II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Retirement Savings for Americans Act of 2023’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

Sec. 3. Relationship to Social Security. 


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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. 

1 SEC. 2. DEFINITIONS. 

2 As used in this Act, except as otherwise provided: 

3 (1) ACCOUNT.—The term ‘‘account’’ means an 

4 account established and maintained under section 

5 107. 

6 (2) BOARD.—The term ‘‘Board’’ means the 

7 American Worker Retirement Investment Board es8 tablished under section 201. 

9 (3) BUSINESS.—The term ‘‘business’’ means 

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1 ship, limited liability company, or corporation, that 

2 engages in interstate commerce. 

3 (4) EARNINGS.—The term ‘‘earnings’’, when 

4 used with respect to the Fund, means the amount 

5 of the gain realized or yield received from the invest6 ment of sums in such Fund. 

7 (5) EXECUTIVE DIRECTOR.—The term ‘‘Execu8 tive Director’’ means the Executive Director ap9 pointed under section 203. 

10 (6) EXISTING RETIREMENT PLAN.—The term 

11 ‘‘existing retirement plan’’ means— 

12 (A) an eligible retirement plan, as defined 

13 in section 402(c)(8)(B) of the Internal Revenue 

14 Code of 1986, including any defined benefit 

15 plan; 

16 (B) the Thrift Savings Plan established 

17 under subchapter III of chapter 84 of title 5, 

18 United States Code; and 

19 (C) any other tax deferred employee retire20 ment plan determined by the Secretary of the 

21 Treasury to be consistent with the purposes of 

22 this Act. 

23 (7) FORMER PARTICIPANT.— 

24 (A) IN GENERAL.—The term ‘‘former par25 ticipant’’ means a participant who has an acVerDate Sep 11 2014 21:48 Oct 23, 2023 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3102.IS S3102

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1 count with the Fund and is no longer a quali2 fying worker. 

3 (B) INDIVIDUALS BECOMING QUALIFYING

4 WORKERS AGAIN.—Such term shall not include 

5 an individual who (without regard to this sub6 paragraph) is a former participant but who sub7 sequently becomes a qualifying worker and en8 rolls again under section 104(a) to participate 

9 in the Fund. This subparagraph shall apply 

10 until such individual is no longer a qualifying 

11 worker. 

12 (8) FUND.—The term ‘‘Fund’’ means the 

13 American Worker Retirement Fund established 

14 under section 101(a). 

15 (9) INVESTMENT ADVISORY COUNCIL.—The 

16 term ‘‘Investment Advisory Council’’ means the 

17 council established under section 202. 

18 (10) LOSS.—The term ‘‘loss’’, as used with re19 spect to the Fund, includes the amount of any loss 

20 resulting from the investment of sums in such Fund, 

21 or from the breach of any responsibility, duty, or ob22 ligation under section 206. 

23 (11) NET EARNINGS.—The term ‘‘net earn24 ings’’ means the excess of earnings over losses. 


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1 (12) NET LOSSES.—The term ‘‘net losses’’ 

2 means the excess of losses over earnings. 

3 (13) PARTICIPANT.—The term ‘‘participant’’ 

4 means any qualifying worker who is enrolled to par5 ticipate in the Fund under section 104(a) and has 

6 not opted out of participation under section 

7 104(b)(3). 

8 (14) PARTICIPATING EMPLOYER.—The term 

9 ‘‘participating employer’’ means any business that— 

10 (A) employs a qualifying worker; or 

11 (B) contracts with an independent con12 tractor who is a qualifying worker and opts to 

13 enroll such independent contractor to partici14 pate in the Fund under section 104(a)(2). 

15 (15) QUALIFYING WORKER.—The term ‘‘quali16 fying worker’’ means— 

17 (A) an employee who— 

18 (i) is employed by a business that has 

19 not established an existing retirement plan 

20 and does not provide an individual retire21 ment plan (as defined in section 

22 7701(a)(37) of the Internal Revenue Code 

23 of 1986) with an automatic enrollment 

24 payroll deduction arrangement; or 


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1 (ii) is not eligible to participate in any 

2 such plan or arrangement established by 

3 the business that employs the employee; or 

4 (B) an independent contractor who— 

5 (i) is self-employed; and 

6 (ii) has not established an existing re7 tirement plan, and does not have an indi8 vidual retirement plan (as defined in sec9 tion 7701(a)(37) of the Internal Revenue 

10 Code of 1986) with an automatic enroll11 ment payroll deduction arrangement. 

12 SEC. 3. RELATIONSHIP TO SOCIAL SECURITY. 

13 Except as otherwise provided in this Act, the funds 

14 payable under the Fund to participants and former par15 ticipants are in addition to the benefits payable under the 

16 Social Security Act (42 U.S.C. 301 et seq.). 

17 SEC. 4. GOVERNMENT BENEFITS. 

18 The funds owned by an individual in an account and 

19 any contribution made to such funds by a participant or 

20 the Secretary of the Treasury shall not be taken into con21 sideration when determining the individual’s eligibility for 

22 any Federal public assistance benefit. 


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1 TITLE I—THE AMERICAN 

2 WORKER RETIREMENT PLAN 

3 SEC. 101. THE AMERICAN WORKER RETIREMENT FUND. 

4 (a) ESTABLISHMENT.—There is established in the 

5 Treasury of the United States the American Worker Re6 tirement Fund. 

7 (b) PURPOSES.—The Fund shall consist of the sum 

8 of all amounts contributed under sections 105 and 301, 

9 increased by the total net earnings from investments of 

10 the sums in the Fund or reduced by the total net losses 

11 from investments of the Fund, and reduced by the total 

12 amount of payments made from the Fund (including pay13 ments for administrative expenses under subsection (e)). 

14 (c) INVESTMENT.—The sums in the Fund shall re15 main available without fiscal year limitation— 

16 (1) to invest pursuant to section 102; 

17 (2) to pay the administrative expenses of the 

18 Fund under subsection (e); 

19 (3) to make distributions as provided in section 

20 106; 

21 (4) to make loans as authorized under section 

22 106(h); and 

23 (5) to purchase insurance as provided in section 

24 209. 


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1 (d) ACCOUNTS.—Each participant shall have an ac2 count with the Fund. Amounts contributed by a partici3 pant under section 105 and by the Secretary of the Treas4 ury under section 25F of the Internal Revenue Code of 

5 1986 shall be deposited in the Fund and credited to the 

6 participant’s account in accordance with such procedures 

7 as the Secretary of the Treasury may, in consultation with 

8 the Executive Director, prescribe in regulation. 

9 (e) ADMINISTRATIVE EXPENSES.—Administrative 

10 expenses (including expenses related to financial literacy 

11 requirements under section 201(f)(5)) incurred to carry 

12 out this Act shall be paid out of the net earnings of the 

13 Fund, including earnings attributed to returned credit 

14 amounts under section 25F(h) of the Internal Revenue 

15 Code of 1986. 

16 (f) EXCLUSIVE BENEFIT.— 

17 (1) IN GENERAL.—Subject to paragraphs (2) 

18 and (3) and subsection (e), sums in the Fund cred19 ited to the accounts of a participant or former par20 ticipant may not be used for, or diverted to, pur21 poses other than for the exclusive benefit of the par22 ticipant or former participant, or a beneficiary there23 of, except as otherwise provided by law. 

24 (2) ASSIGNMENT.—Except as provided in para25 graph (3), sums in the Fund may not be assigned 


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1 or alienated and are not subject to execution, levy, 

2 attachment, garnishment, or other legal process. For 

3 purposes of this paragraph, a loan made from the 

4 Fund to a participant shall not be considered to be 

5 an assignment or alienation. 

6 (3) LEGAL OBLIGATIONS.—Moneys due or pay7 able from the Fund to any individual and, in the 

8 case of an individual who is a participant or former 

9 participant, the balance in the account of the partici10 pant or former participant shall be subject to— 

11 (A) legal process for the enforcement of 

12 the individual’s legal obligation to provide child 

13 support or make alimony payments as provided 

14 in section 459 of the Social Security Act (42 

15 U.S.C. 659); 

16 (B) an obligation of the Executive Director 

17 to make a payment to another person under 

18 section 109; and 

19 (C) any Federal tax levy under section 

20 6331 of the Internal Revenue Code of 1986. 

21 For the purposes of this paragraph, an amount con22 tributed for the benefit of a participant or former 

23 participant under section 25F of the Internal Rev24 enue Code of 1986 (including any earnings attrib25 utable thereto) shall be considered part of the balVerDate Sep 11 2014 21:48 Oct 23, 2023 Jkt 049200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S3102.IS S3102

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1 ance in such participant or former participant’s ac2 count. 

3 (g) NON-APPROPRIATED FUNDS.—The sums in the 

4 Fund shall not be appropriated for any purpose other than 

5 the purposes specified in this section and may not be used 

6 for any other purpose. 

7 (h) BENEFIT TO PARTICIPANTS.—All sums contrib8 uted to the Fund by a participant or the Secretary of the 

9 Treasury for the benefit of such participant and all net 

10 earnings in such Fund in trust for such participant shall 

11 be the exclusive property of the participant. 

12 (i) NONFORFEITABLE.—All the contributions made 

13 under section 105 and section 25F of the Internal Rev14 enue Code of 1986 shall be fully nonforfeitable when 

15 made, except as provided in section 25F(h) of such Code. 

16 SEC. 102. INVESTMENT OF AMERICAN WORKER RETIRE17 MENT FUND. 

18 (a) IN GENERAL.—The Board shall establish the in19 vestment policies of the Fund and select the investment 

20 funds, indexes, and other investment products that the 

21 amounts in the Fund shall be invested in subject to the 

22 following conditions: 

23 (1) The Board shall provide for the following 

24 investment options for participants: 


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1 (A) A Government Securities Investment 

2 Fund under which sums in the Fund are in3 vested in— 

4 (i) bonds issued or guaranteed by the 

5 United States Government; and 

6 (ii) bonds issued by Government-spon7 sored enterprises or Government corpora8 tions. 

9 (B) A Fixed-Income Investment Fund 

10 under which sums are in the Fund are invested 

11 in— 

12 (i) insurance contracts; 

13 (ii) certificates of deposit; and 

14 (iii) other instruments or obligations 

15 selected by qualified professional asset 

16 managers (as defined in section 8438(a)(8) 

17 of title 5, United States Code), 

18 which return the amount invested and pay in19 terest, at a specific rate or rates, on that 

20 amount during a specific period of time. 

21 (C) A Common Stock Index Investment 

22 Fund, as described in section 8438(b)(2) of 

23 title 5, United States Code. 


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1 (D) A Small Capitalization Stock Index In2 vestment Fund, as described in section 

3 8438(b)(3) of title 5, United States Code. 

4 (E) An International Stock Index Invest5 ment Fund, as described in section 8438(b)(4) 

6 of title 5, United States Code. 

7 (F) A Life-Cycle Investment Fund con8 sisting of target date asset allocation portfolios. 

9 (2) The Board may, in its discretion, provide 

10 for other investment options for participants con11 sistent with the Board’s fiduciary duty set forth in 

12 sections 201 and 206. 

13 (3) The Board shall consult with the Invest14 ment Advisory Council before authorizing additional 

15 investment options for participants. 

16 (b) INVESTMENTS.— 

17 (1) INVESTMENT SELECTION.—The Executive 

18 Director shall invest the sums available in the Fund 

19 for investment as provided in the selection made 

20 under subsection (c). 

21 (2) DEFAULT OPTION.—If a selection has not 

22 been made with respect to any sums available for in23 vestment in the Fund, the Executive Director shall 

24 invest such sums in an age-appropriate Life-Cycle 


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1 Investment Fund, as determined by the Executive 

2 Director. 

3 (c) INVESTMENT SELECTION.—As often as is prac4 tical, but not less than twice per year, a participant may 

5 select the investment funds and options referred to in sub6 section (a) into which the amounts in the Fund credited 

7 to the participant’s accounts are to be invested or rein8 vested. A selection may be made under this subsection only 

9 in accordance with regulations prescribed by the Executive 

10 Director and within such period as the Executive Director 

11 shall provide in such regulations, but in no event less fre12 quently than twice a year. 

13 (d) VOTING RIGHTS.—Participants, former partici14 pants, the Board, and the Executive Director may not ex15 ercise voting rights associated with the ownership of secu16 rities by the Fund. 

17 (e) REPORTS.—The Board shall issue regular reports 

18 (not less frequently than quarterly) to participants and 

19 former participants on the performance of each investment 

20 option selected under subsection (a), which shall include 

21 personalized estimates of assets and income at retirement, 

22 the additional assets and income at retirement a partici23 pant would have if the participant makes sufficient con24 tributions to receive the maximum amount of the Govern25 ment match tax credit under section 25F of the Internal 


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1 Revenue Code of 1986, and any other information the 

2 Board determines may help participants make sound fi3 nancial decisions. The Board shall provide the reports re4 quired under this subsection by electronic delivery, except 

5 that upon the request of a participant or former partici6 pant, reports shall be provided by mail to such individual. 

7 SEC. 103. ELIGIBILITY. 

8 (a) ELIGIBILITY.—A qualifying worker shall be eligi9 ble to participate in the Fund upon completion of the en10 rollment process set forth in section 104. 

11 (b) CESSATION OF ELIGIBILITY.—A former partici12 pant shall not be eligible to contribute to the Fund under 

13 section 105(a) but shall remain the owner of the funds 

14 in the former participant’s account with the Fund (and 

15 any net earnings attributable to such funds) subject to the 

16 withdrawal conditions established under section 106, and 

17 may exercise investment decisions with respect to such ac18 count on the same basis as a participant. 

19 SEC. 104. ENROLLMENT. 

20 (a) ENROLLMENT.— 

21 (1) IN GENERAL.—The Secretary of the Treas22 ury and the Executive Director shall jointly establish 

23 an enrollment process for participating employers to 

24 enroll qualifying workers to participate in the Fund 

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1 rollment and participant contributions under section 

2 105(a) into Federal tax withholding forms and pay3 ments. Such process shall provide that a business 

4 operating on the date of the establishment of the 

5 Fund shall complete such enrollment process for any 

6 qualifying worker as of such time no later than the 

7 date that is 1 year from such date. 

8 (2) INDEPENDENT CONTRACTORS.— 

9 (A) IN GENERAL.—In the case of inde10 pendent contractors who are qualifying workers, 

11 the enrollment process shall allow businesses 

12 who have contracts with such qualifying work13 ers to elect to enroll such qualifying workers to 

14 participate in the Fund. 

15 (B) CLASSIFICATION.—An election (or fail16 ure to make an election) by a business under 

17 subparagraph (A) with respect to any inde18 pendent contractor who is a qualifying worker 

19 shall not be relevant to the classification of 

20 such worker as an independent contractor 

21 under any Federal, State, or local law. 

22 (b) AUTO-ENROLLMENT; OPT-OUT.— 

23 (1) IN GENERAL.—Each participating employer 

24 shall enroll each of its qualifying workers to partici25 pate in the Fund under subsection (a) unless such 


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1 qualifying worker elects to opt out of participating 

2 pursuant to paragraph (3). A qualifying worker who 

3 is a sole proprietor or independent contractor shall 

4 enroll or elect to opt out of participating pursuant 

5 to paragraph (3). 

6 (2) AUTOMATIC CONTRIBUTION RATES.—Each 

7 qualifying worker enrolled under paragraph (1) shall 

8 be automatically enrolled to make contributions 

9 under section 105(a) at the default percentage of 3 

10 percent of the qualifying worker’s compensation 

11 from the employer for such period as shall be estab12 lished by regulation under section 105(a)(3). 

13 (3) OPT-OUT.—A qualifying worker may elect 

14 to opt out of participating in the Fund pursuant to 

15 procedures established jointly by the Secretary of the 

16 Treasury and the Executive Director as part of the 

17 regulations governing the enrollment process set 

18 forth in subsection (a). If a qualifying worker elects 

19 to opt out of participating in the Fund, such quali20 fying worker shall not be enrolled in subsequent 

21 years unless the qualifying worker elects to partici22 pate in the Fund. The Secretary of the Treasury 

23 and the Executive Director shall determine proce24 dures to establish accounts for qualifying workers 

25 who elect to opt out of participating in the Fund 


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1 who are determined to be eligible for automatic con2 tributions or who would make contributions other3 wise allowable by law outside the withholding proc4 ess. 

5 (c) PENALTIES.— 

6 (1) PENALTY.—A participating employer who 

7 fails to enroll a qualifying worker pursuant to sub8 section (b) or fails to deposit in the Fund the 

9 amount of a participant’s contributions under sec10 tion 105(a) shall be subject to a penalty equal to the 

11 applicable penalty percentage of the amount of the 

12 contributions by the qualifying worker or partici13 pant, as the case may be, that the participating em14 ployer fails to deposit due to failure to enroll the 

15 qualifying worker or otherwise deposit such funds. 

16 The Secretary of the Treasury and the Executive 

17 Director shall jointly prescribe regulations under 

18 which a participating employer shall be required to 

19 pay to the Fund amounts representing lost earnings 

20 resulting from errors made by such participating 

21 employer in carrying out this section. 

22 (2) APPLICABLE PENALTY PERCENTAGE.—The 

23 term ‘‘applicable penalty percentage’’ means— 

24 (A) 2 percent if the failure is for not more 

25 than 5 days; 


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1 (B) 5 percent if the failure is for more 

2 than 5 days but not more than 15 days; and 

3 (C) 10 percent if the failure is for more 

4 than 15 days. 

5 (3) FUNDS.—The Secretary of the Treasury 

6 shall credit to the Fund, out of any sums in the 

7 Treasury not otherwise appropriated, the amount 

8 determined by the Executive Director to be nec9 essary to carry out this section and section 105(d). 

10 SEC. 105. CONTRIBUTIONS. 

11 (a) CONTRIBUTIONS BY PARTICIPANTS.— 

12 (1) IN GENERAL.—Pursuant to the regulations 

13 established under paragraph (3) and subsection (e), 

14 a participant may make contributions to the partici15 pant’s account with the Fund in any pay period in 

16 an amount not to exceed the participant’s compensa17 tion for such period. 

18 (2) OTHER PARTICIPANT CONTRIBUTIONS.— 

19 (A) CATCH-UP CONTRIBUTIONS.—Notwith20 standing the limitation under paragraph (1) or 

21 subsection (c), a participant may make such ad22 ditional contributions to the participant’s ac23 count with the Fund as are permitted by sec24 tion 414(v) of the Internal Revenue Code of 


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1 1986, and the regulations established under 

2 subsection (e) consistent therewith. 

3 (B) CONTRIBUTIONS OF TAX REFUNDS.— 

4 (i) IN GENERAL.—Subject to the lim5 its of subsection (c), a participant may 

6 elect, at such time and in such manner as 

7 the Secretary of the Treasury may pre8 scribe, to contribute to the participant’s 

9 account any portion of such participant’s 

10 overpayment of tax which is to be refunded 

11 to such participant under section 6402 of 

12 the Internal Revenue Code of 1986. 

13 (ii) SPECIAL RULES.—For purposes of 

14 clause (i)— 

15 (I) the amount of the overpay16 ment which may be contributed under 

17 clause (i) shall be determined without 

18 regard to any overpayment attrib19 utable to the amount contributed to 

20 the account by the Secretary of the 

21 Treasury under section 25F of the In22 ternal Revenue Code of 1986, and 

23 (II) any contribution described in 

24 clause (i) shall be treated as made for 

25 the taxable year of the overpayment 


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1 and shall be taken into account in de2 termining the amount of the credit 

3 under section 25F for such taxable 

4 year. 

5 (3) CONTRIBUTIONS.—The Secretary of the 

6 Treasury and the Executive Director shall jointly 

7 prescribe regulations that establish a program of 

8 regular contribution under which participants may— 

9 (A) make contributions to their accounts 

10 with the Fund under paragraph (1); 

11 (B) modify the amount contributed under 

12 such paragraph; or 

13 (C) terminate such contributions. 

14 (4) ELECTION.—An election to make contribu15 tions under this subsection— 

16 (A) may be made at any time; 

17 (B) shall take effect on the earliest date 

18 after the election that is administratively fea19 sible; and 

20 (C) shall remain in effect until modified or 

21 terminated. 

22 Any such election shall be subject to the contribution 

23 limits under this section. 

24 (b) CONTRIBUTION OF GOVERNMENT MATCH TAX

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1 tions in the form of the Government Match Tax Credit 

2 contributed by the Secretary of the Treasury under section 

3 25F of the Internal Revenue Code of 1986. 

4 (c) CONTRIBUTION LIMITS.—Notwithstanding any 

5 other provision of this section, no contribution may be 

6 made under this section for any year to the extent that 

7 such contribution, when added to prior contributions for 

8 such year, exceeds any limitation under section 219(b)(5) 

9 of the Internal Revenue Code of 1986. Any contribution 

10 made under section 25F of the Internal Revenue Code of 

11 1986 shall not be taken into account for purposes of the 

12 preceding sentence. 

13 (d) TREATMENT AS ROTH CONTRIBUTIONS.—Con14 tributions under subsection (a) shall not be excludable 

15 from gross income and no deduction shall be allowed with 

16 respect to such contributions under section 219 of the In17 ternal Revenue Code of 1986. 

18 (e) REGULATIONS.—The amounts contributed to the 

19 Fund by a participant under section 105(a) and on behalf 

20 of a participant by the Secretary of the Treasury under 

21 section 25F of the Internal Revenue Code of 1986 shall 

22 be deposited in the Fund and credited to the participant’s 

23 account with the Fund pursuant to regulations jointly pre24 scribed by the Secretary of the Treasury and the Execu25 tive Director. 


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1 SEC. 106. DISTRIBUTIONS. 

2 (a) FORMER PARTICIPANTS.—A former participant is 

3 entitled to access the amounts in the former participant’s 

4 account as provided in this section. Amounts in the ac5 count of a former participant shall remain in the Fund 

6 until distributed in accordance with subsection (b). 

7 (b) FORMER PARTICIPANT WITHDRAWAL OP8 TIONS.—Subject to section 109, a former participant is 

9 entitled to and may elect to withdraw from the Fund the 

10 balance of the former participant’s account as— 

11 (1) an annuity; 

12 (2) a single payment; 

13 (3) 2 or more substantially equal payments to 

14 be made not less frequently than annually; or 

15 (4) any combination of payments described in 

16 paragraphs (1) through (3) as the Executive Direc17 tor may prescribe by regulation. 

18 (c) ADDITIONAL FORMER PARTICIPANT WITH19 DRAWAL OPTIONS.— 

20 (1) IN GENERAL.—In addition to the right pro21 vided under subsection (b) to withdraw the balance 

22 of the account, a former participant may make 1 or 

23 more withdrawals of any amount in the same man24 ner as a single payment is made in accordance with 

25 subsection (b)(2) from the former participant’s ac26 count. 


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1 (2) TRANSFERS TO RETIREMENT PLANS.— 

2 (A) IN GENERAL.—A former participant 

3 may request that the amount withdrawn from 

4 the Fund under paragraph (1) be transferred to 

5 an existing retirement plan. 

6 (B) TRANSFERS.—The Executive Director 

7 shall make each transfer directly to an existing 

8 retirement plan identified by the former partici9 pant for whom the transfer is made. A transfer 

10 shall not be made under the preceding sentence 

11 until the Executive Director receives from the 

12 former participant the information required by 

13 the Executive Director specifically to identify 

14 the existing retirement plan to which the trans15 fer is to be made. 

16 (3) LIMITATIONS.—Withdrawals under this 

17 subsection shall be subject to such other limitations 

18 or conditions as the Executive Director may pre19 scribe by regulation. 

20 (d) PAYMENT OF ANNUITIES.—The Board shall pre21 scribe methods of payment of annuities under this Act 

22 substantially similar to those provided for under section 

23 8434 of title 5, United States Code. 

24 (e) FORMER PARTICIPANT CHANGES TO ELEC25 TIONS.— 


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1 (1) IN GENERAL.—Subject to section 109, a 

2 former participant may change an election previously 

3 made under this section, except that in the case of 

4 an election to receive an annuity, a former partici5 pant may not change an election under this section 

6 on or after the date on which an annuity contract 

7 is purchased to provide for the annuity elected by 

8 the former participant. 

9 (2) DISTRIBUTIONS MADE.—A former partici10 pant may not return a distribution once made pur11 suant to an election under this section. 

12 (f) SURVIVOR RIGHTS.— 

13 (1) IN GENERAL.—If a participant or a former 

14 participant dies without having made an election 

15 under subsection (b) or after having elected an an16 nuity under subsection (b) but before making an 

17 election for payments to a survivor rights under sec18 tion 8434 of title 5, United States Code, an amount 

19 equal to the value of that individual’s account (as of 

20 death) shall, subject to any decree, order, or agree21 ment referred to in section 109, be paid in a manner 

22 consistent with the requirements of section 109. 

23 (2) MAINTENANCE OF ACCOUNT.—Notwith24 standing section 109, if a participant or former par25 ticipant dies and has designated as sole or partial 


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1 beneficiary the spouse of the participant or former 

2 participant at the time of death, or, if a participant 

3 or former participant dies with no designated bene4 ficiary and is survived by a spouse, the spouse may 

5 maintain the portion of the participant or former 

6 participant’s account to which the spouse is entitled 

7 in accordance with the following terms: 

8 (A) Subject to the limitations of subpara9 graph (B), the spouse shall have the same with10 drawal options under subsection (b) as a former 

11 participant. 

12 (B) The spouse may not make withdrawals 

13 under subsection (h) or (i). 

14 (C) The spouse may not make contribu15 tions or transfers to the account. 

16 (D) The account shall be disbursed upon 

17 the death of the surviving spouse of the partici18 pant or former participant and shall not be 

19 maintained by a beneficiary or surviving spouse 

20 of the surviving spouse who inherited the ac21 count. 

22 (3) REGULATIONS.—The Executive Director 

23 shall prescribe regulations to carry out this sub24 section. 


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•S 3102 IS

1 (g) SMALL BALANCE ACCOUNTS.—Notwithstanding 

2 subsection (b), if a former participant’s account balance 

3 is less than an amount that the Executive Director pre4 scribes by regulation, the Executive Director shall pay the 

5 nonforfeitable account balance to the participant in a sin6 gle payment. The Executive Director may prescribe more 

7 than 1 balance amount for payment under this subsection 

8 based on age of the former participant. 

9 (h) LOANS.— 

10 (1) IN GENERAL.—A participant or former par11 ticipant may apply to the Board for permission to 

12 borrow from the participant or former participant’s 

13 account an amount not exceeding the value of that 

14 portion of such account which is attributable to con15 tributions made by the participant or former partici16 pant. Before a loan is issued, the Executive Director 

17 shall provide to the participant or former participant 

18 in writing with appropriate information concerning 

19 the cost of the loan relative to other sources of fi20 nancing, as well as the lifetime cost of the loan, in21 cluding the difference in interest rates between the 

22 funds offered by the Fund and any other effect of 

23 such loan on the participant or former participant’s 

24 final account balance. 

25 (2) SPECIAL RULES.— 


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•S 3102 IS

1 (A) IN GENERAL.—Loans under this sub2 section shall be available to all participant and 

3 former participants on a reasonably equivalent 

4 basis, and shall be subject to such other condi5 tions as the Board may prescribe by regulation, 

6 which shall be as equivalent as practically pos7 sible to those provided for under the Thrift 

8 Savings Plan. The restrictions of section 

9 206(c)(1) shall not apply to loans made under 

10 this subsection. 

11 (B) LIMITATION BASED ON TAX TREAT12 MENT.—A loan may not be made under this 

13 subsection to the extent that the loan would be 

14 treated as a taxable distribution under section 

15 72(p) of the Internal Revenue Code of 1986. 

16 (C) SPOUSAL PROTECTIONS.—A loan may 

17 not be made under this subsection unless the 

18 requirements of section 109 are satisfied. 

19 (i) VOLUNTARY DISTRIBUTIONS.— 

20 (1) IN GENERAL.—A participant may apply, be21 fore becoming a former participant, to the Board for 

22 permission to withdraw an amount from the partici23 pant’s account based upon— 

24 (A) the participant having attained age 

591 25 ⁄2; or 


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•S 3102 IS

1 (B) financial hardship. 

2 (2) LIMITATIONS.—A withdrawal under para3 graph (1)(B) shall be available only for an amount 

4 not exceeding the value of that portion of such ac5 count which is attributable to contributions made by 

6 the participant. Withdrawals under paragraph (1) 

7 shall be subject to such other limitations or condi8 tions as the Executive Director may prescribe by 

9 regulation, which shall be as equivalent as prac10 tically possible to those provided for under the 

11 Thrift Savings Plan. 

12 (3) SPOUSAL PROTECTIONS.—A withdrawal 

13 may not be made under this subsection unless the 

14 requirements of section 109 are satisfied. 

15 (j) INVOLUNTARY DISTRIBUTIONS.— 

16 (1) IN GENERAL.—A participant shall receive a 

17 distribution from the Fund if the participant’s gross 

18 income for a taxable year exceeds the dollar thresh19 old (as adjusted by the Secretary of the Treasury) 

20 established under section 414(q)(1)(B) of the Inter21 nal Revenue Code of 1986. 

22 (2) AMOUNT OF DISTRIBUTION.—The amount 

23 of a distribution under paragraph (1) shall be equal 

24 to the sum of such participant’s contributions to the 

25 Fund for the taxable year for which such distribuVerDate Sep 11 2014 21:48 Oct 23, 2023 Jkt 049200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S3102.IS S3102

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•S 3102 IS

1 tion is required under paragraph (1), increased by 

2 any gains attributable to such contributions, and de3 creased by any losses attributable to such contribu4 tions, any early withdrawal penalties, and any ex5 penses associated with making such distribution. 

6 (3) PROCESS FOR DISTRIBUTION.— 

7 (A) NOTICE TO PARTICIPANT.—The Exec8 utive Director shall provide notice to a partici9 pant subject to a distribution under paragraph 

10 (1) not later than 7 days after the Executive 

11 Director determines that such participant is 

12 subject to such distribution, based on informa13 tion regarding participants’ gross income pro14 vided by the Secretary of the Treasury. 

15 (B) METHOD OF DISTRIBUTION.—Not 

16 later than 30 days after receiving notice under 

17 subparagraph (A), a participant may elect to 

18 direct that a distribution under paragraph (1) 

19 be made— 

20 (i) in the case of an eligible rollover 

21 distribution (as defined in section 402(c) 

22 of the Internal Revenue Code of 1986), to 

23 an eligible retirement plan (as defined in 

24 such section of such code); or 

25 (ii) directly to such participant. 


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•S 3102 IS

1 (C) DEFAULT ELECTION.—In the case of a 

2 participant who fails to make an election within 

3 the period described in subparagraph (B), the 

4 Executive Director shall make the distribution 

5 directly to such participant. 

6 (4) TAX TREATMENT OF INVOLUNTARY DIS7 TRIBUTION.—A distribution made under paragraph 

8 (1) directly to the participant under subparagraph 

9 (B)(ii) or (C) shall be treated as an early distribu10 tion from a qualified retirement plan pursuant to 

11 section 72(t) of the Internal Revenue Code of 1986 

12 to the extent such distribution does not consist of 

13 participant contributions to the Fund. 

14 (k) TREATMENT AS ROTH DISTRIBUTIONS.—The 

15 rules of sections 408(d) and 408A(d) of the Internal Rev16 enue Code of 1986 shall apply to distributions from the 

17 Fund in the same manner as if such Fund were a Roth 

18 IRA. For purposes of the preceding sentence, contribu19 tions made under section 25F of such Code shall be treat20 ed as employer contributions which were not includible in 

21 gross income. 

22 SEC. 107. ACCOUNTS. 

23 (a) IN GENERAL.—The Executive Director shall es24 tablish and maintain an account for each participant who 

25 makes contributions under section 105(a), or for whom 


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•S 3102 IS

1 contributions are made under section 25F of the Internal 

2 Revenue Code of 1986, to the Fund. 

3 (b) ACCOUNT BALANCES.—The balance in a partici4 pant’s account is the excess of— 

5 (1) the sum of— 

6 (A) all contributions made to the Fund by 

7 the participant under section 105(a); 

8 (B) all contributions made to the Fund for 

9 the benefit of the participant by the Secretary 

10 of the Treasury under section 25F of the Inter11 nal Revenue Code of 1986; and 

12 (C) the total amount of the allocations 

13 made to and reduction made in the account 

14 pursuant to subsection (c); over 

15 (2) the amounts paid out of the Fund with re16 spect to such participant under this title. 

17 (c) ALLOCATION OF EARNINGS AND LOSSES.—Pur18 suant to regulation prescribed by the Executive Director, 

19 the Executive Director shall allocate to each account an 

20 amount equal to a pro rata share of the net earnings and 

21 net losses from each investment of sums in the Fund at22 tributed to sums credited to such account, reduced by the 

23 appropriate share of the administrative expenses paid out 

24 of the net earnings under section 101(e) as determined 

25 by the Executive Director. 


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•S 3102 IS

1 SEC. 108. TAX TREATMENT. 

2 Except as otherwise provided in this Act, for purposes 

3 of the Internal Revenue Code of 1986, rules similar to 

4 the rules that apply with respect to the Thrift Savings 

5 Fund (including the rules of section 8440 of title 5, 

6 United States Code) shall apply with respect to the Amer7 ican Worker Retirement Fund. 

8 SEC. 109. SPOUSAL PROTECTIONS; SURVIVOR RIGHTS. 

9 The provisions for spousal protections and court or10 ders under section 8435 and 8467 of title 5, United States 

11 Code, respectively, shall apply in the same manner to gov12 ernance of the Fund and to accounts of participants and 

13 former participants as such sections are applied with re14 spect the Thrift Savings Plan and its accounts. The Exec15 utive Director shall issue regulations that establish spous16 al protections and survivor rights with respect to partici17 pants and former participants that are as equivalent as 

18 practically possible to those provided for under the Thrift 

19 Savings Plan pursuant to chapter 84 of title 5, United 

20 States Code. 


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•S 3102 IS

1 TITLE II—THE AMERICAN WORK2 ER RETIREMENT PLAN IN3 VESTMENT MANAGEMENT 

4 SYSTEM 

5 SEC. 201. THE AMERICAN WORKER RETIREMENT INVEST6 MENT BOARD. 

7 (a) ESTABLISHMENT.—There is established in the ex8 ecutive branch of the Government the American Worker 

9 Retirement Investment Board. 

10 (b) COMPOSITION.—The Board shall be composed 

11 of— 

12 (1) 3 members appointed by the President, of 

13 whom 1 shall be designated by the President as 

14 Chair; 

15 (2) 1 member appointed by the President after 

16 taking into consideration the recommendation made 

17 by the majority leader of the Senate in consultation 

18 with the minority leader of the Senate; and 

19 (3) 1 member appointed by the President after 

20 taking into consideration the recommendation made 

21 by the Speaker of the House of Representatives in 

22 consultation with the minority leader of the House 

23 of Representatives. 


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•S 3102 IS

1 (c) SENATE CONFIRMATION.—Appointments under 

2 subsection (b) shall be made with the advice and consent 

3 of the Senate. 

4 (d) QUALIFICATIONS.— 

5 (1) IN GENERAL.—Members of the Board shall 

6 have substantial experience, training, and expertise 

7 in the management of financial investments and 

8 pension benefit plans. 

9 (2) DISQUALIFICATION.—No member of the 

10 Board may be an officer or employee of the Federal 

11 Government. 

12 (e) TERMS; VACANCIES.— 

13 (1) TERMS.—A member of the Board shall be 

14 appointed for a term of 4 years, except that of the 

15 members first appointed under subsection (b)— 

16 (A) the Chair shall be appointed for a term 

17 of 4 years; 

18 (B) the members appointed under para19 graphs (2) and (3) of subsection (b) shall be 

20 appointed for terms of 3 years; and 

21 (C) the remaining members shall be ap22 pointed for terms of 2 years. 

23 (2) VACANCIES.— 

24 (A) IN GENERAL.—A vacancy on the 

25 Board shall be filled in the manner in which the 


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•S 3102 IS

1 original appointment was made and shall be 

2 subject to any conditions which applied with re3 spect to the original appointment. 

4 (B) TERM.—An individual chosen to fill a 

5 vacancy shall be appointed for the unexpired 

6 term of the member replaced. 

7 (C) EXPIRATION.—The term of any mem8 ber shall not expire before the date on which 

9 the member’s successor takes office. 

10 (f) BOARD DUTIES.—The Board shall— 

11 (1) establish policies for— 

12 (A) the investment and management of the 

13 Fund; and 

14 (B) the administration of title I of this 

15 Act; 

16 (2) hire and set the compensation for the Exec17 utive Director; 

18 (3) review the performance of investments made 

19 for the Fund; 

20 (4) review and approve the budget of the 

21 Board; and 

22 (5) develop evidence-based financial literacy re23 quirements for participants in the Fund, including 

24 requirements for financial literacy interventions to 

25 occur prior to a participant— 


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•S 3102 IS

1 (A) taking an early withdrawal from their 

2 account at the Fund pursuant to section 106(i); 

3 and 

4 (B) taking a loan from such account pur5 suant to section 106(h). 

6 (g) BOARD AUTHORITIES; INVESTMENT LIMITA7 TIONS.— 

8 (1) IN GENERAL.—The Board may— 

9 (A) adopt, alter, and use a seal; 

10 (B) except as provided in paragraph (2), 

11 direct the Executive Director to take such ac12 tion as the Board considers appropriate to 

13 carry out the provisions of this Act and the 

14 policies of the Board; 

15 (C) upon the concurring votes of 4 mem16 bers, remove the Executive Director from office 

17 for good cause shown; and 

18 (D) take such other action as may be nec19 essary to carry out the functions of the Board. 

20 (2) EXCEPTION.—Except in the case of invest21 ments under section 102(b)(2), the Board may not 

22 direct the Executive Director to invest or to cause 

23 to be invested any sums in the Fund in a specific 

24 asset or to dispose of or cause to be disposed of any 

25 specific asset of such Fund. 


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•S 3102 IS

1 (h) BOARD RESPONSIBILITIES.—The members of the 

2 Board shall discharge their responsibilities under this Act 

3 solely in the interest of participants and beneficiaries. 

4 (i) BUDGET.—The Board shall prepare and submit 

5 to the President, and, at the same time, to the appropriate 

6 committees of Congress, an annual budget of the expenses 

7 and other items relating to the Board which shall be in8 cluded as a separate item in the budget required to be 

9 transmitted to the Congress under section 1105 of title 

10 31, United States Code. 

11 (j) LEGISLATIVE RECOMMENDATIONS.—The Board 

12 may submit to the President, and, at the same time, shall 

13 submit to each House of the Congress, any legislative rec14 ommendations of the Board relating to any of its functions 

15 under this title. 

16 SEC. 202. THE AMERICAN WORKER RETIREMENT PLAN AD17 VISORY COUNCIL. 

18 (a) ESTABLISHMENT.—The Board shall establish an 

19 American Worker Retirement Plan Advisory Council. The 

20 Council shall be composed of 7 members appointed by the 

21 Chair of the Board in accordance with subsection (b). 

22 (b) APPOINTMENT.—The Chair shall appoint 7 mem23 bers of the Council, of whom— 

24 (1) 3 shall be appointed who have experience 

25 managing investment funds; 


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•S 3102 IS

1 (2) 2 shall be appointed who have experience 

2 operating small businesses; and 

3 (3) 2 shall be appointed who have experience 

4 providing investment advice to small businesses and 

5 low-income workers. 

6 (c) HEAD OF COUNCIL; TERMS; VACANCIES.— 

7 (1) IN GENERAL.—The Chair of the Board 

8 shall designate 1 member of the Council to serve as 

9 head of the Council. 

10 (2) TERM.—A member of the Council shall be 

11 appointed for a term of 4 years. 

12 (3) VACANCIES.— 

13 (A) IN GENERAL.—A vacancy in the Coun14 cil shall be filled in the manner in which the 

15 original appointment was made and shall be 

16 subject to any conditions which applied with re17 spect to the original appointment. 

18 (B) TERM.—An individual chosen to fill a 

19 vacancy shall be appointed for the unexpired 

20 term of the member replaced. 

21 (C) EXPIRATION.—The term of any mem22 ber shall not expire before the date on which 

23 the member’s successor takes office. 

24 (d) MAJORITY APPROVAL.—The Council shall act by 

25 resolution of a majority of the members. 


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•S 3102 IS

1 (e) DUTIES.—The Council shall— 

2 (1) advise the Board and the Executive Direc3 tor on matters relating to— 

4 (A) investment policies for the Fund; and 

5 (B) the administration of title I of this 

6 Act; and 

7 (2) perform such other duties as the Board may 

8 direct with respect to investment funds established 

9 in accordance with title I. 

10 SEC. 203. EXECUTIVE DIRECTOR. 

11 (a) IN GENERAL.— 

12 (1) APPOINTMENT.—The Board shall appoint, 

13 without regard to the provisions of law governing 

14 appointments in the competitive service, an Execu15 tive Director by action agreed to by a majority of 

16 the members of the Board. 

17 (2) QUALIFICATIONS.—The Executive Director 

18 shall have substantial experience, training, and ex19 pertise in the management of financial investments 

20 and pension benefit plans. 

21 (b) DUTIES.—The Executive Director shall— 

22 (1) carry out the policies established by the 

23 Board; 


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•S 3102 IS

1 (2) invest and manage the Fund in accordance 

2 with investment policies and other policies estab3 lished by the Board; 

4 (3) administer the provisions of this Act; 

5 (4) prescribe such regulations (other than regu6 lations relating to fiduciary responsibilities) as may 

7 be necessary for the administration of this Act; 

8 (5) meet from time to time with the Council 

9 upon the request of the Council; and 

10 (6) enforce the financial literary requirements 

11 established by the Board pursuant to 201(f)(5). 

12 (c) AUTHORITIES.—The Executive Director may— 

13 (1) prescribe such regulations as may be nec14 essary to carry out the responsibilities of the Execu15 tive Director under this section, other than regula16 tions relating to fiduciary responsibilities; 

17 (2) appoint such personnel as may be necessary 

18 to carry out the provisions of this Act; 

19 (3) subject to approval by the Board, procure 

20 the services of experts and consultants under section 

21 3109 of title 5, United States Code; 

22 (4) make such payments out of sums in the 

23 Fund as the Executive Director determines are nec24 essary to carry out the provisions of this Act and the 

25 policies of the Board; 


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•S 3102 IS

1 (5) pay the compensation, per diem, and travel 

2 expenses of individuals appointed under paragraphs 

3 (2), (3), and (7) of this subsection from the Fund; 

4 (6) except as otherwise expressly prohibited by 

5 law or the policies of the Board, delegate any of the 

6 Executive Director’s functions to such employees 

7 under the Board as the Executive Director may des8 ignate and authorize such successive redelegations of 

9 such functions to such employees under the Board 

10 as the Executive Director may consider to be nec11 essary or appropriate; and 

12 (7) take such other actions as are appropriate 

13 to carry out the functions of the Executive Director. 

14 SEC. 204. INVESTMENT POLICIES AND SELECTION OF 

15 ASSET MANAGERS. 

16 (a) INVESTMENT POLICIES.—The Board shall de17 velop investment policies under section 201(f)(1) which 

18 provide for— 

19 (1) prudent investments suitable for accumu20 lating funds for payment of retirement income; and 

21 (2) low administrative costs. 

22 (b) ASSET MANAGERS.—The Board shall select asset 

23 managers to manage the Fund, subject to the following 

24 conditions: 


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•S 3102 IS

1 (1) The Board shall select a number of asset 

2 managers necessary to ensure that no asset manager 

3 shall be responsible for managing the greater of— 

4 (A) $500,000,000,000; or 

5 (B) 10 percent of the Fund’s assets. 

6 (2) The Board shall limit any contract with an 

7 asset manager to a maximum of 5 years. 

8 SEC. 205. ADMINISTRATIVE PROVISIONS. 

9 (a) BOARD MEETINGS.—The Board shall meet— 

10 (1) not less than once during each month; and 

11 (2) at additional times at the call of the Chair. 

12 (b) BOARD GOVERNANCE.— 

13 (1) IN GENERAL.—Except as provided in sec14 tion 201(g)(1)(C), the Board shall perform the func15 tions and exercise the powers of the Board on a ma16 jority vote of a quorum of the Board. 

17 (2) QUORUM.—3 members of the Board shall 

18 constitute a quorum for the transaction of business. 

19 (3) EFFECT OF VACANCY.—A vacancy on the 

20 Board shall not impair the authority of a quorum of 

21 the Board to perform the functions and exercise the 

22 power of the Board. 

23 (c) BOARD COMPENSATION.— 

24 (1) IN GENERAL.—Each member of the Board 

25 shall be compensated at the daily rate of basic pay 


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•S 3102 IS

1 for level IV of the Executive Schedule for each day 

2 during which such member is engaged in performing 

3 a function of the Board. 

4 (2) PER DIEM, ETC.—A member of the Board 

5 shall be paid travel, per diem, and other necessary 

6 expenses while traveling away from such member’s 

7 home or regular place of business in the perform8 ance of the duties of the Board. 

9 (3) PAYMENT FROM FUND.—Payments author10 ized under this subsection shall be paid from the 

11 Fund as administrative expenses permitted under 

12 section 101(e). 

13 SEC. 206. FIDUCIARY RESPONSIBILITIES; LIABILITY AND 

14 PENALTIES. 

15 (a) DEFINITIONS.—For the purposes of this section: 

16 (1) ACCOUNT.—The term ‘‘account’’ is not lim17 ited by the definition provided in section 2. 

18 (2) ADEQUATE CONSIDERATION.—The term 

19 ‘‘adequate consideration’’ means— 

20 (A) in the case of a security for which 

21 there is a generally recognized market— 

22 (i) the price of the security prevailing 

23 on a national securities exchange which is 

24 registered under section 6 of the Securities 

25 Exchange Act of 1934 (15 U.S.C. 78f); or 


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•S 3102 IS

1 (ii) if the security is not traded on 

2 such a national securities exchange, a price 

3 not less favorable to the Fund than the of4 fering price for the security as established 

5 by the current bid and asked prices quoted 

6 by persons independent of the issuer and 

7 of any party in interest; and 

8 (B) in the case of an asset other than a se9 curity for which there is a generally recognized 

10 market, the fair market value of the asset as 

11 determined in good faith by a fiduciary or fidu12 ciaries in accordance with regulations pre13 scribed by the Secretary of Labor. 

14 (3) FIDUCIARY.—The term ‘‘fiduciary’’ 

15 means— 

16 (A) a member of the Board; 

17 (B) the Executive Director; 

18 (C) any person who has or exercises discre19 tionary authority or discretionary control over 

20 the management or disposition of the assets of 

21 the Fund; and 

22 (D) any person who, with respect to the 

23 Fund, is described in section 3(21)(A) of the 

24 Employee Retirement Income Security Act of 

25 1974 (29 U.S.C. 1002(21)(A)). 


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•S 3102 IS

1 (4) PARTY IN INTEREST.—The term ‘‘party in 

2 interest’’ includes— 

3 (A) any fiduciary; 

4 (B) any counsel to a person who is a fidu5 ciary, with respect to the actions of such person 

6 as a fiduciary; 

7 (C) any participant; 

8 (D) any person providing services to the 

9 Board and, with respect to the actions of the 

10 Executive Director as a fiduciary, any person 

11 providing services to the Executive Director; 

12 (E) a labor organization, the members of 

13 which are participants; 

14 (F) a spouse, sibling, ancestor, lineal de15 scendant, or spouse of a lineal descendant of a 

16 person described in subparagraph (A), (B), or 

17 (D); 

18 (G) a corporation, partnership, or trust or 

19 estate of which, or in which, at least 50 percent 

20 of— 

21 (i) the combined voting power of all 

22 classes of stock entitled to vote or the total 

23 value of shares of all classes of stock of 

24 such corporation, 


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•S 3102 IS

1 (ii) the capital interest or profits in2 terest of such partnership, or 

3 (iii) the beneficial interest of such 

4 trust or estate, 

5 is owned directly or indirectly or held by a per6 son described in subparagraph (A), (B), (D), or 

7 (E); 

8 (H) an official (including a director) of, or 

9 an individual employed by, a person described 

10 in subparagraph (A), (B), (D), (E), or (G), or 

11 an individual having powers or responsibilities 

12 similar to those of such an official; 

13 (I) a holder (directly or indirectly) of at 

14 least 10 percent of the shares in a person de15 scribed in any subparagraph referred to in sub16 paragraph (H); and 

17 (J) a person who, directly or indirectly, is 

18 at least a 10 percent partner or joint venturer 

19 (measured in capital or profits) in a person de20 scribed in any subparagraph referred to in sub21 paragraph (H). 

22 (b) DUTIES.—To the extent not inconsistent with the 

23 provisions of this Act and the policies prescribed by the 

24 Board, a fiduciary shall discharge the fiduciary’s respon25 sibilities with respect to the Fund or applicable portion 


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•S 3102 IS

1 thereof solely in the interest of the participants and bene2 ficiaries and— 

3 (1) for the exclusive purpose of— 

4 (A) providing benefits to participants and 

5 their beneficiaries; and 

6 (B) defraying reasonable expenses of ad7 ministering the Fund or applicable portions 

8 thereof; 

9 (2) with the care, skill, prudence, and diligence 

10 under the circumstances then prevailing that a pru11 dent individual acting in a like capacity and familiar 

12 with such matters would use in the conduct of an 

13 enterprise of a like character and with like objec14 tives; and 

15 (3) to the extent permitted by section 102, by 

16 diversifying the investments of the Fund or applica17 ble portions thereof so as to minimize the risk of 

18 large losses, unless under the circumstances it is 

19 clearly prudent not to do so. 

20 (c) OWNERSHIP JURISDICTIONS.—No fiduciary may 

21 maintain the indicia of ownership of any assets of the 

22 Fund outside the jurisdiction of the district courts of the 

23 United States. 

24 (d) TRANSACTIONS.— 


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•S 3102 IS

1 (1) PROHIBITED TRANSACTIONS.—A fiduciary 

2 shall not permit the Fund to engage in any of the 

3 following transactions, except in exchange for ade4 quate consideration: 

5 (A) A transfer of any assets of the Fund 

6 to any person the fiduciary knows or should 

7 know to be a party in interest or the use of 

8 such assets by any such persons. 

9 (B) An acquisition of any property from or 

10 sale of any property to the Fund by any person 

11 the fiduciary knows or should know to be a 

12 party in interest. 

13 (C) A transfer or exchange of services be14 tween the Fund and any person the fiduciary 

15 knows or should know to be a party in interest. 

16 (2) PROHIBITED ACTIONS.—Notwithstanding 

17 paragraph (1), a fiduciary with respect to the Fund 

18 shall not— 

19 (A) deal with any assets of the Fund in 

20 the fiduciary’s own interest or for the fidu21 ciary’s own account; 

22 (B) act, in an individual capacity or any 

23 other capacity, in any transaction involving the 

24 Fund on behalf of a party, or representing a 

25 party, whose interests are adverse to the interVerDate Sep 11 2014 21:48 Oct 23, 2023 Jkt 049200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\S3102.IS S3102

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•S 3102 IS

1 ests of the Fund or the interests of its partici2 pants or beneficiaries; or 

3 (C) receive any consideration of the fidu4 ciary’s own personal account from any party 

5 dealing with sums credited to the Fund in con6 nection with a transaction involving assets of 

7 the Fund. 

8 (3) SECRETARY OF LABOR.— 

9 (A) IN GENERAL.—The Secretary of Labor 

10 may, in accordance with procedures which the 

11 Secretary of Labor shall by regulation pre12 scribe, grant a conditional or unconditional ex13 emption of any fiduciary or transaction, or class 

14 of fiduciaries or transactions, from all or any of 

15 the restrictions imposed by paragraph (2). An 

16 exemption granted under this subparagraph 

17 shall not relieve a fiduciary from any other ap18 plicable provision of this Act. 

19 (B) CONDITIONS.—The Secretary of Labor 

20 may not grant an exemption under subpara21 graph (A) unless the Secretary of Labor finds 

22 that such exemption is— 

23 (i) administratively feasible; 

24 (ii) in the interests of the Fund and 

25 its participants; and 


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•S 3102 IS

1 (iii) protective of the rights of partici2 pants and beneficiaries of such Fund. 

3 (C) NOTICE.—An exemption under sub4 paragraph (A) may not be granted unless— 

5 (i) notice of the proposed exemption is 

6 published in the Federal Register; 

7 (ii) interested persons are given an 

8 opportunity to present views; and 

9 (iii) the Secretary of Labor affords an 

10 opportunity for a hearing and makes a de11 termination on the record with respect to 

12 the respective requirements of clauses (i), 

13 (ii), and (iii) of subparagraph (B). 

14 (D) APPLICATION OF ERISA FIDUCIARY

15 EXEMPTIONS.—Notwithstanding subparagraph 

16 (C), the Secretary of Labor may determine that 

17 an exemption granted for any class of fidu18 ciaries or transactions under section 408(a) of 

19 the Employee Retirement Income Security Act 

20 of 1974 (29 U.S.C. 1108(a)) shall, upon publi21 cation of notice in the Federal Register under 

22 this subparagraph, constitute an exemption 

23 from the application of paragraph (2). 

24 (e) NONAPPLICATION.—This section does not pro25 hibit any fiduciary from— 


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•S 3102 IS

1 (1) receiving any benefit which the fiduciary is 

2 entitled to receive under this Act as a participant, 

3 former participant, or beneficiary; 

4 (2) receiving any reasonable compensation au5 thorized by this Act for services rendered, or for re6 imbursement of expenses properly and actually in7 curred, in the performance of the fiduciary’s duties 

8 under this Act; or 

9 (3) serving as a fiduciary in addition to being 

10 an officer, employee, agent, or other representative 

11 of a party in interest. 

12 (f) LIABILITY.— 

13 (1) IN GENERAL.—Any fiduciary that breaches 

14 the responsibilities, duties, and obligations set out in 

15 subsection (b) or violates subsection (c) shall be per16 sonally liable to the Fund for any losses to such 

17 Fund resulting from each such breach or violation 

18 and to restore to such Fund any profits made by the 

19 fiduciary through use of assets of such Fund by the 

20 fiduciary, and, except as provided in paragraphs (3) 

21 and (4), shall be subject to such other equitable or 

22 remedial relief as a court considers appropriate. A 

23 fiduciary may be removed for a breach referred to 

24 in the preceding sentence. 


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1 (2) CIVIL PENALTIES.—The Secretary of Labor 

2 may assess a civil penalty against a party in interest 

3 with respect to each transaction prohibited by sub4 section (d) which is engaged in by the party in inter5 est. The amount of such penalty shall be equal to 5 

6 percent of the amount involved in each such trans7 action (as defined in section 4975(f)(4) of the Inter8 nal Revenue Code of 1986) for each year or part 

9 thereof during which the prohibited transaction con10 tinues, except that, if the transaction is not cor11 rected (in such manner as the Secretary of Labor 

12 shall prescribe by regulation consistent with section 

13 4975(f)(5) of such Code) within 90 days after the 

14 date the Secretary of Labor transmits notice to the 

15 party in interest (or such longer period as the Sec16 retary of Labor may permit), such penalty may be 

17 in the amount of not more than 100 percent of the 

18 amount involved. 

19 (3) SPECIAL RULES.— 

20 (A) IN GENERAL.—A fiduciary shall not be 

21 liable under paragraph (1)— 

22 (i) with respect to a breach of fidu23 ciary duty under subsection (b) committed 

24 before becoming a fiduciary or after ceas25 ing to be a fiduciary; 


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•S 3102 IS

1 (ii) for providing for the automatic 

2 enrollment of a participant in accordance 

3 with section 104; 

4 (iii) for enrolling a participant or ben5 eficiary in a default investment fund or op6 tion in accordance with section 104; or 

7 (iv) for allowing a participant or bene8 ficiary to invest through the mutual fund 

9 window or for establishing restrictions ap10 plicable to participants’ or beneficiaries’ 

11 ability to invest through the mutual fund 

12 window. 

13 (B) JOINT AND SEVERAL LIABILITY.—A fi14 duciary shall be jointly and severally liable 

15 under paragraph (1) for a breach of fiduciary 

16 duty under subsection (b) by another fiduciary 

17 only if— 

18 (i) the fiduciary participates know19 ingly in, or knowingly undertakes to con20 ceal, an act or omission of such other fidu21 ciary, knowing such act or omission is such 

22 a breach; 

23 (ii) by the fiduciary’s failure to com24 ply with subsection (b) in the administra25 tion of the fiduciary’s specific responsibilVerDate Sep 11 2014 21:48 Oct 23, 2023 Jkt 049200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\S3102.IS S3102

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•S 3102 IS

1 ities which give rise to the fiduciary status, 

2 the fiduciary has enabled such other fidu3 ciary to commit such a breach; or 

4 (iii) the fiduciary has knowledge of a 

5 breach by such other fiduciary, unless the 

6 fiduciary makes reasonable efforts under 

7 the circumstances to remedy the breach. 

8 (4) ALLOCATION OF DUTIES.—The Secretary of 

9 Labor shall prescribe, in regulations, procedures for 

10 allocating fiduciary responsibilities among fidu11 ciaries, including asset managers. Any fiduciary who, 

12 pursuant to such procedures, allocates to any person 

13 any fiduciary responsibility shall not be liable for an 

14 act or omission of such person unless such fiduciary 

15 violated subsection (b) with respect to the allocation, 

16 with respect to the implementation of the procedures 

17 prescribed by the Secretary of Labor. 

18 (5) OTHER CIVIL ACTIONS.— 

19 (A) IN GENERAL.—No civil action may be 

20 maintained against any fiduciary with respect 

21 to the responsibilities, liabilities, and penalties 

22 authorized or provided for in this section except 

23 in accordance with subparagraphs (B) and (C). 


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•S 3102 IS

1 (B) ACTIONS PERMITTED.—A civil action 

2 may be brought in the district courts of the 

3 United States— 

4 (i) by the Secretary of Labor against 

5 any fiduciary other than a member of the 

6 Board or the Executive Director of the 

7 Board— 

8 (I) to determine and enforce a li9 ability under paragraph (1); 

10 (II) to collect any civil penalty 

11 under paragraph (2); 

12 (III) to enjoin any act or practice 

13 which violates any provision of sub14 section (b) or (c); 

15 (IV) to obtain any appropriate 

16 equitable relief to redress a violation 

17 of any such provision; or 

18 (V) to enjoin any act or practice 

19 which violates subsection (g)(2) or (h) 

20 of section 201; 

21 (ii) by any participant, beneficiary, or 

22 fiduciary— 

23 (I) to enjoin any act or practice 

24 which violates any provision of sub25 section (b) or (c); 


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•S 3102 IS

1 (II) to obtain any other appro2 priate equitable relief to redress a vio3 lation of any such provision; or 

4 (III) to enjoin any act or practice 

5 which violate subsection (g)(2) or (h) 

6 of section 201; or 

7 (iii) by any participant or bene8 ficiary— 

9 (I) to recover benefits of such 

10 participant or beneficiary under the 

11 provisions of title I, to enforce any 

12 right of such participant or bene13 ficiary under such provisions, or to 

14 clarify any such right to future bene15 fits under such provisions; or 

16 (II) to enforce a claim otherwise 

17 cognizable under sections 1346(b) and 

18 2671 through 2680 of title 28, United 

19 States Code, except that the remedy 

20 against the United States provided by 

21 section 1346(b) and 2672 of such title 

22 28 for damages for injury or loss of 

23 property caused by the negligent or 

24 wrongful act or omission of any fidu25 ciary while acting within the scope of 


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•S 3102 IS

1 the fiduciary’s duties or employment 

2 shall be exclusive of any other civil ac3 tion or proceeding by the participant 

4 or beneficiary for recovery of money 

5 by reason of the same subject matter 

6 against the fiduciary (or the estate of 

7 such fiduciary) whose act or omission 

8 gave rise to such action or proceeding, 

9 whether or not such action or pro10 ceeding is based on an alleged viola11 tion of subsection (b) or (c). 

12 (C) REPRESENTATION.— 

13 (i) IN GENERAL.—In all civil actions 

14 under subparagraph (B)(i), attorneys ap15 pointed by the Secretary may represent the 

16 Secretary (except as provided in section 

17 518(a) of title 28, United States Code), 

18 however, all such litigation shall be subject 

19 to the direction and control of the Attorney 

20 General. 

21 (ii) ATTORNEY GENERAL.—The Attor22 ney General shall defend any civil action or 

23 proceeding brought in any court against 

24 any fiduciary referred to in subparagraph 

25 (B)(iii)(II) (or the estate of such fiduciary) 


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•S 3102 IS

1 for any such injury. Any fiduciary against 

2 whom such a civil action or proceeding is 

3 brought shall deliver, within such time 

4 after date of service or knowledge of serv5 ice as determined by the Attorney General, 

6 all process served upon such fiduciary (or 

7 an attested copy thereof) to the Executive 

8 Director, who shall promptly furnish copies 

9 of the pleading and process to the Attorney 

10 General and the United States Attorney 

11 for the district wherein the action or pro12 ceeding is brought. 

13 (iii) CERTIFICATION OF SCOPE OF

14 DUTY.—Upon certification by the Attorney 

15 General that a fiduciary described in sub16 paragraph (B)(iii)(II) was acting in the 

17 scope of such fiduciary’s duties or employ18 ment as a fiduciary at the time of the oc19 currence or omission out of which the ac20 tion arose, any such civil action or pro21 ceeding commenced in the State court shall 

22 be— 

23 (I) removed without bond at any 

24 time before trial by the Attorney Gen25 eral to the district court of the United 


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•S 3102 IS

1 States for the district and division in 

2 which it is pending; and 

3 (II) deemed a tort action brought 

4 against the United States under the 

5 provisions of title 28, United States 

6 Code, and all references thereto. 

7 (iv) COMPROMISE OR SETTLEMENT.— 

8 The Attorney General may compromise or 

9 settle any claim asserted in such civil ac10 tion or proceeding in the manner provided 

11 in section 2677 of title 28, United States 

12 Code, and with the same effect. To the ex13 tent section 2672 of title 28, United States 

14 Code, provides that persons other than the 

15 Attorney General or the Attorney General’s 

16 designee may compromise and settle 

17 claims, and that payments of such claims 

18 may be made from agency appropriations, 

19 such provisions shall not apply to claims 

20 based upon an alleged violation of sub21 section (b) or (c). 

22 (v) CERTAIN CLAIMS.—For the pur23 poses of subparagraph (B)(iii)(II), the pro24 visions of section 2680(h) of title 28, 

25 United States Code shall not apply to any 


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•S 3102 IS

1 claim based upon an alleged violation of 

2 subsection (b) or (c). 

3 (vi) PAYMENT OF AWARDS.—Notwith4 standing sections 1346(b) and 2671 

5 through 2680 of title 28, United States 

6 Code, whenever an award, compromise, or 

7 settlement is made under such section 

8 upon any claim based upon an alleged vio9 lation of subsection (b) or (c), payment of 

10 such award, compromise, or settlement 

11 shall be made to the appropriate account 

12 with in the Fund, or where there is no 

13 such appropriate account, to the partici14 pant or beneficiary bringing the claim. 

15 (vii) DEFINITION.—For purposes of 

16 subparagraph (B)(iii)(II), the term ‘‘fidu17 ciary’’ includes only the members of the 

18 Board and the Board’s Executive Director. 

19 (D) LIMITATION ON MONETARY RELIEF.— 

20 Any relief awarded against a member of the 

21 Board or the Board’s Executive Director in a 

22 civil action authorized by subparagraph (B) 

23 may not include any monetary damages or any 

24 other recovery of money. 


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•S 3102 IS

1 (E) TIME FOR COMMENCEMENT OF AC2 TION.—An action may not be commenced under 

3 clause (i) or (ii) of subparagraph (B) with re4 spect to a fiduciary’s breach of any responsi5 bility, duty, or obligation under subsection (b) 

6 or a violation of subsection (c) after the earlier 

7 of— 

8 (i) 6 years after— 

9 (I) the date of the last action 

10 which constituted a part of the breach 

11 or violation; or 

12 (II) in the case of an omission, 

13 the latest date on which the fiduciary 

14 could have cured the breach or viola15 tion; or 

16 (ii) 3 years after the earliest date on 

17 which the plaintiff had actual knowledge of 

18 the breach or violation, except that, in the 

19 case of fraud or concealment, such action 

20 may be commenced not later than 6 years 

21 after the date of discovery of such breach 

22 or violation. 

23 (F) JURISDICTION.— 

24 (i) IN GENERAL.—The district courts 

25 of the United States shall have exclusive 


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•S 3102 IS

1 jurisdiction of civil actions under this sub2 section. 

3 (ii) VENUE.—An action under this 

4 subsection may be brought in the District 

5 Court of the United States for the District 

6 of Columbia or a district court of the 

7 United States in the district where the 

8 breach alleged in the complaint or petition 

9 filed in the action took place or in the dis10 trict where a defendant resides or may be 

11 found. Process may be served in any other 

12 district where a defendant resides or may 

13 be found. 

14 (G) OTHER RULES.— 

15 (i) IN GENERAL.—A copy of the com16 plaint or petition filed in any action 

17 brought under this subsection (other than 

18 by the Secretary of Labor) shall be served 

19 on the Executive Director, the Secretary of 

20 Labor, and the Secretary of the Treasury 

21 by certified mail. 

22 (ii) INTERVENTION.—Any officer re23 ferred to in clause (i) shall have the right 

24 in the officer’s discretion to intervene in 

25 any action. If the Secretary of Labor 


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•S 3102 IS

1 brings an action under subparagraph 

2 (B)(i) on behalf of a participant or bene3 ficiary, the Secretary of Labor shall notify 

4 the Executive Director and the Secretary 

5 of the Treasury. 

6 (g) REGULATIONS.—The Secretary of Labor may 

7 prescribe regulations to carry out this section. 

8 (h) AUDITS.— 

9 (1) IN GENERAL.—The Secretary of Labor shall 

10 establish a program to carry out audits to determine 

11 the level of compliance with the requirements of this 

12 section relating to fiduciary responsibilities and pro13 hibited activities of fiduciaries. 

14 (2) DELEGATION.—An audit under this sub15 section may be conducted by the Secretary of Labor, 

16 by contract with a qualified non-governmental orga17 nization, or in cooperation with the Comptroller 

18 General of the United States, as the Secretary of 

19 Labor considers appropriate. 

20 SEC. 207. BONDING. 

21 (a) REQUIREMENTS.— 

22 (1) IN GENERAL.—Except as provided in para23 graph (2), each fiduciary and each person who han24 dles funds or property of the Fund shall be bonded 

25 as provided in this section. 


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•S 3102 IS

1 (2) EXCEPTIONS.— 

2 (A) IN GENERAL.—Bond shall not be re3 quired of a fiduciary (or of any officer or em4 ployee of such fiduciary) if such fiduciary— 

5 (i) is a corporation organized and 

6 doing business under the laws of the 

7 United States or of any State; 

8 (ii) is authorized under such laws to 

9 exercise trust powers or to conduct an in10 surance business; 

11 (iii) is subject to supervision or exam12 ination by Federal or State authority; and 

13 (iv) has at all times a combined cap14 ital and surplus in excess of such minimum 

15 amount (not less than $1,000,000) as the 

16 Secretary of Labor prescribes in regula17 tions. 

18 (B) LIMITATION.—If— 

19 (i) a bank or other financial institu20 tion would, but for this subparagraph, not 

21 be required to be bonded under this section 

22 by reason of the application of the excep23 tion provided in subparagraph (A), 

24 (ii) the bank or financial institution is 

25 authorized to exercise trust powers, and 


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•S 3102 IS

1 (iii) the deposits of the bank or finan2 cial institution are not insured by the Fed3 eral Deposit Insurance Corporation, 

4 such exception shall apply to such bank or fi5 nancial institution only if the bank or institu6 tion meets bonding requirements under State 

7 law which the Secretary of Labor determines 

8 are at least equivalent to those imposed on 

9 banks by Federal law. 

10 (b) REGULATIONS.— 

11 (1) IN GENERAL.—The Secretary of Labor shall 

12 prescribe the amount of a bond under this section at 

13 the beginning of each fiscal year. Such amount shall 

14 not be less than 10 percent of the amount of funds 

15 handled, except that in no case shall such bond be 

16 less than $1,000 or more than $500,000, or such 

17 higher amount as the Secretary of Labor, after due 

18 notice and opportunity for hearing to all interested 

19 parties, and other consideration of the record, may 

20 prescribe. 

21 (2) AMOUNT OF FUNDS HANDLED.—For the 

22 purpose of prescribing the amount of a bond under 

23 paragraph (1), the amount of funds handled shall be 

24 determined by reference to the amount of the funds 

25 handled by the person, group, or class to be covered 


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•S 3102 IS

1 by such bond or by their predecessor or prede2 cessors, if any, during the preceding fiscal year, or 

3 to the amount of funds to be handled during the 

4 current fiscal year by such person, group, or class, 

5 estimated as provided in regulations prescribed by 

6 the Secretary of Labor. 

7 (c) TERMS.—A bond required by subsection (a)— 

8 (1) shall include such terms and conditions as 

9 the Secretary of Labor considers necessary to pro10 tect the Fund against loss by reason of acts of fraud 

11 or dishonesty on the part of the bonded person di12 rectly or through connivance with others; 

13 (2) shall have as surety thereon a corporate 

14 surety company which is an acceptable surety on 

15 Federal bonds under authority granted by the Sec16 retary of the Treasury pursuant to sections 9304 

17 through 9308 of title 31, United States Code; and 

18 (3) shall be in a form or of a type approved by 

19 the Secretary of Labor, including individual bonds or 

20 schedule or blanket forms of bonds which cover a 

21 group or class. 

22 (d) CUSTODY OF FUNDS.— 

23 (1) IN GENERAL.—It shall be unlawful for any 

24 person to whom subsection (a) applies, to receive, 

25 handle, disburse, or otherwise exercise custody or 


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•S 3102 IS

1 control of any of the funds or other property of the 

2 Fund without being bonded as required by this sec3 tion. 

4 (2) FIDUCIARIES.—It shall be unlawful for any 

5 fiduciary, or any other person having authority to 

6 direct the performance of functions described in 

7 paragraph (1), to permit any such function to be 

8 performed by any person to whom subsection (a) ap9 plies unless such person has met the requirements of 

10 such subsection. 

11 (e) EXEMPTION.—Notwithstanding any other provi12 sion of law, any person who is required to be bonded as 

13 provided in subsection (a) shall be exempt from any other 

14 provision of law which would, but for this subsection, re15 quire such person to be bonded for the handling of the 

16 funds or other property of the Fund. 

17 (f) REGULATIONS.—The Secretary of Labor shall 

18 prescribe such regulations as may be necessary to carry 

19 out the provisions of this section, including exempting a 

20 person or class of persons from the requirements of this 

21 section. 

22 SEC. 208. INVESTIGATIVE AUTHORITY. 

23 Any authority available to the Secretary of Labor 

24 under section 504 of the Employee Retirement Income Se25 curity Act of 1974 (29 U.S.C. 1134) is hereby made availVerDate Sep 11 2014 21:48 Oct 23, 2023 Jkt 049200 PO 00000 Frm 00067 Fmt 6652 Sfmt 6201 E:\BILLS\S3102.IS S3102

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1 able to the Secretary of Labor, and any officer designated 

2 by the Secretary of Labor, to determine whether any per3 son has violated, or is about to violate, any provision of 

4 sections 206 or 207. 

5 SEC. 209. EXCULPATORY PROVISIONS; INSURANCE. 

6 (a) EXCULPATORY PROVISIONS VOID.—Any provi7 sion in an agreement or instrument which purports to re8 lieve a fiduciary from responsibility or liability for any re9 sponsibility, obligation, or duty under this title shall be 

10 void. 

11 (b) INSURANCE.—In accordance with section 101(e), 

12 the sums credited to the Fund shall be available to pay 

13 administrative expenses which may include, at the discre14 tion of the Executive Director, the purchase of insurance 

15 to cover potential liability of persons who serve in a fidu16 ciary capacity with respect to the Fund, without regard 

17 to whether a policy of insurance permits recourse by the 

18 insurer against the fiduciary in the case of a breach of 

19 a fiduciary obligation. 

20 SEC. 210. SUBPOENA AUTHORITY. 

21 (a) SUBPOENA AUTHORITY.—In order to carry out 

22 the responsibilities specified in this Act, the Executive Di23 rector may issue subpoenas commanding each person to 

24 whom the subpoena is directed to produce designated 

25 books, documents, records, electronically stored informaVerDate Sep 11 2014 21:48 Oct 23, 2023 Jkt 049200 PO 00000 Frm 00068 Fmt 6652 Sfmt 6201 E:\BILLS\S3102.IS S3102

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•S 3102 IS

1 tion, or tangible materials in the possession or control of 

2 that individual. 

3 (b) LIABILITY.—Notwithstanding any Federal, State, 

4 or local law, any person, including officers, agents, and 

5 employees, receiving a subpoena under this section, who 

6 complies in good faith with the subpoena and thus pro7 duces the materials sought, shall not be liable in any court 

8 of any State or the United States to any individual, do9 mestic or foreign corporation or upon a partnership or 

10 other unincorporated association for such production. 

11 (c) ENFORCEMENT.—When a person fails to obey a 

12 subpoena issued under this section, the district court of 

13 the United States for the district in which the investiga14 tion is conducted or in which the person failing to obey 

15 is found, shall on proper application issue an order direct16 ing that person to comply with the subpoena. The court 

17 may punish as contempt any disobedience of its order. 

18 (d) REGULATIONS.—The Executive Director shall 

19 prescribe regulations to carry out subsection (a). 

20 TITLE III—GOVERNMENT MATCH 

21 TAX CREDIT 

22 SEC. 301. GOVERNMENT MATCH TAX CREDIT. 

23 (a) CREDIT.—Subpart A of part IV of subchapter A 

24 of chapter 1 of the Internal Revenue Code of 1986 is 


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•S 3102 IS

1 amended by inserting after section 25E the following new 

2 section: 

3 ‘‘SEC. 25F. GOVERNMENT MATCH TAX CREDIT. 

4 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli5 gible individual, there shall be allowed as a credit for the 

6 taxable year an amount equal to the sum of— 

7 ‘‘(1) 1 percent of the eligible individual’s gross 

8 income, plus 

9 ‘‘(2) the applicable percentage of the partici10 pant’s contributions to the American Worker Retire11 ment Fund during the taxable year. 

12 ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 

13 this section, the applicable percentage is— 

14 ‘‘(1) 100 percent of so much of the contribu15 tions to the American Worker Retirement Fund as 

16 do not exceed 3 percent of gross income, 

17 ‘‘(2) 50 percent of so much of such contribu18 tions as exceeds 3 percent but does not exceed 5 per19 cent of gross income, and 

20 ‘‘(3) 0 percent of so much of such contributions 

21 as exceeds 5 percent of gross income. 

22 ‘‘(c) LIMITATION ON AMOUNT OF CREDIT.— 

23 ‘‘(1) IN GENERAL.—The credit allowed under 

24 subsection (a) with respect to any eligible individual 

25 for a taxable year shall not exceed 5 percent of the 


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•S 3102 IS

1 phaseout amount with respect to such individual for 

2 such taxable year. 

3 ‘‘(2) PHASEOUT OF CREDIT LIMIT.—The limit 

4 determined under paragraph (1) for a taxable year 

5 shall be reduced by $75 for each $1,000 or portion 

6 thereof by which the eligible individual’s gross in7 come exceeds the phaseout amount. 

8 ‘‘(3) PHASEOUT AMOUNT.—For purposes of 

9 this subsection, the phaseout amount is— 

10 ‘‘(A) in the case of a joint return, an 

11 amount equal to 200 percent of the applicable 

12 median income for the taxable year, 

13 ‘‘(B) in the case of a head of household (as 

defined in section 2(b)), 3 14 ⁄4 of the amount de15 termined under subparagraph (A), and 

‘‘(C) in any other case, 1 16 ⁄2 of the amount 

17 determined under subparagraph (A). 

18 ‘‘(4) APPLICABLE MEDIAN INCOME.—For pur19 poses of this subsection, the term ‘applicable median 

20 income’ means, with respect to any taxable year, an 

21 amount equal to the most recent Median Personal 

22 Income for the population 15 and over in the United 

23 States, as published in the United States Census 

24 Bureau’s Current Population Survey Tables for PerVerDate Sep 11 2014 21:48 Oct 23, 2023 Jkt 049200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 E:\BILLS\S3102.IS S3102

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1 sonal Income before the beginning of the calendar 

2 year in which such taxable year begins. 

3 ‘‘(d) ELIGIBLE INDIVIDUAL.—For purposes of this 

4 section, the term ‘eligible individual’ has the meaning 

5 given the term ‘participant’ by section 2(13) of the Retire6 ment Savings for Americans Act of 2023. 

7 ‘‘(e) AMERICAN WORKER RETIREMENT FUND.—For 

8 purposes of this section, the American Worker Retirement 

9 Fund is the Fund created under section 101(a) of the Re10 tirement Savings for Americans Act of 2023. 

11 ‘‘(f) DEPOSIT INTO PARTICIPANT’S ACCOUNT.— 

12 ‘‘(1) IN GENERAL.—Any amount allowed as a 

13 credit under subsection (a)— 

14 ‘‘(A) shall not be allowed as a credit 

15 against any tax imposed by this subtitle, and 

16 ‘‘(B) shall be treated as an overpayment 

17 under section 6401(b). 

18 ‘‘(2) PAYMENT.—The Secretary shall contribute 

19 the amount treated as an overpayment under para20 graph (1) to the eligible individual’s account with 

21 the American Worker Retirement Fund. 

22 ‘‘(3) EXCEPTION FROM REDUCTION OR OFF23 SET.—The rules of section 6433(f)(5) shall apply to 

24 any payment to which this subsection applies. 

25 ‘‘(g) ADVANCE PAYMENT.— 


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1 ‘‘(1) REGULATIONS.—The Secretary shall pre2 scribe regulations to provide that the payments 

3 made under subsection (f) are made as concurrently 

4 as is reasonably possible with contributions by a tax5 payer to the American Worker Retirement Fund. 

6 Such regulations shall provide that, for purposes of 

7 such payments, the credit under subsection (a) may 

8 be determined on the basis of the eligible individual’s 

9 gross income for the preceding taxable year. 

10 ‘‘(2) EXCESS PAYMENTS.—If the aggregate 

11 amount of payments under subsection (f) with re12 spect to an eligible individual for any taxable year 

13 exceeds the amount of the credit allowed under sub14 section (a) to such individual for such taxable year, 

15 the tax imposed by this chapter for such taxable 

16 year shall be increased by the amount of such ex17 cess. Any failure to so increase the tax shall be 

18 treated as arising out of a mathematical or clerical 

19 error and assessed according to section 6213(b)(1). 

20 ‘‘(h) FORFEIT OF AMOUNTS.— 

21 ‘‘(1) IN GENERAL.—If any contribution de22 scribed in subsection (a) does not remain in the 

23 American Worker Retirement Fund for at least 6 

24 months after such contribution is made, the amount 

25 of the credit under this section attributable to such 


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•S 3102 IS

1 contribution shall be forfeited as provided in para2 graph (2). 

3 ‘‘(2) TREATMENT OF FORFEITED AMOUNTS.— 

4 In the case of any contribution to which paragraph 

5 (1) applies— 

6 ‘‘(A) the Executive Director of the Amer7 ican Worker Retirement Fund, as appointed 

8 under section 203 of the Retirement Savings 

9 for Americans Act of 2023, shall make a dis10 tribution from the individual’s account in an 

11 amount equal to such contribution to the Sec12 retary for deposit into the general fund of the 

13 Treasury, and 

14 ‘‘(B) in the case of any earnings on such 

15 contribution, such earnings shall be distributed 

16 by such Executive Director from the individ17 ual’s account and shall be available to the Exec18 utive Director, without need of further appro19 priation, for administrative expenses described 

20 in section 101(e) of such Act. 

21 ‘‘(3) FORFEITED AMOUNTS NOT INCLUDIBLE IN

22 GROSS INCOME.—Any distribution made under para23 graph (2) shall not be includible in the gross income 

24 of the individual. 


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75 

•S 3102 IS

1 ‘‘(i) COORDINATION WITH SAVERS’ CREDIT.—Any 

2 contribution by an individual to the American Worker Re3 tirement Fund for a taxable year shall not be treated as 

4 a qualified retirement savings contribution of such indi5 vidual for purposes of section 25B.’’. 

6 (b) CLERICAL AMENDMENTS.—The table of sections 

7 for subpart A of part IV of subchapter A of chapter 1 

8 of the Internal Revenue Code of 1986 is amended by in9 serting after the item relating to section 26E the following 

10 new item: 

‘‘Sec. 25F. Government Match Tax Credit.’’. 

11 (c) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to taxable years beginning after 

13 December 31, 2022. 

Æ 


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