[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3102 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  1st Session
                                S. 3102

To establish the American Worker Retirement Plan, improve the financial 
   security of working Americans by facilitating the accumulation of 
                    wealth, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 19, 2023

Mr. Hickenlooper (for himself and Mr. Tillis) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To establish the American Worker Retirement Plan, improve the financial 
   security of working Americans by facilitating the accumulation of 
                    wealth, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Retirement Savings 
for Americans Act of 2023''.
    (b) Table of Contents.--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 PLAN

Sec. 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 
                                 SYSTEM

Sec. 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 CREDIT

Sec. 301. Government Match Tax Credit.

SEC. 2. DEFINITIONS.

    As used in this Act, except as otherwise provided:
            (1) Account.--The term ``account'' means an account 
        established and maintained under section 107.
            (2) Board.--The term ``Board'' means the American Worker 
        Retirement Investment Board established under section 201.
            (3) Business.--The term ``business'' means any entity, 
        including any sole proprietor, partnership, limited liability 
        company, or corporation, that engages in interstate commerce.
            (4) Earnings.--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) Executive director.--The term ``Executive Director'' 
        means the Executive Director appointed under section 203.
            (6) Existing retirement plan.--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) Former participant.--
                    (A) In general.--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 
                again.--Such 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) Fund.--The term ``Fund'' means the American Worker 
        Retirement Fund established under section 101(a).
            (9) Investment advisory council.--The term ``Investment 
        Advisory Council'' means the council established under section 
        202.
            (10) Loss.--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) Net earnings.--The term ``net earnings'' means the 
        excess of earnings over losses.
            (12) Net losses.--The term ``net losses'' means the excess 
        of losses over earnings.
            (13) Participant.--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) Participating employer.--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) Qualifying worker.--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.

SEC. 3. RELATIONSHIP TO SOCIAL SECURITY.

    Except 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.).

SEC. 4. GOVERNMENT BENEFITS.

    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.

              TITLE I--THE AMERICAN WORKER RETIREMENT PLAN

SEC. 101. THE AMERICAN WORKER RETIREMENT FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States the American Worker Retirement Fund.
    (b) Purposes.--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)).
    (c) Investment.--The sums in the Fund shall remain available 
without fiscal year limitation--
            (1) to invest pursuant to section 102;
            (2) to pay the administrative expenses of the Fund under 
        subsection (e);
            (3) to make distributions as provided in section 106;
            (4) to make loans as authorized under section 106(h); and
            (5) to purchase insurance as provided in section 209.
    (d) Accounts.--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 section 25F 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.
    (e) Administrative Expenses.--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 section 25F(h) of the Internal Revenue Code of 1986.
    (f) Exclusive Benefit.--
            (1) In general.--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.
            (2) Assignment.--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.
            (3) Legal obligations.--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--
                    (A) 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 (42 U.S.C. 659);
                    (B) an obligation of the Executive Director to make 
                a payment to another person under section 109; and
                    (C) any Federal tax levy under section 6331 of the 
                Internal Revenue Code of 1986.
        For the purposes of this paragraph, an amount contributed for 
        the benefit of a participant or former participant under 
        section 25F 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.
    (g) Non-Appropriated Funds.--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.
    (h) Benefit to Participants.--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.
    (i) Nonforfeitable.--All the contributions made under section 105 
and section 25F of the Internal Revenue Code of 1986 shall be fully 
nonforfeitable when made, except as provided in section 25F(h) of such 
Code.

SEC. 102. INVESTMENT OF AMERICAN WORKER RETIREMENT FUND.

    (a) In General.--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:
            (1) The Board shall provide for the following investment 
        options for participants:
                    (A) A Government Securities Investment Fund under 
                which sums in the Fund are invested in--
                            (i) bonds issued or guaranteed by the 
                        United States Government; and
                            (ii) bonds issued by Government-sponsored 
                        enterprises or Government corporations.
                    (B) A Fixed-Income Investment Fund under which sums 
                are in the Fund are invested in--
                            (i) insurance contracts;
                            (ii) certificates of deposit; and
                            (iii) other instruments or obligations 
                        selected by qualified professional asset 
                        managers (as defined in section 8438(a)(8) of 
                        title 5, United States Code),
                which return the amount invested and pay interest, at a 
                specific rate or rates, on that amount during a 
                specific period of time.
                    (C) A Common Stock Index Investment Fund, as 
                described in section 8438(b)(2) of title 5, United 
                States Code.
                    (D) A Small Capitalization Stock Index Investment 
                Fund, as described in section 8438(b)(3) of title 5, 
                United States Code.
                    (E) An International Stock Index Investment Fund, 
                as described in section 8438(b)(4) of title 5, United 
                States Code.
                    (F) A Life-Cycle Investment Fund consisting of 
                target date asset allocation portfolios.
            (2) 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.
            (3) The Board shall consult with the Investment Advisory 
        Council before authorizing additional investment options for 
        participants.
    (b) Investments.--
            (1) Investment selection.--The Executive Director shall 
        invest the sums available in the Fund for investment as 
        provided in the selection made under subsection (c).
            (2) Default option.--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.
    (c) Investment Selection.--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.
    (d) Voting Rights.--Participants, former participants, the Board, 
and the Executive Director may not exercise voting rights associated 
with the ownership of securities by the Fund.
    (e) Reports.--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 section 25F 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.

SEC. 103. ELIGIBILITY.

    (a) Eligibility.--A qualifying worker shall be eligible to 
participate in the Fund upon completion of the enrollment process set 
forth in section 104.
    (b) Cessation of Eligibility.--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.

SEC. 104. ENROLLMENT.

    (a) Enrollment.--
            (1) In general.--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.
            (2) Independent contractors.--
                    (A) In general.--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.
                    (B) Classification.--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.
    (b) Auto-Enrollment; Opt-Out.--
            (1) In general.--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).
            (2) Automatic contribution rates.--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).
            (3) Opt-out.--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.
    (c) Penalties.--
            (1) Penalty.--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.
            (2) Applicable penalty percentage.--The term ``applicable 
        penalty percentage'' means--
                    (A) 2 percent if the failure is for not more than 5 
                days;
                    (B) 5 percent if the failure is for more than 5 
                days but not more than 15 days; and
                    (C) 10 percent if the failure is for more than 15 
                days.
            (3) Funds.--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).

SEC. 105. CONTRIBUTIONS.

    (a) Contributions by Participants.--
            (1) In general.--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.
            (2) Other participant contributions.--
                    (A) Catch-up contributions.--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 section 414(v) of the Internal Revenue 
                Code of 1986, and the regulations established under 
                subsection (e) consistent therewith.
                    (B) Contributions of tax refunds.--
                            (i) In general.--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 section 6402 
                        of the Internal Revenue Code of 1986.
                            (ii) Special rules.--For purposes of clause 
                        (i)--
                                    (I) 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 
                                section 25F of the Internal Revenue 
                                Code of 1986, and
                                    (II) 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.
            (3) Contributions.--The Secretary of the Treasury and the 
        Executive Director shall jointly prescribe regulations that 
        establish a program of regular contribution under which 
        participants may--
                    (A) make contributions to their accounts with the 
                Fund under paragraph (1);
                    (B) modify the amount contributed under such 
                paragraph; or
                    (C) terminate such contributions.
            (4) Election.--An election to make contributions under this 
        subsection--
                    (A) may be made at any time;
                    (B) shall take effect on the earliest date after 
                the election that is administratively feasible; and
                    (C) shall remain in effect until modified or 
                terminated.
        Any such election shall be subject to the contribution limits 
        under this section.
    (b) Contribution of Government Match Tax Credit.--A participant's 
account shall receive contributions in the form of the Government Match 
Tax Credit contributed by the Secretary of the Treasury under section 
25F of the Internal Revenue Code of 1986.
    (c) Contribution Limits.--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 section 
219(b)(5) of the Internal Revenue Code of 1986. Any contribution made 
under section 25F of the Internal Revenue Code of 1986 shall not be 
taken into account for purposes of the preceding sentence.
    (d) Treatment as Roth Contributions.--Contributions under 
subsection (a) shall not be excludable from gross income and no 
deduction shall be allowed with respect to such contributions under 
section 219 of the Internal Revenue Code of 1986.
    (e) Regulations.--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 section 25F 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.

SEC. 106. DISTRIBUTIONS.

    (a) Former Participants.--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).
    (b) Former Participant Withdrawal Options.--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--
            (1) an annuity;
            (2) a single payment;
            (3) 2 or more substantially equal payments to be made not 
        less frequently than annually; or
            (4) any combination of payments described in paragraphs (1) 
        through (3) as the Executive Director may prescribe by 
        regulation.
    (c) Additional Former Participant Withdrawal Options.--
            (1) In general.--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.
            (2) Transfers to retirement plans.--
                    (A) In general.--A former participant may request 
                that the amount withdrawn from the Fund under paragraph 
                (1) be transferred to an existing retirement plan.
                    (B) Transfers.--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.
            (3) Limitations.--Withdrawals under this subsection shall 
        be subject to such other limitations or conditions as the 
        Executive Director may prescribe by regulation.
    (d) Payment of Annuities.--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.
    (e) Former Participant Changes to Elections.--
            (1) In general.--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.
            (2) Distributions made.--A former participant may not 
        return a distribution once made pursuant to an election under 
        this section.
    (f) Survivor Rights.--
            (1) In general.--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.
            (2) Maintenance of account.--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:
                    (A) Subject to the limitations of subparagraph (B), 
                the spouse shall have the same withdrawal options under 
                subsection (b) as a former participant.
                    (B) The spouse may not make withdrawals under 
                subsection (h) or (i).
                    (C) The spouse may not make contributions or 
                transfers to the account.
                    (D) 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.
            (3) Regulations.--The Executive Director shall prescribe 
        regulations to carry out this subsection.
    (g) Small Balance Accounts.--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.
    (h) Loans.--
            (1) In general.--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.
            (2) Special rules.--
                    (A) In general.--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.
                    (B) Limitation based on tax treatment.--A loan may 
                not be made under this subsection to the extent that 
                the loan would be treated as a taxable distribution 
                under section 72(p) of the Internal Revenue Code of 
                1986.
                    (C) Spousal protections.--A loan may not be made 
                under this subsection unless the requirements of 
                section 109 are satisfied.
    (i) Voluntary Distributions.--
            (1) In general.--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--
                    (A) the participant having attained age 59\1/2\; or
                    (B) financial hardship.
            (2) Limitations.--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.
            (3) Spousal protections.--A withdrawal may not be made 
        under this subsection unless the requirements of section 109 
        are satisfied.
    (j) Involuntary Distributions.--
            (1) In general.--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 section 414(q)(1)(B) of the 
        Internal Revenue Code of 1986.
            (2) Amount of distribution.--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.
            (3) Process for distribution.--
                    (A) Notice to participant.--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.
                    (B) Method of distribution.--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--
                            (i) in the case of an eligible rollover 
                        distribution (as defined in section 402(c) of 
                        the Internal Revenue Code of 1986), to an 
                        eligible retirement plan (as defined in such 
                        section of such code); or
                            (ii) directly to such participant.
                    (C) Default election.--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.
            (4) Tax treatment of involuntary distribution.--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 section 72(t) of the Internal Revenue Code of 1986 
        to the extent such distribution does not consist of participant 
        contributions to the Fund.
    (k) Treatment as Roth Distributions.--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.

SEC. 107. ACCOUNTS.

    (a) In General.--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 section 25F of 
the Internal Revenue Code of 1986, to the Fund.
    (b) Account Balances.--The balance in a participant's account is 
the excess of--
            (1) the sum of--
                    (A) all contributions made to the Fund by the 
                participant under section 105(a);
                    (B) all contributions made to the Fund for the 
                benefit of the participant by the Secretary of the 
                Treasury under section 25F of the Internal Revenue Code 
                of 1986; and
                    (C) the total amount of the allocations made to and 
                reduction made in the account pursuant to subsection 
                (c); over
            (2) the amounts paid out of the Fund with respect to such 
        participant under this title.
    (c) Allocation of Earnings and Losses.--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.

SEC. 108. TAX TREATMENT.

    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.

SEC. 109. SPOUSAL PROTECTIONS; SURVIVOR RIGHTS.

    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 chapter 84 of 
title 5, United States Code.

  TITLE II--THE AMERICAN WORKER RETIREMENT PLAN INVESTMENT MANAGEMENT 
                                 SYSTEM

SEC. 201. THE AMERICAN WORKER RETIREMENT INVESTMENT BOARD.

    (a) Establishment.--There is established in the executive branch of 
the Government the American Worker Retirement Investment Board.
    (b) Composition.--The Board shall be composed of--
            (1) 3 members appointed by the President, of whom 1 shall 
        be designated by the President as Chair;
            (2) 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
            (3) 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.
    (c) Senate Confirmation.--Appointments under subsection (b) shall 
be made with the advice and consent of the Senate.
    (d) Qualifications.--
            (1) In general.--Members of the Board shall have 
        substantial experience, training, and expertise in the 
        management of financial investments and pension benefit plans.
            (2) Disqualification.--No member of the Board may be an 
        officer or employee of the Federal Government.
    (e) Terms; Vacancies.--
            (1) Terms.--A member of the Board shall be appointed for a 
        term of 4 years, except that of the members first appointed 
        under subsection (b)--
                    (A) the Chair shall be appointed for a term of 4 
                years;
                    (B) the members appointed under paragraphs (2) and 
                (3) of subsection (b) shall be appointed for terms of 3 
                years; and
                    (C) the remaining members shall be appointed for 
                terms of 2 years.
            (2) Vacancies.--
                    (A) In general.--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.
                    (B) Term.--An individual chosen to fill a vacancy 
                shall be appointed for the unexpired term of the member 
                replaced.
                    (C) Expiration.--The term of any member shall not 
                expire before the date on which the member's successor 
                takes office.
    (f) Board Duties.--The Board shall--
            (1) establish policies for--
                    (A) the investment and management of the Fund; and
                    (B) the administration of title I of this Act;
            (2) hire and set the compensation for the Executive 
        Director;
            (3) review the performance of investments made for the 
        Fund;
            (4) review and approve the budget of the Board; and
            (5) develop evidence-based financial literacy requirements 
        for participants in the Fund, including requirements for 
        financial literacy interventions to occur prior to a 
        participant--
                    (A) taking an early withdrawal from their account 
                at the Fund pursuant to section 106(i); and
                    (B) taking a loan from such account pursuant to 
                section 106(h).
    (g) Board Authorities; Investment Limitations.--
            (1) In general.--The Board may--
                    (A) adopt, alter, and use a seal;
                    (B) 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;
                    (C) upon the concurring votes of 4 members, remove 
                the Executive Director from office for good cause 
                shown; and
                    (D) take such other action as may be necessary to 
                carry out the functions of the Board.
            (2) Exception.--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.
    (h) Board Responsibilities.--The members of the Board shall 
discharge their responsibilities under this Act solely in the interest 
of participants and beneficiaries.
    (i) Budget.--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.
    (j) Legislative Recommendations.--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.

SEC. 202. THE AMERICAN WORKER RETIREMENT PLAN ADVISORY COUNCIL.

    (a) Establishment.--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).
    (b) Appointment.--The Chair shall appoint 7 members of the Council, 
of whom--
            (1) 3 shall be appointed who have experience managing 
        investment funds;
            (2) 2 shall be appointed who have experience operating 
        small businesses; and
            (3) 2 shall be appointed who have experience providing 
        investment advice to small businesses and low-income workers.
    (c) Head of Council; Terms; Vacancies.--
            (1) In general.--The Chair of the Board shall designate 1 
        member of the Council to serve as head of the Council.
            (2) Term.--A member of the Council shall be appointed for a 
        term of 4 years.
            (3) Vacancies.--
                    (A) In general.--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.
                    (B) Term.--An individual chosen to fill a vacancy 
                shall be appointed for the unexpired term of the member 
                replaced.
                    (C) Expiration.--The term of any member shall not 
                expire before the date on which the member's successor 
                takes office.
    (d) Majority Approval.--The Council shall act by resolution of a 
majority of the members.
    (e) Duties.--The Council shall--
            (1) advise the Board and the Executive Director on matters 
        relating to--
                    (A) investment policies for the Fund; and
                    (B) the administration of title I of this Act; and
            (2) perform such other duties as the Board may direct with 
        respect to investment funds established in accordance with 
        title I.

SEC. 203. EXECUTIVE DIRECTOR.

    (a) In General.--
            (1) Appointment.--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.
            (2) Qualifications.--The Executive Director shall have 
        substantial experience, training, and expertise in the 
        management of financial investments and pension benefit plans.
    (b) Duties.--The Executive Director shall--
            (1) carry out the policies established by the Board;
            (2) invest and manage the Fund in accordance with 
        investment policies and other policies established by the 
        Board;
            (3) administer the provisions of this Act;
            (4) prescribe such regulations (other than regulations 
        relating to fiduciary responsibilities) as may be necessary for 
        the administration of this Act;
            (5) meet from time to time with the Council upon the 
        request of the Council; and
            (6) enforce the financial literary requirements established 
        by the Board pursuant to 201(f)(5).
    (c) Authorities.--The Executive Director may--
            (1) 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;
            (2) appoint such personnel as may be necessary to carry out 
        the provisions of this Act;
            (3) subject to approval by the Board, procure the services 
        of experts and consultants under section 3109 of title 5, 
        United States Code;
            (4) 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;
            (5) pay the compensation, per diem, and travel expenses of 
        individuals appointed under paragraphs (2), (3), and (7) of 
        this subsection from the Fund;
            (6) 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
            (7) take such other actions as are appropriate to carry out 
        the functions of the Executive Director.

SEC. 204. INVESTMENT POLICIES AND SELECTION OF ASSET MANAGERS.

    (a) Investment Policies.--The Board shall develop investment 
policies under section 201(f)(1) which provide for--
            (1) prudent investments suitable for accumulating funds for 
        payment of retirement income; and
            (2) low administrative costs.
    (b) Asset Managers.--The Board shall select asset managers to 
manage the Fund, subject to the following conditions:
            (1) The Board shall select a number of asset managers 
        necessary to ensure that no asset manager shall be responsible 
        for managing the greater of--
                    (A) $500,000,000,000; or
                    (B) 10 percent of the Fund's assets.
            (2) The Board shall limit any contract with an asset 
        manager to a maximum of 5 years.

SEC. 205. ADMINISTRATIVE PROVISIONS.

    (a) Board Meetings.--The Board shall meet--
            (1) not less than once during each month; and
            (2) at additional times at the call of the Chair.
    (b) Board Governance.--
            (1) In general.--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.
            (2) Quorum.--3 members of the Board shall constitute a 
        quorum for the transaction of business.
            (3) Effect of vacancy.--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.
    (c) Board Compensation.--
            (1) In general.--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.
            (2) Per diem, etc.--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.
            (3) Payment from fund.--Payments authorized under this 
        subsection shall be paid from the Fund as administrative 
        expenses permitted under section 101(e).

SEC. 206. FIDUCIARY RESPONSIBILITIES; LIABILITY AND PENALTIES.

    (a) Definitions.--For the purposes of this section:
            (1) Account.--The term ``account'' is not limited by the 
        definition provided in section 2.
            (2) Adequate consideration.--The term ``adequate 
        consideration'' means--
                    (A) in the case of a security for which there is a 
                generally recognized market--
                            (i) the price of the security prevailing on 
                        a national securities exchange which is 
                        registered under section 6 of the Securities 
                        Exchange Act of 1934 (15 U.S.C. 78f); or
                            (ii) 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
                    (B) 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.
            (3) Fiduciary.--The term ``fiduciary'' means--
                    (A) a member of the Board;
                    (B) the Executive Director;
                    (C) any person who has or exercises discretionary 
                authority or discretionary control over the management 
                or disposition of the assets of the Fund; and
                    (D) any person who, with respect to the Fund, is 
                described in section 3(21)(A) of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 
                1002(21)(A)).
            (4) Party in interest.--The term ``party in interest'' 
        includes--
                    (A) any fiduciary;
                    (B) any counsel to a person who is a fiduciary, 
                with respect to the actions of such person as a 
                fiduciary;
                    (C) any participant;
                    (D) 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;
                    (E) a labor organization, the members of which are 
                participants;
                    (F) a spouse, sibling, ancestor, lineal descendant, 
                or spouse of a lineal descendant of a person described 
                in subparagraph (A), (B), or (D);
                    (G) a corporation, partnership, or trust or estate 
                of which, or in which, at least 50 percent of--
                            (i) 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,
                            (ii) the capital interest or profits 
                        interest of such partnership, or
                            (iii) the beneficial interest of such trust 
                        or estate,
                is owned directly or indirectly or held by a person 
                described in subparagraph (A), (B), (D), or (E);
                    (H) 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;
                    (I) 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
                    (J) 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).
    (b) Duties.--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--
            (1) for the exclusive purpose of--
                    (A) providing benefits to participants and their 
                beneficiaries; and
                    (B) defraying reasonable expenses of administering 
                the Fund or applicable portions thereof;
            (2) 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
            (3) 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.
    (c) Ownership Jurisdictions.--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.
    (d) Transactions.--
            (1) Prohibited transactions.--A fiduciary shall not permit 
        the Fund to engage in any of the following transactions, except 
        in exchange for adequate consideration:
                    (A) 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.
                    (B) 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.
                    (C) A transfer or exchange of services between the 
                Fund and any person the fiduciary knows or should know 
                to be a party in interest.
            (2) Prohibited actions.--Notwithstanding paragraph (1), a 
        fiduciary with respect to the Fund shall not--
                    (A) deal with any assets of the Fund in the 
                fiduciary's own interest or for the fiduciary's own 
                account;
                    (B) 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
                    (C) 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.
            (3) Secretary of labor.--
                    (A) In general.--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.
                    (B) Conditions.--The Secretary of Labor may not 
                grant an exemption under subparagraph (A) unless the 
                Secretary of Labor finds that such exemption is--
                            (i) administratively feasible;
                            (ii) in the interests of the Fund and its 
                        participants; and
                            (iii) protective of the rights of 
                        participants and beneficiaries of such Fund.
                    (C) Notice.--An exemption under subparagraph (A) 
                may not be granted unless--
                            (i) notice of the proposed exemption is 
                        published in the Federal Register;
                            (ii) interested persons are given an 
                        opportunity to present views; and
                            (iii) 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).
                    (D) Application of erisa fiduciary exemptions.--
                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 (29 U.S.C. 1108(a)) shall, upon publication of 
                notice in the Federal Register under this subparagraph, 
                constitute an exemption from the application of 
                paragraph (2).
    (e) Nonapplication.--This section does not prohibit any fiduciary 
from--
            (1) receiving any benefit which the fiduciary is entitled 
        to receive under this Act as a participant, former participant, 
        or beneficiary;
            (2) 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
            (3) serving as a fiduciary in addition to being an officer, 
        employee, agent, or other representative of a party in 
        interest.
    (f) Liability.--
            (1) In general.--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.
            (2) Civil penalties.--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 section 4975(f)(4) 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.
            (3) Special rules.--
                    (A) In general.--A fiduciary shall not be liable 
                under paragraph (1)--
                            (i) with respect to a breach of fiduciary 
                        duty under subsection (b) committed before 
                        becoming a fiduciary or after ceasing to be a 
                        fiduciary;
                            (ii) for providing for the automatic 
                        enrollment of a participant in accordance with 
                        section 104;
                            (iii) for enrolling a participant or 
                        beneficiary in a default investment fund or 
                        option in accordance with section 104; or
                            (iv) 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.
                    (B) Joint and several liability.--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--
                            (i) 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;
                            (ii) 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
                            (iii) the fiduciary has knowledge of a 
                        breach by such other fiduciary, unless the 
                        fiduciary makes reasonable efforts under the 
                        circumstances to remedy the breach.
            (4) Allocation of duties.--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.
            (5) Other civil actions.--
                    (A) In general.--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).
                    (B) Actions permitted.--A civil action may be 
                brought in the district courts of the United States--
                            (i) by the Secretary of Labor against any 
                        fiduciary other than a member of the Board or 
                        the Executive Director of the Board--
                                    (I) to determine and enforce a 
                                liability under paragraph (1);
                                    (II) to collect any civil penalty 
                                under paragraph (2);
                                    (III) to enjoin any act or practice 
                                which violates any provision of 
                                subsection (b) or (c);
                                    (IV) to obtain any appropriate 
                                equitable relief to redress a violation 
                                of any such provision; or
                                    (V) to enjoin any act or practice 
                                which violates subsection (g)(2) or (h) 
                                of section 201;
                            (ii) by any participant, beneficiary, or 
                        fiduciary--
                                    (I) to enjoin any act or practice 
                                which violates any provision of 
                                subsection (b) or (c);
                                    (II) to obtain any other 
                                appropriate equitable relief to redress 
                                a violation of any such provision; or
                                    (III) to enjoin any act or practice 
                                which violate subsection (g)(2) or (h) 
                                of section 201; or
                            (iii) by any participant or beneficiary--
                                    (I) 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
                                    (II) 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).
                    (C) Representation.--
                            (i) In general.--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.
                            (ii) Attorney general.--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.
                            (iii) Certification of scope of duty.--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--
                                    (I) 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
                                    (II) deemed a tort action brought 
                                against the United States under the 
                                provisions of title 28, United States 
                                Code, and all references thereto.
                            (iv) Compromise or settlement.--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).
                            (v) Certain claims.--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).
                            (vi) Payment of awards.--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.
                            (vii) Definition.--For purposes of 
                        subparagraph (B)(iii)(II), the term 
                        ``fiduciary'' includes only the members of the 
                        Board and the Board's Executive Director.
                    (D) Limitation on monetary relief.--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.
                    (E) Time for commencement of action.--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--
                            (i) 6 years after--
                                    (I) the date of the last action 
                                which constituted a part of the breach 
                                or violation; or
                                    (II) in the case of an omission, 
                                the latest date on which the fiduciary 
                                could have cured the breach or 
                                violation; or
                            (ii) 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.
                    (F) Jurisdiction.--
                            (i) In general.--The district courts of the 
                        United States shall have exclusive jurisdiction 
                        of civil actions under this subsection.
                            (ii) Venue.--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.
                    (G) Other rules.--
                            (i) In general.--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.
                            (ii) Intervention.--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.
    (g) Regulations.--The Secretary of Labor may prescribe regulations 
to carry out this section.
    (h) Audits.--
            (1) In general.--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.
            (2) Delegation.--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.

SEC. 207. BONDING.

    (a) Requirements.--
            (1) In general.--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.
            (2) Exceptions.--
                    (A) In general.--Bond shall not be required of a 
                fiduciary (or of any officer or employee of such 
                fiduciary) if such fiduciary--
                            (i) is a corporation organized and doing 
                        business under the laws of the United States or 
                        of any State;
                            (ii) is authorized under such laws to 
                        exercise trust powers or to conduct an 
                        insurance business;
                            (iii) is subject to supervision or 
                        examination by Federal or State authority; and
                            (iv) 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.
                    (B) Limitation.--If--
                            (i) 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),
                            (ii) the bank or financial institution is 
                        authorized to exercise trust powers, and
                            (iii) the deposits of the bank or financial 
                        institution are not insured by the Federal 
                        Deposit Insurance Corporation,
                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.
    (b) Regulations.--
            (1) In general.--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.
            (2) Amount of funds handled.--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.
    (c) Terms.--A bond required by subsection (a)--
            (1) 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;
            (2) 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
            (3) 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.
    (d) Custody of Funds.--
            (1) In general.--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.
            (2) Fiduciaries.--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.
    (e) Exemption.--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.
    (f) Regulations.--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.

SEC. 208. INVESTIGATIVE AUTHORITY.

    Any authority available to the Secretary of Labor under section 504 
of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1134) 
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.

SEC. 209. EXCULPATORY PROVISIONS; INSURANCE.

    (a) Exculpatory Provisions Void.--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.
    (b) Insurance.--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.

SEC. 210. SUBPOENA AUTHORITY.

    (a) Subpoena Authority.--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.
    (b) Liability.--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.
    (c) Enforcement.--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.
    (d) Regulations.--The Executive Director shall prescribe 
regulations to carry out subsection (a).

                 TITLE III--GOVERNMENT MATCH TAX CREDIT

SEC. 301. GOVERNMENT MATCH TAX CREDIT.

    (a) Credit.--Subpart A of part IV of subchapter A of chapter 1 of 
the Internal Revenue Code of 1986 is amended by inserting after section 
25E the following new section:

``SEC. 25F. GOVERNMENT MATCH TAX CREDIT.

    ``(a) Allowance of Credit.--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--
            ``(1) 1 percent of the eligible individual's gross income, 
        plus
            ``(2) the applicable percentage of the participant's 
        contributions to the American Worker Retirement Fund during the 
        taxable year.
    ``(b) Applicable Percentage.--For purposes of this section, the 
applicable percentage is--
            ``(1) 100 percent of so much of the contributions to the 
        American Worker Retirement Fund as do not exceed 3 percent of 
        gross income,
            ``(2) 50 percent of so much of such contributions as 
        exceeds 3 percent but does not exceed 5 percent of gross 
        income, and
            ``(3) 0 percent of so much of such contributions as exceeds 
        5 percent of gross income.
    ``(c) Limitation on Amount of Credit.--
            ``(1) In general.--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.
            ``(2) Phaseout of credit limit.--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.
            ``(3) Phaseout amount.--For purposes of this subsection, 
        the phaseout amount is--
                    ``(A) in the case of a joint return, an amount 
                equal to 200 percent of the applicable median income 
                for the taxable year,
                    ``(B) in the case of a head of household (as 
                defined in section 2(b)), \3/4\ of the amount 
                determined under subparagraph (A), and
                    ``(C) in any other case, \1/2\ of the amount 
                determined under subparagraph (A).
            ``(4) Applicable median income.--For purposes of this 
        subsection, the term `applicable median income' 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.
    ``(d) Eligible Individual.--For purposes of this section, the term 
`eligible individual' has the meaning given the term `participant' by 
section 2(13) of the Retirement Savings for Americans Act of 2023.
    ``(e) American Worker Retirement Fund.--For purposes of this 
section, the American Worker Retirement Fund is the Fund created under 
section 101(a) of the Retirement Savings for Americans Act of 2023.
    ``(f) Deposit Into Participant's Account.--
            ``(1) In general.--Any amount allowed as a credit under 
        subsection (a)--
                    ``(A) shall not be allowed as a credit against any 
                tax imposed by this subtitle, and
                    ``(B) shall be treated as an overpayment under 
                section 6401(b).
            ``(2) Payment.--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.
            ``(3) Exception from reduction or offset.--The rules of 
        section 6433(f)(5) shall apply to any payment to which this 
        subsection applies.
    ``(g) Advance Payment.--
            ``(1) Regulations.--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.
            ``(2) Excess payments.--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).
    ``(h) Forfeit of Amounts.--
            ``(1) In general.--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).
            ``(2) Treatment of forfeited amounts.--In the case of any 
        contribution to which paragraph (1) applies--
                    ``(A) the Executive Director of the American Worker 
                Retirement Fund, as appointed under section 203 of the 
                Retirement Savings for Americans Act of 2023, 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
                    ``(B) 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.
            ``(3) Forfeited amounts not includible in gross income.--
        Any distribution made under paragraph (2) shall not be 
        includible in the gross income of the individual.
    ``(i) Coordination With Savers' Credit.--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.''.
    (b) Clerical Amendments.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 26E the 
following new item:

``Sec. 25F. Government Match Tax Credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2022.
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