[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5731 Introduced in House (IH)]

<DOC>






114th CONGRESS
  2d Session
                                H. R. 5731

         To establish SAVE UP Accounts, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 12, 2016

 Mr. Crowley introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
         To establish SAVE UP Accounts, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Secure, 
Accessible, Valuable, Efficient Universal Pension Accounts Act'' or the 
``SAVE UP Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
                       TITLE I--SAVE UP ACCOUNTS

Sec. 101. Secure, Accessible, Valuable, Efficient Universal Pension 
                            Accounts.
Sec. 102. SAVE UP Account contribution programs.
Sec. 103. SAVE UP Accounts Fund.
Sec. 104. Investment of SAVE UP Account assets.
Sec. 105. Benefits in the form of an annuity.
Sec. 106. SAVE UP Accounts Governance.
Sec. 107. Reporting and Disclosure.
Sec. 108. Fiduciary duties under SAVE UP Account contribution programs 
                            and SAVE UP Accounts.
Sec. 109. SAVE UP Accounts disregarded for purposes of means-tested 
                            programs.
              TITLE II--TAX TREATMENT OF SAVE UP ACCOUNTS

Sec. 201. Tax treatment of SAVE UP Accounts.
Sec. 202. SAVE UP Account credit.
Sec. 203. Disallowance of deduction for compensation for certain 
                            employers failing to provide SAVE UP 
                            Account contribution program.

                       TITLE I--SAVE UP ACCOUNTS

SEC. 101. SECURE, ACCESSIBLE, VALUABLE, EFFICIENT UNIVERSAL PENSION 
              ACCOUNTS.

    (a) In General.--There is hereby established the ``SAVE UP Account 
program'' under which the SAVE UP Board of Trustees shall--
            (1) establish for each eligible employee of an applicable 
        employer a SAVE UP Account, and
            (2) manage such accounts, and hold amounts in such account 
        in trust, for the exclusive benefit of the individuals on whose 
        behalf such accounts are established.
    (b) Eligible Employee.--
            (1) In general.--For purposes of this section, the term 
        ``eligible employee'' means, with respect to any applicable 
        employer, any employee unless such employee is eligible to 
        participate in a plan or arrangement described in section 
        219(g)(5)(A) of the Internal Revenue Code of 1986.
            (2) Exception for frozen plan.--Paragraph (1) shall not 
        apply in the case of a defined benefit plan unless the 
        participant is eligible to receive service-based accruals under 
        such plan.
    (c) Applicable Employer.--For purposes of this title--
            (1) In general.--The term ``applicable employer'' means, 
        with respect to any year, any employer--
                    (A)(i) the aggregate number of hours of service of 
                employees of which for months during the preceding 
                calendar year is 1,600 or more, and
                    (ii) which does not make available to all employees 
                a plan or arrangement described in section 219(g)(5) of 
                the Internal Revenue Code of 1986, or
                    (B) which elects the application of this title for 
                any year.
            (2) Hours of service.--The SAVE UP Board of Governors, in 
        consultation with the Secretary of Labor, shall prescribe such 
        guidance as may be necessary to determine the hours of service 
        of employees, including with respect to employees who are not 
        compensated on an hourly basis.
            (3) Government entities and churches.--The term 
        ``applicable employer'' shall not include--
                    (A) a government or entity described in section 
                414(d) of the Internal Revenue Code of 1986; or
                    (B) a church or a convention or association of 
                churches that is exempt from tax under section 501 of 
                such Code.
            (4) Aggregation rule.--All persons treated as a single 
        employer under subsection (b), (c), (m), or (o) of section 414, 
        of the Internal Revenue Code of 1986 shall be treated as a 
        single employer.

SEC. 102. SAVE UP ACCOUNT CONTRIBUTION PROGRAMS.

    (a) In General.--Each applicable employer shall establish a SAVE UP 
Account contribution program.
    (b) SAVE UP Account Contribution Program.--
            (1) In general.--For purposes of this part, the term ``SAVE 
        UP Account contribution program'' means, with respect to any 
        applicable employer, a written arrangement that meets the 
        requirements of paragraphs (2) through (5).
            (2) Automatic deferral.--
                    (A) In general.--The requirements of this paragraph 
                are met if the SAVE UP Account contribution program 
                includes a SAVE UP Account cash or deferred arrangement 
                under which each eligible employee is treated as having 
                elected to have the employer make elective 
                contributions on the employee's behalf in an amount 
                equal to the applicable percentage of wages (as defined 
                in section 3121(a) without regard to the contribution 
                and benefit base limitation in paragraph (1) thereof).
                    (B) Election out.--The election treated as having 
                been made under subparagraph (A) shall cease to apply 
                with respect to any employee if such employee makes an 
                affirmative election--
                            (i) to not have such contributions made, or
                            (ii) to make elective contributions under 
                        the SAVE UP Account cash or deferred 
                        arrangement at a level specified in such 
                        affirmative election.
                    (C) SAVE up account cash or deferred arrangement.--
                For purposes of this subsection, the term ``SAVE UP 
                Account cash or deferred arrangement'' means an 
                arrangement under which the eligible employee may elect 
                to have the employer make payments as contributions 
                under the arrangement to the employee's SAVE UP Account 
                on behalf of the employee, or to the employee directly 
                in cash.
                    (D) Applicable percentage.--For purposes of this 
                paragraph, the term ``applicable percentage'' means, 
                with respect to any employee--
                            (i) 3 percent during the period ending on 
                        the last day of the first calendar year which 
                        begins after the date on which the first 
                        elective contribution described in subparagraph 
                        (A) is made with respect to such employee;
                            (ii) 3.5 percent during the first calendar 
                        year following the calendar year described in 
                        clause (i);
                            (iii) 4 percent during the second calendar 
                        year following the calendar year described in 
                        clause (i);
                            (iv) 4.5 percent during the third calendar 
                        year following the calendar year described in 
                        clause (i); and
                            (v) 5 percent during any subsequent 
                        calendar year.
            (3) Nonelective employer contributions.--The requirements 
        of this paragraph are met if, under the arrangement, the 
        employer, without regard to any election by the employee under 
        paragraph (2), is required to make a contribution to the plan 
        on behalf of each qualifying employee in an amount equal to at 
        least 50 cents per hour worked by the employee. Such 
        contribution shall not be counted as partial payment of an 
        hourly wage. An employer shall not fail to meet the 
        requirements of this paragraph solely by reason of making 
        contributions on behalf of employees at a rate greater than 50 
        cents per hour, but only if such contributions are made at the 
        same rate for all qualifying employees of the employer.
            (4) Notices.--The requirements of this paragraph shall not 
        be treated as met with respect to any year unless the employer 
        notifies each employee eligible to participate, within a 
        reasonable period of time before the 30th day before the 
        beginning of such year (and, for the first year the employee is 
        so eligible, the 30th day before the first day such employee is 
        so eligible), of--
                    (A) the elective contributions that may be elected 
                or treated as elected under paragraph (2), and
                    (B) the opportunity to elect under paragraph 
                (2)(B)(i) to not make elective contributions.
            (5) Treatment of contributions.--All contributions with 
        respect to an employee made under a SAVE UP Account 
        contribution program shall be nonforfeitable and shall be paid 
        over to the SAVE UP Accounts Fund for crediting to the 
        employee's SAVE UP Account under section 103.
            (6) Wage growth adjustment.--
                    (A) In general.--In the case of calendar years 
                beginning after 2016, the 50 cent amount in paragraph 
                (3) shall be increased by the average annual wage 
                growth adjustment.
                    (B) Average annual wage growth adjustment.--For 
                purposes of subparagraph (A), the average annual wage 
                growth adjustment for any calendar year is the 
                percentage (if any) by which--
                            (i) the national average wage index (as 
                        defined in section 219(k)(1) of the Social 
                        Security Act) for the preceding calendar year, 
                        exceeds
                            (ii) the national average wage index (as so 
                        defined) for 2015.
                    (C) Rounding.--Adjustments under this paragraph 
                shall be rounded to the nearest cent.

SEC. 103. SAVE UP ACCOUNTS FUND.

    (a) Establishment of Fund.--
            (1) Establishment.--There is established in the Treasury of 
        the United States a trust fund to be known as the ``SAVE UP 
        Accounts Fund''.
            (2) Amounts in fund.--The SAVE UP Accounts Fund shall 
        consist of amounts paid to SAVE UP Accounts pursuant to a SAVE 
        UP Account contribution programs, increased by the total net 
        earnings from investments of sums in the Fund attributable to 
        such deposited amounts, and reduced by the total net losses 
        from investments of such sums.
            (3) Budget authority; appropriation.--This title 
        constitutes budget authority in advance of appropriations Acts 
        and represents the obligation of the SAVE UP Board of Trustees 
        to provide for the payment of amounts provided under this 
        title. The amounts held in the SAVE UP Accounts Fund are 
        appropriated and shall remain available without fiscal year 
        limitation.
    (b) Accumulation Account.--There is established in the SAVE UP 
Accounts Fund a separate account to be known as the ``Accumulations 
Account'' consisting of such amounts described in subsection (a)(2), 
less amounts credited to the Annuity Account.
    (c) Annuity Account.--There is established in the SAVE UP Accounts 
Fund a separate account to be known as the ``Annuity Account'' to which 
the aggregate amounts credited to a participant's SAVE UP Account under 
section 105 shall be transferred at such time as the participant elects 
to start receiving benefit payments under section 106.
    (d) Reserve Account.--
            (1) In general.--There is established in the SAVE UP 
        Accounts Fund a separate account to be known as the ``Reserve 
        Account'' which shall represent the amounts described in 
        subsection (a)(2), less amounts credited to SAVE UP Accounts 
        under section 104(c).
            (2) Use of reserve account.--The Board of Governors shall--
                    (A) use Reserve Account amounts that are allocable 
                to the investment of amounts in the Accumulation 
                Account to make up any shortfall in the crediting 
                individuals accounts under section 104(c), and
                    (B) use Reserve Account amounts that are allocable 
                to the investment of amounts in the Annuity Account to 
                make up any shortfall in the payment of annuity 
                benefits under section 105.
    (e) Availability.--The sums in the SAVE UP Accounts Fund are 
appropriated and shall remain available without fiscal year 
limitation--
            (1) to invest under section 104;
            (2) to provide for the payment of benefits in accordance 
        with section 105; and
            (3) to pay the administrative expenses incurred with 
        respect to management of SAVE UP Accounts and such Funds.
    (f) Limitations on Use of Amounts in the Fund.--
            (1) In general.--Amounts in the SAVE UP Accounts Fund 
        credited to an individual's SAVE UP Account are nonforfeitable 
        and may not be used for, or diverted to, purposes other than 
        for the exclusive benefit of the individual or the individual's 
        beneficiaries under this title.
            (2) Assignments.--Amounts in the SAVE UP Accounts Fund 
        credited to an individual's SAVE UP Account may not be assigned 
        or alienated and are not subject to execution, levy, 
        attachment, garnishment, or other legal process.

SEC. 104. INVESTMENT OF SAVE UP ACCOUNT ASSETS.

    (a) In General.--Amounts in the Accumulation Account of the SAVE UP 
Accounts Trust Fund shall be invested by each SAVE UP Board of Trustees 
under rules and guidance established by the SAVE UP Board of Governors. 
Each SAVE UP Board of Trustees shall be responsible for investing an 
amount (determined by the Board of Governors quarterly) that is 
proportional to the credited balances of SAVE UP Accounts within such 
Board's jurisdiction.
    (b) Investment Returns.--
            (1) Daily.--The SAVE UP Board of Governors shall determine 
        daily the net investment return of the entire SAVE UP Accounts 
        Trust Fund.
            (2) Annual audit.--Not less than annually, the SAVE UP 
        Board of Governors shall, through an independent audit of each 
        SAVE UP Board of Trustee's investments, determine the net 
        investment return of the entire SAVE UP Accounts Trust Fund.
    (c) Crediting of Accounts and Allocation of Positive Investment 
Returns.--
            (1) In general.--Each SAVE UP Board of Trustees shall 
        separately account for each individual's SAVE UP Account within 
        its jurisdiction and shall provide for crediting of--
                    (A) amounts contributed with respect to the 
                individual's account under section 102, and
                    (B) in the case of any period for which the SAVE UP 
                Accounts Trust Fund is determined by the SAVE UP Board 
                of Governors to have had an annualized positive net 
                investment return, an amount equal to the individual's 
                allocable share of such investment return.
            (2) Allocation of investment return.--For purposes of 
        paragraph (1), an individual's allocable share of investment 
        returns shall be an amount equal to the return such 
        individual's SAVE UP Account would have experienced had such 
        return (annualized and expressed as a percentage) been equal to 
        the lesser of--
                    (A) 6 percent, or
                    (B) the SAVE UP Accounts Trust Fund annualized 
                investment return (expressed as a percentage) 
                determined by the SAVE UP Board of Governors.

SEC. 105. BENEFITS IN THE FORM OF AN ANNUITY.

    (a) In General.--A SAVE UP Account shall pay benefits in the form 
of an annuity in accordance with subsection (b). The amount of such 
benefits shall be based on the amounts credited to the individual's 
SAVE UP Account and the form of distribution the individual elects. 
Notwithstanding the preceding sentence, the amount of an annuity may be 
adjusted to reflect the experience of the Fund as necessary to protect 
the financial integrity of the Fund, except that annuity payments for 
those in pay status shall not be reduced more than 5 percent per year 
unless the Fund is faced with a significant financial hardship and the 
SAVE UP Board of Governors has approved the reduction.
    (b) Annuity.--SAVE UP Accounts shall pay benefits in accordance 
with one of the following:
            (1) In the case of a participant who does not die before 
        the annuity starting date, the benefit payable to such 
        participant shall be provided in the form of a qualified joint 
        and survivor annuity (as defined in section 205(d)(1) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1055(d)(1))).
            (2) In the case of a participant who dies before the 
        annuity starting date and who has a surviving spouse, a 
        qualified preretirement survivor annuity (as defined in section 
        205(d)(2) of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1055(d)(2))) shall be provided to the surviving 
        spouse of such participant.
            (3) In lieu of a qualified joint and survivor annuity form 
        of benefit or the qualified preretirement survivor annuity form 
        of benefit (or both), a participant may elect to receive a 
        distribution described in subsection (f)(3) if one of the 
        following conditions are met:
                    (A)(i) The spouse of the participant consents in 
                writing to the election.
                    (ii) Such election designates a beneficiary (or 
                form of benefits) which may not be changed without 
                spousal consent (or the consent of the spouse expressly 
                permits designations by the participant without any 
                requirement of further consent by the spouse).
                    (iii) The spouse's consent acknowledges the effect 
                of such election and is witnessed by a plan 
                representative or a notary public.
                    (B) It is established to the satisfaction of a Fund 
                representative that the consent required under clause 
                (i) cannot be obtained because there is no spouse, 
                because the spouse cannot be located, or because of 
                such other circumstances as the SAVE UP Board of 
                Governors may by regulations prescribe. The consent of 
                a spouse (or establishment that the consent of a spouse 
                cannot be obtained) under this subparagraph shall be 
                effective only with respect to such spouse.
    (c) Commencement of Benefit Payments.--A participant may elect the 
time to start receiving benefit payments under this section, except 
that a participant--
            (1) may not elect to receive benefit payments before 
        reaching the age of 62; and
            (2) must begin receiving benefit payments before the age of 
        70.
    (d) Notice.--Each Fund shall provide to each participant, within a 
reasonable period of time before the annuity starting date, a written 
explanation substantially similar to that required by section 205(c)(3) 
of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1055(c)(3)).
    (e) Assignment or Alienation of Fund Benefits.--Benefits under a 
SAVE UP Account shall be subject to section 206(d) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1056(d)).
    (f) Methods for Providing Annuitized Benefit Payments.--
            (1) In general.--The SAVE UP Board of Trustees shall 
        establish and maintain mechanisms for adequately securing the 
        payment of annuity benefits under this section. The SAVE UP 
        Board of Trustees shall include a written description of such 
        mechanisms in the investment and lifetime income policy 
        statements required to be disclosed to participants.
            (2) Specific goals.--The mechanisms described in paragraph 
        (1) shall ensure that--
                    (A) each participant receives a stream of income 
                for life;
                    (B) each participant and beneficiary has an 
                opportunity to be protected against longevity risk; and
                    (C) volatility in benefit levels is minimized for 
                participants and beneficiaries in pay status and those 
                approaching pay status.
            (3) Self-annuitization.--
                    (A) In general.--Notwithstanding any other 
                provision of law, a SAVE UP Account may self-annuitize 
                if the SAVE UP Accounts Fund meets such requirements as 
                the SAVE UP Board of Governors establishes as necessary 
                to protect participants and beneficiaries.
                    (B) Duty to address emerging issues.--The SAVE UP 
                Board of Governors shall, periodically and in 
                accordance with established procedures, update the 
                funding requirements promulgated under this paragraph 
                in response to changing economic and business 
                conditions to the extent necessary to carry out the 
                purposes of this Act.

SEC. 106. SAVE UP ACCOUNTS GOVERNANCE.

    (a) SAVE UP Board of Governors.--
            (1) Establishment.--There is established in the executive 
        branch of the Government a SAVE UP Accounts Board of Governors.
            (2) Duties.--The Board of Governors shall--
                    (A) administer the provisions of this title, except 
                with respect to matters relating to SAVE UP Account 
                contribution programs maintained by employers pursuant 
                to section 102 and any duties charged to the SAVE UP 
                Boards of Trustees;
                    (B) establish policies for the investment and 
                management of SAVE UP Account assets, and for the 
                management and operation of SAVE UP Account annuities 
                under this title, which shall provide for--
                            (i) prudent investments suitable for 
                        accumulating funds for payment of retirement 
                        income;
                            (ii) investment targets;
                            (iii) sound management practices;
                            (iv) low administrative costs;
                            (v) low investment costs; and
                            (vi) investments in index funds;
                    (C) review the performance of SAVE UP Account Fund 
                investments; and
                    (D) review the management and operation of 
                annuities.
            (3) Composition.--The SAVE UP Board of Governors shall be 
        composed of--
                    (A) 5 members, each of whom must be a chairman of a 
                regional SAVE UP Board of Trustees, and
                    (B) 6 members appointed by the President, of whom 
                the President shall appoint at least one resident from 
                each of the 5 jurisdictions of the regional SAVE UP 
                Board of Trustees.
            (4) Chairman.--The President shall appoint one of such 
        members as chairman of the SAVE UP Board of Governors. Such 
        appointment shall be made by and with the advice and consent of 
        the Senate.
            (5) Length of appointments.--Each member appointed by the 
        President under paragraph (3)(B) shall be appointed for a term 
        of 6 years, except that of the first such members taking 
        office--
                    (A) the chairman member shall serve a term of 7 
                years,
                    (B) 1 member shall serve a term of 2 years,
                    (C) 1 member shall serve a term of 3 years,
                    (D) 1 member shall serve a term of 4 years,
                    (E) 1 member shall serve a term of 5 years, and
                    (F) 1 member shall serve a term of 6 years.
        No individual may serve more than 2 terms as a member of the 
        Board.
    (b) Regional SAVE UP Boards of Trustees.--
            (1) In general.--There is established in the executive 
        branch of the Government 5 regional SAVE UP Boards of Trustees, 
        the jurisdiction of which shall be, to the extent practicable, 
        apportioned by the Secretary of the Treasury geographically and 
        to approximate an equal distribution of the United States 
        population.
            (2) Duties.--The SAVE UP Board of Trustees for each region 
        shall oversee the management and administration of SAVE UP 
        Accounts of the population within its respective jurisdiction, 
        including--
                    (A) with respect to such population, management and 
                investment of SAVE UP Account Trust Fund assets, 
                payment of annuities, and compliance with reporting and 
                disclosure requirements, and
                    (B) selection of the administrator, attorney, 
                internal auditor, record keeper, investment consulting 
                team, and such other staff as may be necessary to carry 
                out the duties of the SAVE UP Board of Trustees.
        Any reference to a SAVE UP Board of Trustees in this title 
        shall be construed to mean the regional SAVE UP Board of 
        Trustees with respect to the SAVE UP Accounts within its 
        jurisdiction, where such construction is necessary to carry out 
        provisions of this title.
            (3) Composition.--Each SAVE UP Board of Trustees shall be 
        composed of 7 members, of whom--
                    (A) 2 shall be appointed by the Federal Reserve 
                Board,
                    (B) 1 shall be appointed by the Commissioner of the 
                Securities and Exchange Commission,
                    (C) 1 shall be appointed by the Speaker of the 
                House of Representatives,
                    (D) 1 shall be appointed by the Minority Leader of 
                the House of Representatives,
                    (E) 1 shall be appointed by the Majority Leader of 
                the Senate, and
                    (F) 1 shall be appointed by the Minority Leader of 
                the Senate.
            (4) Chairman.--For each Board of Trustees, the President 
        shall designate one of the trustees appointed under paragraph 
        (3) as chairman, and, in the case of the first such trustees 
        taking office, shall designate the term of such trustee 
        pursuant to paragraph (5).
            (5) Vice chairman.--Each Board of Trustees shall designate 
        one of the trustees appointed under paragraph (3) as vice 
        chairman.
            (6) Length of appointments.--
                    (A) In general.--Each trustee of the Board 
                appointed under paragraph (3) shall be appointed for a 
                term of 5 years, except that of the first such trustees 
                taking office--
                            (i) the chairman trustee shall be 
                        determined under subparagraph (B),
                            (ii) 1 trustee shall serve a term of 5 
                        years,
                            (iii) 1 trustee shall serve a term of 4 
                        years,
                            (iv) 1 trustee shall serve a term of 3 
                        years,
                            (v) the vice chairman trustee shall serve a 
                        term of 2 years,
                            (vi) 1 trustee shall serve for a term of 2 
                        years, and
                            (vii) 1 trustee shall serve for a term of 1 
                        year.
                Other than the chairman and vice chairman trustee, the 
                terms of the first trustees taking office shall 
                correspond with the individual who appointed the 
                trustee under paragraph (3) and shall be ordered from 
                the longest term to the shortest term on the basis of 
                the order in which the individuals are listed in such 
                paragraph.
                    (B) Chairman terms.--For purposes of subparagraph 
                (A)(i), of the trustees appointed as chairman of a 
                Board of Trustees--
                            (i) 1 chairman shall serve a term of 6 
                        years,
                            (ii) 2 chairmen shall serve a term of 5 
                        years,
                            (iii) 1 chairman shall serve a term of 4 
                        years, and
                            (iv) 1 chairman shall serve a term of 3 
                        years.
                    (C) Term limits.--No individual may be appointed to 
                more than 2 terms as a trustee of the SAVE UP Board of 
                Trustees.
    (c) Vacancies.--
            (1) In general.--A vacancy on the Boards established under 
        this section shall be filled in the manner in which the 
        original appointment was made and shall be subject to any 
        conditions that applied with respect to the original 
        appointment.
            (2) Completion of term.--An individual chosen to fill a 
        vacancy under subparagraph (A) shall be appointed for the 
        unexpired term of the member replaced.
    (d) Membership Requirements.--Members and trustees appointed under 
this section shall have substantial experience, training, and expertise 
in the management of financial investments and pension benefit plans.
    (e) Compensation.--
            (1) In general.--Each such member or trustee who is not an 
        officer or employee of the Federal Government shall be 
        compensated at the daily rate of basic pay for level II of the 
        Executive Schedule for each day during which such member is 
        engaged in performing a function of the Board.
            (2) Expenses.--Each such member or trustee shall be paid 
        travel, per diem, and other necessary expenses under subchapter 
        I of chapter 57 of title 5, United States Code, while traveling 
        away from such member's home or regular place of business in 
        the performance of the duties of the Board.
    (f) Discharge of Responsibilities.--The members and trustees shall 
discharge their responsibilities solely in the interest of the 
participants in SAVE UP Accounts and their beneficiaries under this 
part.
    (g) Annual Independent Audit.--The SAVE UP Board of Governors shall 
annually engage an independent qualified public accountant to audit the 
activities of the Board of Governors and each Regional Board of 
Trustees.

SEC. 107. REPORTING AND DISCLOSURE.

    (a) Annual Statement.--The SAVE UP Board of Trustees shall provide 
each participant in the Fund an annual statement of--
            (1) the estimated amount of the monthly benefit which the 
        participant or beneficiary is projected to receive from the 
        Fund, in the form of the default benefit described in the plan 
        in accordance with the bill;
            (2) an explanation, written in a manner calculated to be 
        understood by the average plan participant, that includes 
        interest and mortality assumptions used in calculating the 
        estimate and a statement that actual benefits may be materially 
        different from such estimate;
            (3) a disclosure of SAVE UP Accounts Fund fees and 
        performance that is substantially similar to the disclosures 
        required of individual account plans under the Employee 
        Retirement Income Security Act of 1974;
            (4) any other disclosures, including projected benefit 
        estimates, that the SAVE UP Board of Trustees determines 
        appropriate; and
            (5) such other disclosures as may be required by the Board 
        of Governors.
    (b) Summary Plan Description.--The SAVE UP Board of Trustees shall 
provide participants a summary plan description (as described in 
section 102 of the Employee Retirement Income Security Act (29 U.S.C. 
1022)) as required by section 104(b) of the Employee Retirement Income 
Security Act (29 U.S.C. 1024(b)).
    (c) Annual Reports.--The SAVE UP Board of Trustees shall file with 
the Secretary of Labor periodic reports in accordance with regulations 
promulgated by the SAVE UP Board of Governors.
    (d) Additional Requirements.--The SAVE UP Board of Trustees shall 
be subject to sections 106 and 107 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1026, 1027).

SEC. 108. FIDUCIARY DUTIES UNDER SAVE UP ACCOUNT CONTRIBUTION PROGRAMS 
              AND SAVE UP ACCOUNTS.

    (a) Limitation on Fiduciary Duties Under the SAVE UP Account 
Contribution Programs of an Employer.--
            (1) Timely payment of contributions.--For purposes of the 
        Employee Retirement Income Security Act of 1974, the employer's 
        fiduciary duties under a SAVE UP Account contribution program 
        established under section 102 shall be limited to those duties 
        related to the timely payment in full to the individual's SAVE 
        UP Account of elective contributions made on behalf of 
        employees as required under section 102(b)(2) and such employer 
        contributions as may be provided for under the program pursuant 
        to section 102(b)(3).
            (2) Rule of construction.--Nothing in this Act shall be 
        construed to impose on any employer with respect to any 
        employee who is a participant in the employer's SAVE UP Account 
        contribution program any fiduciary duty with respect to the 
        investment or distribution of assets held under the employee's 
        SAVE UP Account.
    (b) Fiduciary Duties of Board of Governors and Trustees.--For 
purposes of the provisions of part 4 of subtitle B of title I of the 
Employee Retirement Income Security Act of 1974, and the provisions of 
part 5 of such subtitle as they relate to the enforcement of the 
provisions of such part 4, each member of the SAVE UP Board of 
Governors, each trustee of a SAVE UP Board of Trustees, and any person 
who has or exercises discretionary authority or discretionary control 
over the management or disposition of the SAVE UP Accounts Fund, and 
amounts held to the credit of SAVE UP Accounts, or the crediting of 
assets to SAVE UP Accounts, shall be included within the meaning of 
``fiduciary'' under section 3(21)(A) of such Act.

SEC. 109. SAVE UP ACCOUNTS DISREGARDED FOR PURPOSES OF MEANS-TESTED 
              PROGRAMS.

    Notwithstanding any other provision of Federal law, any amount 
contributed by or on behalf of an individual pursuant to a SAVE UP 
Account contribution program, or credited to an individual's SAVE UP 
Account under this title, shall not be taken into account in 
determining any individual's or household's financial eligibility for, 
or amount of, any benefit or service, paid for in whole or in part with 
Federal funds.

              TITLE II--TAX TREATMENT OF SAVE UP ACCOUNTS

SEC. 201. TAX TREATMENT OF SAVE UP ACCOUNTS.

    (a) In General.--Subpart A of part I of subchapter D of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 408A the following new section:

``SEC. 408B. TAX TREATMENT OF SAVE UP ACCOUNTS.

    ``(a) In General.--For purposes of this title, except as otherwise 
provided in this section--
            ``(1) the SAVE UP Accounts Fund shall be treated as a trust 
        described in section 401(a) which is exempt from taxation under 
        section 501(a) and a SAVE UP Account shall be treated as a 
        defined contribution plan which includes such a trust,
            ``(2) any contribution to, or distribution from, the SAVE 
        UP Accounts Fund under a SAVE UP Account contribution program 
        shall be treated in the same manner as contributions to or 
        distributions from such a trust, and
            ``(3) contributions to a SAVE UP Account under a SAVE UP 
        Account contribution program shall not be treated as 
        distributed or made available to the employee or as 
        contributions made by the employee merely because the employee 
        has, under such program, an election whether the contribution 
        will be made to the trust or received by the employee in cash.
    ``(b) Nondiscrimination Requirements.--A SAVE UP Account 
contribution program is not subject to the participation and 
nondiscrimination requirements applicable to arrangements described in 
section 401(k) or to matching contributions (as described in section 
401(m)).
    ``(c) Rollover From SAVE UP Account Prohibited.--An eligible 
rollover distribution (as defined in section 402(c)(4)) shall not 
include any amount distributed from a SAVE UP Account.
    ``(d) SAVE UP Account Loans.--
            ``(1) Limitations.--Section 72(p)(2)(A) shall only apply 
        with respect to a SAVE UP Account to the extent that any loan 
        (when added to the outstanding balance of all other loans from 
        such plan) does not exceed the lesser of--
                    ``(A) $2,500, or
                    ``(B) the total nonforfeitable amounts credited to 
                the individual's SAVE UP Account.
            ``(2) Repayment.--A loan from a SAVE UP Account shall not 
        fail to be treated as a loan described in section 72(p)(2)(B) 
        (relating to requirement that loan be repayable in 5 years) 
        solely because the loan terms allow additional time (not to 
        exceed an aggregate of 1 year) for repayment to account for any 
        periods of unemployment.
    ``(e) Definitions.--For purposes of this section, the terms `SAVE 
UP Accounts Fund', `SAVE UP Account', and `SAVE UP Account contribution 
program' shall have the respective meanings as when used in title I of 
the SAVE UP Act.''.
    (b) Limitation on Exclusion for Elective Deferrals.--Paragraph (3) 
of section 402(g) of such Code is amended by striking ``and'' at the 
end of subparagraph (C), by striking the period at the end of 
subparagraph (D) and inserting ``, and'', and by adding at the end the 
following new subparagraph:
                    ``(E) any elective employer contribution under a 
                SAVE UP Account contribution program (as defined in 
                section 408B).''.
    (c) Clerical Amendment.--The table of sections for subpart A of 
part I of subchapter D of chapter 1 of such Code is amended by 
inserting after the item relating to section 409A the following new 
section:

``408C. Tax treatment of SAVE UP Accounts.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 202. SAVE UP ACCOUNT CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45S. SAVE UP ACCOUNT CREDIT.

    ``(a) In General.--For purposes of section 38, in the case of an 
eligible small employer that elects the application of this section, 
the SAVE UP Account credit determined under this section for any 
taxable year is an amount equal to the lesser of--
            ``(1) the amount of nonelective employer contributions made 
        by the employer for the taxable year with respect to employees 
        under section 102(b)(3) of the Secure, Accessible, Valuable, 
        Efficient Universal Pension Accounts Act, or
            ``(2) $10,400.
    ``(b) Eligible Small Employer.--For purposes of this section, the 
term `eligible small employer' means any person the gross receipts of 
which for the preceding taxable year did not exceed $5,000,000.
    ``(c) Limitation.--A taxpayer may elect the application of the 
section with respect to not more than 5 taxable years.
    ``(d) Special Rules.--
            ``(1) Controlled groups.--All members of the same 
        controlled group of corporations (within the meaning of section 
        52(a)) and all persons under common control (within the meaning 
        of section 52(b)) shall be treated as 1 person for purposes of 
        this section.
            ``(2) Disallowance of deduction.--No deduction shall be 
        allowed for that portion of the nonelective employer 
        contributions made for the taxable year which is equal to the 
        credit determined under subsection (a).''.
    (b) Credit Made Part of General Business Credit.--Section 38(b) of 
such Code is amended by striking ``plus'' at the end of paragraph (35), 
by striking the period at the end of paragraph (36) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(37) the SAVE UP Account credit determined under section 
        45S(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new section:

``Sec. 45S. SAVE UP Account credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.

SEC. 203. DISALLOWANCE OF DEDUCTION FOR COMPENSATION FOR CERTAIN 
              EMPLOYERS FAILING TO PROVIDE SAVE UP ACCOUNT CONTRIBUTION 
              PROGRAM.

    (a) In General.--Section 162 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (q) as subsection (r) and by 
inserting after subsection (p) the following new subsection:
    ``(q) Failure To Provide SAVE UP Account Contribution Program.--
            ``(1) In general.--In the case of an applicable employer 
        who fails to maintain a SAVE UP Account contribution program 
        for any calendar year beginning during the taxable year, no 
        deduction shall be allowed under this chapter for any 
        remuneration made by the employer for services performed by 
        employees of the employer.
            ``(2) Applicable employer.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `applicable employer' means, with respect to 
                any calendar year, any employer which is an applicable 
                employer described in section 101(c)(1)(A) of the 
                Secure, Accessible, Valuable, Efficient Universal 
                Pension Accounts Act.
                    ``(B) Aggregation rule.--All persons treated as a 
                single employer under subsection (a) or (b) of section 
                52, or subsection (m) or (o) of section 414, of the 
                Internal Revenue Code of 1986 shall be treated as a 
                single employer for purposes of this paragraph.
            ``(3) Waiver.--The Secretary may waive the application of 
        paragraph (1) with respect to a taxpayer on a showing by the 
        taxpayer that there was reasonable cause for the failure and 
        that the taxpayer acted in good faith.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.
                                 <all>