092"><enum>(a)</enum><header>Investment Policies</header><text>The Board shall develop investment policies under section 201(f)(1) which provide for—</text><paragraph id="H8B50047BEFC943FF90CDA68F14C945E4"><enum>(1)</enum><text>prudent investments suitable for accumulating funds for payment of retirement income; and</text></paragraph><paragraph id="HEA27EA676CB347B388D360CF011E2F6C"><enum>(2)</enum><text>low administrative costs.</text></paragraph></subsection><subsection commented="no" id="H8E54542C737549A3AE4954A1A07B6113"><enum>(b)</enum><header>Asset managers</header><text>The Board shall select asset managers to manage the Fund, subject to the following conditions:</text><paragraph commented="no" id="H7884C4B15BE943FDB86EBB81422C293A"><enum>(1)</enum><text>The Board shall select a number of asset managers necessary to ensure that no asset manager shall be responsible for managing the greater of—</text><subparagraph id="H230D88586E8A47C19D2D7205986E74FE"><enum>(A)</enum><text>$500,000,000,000; or</text></subparagraph><subparagraph id="H41C5EB737EFA49829F41185885A5EB6D"><enum>(B)</enum><text>10 percent of the Fund’s assets.</text></subparagraph></paragraph><paragraph commented="no" id="HA4ECC5497E304CBDBB27E244E90FCFD8"><enum>(2)</enum><text>The Board shall limit any contract with an asset manager to a maximum of 5 years.</text></paragraph></subsection></section><section id="HF1588C4790134DA992976DAC6F2928AA"><enum>205.</enum><header>Administrative provisions</header><subsection id="H737A798544634CBC8CDE6596A2CB96D7"><enum>(a)</enum><header>Board meetings</header><text>The Board shall meet—</text><paragraph id="HB6F6EAC57A0C40728CC0B5CE0B7E0FA0"><enum>(1)</enum><text>not less than once during each month; and</text></paragraph><paragraph id="H5D73A30BEF3E46DA8E8AA867EC4FB6E4"><enum>(2)</enum><text>at additional times at the call of the Chair.</text></paragraph></subsection><subsection commented="no" id="H9515C6D2BCDE40169CCE403A36167F54"><enum>(b)</enum><header>Board governance</header><paragraph display-inline="no-display-inline" id="H029F6B979EFB42C1A1E227D0E19D8370"><enum>(1)</enum><header>In general</header><text>Except as provided in section 201(g)(1)(C), the Board shall perform the functions and exercise the powers of the Board on a majority vote of a quorum of the Board.</text></paragraph><paragraph commented="no" id="HC58B7E48C1CE44BFAA57ED56A003B1FC"><enum>(2)</enum><header>Quorum</header><text>3 members of the Board shall constitute a quorum for the transaction of business.</text></paragraph><paragraph commented="no" id="H4FA2552B9B794B09BA623EE85E4E734D"><enum>(3)</enum><header>Effect of vacancy</header><text>A vacancy on the Board shall not impair the authority of a quorum of the Board to perform the functions and exercise the power of the Board.</text></paragraph></subsection><subsection id="H3B489B2F10CF47C6A24F10B5F17A99FA"><enum>(c)</enum><header>Board compensation</header><paragraph display-inline="no-display-inline" id="H04C9C549A0E148DC920C0444FE5A07D3"><enum>(1)</enum><header>In general</header><text>Each member of the Board shall be compensated at the daily rate of basic pay for level IV of the Executive Schedule for each day during which such member is engaged in performing a function of the Board.</text></paragraph><paragraph id="H9C5B061782194D7A8E43F4A738A09D14"><enum>(2)</enum><header>Per diem, etc</header><text>A member of the Board shall be paid travel, per diem, and other necessary expenses while traveling away from such member’s home or regular place of business in the performance of the duties of the Board.</text></paragraph><paragraph id="H5122D4A2D3A545BC9026DB738AF7003E"><enum>(3)</enum><header>Payment from fund</header><text>Payments authorized under this subsection shall be paid from the Fund as administrative expenses permitted under section 101(e).</text></paragraph></subsection></section><section id="H7CF0B5A504934B1897924E920DE72887"><enum>206.</enum><header>Fiduciary responsibilities; liability and penalties</header><subsection id="HD3CA49E0C18145FA8229558E2BFAA555"><enum>(a)</enum><header>Definitions</header><text>For the purposes of this section:</text><paragraph id="H431A2082BF50408FBB237D788886A535"><enum>(1)</enum><header>Account</header><text>The term <quote>account</quote> is not limited by the definition provided in section 2.</text></paragraph><paragraph id="H1CAF524DBA0C4BF198C47C4065F7F651"><enum>(2)</enum><header>Adequate consideration</header><text>The term <quote>adequate consideration</quote> means—</text><subparagraph id="H2FC21D225FE34BF78FDA91DEFD1FE61E"><enum>(A)</enum><text>in the case of a security for which there is a generally recognized market—</text><clause id="H9CB3D44A9077479F8C061941664347E3"><enum>(i)</enum><text>the price of the security prevailing on a national securities exchange which is registered under section 6 of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78f">15 U.S.C. 78f</external-xref>); or</text></clause><clause id="H139BC526E00A4493A20F70FBCB290B89"><enum>(ii)</enum><text>if the security is not traded on such a national securities exchange, a price not less favorable to the Fund than the offering price for the security as established by the current bid and asked prices quoted by persons independent of the issuer and of any party in interest; and</text></clause></subparagraph><subparagraph id="H74224181DD9043A19A9494FDD21E1099"><enum>(B)</enum><text>in the case of an asset other than a security for which there is a generally recognized market, the fair market value of the asset as determined in good faith by a fiduciary or fiduciaries in accordance with regulations prescribed by the Secretary of Labor.</text></subparagraph></paragraph><paragraph id="H0916E0BFABC8456EB86BBDA6BB6BFF5F"><enum>(3)</enum><header>Fiduciary</header><text>The term <quote>fiduciary</quote> means—</text><subparagraph id="H84E18366A542490D831445E812FF1FD6"><enum>(A)</enum><text>a member of the Board;</text></subparagraph><subparagraph id="H97DC25F7EEAB4ABF9A422C8880F712A5"><enum>(B)</enum><text>the Executive Director;</text></subparagraph><subparagraph id="H0458F01E9C1F41D68AC509A247B65738"><enum>(C)</enum><text>any person who has or exercises discretionary authority or discretionary control over the management or disposition of the assets of the Fund; and</text></subparagraph><subparagraph id="HACB38D278CA04E84A465D667B37976B6"><enum>(D)</enum><text>any person who, with respect to the Fund, is described in section 3(21)(A) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1002">29 U.S.C. 1002(21)(A)</external-xref>). </text></subparagraph></paragraph><paragraph id="HA9F4024F82B148BFB3D495AD8938B3F4"><enum>(4)</enum><header>Party in interest</header><text>The term <quote>party in interest</quote> includes—</text><subparagraph id="HB2753A7F6087432FA755320CA6588C0D"><enum>(A)</enum><text>any fiduciary;</text></subparagraph><subparagraph id="HB5AF1023698F466AB063E32C007BB21B"><enum>(B)</enum><text>any counsel to a person who is a fiduciary, with respect to the actions of such person as a fiduciary;</text></subparagraph><subparagraph id="HEDCBE068D12848BF9BDCEC9EA14E6643"><enum>(C)</enum><text>any participant;</text></subparagraph><subparagraph id="H51B9D8849EB7408EA1A08312CE4ED125"><enum>(D)</enum><text>any person providing services to the Board and, with respect to the actions of the Executive Director as a fiduciary, any person providing services to the Executive Director;</text></subparagraph><subparagraph id="H4F82B041566F4B318C61A8B8362071B2"><enum>(E)</enum><text>a labor organization, the members of which are participants;</text></subparagraph><subparagraph id="H1866519E7BEF47E3BF79707FD9FA18E5"><enum>(F)</enum><text>a spouse, sibling, ancestor, lineal descendant, or spouse of a lineal descendant of a person described in subparagraph (A), (B), or (D);</text></subparagraph><subparagraph id="HCD1A093A1BBD4E6F89947978734C9170"><enum>(G)</enum><text>a corporation, partnership, or trust or estate of which, or in which, at least 50 percent of—</text><clause id="H1E1734926CD84279B2AB949DF15ADD36"><enum>(i)</enum><text>the combined voting power of all classes of stock entitled to vote or the total value of shares of all classes of stock of such corporation,</text></clause><clause id="HCC66D46B84AB4C649AC92FDC390DD861"><enum>(ii)</enum><text>the capital interest or profits interest of such partnership, or</text></clause><clause id="H7F4F5BA64F8E433F8890DCFF6D7C598B"><enum>(iii)</enum><text>the beneficial interest of such trust or estate,</text></clause><continuation-text continuation-text-level="subparagraph">is owned directly or indirectly or held by a person described in subparagraph (A), (B), (D), or (E);</continuation-text></subparagraph><subparagraph id="HB7EE8CD011D842398BCDE9AAD62E11A9"><enum>(H)</enum><text display-inline="yes-display-inline">an official (including a director) of, or an individual employed by, a person described in subparagraph (A), (B), (D), (E), or (G), or an individual having powers or responsibilities similar to those of such an official;</text></subparagraph><subparagraph id="H97CB944423B34E8F80657C9FB52D9BAE"><enum>(I)</enum><text>a holder (directly or indirectly) of at least 10 percent of the shares in a person described in any subparagraph referred to in subparagraph (H); and</text></subparagraph><subparagraph id="H333E274BB5C444D4AFDE972DA7C4DF24"><enum>(J)</enum><text>a person who, directly or indirectly, is at least a 10 percent partner or joint venturer (measured in capital or profits) in a person described in any subparagraph referred to in subparagraph (H).</text></subparagraph></paragraph></subsection><subsection id="H11162A1657D045B289E328F1023BA957"><enum>(b)</enum><header>Duties</header><text>To the extent not inconsistent with the provisions of this Act and the policies prescribed by the Board, a fiduciary shall discharge the fiduciary’s responsibilities with respect to the Fund or applicable portion thereof solely in the interest of the participants and beneficiaries and—</text><paragraph id="H8018E318BC04468E85A7578F57DF517D"><enum>(1)</enum><text>for the exclusive purpose of—</text><subparagraph id="HE91E151256024F0099C7E06CA416A1B9"><enum>(A)</enum><text>providing benefits to participants and their beneficiaries; and</text></subparagraph><subparagraph id="HED472BF7E62248B58EA99F33B3ABD3AE"><enum>(B)</enum><text>defraying reasonable expenses of administering the Fund or applicable portions thereof;</text></subparagraph></paragraph><paragraph id="H31414E1C20D74E1BBD6880A5F410B8E3"><enum>(2)</enum><text>with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent individual acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like objectives; and</text></paragraph><paragraph id="HAD07B83F31CD41F7B839FAD3E969FE0B"><enum>(3)</enum><text>to the extent permitted by section 102, by diversifying the investments of the Fund or applicable portions thereof so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so.</text></paragraph></subsection><subsection id="HCCFEA9D0B794475EAAB0896AA34CF412"><enum>(c)</enum><header>Ownership jurisdictions</header><text>No fiduciary may maintain the indicia of ownership of any assets of the Fund outside the jurisdiction of the district courts of the United States.</text></subsection><subsection id="HD5561C557E8C4CA0A063DE7B265D1C85"><enum>(d)</enum><header>Transactions</header><paragraph id="HFD391E7FCA224C6D90BF14594FB4BF24"><enum>(1)</enum><header>Prohibited transactions</header><text>A fiduciary shall not permit the Fund to engage in any of the following transactions, except in exchange for adequate consideration:</text><subparagraph id="H1A59757FA7ED4ED38A2AE3166DC21F52"><enum>(A)</enum><text>A transfer of any assets of the Fund to any person the fiduciary knows or should know to be a party in interest or the use of such assets by any such persons.</text></subparagraph><subparagraph id="HA7E54D6C5E304297BA5F8F9C72B31BDC"><enum>(B)</enum><text>An acquisition of any property from or sale of any property to the Fund by any person the fiduciary knows or should know to be a party in interest.</text></subparagraph><subparagraph id="H40C2B5A0472442E7AC087F0B1D884458"><enum>(C)</enum><text>A transfer or exchange of services between the Fund and any person the fiduciary knows or should know to be a party in interest.</text></subparagraph></paragraph><paragraph id="HA870C9FBBDF64469BE2B5D485EA326F6"><enum>(2)</enum><header>Prohibited actions</header><text>Notwithstanding paragraph (1), a fiduciary with respect to the Fund shall not—</text><subparagraph id="HCA40D4FB5FA14BBF884F6203BB47E861"><enum>(A)</enum><text>deal with any assets of the Fund in the fiduciary’s own interest or for the fiduciary’s own account;</text></subparagraph><subparagraph id="H6A06CF48DF0D43D8B75CABEB77E702C8"><enum>(B)</enum><text>act, in an individual capacity or any other capacity, in any transaction involving the Fund on behalf of a party, or representing a party, whose interests are adverse to the interests of the Fund or the interests of its participants or beneficiaries; or</text></subparagraph><subparagraph id="H323641A26BA7463EA5411B06A5B714FB"><enum>(C)</enum><text>receive any consideration of the fiduciary’s own personal account from any party dealing with sums credited to the Fund in connection with a transaction involving assets of the Fund.</text></subparagraph></paragraph><paragraph id="H87FAB354BED340CAAF9D3466915C8A74"><enum>(3)</enum><header>Secretary of Labor</header><subparagraph id="H5C85388EC54249AD87303CE24C51CC49"><enum>(A)</enum><header>In general</header><text>The Secretary of Labor may, in accordance with procedures which the Secretary of Labor shall by regulation prescribe, grant a conditional or unconditional exemption of any fiduciary or transaction, or class of fiduciaries or transactions, from all or any of the restrictions imposed by paragraph (2). An exemption granted under this subparagraph shall not relieve a fiduciary from any other applicable provision of this Act.</text></subparagraph><subparagraph id="H106B63D8F152498B824966A5B028144D"><enum>(B)</enum><header>Conditions</header><text>The Secretary of Labor may not grant an exemption under subparagraph (A) unless the Secretary of Labor finds that such exemption is—</text><clause id="H8081D6DA30B64781B418F649F91FECC2"><enum>(i)</enum><text>administratively feasible;</text></clause><clause id="H4A51AA4ED4E94375A6A164ED5F5726A2"><enum>(ii)</enum><text>in the interests of the Fund and its participants; and</text></clause><clause id="H5223548AE2404801A21E5E2DBCAE4401"><enum>(iii)</enum><text>protective of the rights of participants and beneficiaries of such Fund.</text></clause></subparagraph><subparagraph id="H3772E9FAD46F40A482DE8C786CEEF76F"><enum>(C)</enum><header>Notice</header><text>An exemption under subparagraph (A) may not be granted unless—</text><clause id="HA24EE0583E4E44C49B615BBFDAAB02B9"><enum>(i)</enum><text>notice of the proposed exemption is published in the Federal Register;</text></clause><clause id="H3785A0ED6A4C4BB5AEE999D12F78DB40"><enum>(ii)</enum><text>interested persons are given an opportunity to present views; and</text></clause><clause id="H5D13F2D54C554E809E13BA4FFCEB4F2C"><enum>(iii)</enum><text>the Secretary of Labor affords an opportunity for a hearing and makes a determination on the record with respect to the respective requirements of clauses (i), (ii), and (iii) of subparagraph (B).</text></clause></subparagraph><subparagraph id="HAE3CC0C894FC4C1488A16D3003E5FFA9"><enum>(D)</enum><header>Application of ERISA fiduciary exemptions</header><text>Notwithstanding subparagraph (C), the Secretary of Labor may determine that an exemption granted for any class of fiduciaries or transactions under section 408(a) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1108">29 U.S.C. 1108(a)</external-xref>) shall, upon publication of notice in the Federal Register under this subparagraph, constitute an exemption from the application of paragraph (2).</text></subparagraph></paragraph></subsection><subsection id="HEE3F9424AA9E4E46811F5E9D3DB992BE"><enum>(e)</enum><header>Nonapplication</header><text>This section does not prohibit any fiduciary from—</text><paragraph id="H080CFD283E6F44578088C87936A759E7"><enum>(1)</enum><text>receiving any benefit which the fiduciary is entitled to receive under this Act as a participant, former participant, or beneficiary;</text></paragraph><paragraph id="HBF8C2A0DAB164AADB52C8DDFD24EACB5"><enum>(2)</enum><text>receiving any reasonable compensation authorized by this Act for services rendered, or for reimbursement of expenses properly and actually incurred, in the performance of the fiduciary’s duties under this Act; or</text></paragraph><paragraph id="H9B8B6BEADF4643F99982B3E3F95DA251"><enum>(3)</enum><text>serving as a fiduciary in addition to being an officer, employee, agent, or other representative of a party in interest.</text></paragraph></subsection><subsection id="HE530F0649E6E41B5977E9D3A84333BD7"><enum>(f)</enum><header>Liability</header><paragraph commented="no" id="H6C26CB8A77A74AA591A20D30FDCB297A"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Any fiduciary that breaches the responsibilities, duties, and obligations set out in subsection (b) or violates subsection (c) shall be personally liable to the Fund for any losses to such Fund resulting from each such breach or violation and to restore to such Fund any profits made by the fiduciary through use of assets of such Fund by the fiduciary, and, except as provided in paragraphs (3) and (4), shall be subject to such other equitable or remedial relief as a court considers appropriate. A fiduciary may be removed for a breach referred to in the preceding sentence.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7571C0E7501642DCB4DF07555821390F"><enum>(2)</enum><header>Civil penalties</header><text display-inline="yes-display-inline">The Secretary of Labor may assess a civil penalty against a party in interest with respect to each transaction prohibited by subsection (d) which is engaged in by the party in interest. The amount of such penalty shall be equal to 5 percent of the amount involved in each such transaction (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/4975">section 4975(f)(4)</external-xref> of the Internal Revenue Code of 1986) for each year or part thereof during which the prohibited transaction continues, except that, if the transaction is not corrected (in such manner as the Secretary of Labor shall prescribe by regulation consistent with section 4975(f)(5) of such Code) within 90 days after the date the Secretary of Labor transmits notice to the party in interest (or such longer period as the Secretary of Labor may permit), such penalty may be in the amount of not more than 100 percent of the amount involved.</text></paragraph><paragraph commented="no" id="HFEA072163D4E4D9EB5163C1D4812C74A"><enum>(3)</enum><header>Special rules</header><subparagraph commented="no" display-inline="no-display-inline" id="HFA259136979A4B3A9040A23B01F9CBF6"><enum>(A)</enum><header>In general</header><text>A fiduciary shall not be liable under paragraph (1)—</text><clause id="HAD8955DA7FB34FD9BC0D9C6C3673090A"><enum>(i)</enum><text>with respect to a breach of fiduciary duty under subsection (b) committed before becoming a fiduciary or after ceasing to be a fiduciary;</text></clause><clause commented="no" id="H7E89D7924BF04AC9B3A9425097BB4312"><enum>(ii)</enum><text>for providing for the automatic enrollment of a participant in accordance with section 104;</text></clause><clause commented="no" id="H3FEDAB3DA5504A509D37AF147EE7113F"><enum>(iii)</enum><text>for enrolling a participant or beneficiary in a default investment fund or option in accordance with section 104; or</text></clause><clause commented="no" id="HA695A724B44749999B439DF55B4A80EF"><enum>(iv)</enum><text>for allowing a participant or beneficiary to invest through the mutual fund window or for establishing restrictions applicable to participants’ or beneficiaries’ ability to invest through the mutual fund window.</text></clause></subparagraph><subparagraph commented="no" id="HCB6EB872FE2C41FDBF351AE7EBF4C561"><enum>(B)</enum><header>Joint and several liability</header><text>A fiduciary shall be jointly and severally liable under paragraph (1) for a breach of fiduciary duty under subsection (b) by another fiduciary only if—</text><clause commented="no" id="H7BE4EF92F156425390A395338223A614"><enum>(i)</enum><text>the fiduciary participates knowingly in, or knowingly undertakes to conceal, an act or omission of such other fiduciary, knowing such act or omission is such a breach;</text></clause><clause commented="no" id="H7EBCEDC89D0D4AB990C75021437E0B9F"><enum>(ii)</enum><text>by the fiduciary’s failure to comply with subsection (b) in the administration of the fiduciary’s specific responsibilities which give rise to the fiduciary status, the fiduciary has enabled such other fiduciary to commit such a breach; or</text></clause><clause id="H36BC187E39D34E5DAC61438EDFBDC690"><enum>(iii)</enum><text>the fiduciary has knowledge of a breach by such other fiduciary, unless the fiduciary makes reasonable efforts under the circumstances to remedy the breach.</text></clause></subparagraph></paragraph><paragraph commented="no" id="H55658DC586084A128B52F6E73AD5A1D9"><enum>(4)</enum><header>Allocation of duties</header><text>The Secretary of Labor shall prescribe, in regulations, procedures for allocating fiduciary responsibilities among fiduciaries, including asset managers. Any fiduciary who, pursuant to such procedures, allocates to any person any fiduciary responsibility shall not be liable for an act or omission of such person unless such fiduciary violated subsection (b) with respect to the allocation, with respect to the implementation of the procedures prescribed by the Secretary of Labor.</text></paragraph><paragraph id="H83FD2E8B4CE1444D95AD537573E68136"><enum>(5)</enum><header>Other civil actions</header><subparagraph id="H3171A21D29CD4054952FCAECF713C770"><enum>(A)</enum><header>In general</header><text>No civil action may be maintained against any fiduciary with respect to the responsibilities, liabilities, and penalties authorized or provided for in this section except in accordance with subparagraphs (B) and (C).</text></subparagraph><subparagraph id="H486349FC583B4B73B104172FAC7D6BD5"><enum>(B)</enum><header>Actions permitted</header><text>A civil action may be brought in the district courts of the United States—</text><clause id="H02B196E8960F4DD891DAB7C2612C8AEE"><enum>(i)</enum><text>by the Secretary of Labor against any fiduciary other than a member of the Board or the Executive Director of the Board—</text><subclause id="H56241ED671884F2DBC4B582665B0B743"><enum>(I)</enum><text>to determine and enforce a liability under paragraph (1);</text></subclause><subclause id="H4FFD4C20EC444961916E68764FF43342"><enum>(II)</enum><text>to collect any civil penalty under paragraph (2);</text></subclause><subclause id="HC31BA10496FF4E4BBD04100CB012064D"><enum>(III)</enum><text>to enjoin any act or practice which violates any provision of subsection (b) or (c);</text></subclause><subclause id="HF2EE125CB95242A4B29F621DD67378CC"><enum>(IV)</enum><text>to obtain any appropriate equitable relief to redress a violation of any such provision; or</text></subclause><subclause id="H009BBD9665DB4023A47733B7B22185E7"><enum>(V)</enum><text>to enjoin any act or practice which violates subsection (g)(2) or (h) of section 201;</text></subclause></clause><clause id="H55BB0A24D9424F2A8D9959E2B5BAA7E9"><enum>(ii)</enum><text>by any participant, beneficiary, or fiduciary—</text><subclause id="HF755BB8025894F63A5D56346BB522B4A"><enum>(I)</enum><text>to enjoin any act or practice which violates any provision of subsection (b) or (c);</text></subclause><subclause id="H5C904E1E42C041D899D24FB08E8C9CD4"><enum>(II)</enum><text>to obtain any other appropriate equitable relief to redress a violation of any such provision; or</text></subclause><subclause id="HAE9C667E15BA4D7FB424D08A8A56289B"><enum>(III)</enum><text>to enjoin any act or practice which violate subsection (g)(2) or (h) of section 201; or</text></subclause></clause><clause id="H65265D1866384C79AE25394CB4D6A2FD"><enum>(iii)</enum><text>by any participant or beneficiary—</text><subclause id="H2DA921AB647C487788C47DCA8A54BFF5"><enum>(I)</enum><text>to recover benefits of such participant or beneficiary under the provisions of title I, to enforce any right of such participant or beneficiary under such provisions, or to clarify any such right to future benefits under such provisions; or</text></subclause><subclause id="H90E09E9451D347CBA992AECC45DFD0E2"><enum>(II)</enum><text display-inline="yes-display-inline">to enforce a claim otherwise cognizable under sections 1346(b) and 2671 through 2680 of title 28, United States Code, except that the remedy against the United States provided by section 1346(b) and 2672 of such title 28 for damages for injury or loss of property caused by the negligent or wrongful act or omission of any fiduciary while acting within the scope of the fiduciary’s duties or employment shall be exclusive of any other civil action or proceeding by the participant or beneficiary for recovery of money by reason of the same subject matter against the fiduciary (or the estate of such fiduciary) whose act or omission gave rise to such action or proceeding, whether or not such action or proceeding is based on an alleged violation of subsection (b) or (c). </text></subclause></clause></subparagraph><subparagraph id="H162BC6C264544DEA98AFF0AAEFCE9C0F"><enum>(C)</enum><header>Representation</header><clause display-inline="no-display-inline" id="HDD1583D04F33437A8340FB7486AE5543"><enum>(i)</enum><header>In general</header><text>In all civil actions under subparagraph (B)(i), attorneys appointed by the Secretary may represent the Secretary (except as provided in section 518(a) of title 28, United States Code), however, all such litigation shall be subject to the direction and control of the Attorney General.</text></clause><clause display-inline="no-display-inline" id="H693BD7D548E244B2A5803DA1FC42F842"><enum>(ii)</enum><header>Attorney General</header><text display-inline="yes-display-inline">The Attorney General shall defend any civil action or proceeding brought in any court against any fiduciary referred to in subparagraph (B)(iii)(II) (or the estate of such fiduciary) for any such injury. Any fiduciary against whom such a civil action or proceeding is brought shall deliver, within such time after date of service or knowledge of service as determined by the Attorney General, all process served upon such fiduciary (or an attested copy thereof) to the Executive Director, who shall promptly furnish copies of the pleading and process to the Attorney General and the United States Attorney for the district wherein the action or proceeding is brought.</text></clause><clause id="HA00166383C9A48A297D7FCC0FB5BFE3D"><enum>(iii)</enum><header>Certification of scope of duty</header><text display-inline="yes-display-inline">Upon certification by the Attorney General that a fiduciary described in subparagraph (B)(iii)(II) was acting in the scope of such fiduciary’s duties or employment as a fiduciary at the time of the occurrence or omission out of which the action arose, any such civil action or proceeding commenced in the State court shall be—</text><subclause id="HB74D5169351E4EB3B8FC03DAF5551E18"><enum>(I)</enum><text>removed without bond at any time before trial by the Attorney General to the district court of the United States for the district and division in which it is pending; and</text></subclause><subclause id="H12D398300BB64D3DB9FBA70D586A5F75"><enum>(II)</enum><text>deemed a tort action brought against the United States under the provisions of title 28, United States Code, and all references thereto.</text></subclause></clause><clause display-inline="no-display-inline" id="H2219D594B0034FEF974E2FF3809499F5"><enum>(iv)</enum><header>Compromise or settlement</header><text>The Attorney General may compromise or settle any claim asserted in such civil action or proceeding in the manner provided in section 2677 of title 28, United States Code, and with the same effect. To the extent section 2672 of title 28, United States Code, provides that persons other than the Attorney General or the Attorney General’s designee may compromise and settle claims, and that payments of such claims may be made from agency appropriations, such provisions shall not apply to claims based upon an alleged violation of subsection (b) or (c).</text></clause><clause commented="no" id="H78069597DF0A464194F9437917AFF37C"><enum>(v)</enum><header>Certain claims</header><text display-inline="yes-display-inline">For the purposes of subparagraph (B)(iii)(II), the provisions of section 2680(h) of title 28, United States Code shall not apply to any claim based upon an alleged violation of subsection (b) or (c).</text></clause><clause id="H567879CB0B50466CAFF858D5804A7409"><enum>(vi)</enum><header>Payment of awards</header><text>Notwithstanding sections 1346(b) and 2671 through 2680 of title 28, United States Code, whenever an award, compromise, or settlement is made under such section upon any claim based upon an alleged violation of subsection (b) or (c), payment of such award, compromise, or settlement shall be made to the appropriate account with in the Fund, or where there is no such appropriate account, to the participant or beneficiary bringing the claim.</text></clause><clause id="H7D75A1C65E8C4104B45D36FDE5161D2D"><enum>(vii)</enum><header>Definition</header><text display-inline="yes-display-inline">For purposes of subparagraph (B)(iii)(II), the term <quote>fiduciary</quote> includes only the members of the Board and the Board’s Executive Director.</text></clause></subparagraph><subparagraph id="H6BBA62D6EBF149B8B911B814209E0E2C"><enum>(D)</enum><header>Limitation on monetary relief</header><text>Any relief awarded against a member of the Board or the Board’s Executive Director in a civil action authorized by subparagraph (B) may not include any monetary damages or any other recovery of money.</text></subparagraph><subparagraph id="H3E601BE4F93F4852996187955E3D851E"><enum>(E)</enum><header>Time for commencement of action</header><text>An action may not be commenced under clause (i) or (ii) of subparagraph (B) with respect to a fiduciary’s breach of any responsibility, duty, or obligation under subsection (b) or a violation of subsection (c) after the earlier of—</text><clause id="H38099CF8306C4B5391F53F377E45DAEB"><enum>(i)</enum><text>6 years after—</text><subclause id="H7D04D9F745404D08BFD6FA4571167428"><enum>(I)</enum><text>the date of the last action which constituted a part of the breach or violation; or</text></subclause><subclause id="H368B3EB871C846EBA425E884D288082E"><enum>(II)</enum><text>in the case of an omission, the latest date on which the fiduciary could have cured the breach or violation; or</text></subclause></clause><clause id="HCB69186A254E417B9A53B0F38B22A9B7"><enum>(ii)</enum><text>3 years after the earliest date on which the plaintiff had actual knowledge of the breach or violation, except that, in the case of fraud or concealment, such action may be commenced not later than 6 years after the date of discovery of such breach or violation.</text></clause></subparagraph><subparagraph id="H8616A41EEEE24259B3E492619586EF1B"><enum>(F)</enum><header>Jurisdiction</header><clause display-inline="no-display-inline" id="HFE3C7D9ADA3946CC867483A29BECF85D"><enum>(i)</enum><header>In general</header><text>The district courts of the United States shall have exclusive jurisdiction of civil actions under this subsection.</text></clause><clause id="HA009444E2B9A43DB85BF8D3C357A9DE6"><enum>(ii)</enum><header>Venue</header><text>An action under this subsection may be brought in the District Court of the United States for the District of Columbia or a district court of the United States in the district where the breach alleged in the complaint or petition filed in the action took place or in the district where a defendant resides or may be found. Process may be served in any other district where a defendant resides or may be found.</text></clause></subparagraph><subparagraph id="H79EDE0E4D0C948D795F2EA415FD20C5F"><enum>(G)</enum><header>Other rules</header><clause display-inline="no-display-inline" id="HCD3315A8BA7B4C879822FC95D1BD2BD3"><enum>(i)</enum><header>In general</header><text>A copy of the complaint or petition filed in any action brought under this subsection (other than by the Secretary of Labor) shall be served on the Executive Director, the Secretary of Labor, and the Secretary of the Treasury by certified mail.</text></clause><clause id="H9BE0855AD46F435484487216AF1C4EE0"><enum>(ii)</enum><header>Intervention</header><text>Any officer referred to in clause (i) shall have the right in the officer’s discretion to intervene in any action. If the Secretary of Labor brings an action under subparagraph (B)(i) on behalf of a participant or beneficiary, the Secretary of Labor shall notify the Executive Director and the Secretary of the Treasury.</text></clause></subparagraph></paragraph></subsection><subsection id="H83E4D9C83A2D4F64B618EE23910DA69B"><enum>(g)</enum><header>Regulations</header><text>The Secretary of Labor may prescribe regulations to carry out this section.</text></subsection><subsection id="H4B66ED66EC0A406FAB4AC31FD51C5D0D"><enum>(h)</enum><header>Audits</header><paragraph display-inline="no-display-inline" id="HD5283844B1034931A8E76183F1B09095"><enum>(1)</enum><header>In general</header><text>The Secretary of Labor shall establish a program to carry out audits to determine the level of compliance with the requirements of this section relating to fiduciary responsibilities and prohibited activities of fiduciaries.</text></paragraph><paragraph id="H9091BF3E851A4FF0A769558E6C817286"><enum>(2)</enum><header>Delegation</header><text>An audit under this subsection may be conducted by the Secretary of Labor, by contract with a qualified non-governmental organization, or in cooperation with the Comptroller General of the United States, as the Secretary of Labor considers appropriate.</text></paragraph></subsection></section><section id="H66782EA239C648118594D6FBD6AB200F"><enum>207.</enum><header>Bonding</header><subsection id="H1F0C4D9E93634F9E8131648D1893FA2F"><enum>(a)</enum><header>Requirements</header><paragraph display-inline="no-display-inline" id="H258655D957054BD4A7319DA01FE5E377"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), each fiduciary and each person who handles funds or property of the Fund shall be bonded as provided in this section.</text></paragraph><paragraph id="HE16768817BA94958836318219698147C"><enum>(2)</enum><header>Exceptions</header><subparagraph display-inline="no-display-inline" id="H8FD3B1A46A0D43A787BDC0A55E12E488"><enum>(A)</enum><header>In general</header><text>Bond shall not be required of a fiduciary (or of any officer or employee of such fiduciary) if such fiduciary—</text><clause id="HB396E7EF27B34EF3BDC449B5BF59F84D"><enum>(i)</enum><text>is a corporation organized and doing business under the laws of the United States or of any State;</text></clause><clause id="H4C3374379715465AB4EF1F1591B30D23"><enum>(ii)</enum><text>is authorized under such laws to exercise trust powers or to conduct an insurance business;</text></clause><clause id="H39244D55366547929CFCA652C45BE2FB"><enum>(iii)</enum><text>is subject to supervision or examination by Federal or State authority; and</text></clause><clause id="HA4546CE83E5C4A8780E66B0374DA4804"><enum>(iv)</enum><text>has at all times a combined capital and surplus in excess of such minimum amount (not less than $1,000,000) as the Secretary of Labor prescribes in regulations.</text></clause></subparagraph><subparagraph id="HE2A3E999D82B463187212AEEB48771F6"><enum>(B)</enum><header>Limitation</header><text>If—</text><clause id="H6D99E7E9173A46528E64B48FE61EAC66"><enum>(i)</enum><text>a bank or other financial institution would, but for this subparagraph, not be required to be bonded under this section by reason of the application of the exception provided in subparagraph (A),</text></clause><clause id="HE60C01CF169D458289CD1CCEBDE25C79"><enum>(ii)</enum><text>the bank or financial institution is authorized to exercise trust powers, and</text></clause><clause id="H719527323CBE4EB98B952FF939ADFC7C"><enum>(iii)</enum><text>the deposits of the bank or financial institution are not insured by the Federal Deposit Insurance Corporation,</text></clause><continuation-text continuation-text-level="subparagraph">such exception shall apply to such bank or financial institution only if the bank or institution meets bonding requirements under State law which the Secretary of Labor determines are at least equivalent to those imposed on banks by Federal law.</continuation-text></subparagraph></paragraph></subsection><subsection id="H240E37CE76A8480F9A8CD4BFB6D29898"><enum>(b)</enum><header>Regulations</header><paragraph display-inline="no-display-inline" id="H64795F2624504025915FCEF9CAFCC282"><enum>(1)</enum><header>In general</header><text>The Secretary of Labor shall prescribe the amount of a bond under this section at the beginning of each fiscal year. Such amount shall not be less than 10 percent of the amount of funds handled, except that in no case shall such bond be less than $1,000 or more than $500,000, or such higher amount as the Secretary of Labor, after due notice and opportunity for hearing to all interested parties, and other consideration of the record, may prescribe.</text></paragraph><paragraph id="H946FDAC5592C49528CDA6B1428976E6C"><enum>(2)</enum><header>Amount of funds handled</header><text>For the purpose of prescribing the amount of a bond under paragraph (1), the amount of funds handled shall be determined by reference to the amount of the funds handled by the person, group, or class to be covered by such bond or by their predecessor or predecessors, if any, during the preceding fiscal year, or to the amount of funds to be handled during the current fiscal year by such person, group, or class, estimated as provided in regulations prescribed by the Secretary of Labor.</text></paragraph></subsection><subsection id="H39AAFC9A299744179186A9C84E21BA25"><enum>(c)</enum><header>Terms</header><text>A bond required by subsection (a)—</text><paragraph id="HCF8A979E19824C4E9C8F2DDAE9DA8D1A"><enum>(1)</enum><text>shall include such terms and conditions as the Secretary of Labor considers necessary to protect the Fund against loss by reason of acts of fraud or dishonesty on the part of the bonded person directly or through connivance with others;</text></paragraph><paragraph id="H9FA99F24A770475C814ED5FCCA7BC17E"><enum>(2)</enum><text>shall have as surety thereon a corporate surety company which is an acceptable surety on Federal bonds under authority granted by the Secretary of the Treasury pursuant to sections 9304 through 9308 of title 31, United States Code; and</text></paragraph><paragraph id="H1A0E1103D5A84062BB9D8B41D7EC1075"><enum>(3)</enum><text>shall be in a form or of a type approved by the Secretary of Labor, including individual bonds or schedule or blanket forms of bonds which cover a group or class.</text></paragraph></subsection><subsection id="HA5479C8181104D1AB110BB592E82CBD7"><enum>(d)</enum><header>Custody of funds</header><paragraph display-inline="no-display-inline" id="H03FA35D8E1FB4D4C9E6697A054424B4C"><enum>(1)</enum><header>In general</header><text>It shall be unlawful for any person to whom subsection (a) applies, to receive, handle, disburse, or otherwise exercise custody or control of any of the funds or other property of the Fund without being bonded as required by this section.</text></paragraph><paragraph commented="no" id="H00439C6644C7435C937D0D1B381DEF1E"><enum>(2)</enum><header>Fiduciaries</header><text>It shall be unlawful for any fiduciary, or any other person having authority to direct the performance of functions described in paragraph (1), to permit any such function to be performed by any person to whom subsection (a) applies unless such person has met the requirements of such subsection.</text></paragraph></subsection><subsection id="H676FEBBCAC2B41AA855B65308BE45522"><enum>(e)</enum><header>Exemption</header><text>Notwithstanding any other provision of law, any person who is required to be bonded as provided in subsection (a) shall be exempt from any other provision of law which would, but for this subsection, require such person to be bonded for the handling of the funds or other property of the Fund.</text></subsection><subsection id="H620EBCDEA20F43A68D042B9BDDF60249"><enum>(f)</enum><header>Regulations</header><text>The Secretary of Labor shall prescribe such regulations as may be necessary to carry out the provisions of this section, including exempting a person or class of persons from the requirements of this section.</text></subsection></section><section id="H3F06EB24414B4239BAE11634C34ADBFE"><enum>208.</enum><header>Investigative authority</header><text display-inline="no-display-inline">Any authority available to the Secretary of Labor under section 504 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1134">29 U.S.C. 1134</external-xref>) is hereby made available to the Secretary of Labor, and any officer designated by the Secretary of Labor, to determine whether any person has violated, or is about to violate, any provision of sections 206 or 207.</text></section><section id="H92E347D02B4D45779F174831AAD90645"><enum>209.</enum><header>Exculpatory provisions; insurance</header><subsection id="HA6FB70CC3F6B450A8D7FB91CD4000493"><enum>(a)</enum><header>Exculpatory provisions void</header><text>Any provision in an agreement or instrument which purports to relieve a fiduciary from responsibility or liability for any responsibility, obligation, or duty under this title shall be void.</text></subsection><subsection id="H7D3F501A7F5944D1A77F8CD3CCAFFF8B"><enum>(b)</enum><header>Insurance</header><text display-inline="yes-display-inline">In accordance with section 101(e), the sums credited to the Fund shall be available to pay administrative expenses which may include, at the discretion of the Executive Director, the purchase of insurance to cover potential liability of persons who serve in a fiduciary capacity with respect to the Fund, without regard to whether a policy of insurance permits recourse by the insurer against the fiduciary in the case of a breach of a fiduciary obligation.</text></subsection></section><section id="H18ABE0CF2AE04072BC1A906D8FAFD05B"><enum>210.</enum><header>Subpoena authority</header><subsection id="HF7D6999FFB7D4B43BACAA67E303FFF91"><enum>(a)</enum><header>Subpoena authority</header><text>In order to carry out the responsibilities specified in this Act, the Executive Director may issue subpoenas commanding each person to whom the subpoena is directed to produce designated books, documents, records, electronically stored information, or tangible materials in the possession or control of that individual.</text></subsection><subsection id="H5D705C7649094BE683CEE0C4517989A8"><enum>(b)</enum><header>Liability</header><text>Notwithstanding any Federal, State, or local law, any person, including officers, agents, and employees, receiving a subpoena under this section, who complies in good faith with the subpoena and thus produces the materials sought, shall not be liable in any court of any State or the United States to any individual, domestic or foreign corporation or upon a partnership or other unincorporated association for such production.</text></subsection><subsection id="H34D9D0D07E684BB3AC61216837C87FC3"><enum>(c)</enum><header>Enforcement</header><text>When a person fails to obey a subpoena issued under this section, the district court of the United States for the district in which the investigation is conducted or in which the person failing to obey is found, shall on proper application issue an order directing that person to comply with the subpoena. The court may punish as contempt any disobedience of its order.</text></subsection><subsection id="H7E93A8CB52774173A8F2C779C6180159"><enum>(d)</enum><header>Regulations</header><text>The Executive Director shall prescribe regulations to carry out subsection (a).</text></subsection></section><enum>III</enum><header>Government Match Tax Credit</header><section id="HA8F578EE6A884A7299FC8038A632573A"><enum>301.</enum><header>Government Match Tax Credit</header><subsection id="HEDD06EA04B5A412F87A73822AB088B94"><enum>(a)</enum><header>Credit</header><text>Subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by inserting after section 25E the following new section:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H779F2AA0F16040D18557268657AC566A"><section id="HC6CF4DD6356149F199460056918303E0"><enum>25F.</enum><header>Government Match Tax Credit</header><subsection id="H902D8A3C6D3249C58435CA1965D05E93"><enum>(a)</enum><header>Allowance of credit</header><text>In the case of an eligible individual, there shall be allowed as a credit for the taxable year an amount equal to the sum of—</text><paragraph id="H5DE424D4DA334FB1B706B42F24626AFF"><enum>(1)</enum><text>1 percent of the eligible individual’s gross income, plus</text></paragraph><paragraph id="H086B94B1F408433FA03F320CC2B3F9E7"><enum>(2)</enum><text display-inline="yes-display-inline">the applicable percentage of the participant’s contributions to the American Worker Retirement Fund during the taxable year. </text></paragraph></subsection><subsection id="HB3400A20DC5D45B489DE90F6BE18D008"><enum>(b)</enum><header>Applicable percentage</header><text>For purposes of this section, the applicable percentage is—</text><paragraph id="HA259994CA8714EDFA4C2C6C9B3B52309"><enum>(1)</enum><text display-inline="yes-display-inline">100 percent of so much of the contributions to the American Worker Retirement Fund as do not exceed 3 percent of gross income,</text></paragraph><paragraph id="HEE13381230124821A2932AEC52CEB22E"><enum>(2)</enum><text display-inline="yes-display-inline">50 percent of so much of such contributions as exceeds 3 percent but does not exceed 5 percent of gross income, and</text></paragraph><paragraph id="HB785913B555F4211BF6B0E7CA7A94DFF"><enum>(3)</enum><text display-inline="yes-display-inline">0 percent of so much of such contributions as exceeds 5 percent of gross income.</text></paragraph></subsection><subsection id="H8EAA1031BBAA4388A93B8E1700A14B9D"><enum>(c)</enum><header>Limitation on amount of credit</header><paragraph commented="no" display-inline="no-display-inline" id="id81104d6d7d544854807f38b79078ec51"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text>The credit allowed under subsection (a) with respect to any eligible individual for a taxable year shall not exceed 5 percent of the phaseout amount with respect to such individual for such taxable year.</text></paragraph><paragraph id="HB3418983E6BE42BB90326ED40C1C008F"><enum>(2)</enum><header>Phaseout of credit limit</header><text display-inline="yes-display-inline">The limit determined under paragraph (1) for a taxable year shall be reduced by $75 for each $1,000 or portion thereof by which the eligible individual’s gross income exceeds the phaseout amount.</text></paragraph><paragraph id="HB59ECEC4F99748B7A8AC30B84537C129"><enum>(3)</enum><header>Phaseout amount</header><text>For purposes of this subsection, the phaseout amount is—</text><subparagraph id="H4C48228C185D4210AE9D5A6EFBDF82F0"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of a joint return, an amount equal to 200 percent of the applicable median income for the taxable year,</text></subparagraph><subparagraph id="HA57BD117577F4C51A71DBB39F08D6CA8"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of a head of household (as defined in section 2(b)), <fraction>3/4</fraction> of the amount determined under subparagraph (A), and</text></subparagraph><subparagraph id="H901E7ED2DD0A4E51B735D2D50277D42B"><enum>(C)</enum><text display-inline="yes-display-inline">in any other case, <fraction>1/2</fraction> of the amount determined under subparagraph (A).</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1c9f85117ccf4eeeb231af87ddeefe86"><enum>(4)</enum><header>Applicable median income</header><text>For purposes of this subsection, the term <term>applicable median income</term> means, with respect to any taxable year, an amount equal to the most recent Median Personal Income for the population 15 and over in the United States, as published in the United States Census Bureau's Current Population Survey Tables for Personal Income before the beginning of the calendar year in which such taxable year begins.</text></paragraph></subsection><subsection id="H608FF414389E4CA1BF0B2610835B731F"><enum>(d)</enum><header>Eligible individual</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>eligible individual</quote> has the meaning given the term <quote>participant</quote> by section 2(13) of the <short-title>Retirement Savings for Americans Act of 2023</short-title>.</text></subsection><subsection id="H567B521868F343B1B258B9FD15FFD20E"><enum>(e)</enum><header>American Worker Retirement Fund</header><text display-inline="yes-display-inline">For purposes of this section, the American Worker Retirement Fund is the Fund created under section 101(a) of the <short-title>Retirement Savings for Americans Act of 2023</short-title>.</text></subsection><subsection id="H93AA7B8B96F84517BD6914AD74C86DC0"><enum>(f)</enum><header>Deposit into participant’s account</header><paragraph id="H716719F7876045248E856C6A70DF3773"><enum>(1)</enum><header>In general</header><text>Any amount allowed as a credit under subsection (a)—</text><subparagraph id="H5355310B15AB41338D56F2C0DD99E7CF"><enum>(A)</enum><text>shall not be allowed as a credit against any tax imposed by this subtitle, and</text></subparagraph><subparagraph id="H30CA7085621C4A83A170564E9CDE7B2E"><enum>(B)</enum><text>shall be treated as an overpayment under section 6401(b).</text></subparagraph></paragraph><paragraph id="H141111731E1D4F5D89F75C6998953094"><enum>(2)</enum><header>Payment</header><text display-inline="yes-display-inline">The Secretary shall contribute the amount treated as an overpayment under paragraph (1) to the eligible individual’s account with the American Worker Retirement Fund.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7ef07c92534f451b9251f2a7c60c6ad8"><enum>(3)</enum><header>Exception from reduction or offset</header><text>The rules of section 6433(f)(5) shall apply to any payment to which this subsection applies.</text></paragraph></subsection><subsection id="HA2744DD0407049D89776B4DEE825CE24"><enum>(g)</enum><header>Advance payment</header><paragraph id="HE7A2BFA5DF704F918FC73CFEABEF34DA"><enum>(1)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe regulations to provide that the payments made under subsection (f) are made as concurrently as is reasonably possible with contributions by a taxpayer to the American Worker Retirement Fund. Such regulations shall provide that, for purposes of such payments, the credit under subsection (a) may be determined on the basis of the eligible individual’s gross income for the preceding taxable year.</text></paragraph><paragraph id="H09DD861D2D664BF6B13DDC00228B9A99"><enum>(2)</enum><header>Excess payments</header><text display-inline="yes-display-inline">If the aggregate amount of payments under subsection (f) with respect to an eligible individual for any taxable year exceeds the amount of the credit allowed under subsection (a) to such individual for such taxable year, the tax imposed by this chapter for such taxable year shall be increased by the amount of such excess. Any failure to so increase the tax shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1).</text></paragraph></subsection><subsection id="H674644C064DE4B7995462816CC80B246"><enum>(h)</enum><header>Forfeit of amounts</header><paragraph id="id9D841C410BEB4A81B7CC143A975B53D3"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">If any contribution described in subsection (a) does not remain in the American Worker Retirement Fund for at least 6 months after such contribution is made, the amount of the credit under this section attributable to such contribution shall be forfeited as provided in paragraph (2).</text></paragraph><paragraph id="H7BE606D4C2AE4795B075EDF05D257C4B"><enum>(2)</enum><header>Treatment of forfeited amounts</header><text display-inline="yes-display-inline">In the case of any contribution to which paragraph (1) applies—</text><subparagraph id="H72E0CCF37EF14F8893E7C01F1F58B2CB"><enum>(A)</enum><text>the Executive Director of the American Worker Retirement Fund, as appointed under section 203 of the <short-title>Retirement Savings for Americans Act of 2023</short-title>, shall make a distribution from the individual’s account in an amount equal to such contribution to the Secretary for deposit into the general fund of the Treasury, and</text></subparagraph><subparagraph id="HBE92834C99924D83A80D1D3036DACD87"><enum>(B)</enum><text>in the case of any earnings on such contribution, such earnings shall be distributed by such Executive Director from the individual’s account and shall be available to the Executive Director, without need of further appropriation, for administrative expenses described in section 101(e) of such Act.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE7744E7A2555480CB36E06177EFD43A5"><enum>(3)</enum><header>Forfeited amounts not includible in gross income</header><text>Any distribution made under paragraph (2) shall not be includible in the gross income of the individual.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id3a0a5f2339e74cb8a565d8d86ea91626"><enum>(i)</enum><header>Coordination with Savers' Credit</header><text display-inline="yes-display-inline">Any contribution by an individual to the American Worker Retirement Fund for a taxable year shall not be treated as a qualified retirement savings contribution of such individual for purposes of section 25B.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H14DE29DE208144B5BF8AD0A971AC73F7"><enum>(b)</enum><header>Clerical amendments</header><text>The table of sections for subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 26E the following new item:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idC6871E8C5ED7426EA906869926563CC5"><toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="H779F2AA0F16040D18557268657AC566A" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"><toc-entry idref="HC6CF4DD6356149F199460056918303E0" level="section">Sec. 25F. Government Match Tax Credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H0B29AA56B6C44E07A0081F2BC26AB00F"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2022.</text></subsection></section>