Increase in deposit insurance coverage

(a)

In general

Section 11(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)) is amended— (1)by striking subparagraph (B) and inserting the following new subparagraph:

(B)

Net amount of insured deposit

The net amount due to any depositor at an insured depository institution shall not exceed the standard maximum deposit insurance amount as determined in accordance with subparagraphs (C), (D), (E), and (F) and paragraph (3);

and

(2)by adding at the end the following new subparagraphs:

(E)

Standard maximum deposit insurance amount defined

For purposes of this Act, (i)the term standard maximum deposit insurance amount means— (I)until the effective date of final regulations prescribed pursuant to section 9(a)(2) of the Federal Deposit Insurance Reform Act of 2005, $100,000; and (II)on and after such effective date, $100,000, $250,000, $500,000, $750,000, or $1,000,000, at the option of the insured depository institution, and $250,000, $500,000, $750,000, or $1,000,000 for eligible retirement accounts, at the option of the insured depository institution, adjusted as provided under subparagraph (F); and (ii)the term eligible retirement plan has the same meaning as in section 402(c)(8)(B) of the Internal Revenue Code of 1986. (F)

Inflation adjustment

(i)

In general

By April 1 of 2009, and the 1st day of each subsequent 5-year period, the Board of Directors and the National Credit Union Administration Board shall jointly consider the factors set forth under clause (v), and, upon determining that an inflation adjustment is appropriate, shall jointly prescribe the amount by which the standard maximum deposit insurance amount and the standard maximum share insurance amount (as defined in 207(k) of the Federal Credit Union Act) applicable to any depositor at an insured depository institution shall be increased by calculating the product of— (I)$100,000, $250,000, $500,000, $750,000, or $1,000,000 at the option of the insured depository institution, and $250,000, $500,000, $750,000, or $1,000,000 for eligible retirement accounts, at the option of the insured depository institution; and (II)the ratio of the published annual value of the Personal Consumption Expenditures Chain-Type Price Index (or any successor index thereto), published by the Department of Commerce, for the calendar year preceding the year in which the adjustment is calculated under this clause, to the published annual value of such index as of the date this subparagraph takes effect. The values used in the calculation under subclause (II) shall be, as of the date of the calculation, the values most recently published by the Department of Commerce. (ii)

Rounding

If the amount determined under clause (ii) for any period is not a multiple of $10,000, the amount so determined shall be rounded down to the nearest $10,000. (iii)

Publication and report to the congress

Not later than April 5 of any calendar year in which an adjustment is required to be calculated under clause (i) to the standard maximum deposit insurance amount and the standard maximum share insurance amount under such clause, the Board of Directors and the National Credit Union Administration Board shall— (I)publish in the Federal Register the standard maximum deposit insurance amount, the standard maximum share insurance amount, and the amount of coverage under paragraph (3)(A) and section 207(k)(3) of the Federal Credit Union Act, as so calculated; and (II)jointly submit a report to the Congress containing the amounts described in subclause (I). (iv)

6-month implementation period

Unless an Act of Congress enacted before July 1 of the calendar year in which an adjustment is required to be calculated under clause (i) provides otherwise, the increase in the standard maximum deposit insurance amount and the standard maximum share insurance amount shall take effect on January 1 of the year immediately succeeding such calendar year.