and shall be subject to any conditions that applied 
with respect to the original appointment. 
(2) COMPLETION OF TERM.—An individual cho-
sen to fill a vacancy under subparagraph (A) shall 
be appointed for the unexpired term of the member 
replaced. 
(d) MEMBERSHIP REQUIREMENTS.—Members and 
trustees appointed under this section shall have substan-
tial experience, training, and expertise in the management 
of financial investments and pension benefit plans. 
(e) COMPENSATION.— 
(1) IN GENERAL.—Each such member or trust-
ee who is not an officer or employee of the Federal 
Government shall be compensated at the daily rate 
of basic pay for level II of the Executive Schedule 
for each day during which such member is engaged 
in performing a function of the Board. 
(2) EXPENSES.—Each such member or trustee 
shall be paid travel, per diem, and other necessary 
expenses under subchapter I of chapter 57 of title 
5, United States Code, while traveling away from 
such member’s home or regular place of business in 
the performance of the duties of the Board. 
(f) DISCHARGE OF RESPONSIBILITIES.—The mem-
bers and trustees shall discharge their responsibilities sole-
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ly in the interest of the participants in SAVE UP Ac-
counts and their beneficiaries under this part. 
(g) ANNUAL INDEPENDENT AUDIT.—The SAVE UP 
Board of Governors shall annually engage an independent 
qualified public accountant to audit the activities of the 
Board of Governors and each Regional Board of Trustees. 
SEC. 107. REPORTING AND DISCLOSURE. 
(a) ANNUAL STATEMENT.—The SAVE UP Board of 
Trustees shall provide each participant in the Fund an 
annual statement of— 
(1) the estimated amount of the monthly ben-
efit which the participant or beneficiary is projected 
to receive from the Fund, in the form of the default 
benefit described in the plan in accordance with the 
bill; 
(2) an explanation, written in a manner cal-
culated to be understood by the average plan partici-
pant, that includes interest and mortality assump-
tions used in calculating the estimate and a state-
ment that actual benefits may be materially different 
from such estimate; 
(3) a disclosure of SAVE UP Accounts Fund 
fees and performance that is substantially similar to 
the disclosures required of individual account plans 
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under the Employee Retirement Income Security Act 
of 1974; 
(4) any other disclosures, including projected 
benefit estimates, that the SAVE UP Board of 
Trustees determines appropriate; and 
(5) such other disclosures as may be required 
by the Board of Governors. 
(b) SUMMARY PLAN DESCRIPTION.—The SAVE UP 
Board of Trustees shall provide participants a summary 
plan description (as described in section 102 of the Em-
ployee Retirement Income Security Act (29 U.S.C. 1022)) 
as required by section 104(b) of the Employee Retirement 
Income Security Act (29 U.S.C. 1024(b)). 
(c) ANNUAL REPORTS.—The SAVE UP Board of 
Trustees shall file with the Secretary of Labor periodic 
reports in accordance with regulations promulgated by the 
SAVE UP Board of Governors. 
(d) ADDITIONAL REQUIREMENTS.—The SAVE UP 
Board of Trustees shall be subject to sections 106 and 
107 of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1026, 1027). 
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SEC. 108. FIDUCIARY DUTIES UNDER SAVE UP ACCOUNT 
CONTRIBUTION PROGRAMS AND SAVE UP AC-
COUNTS. 
(a) LIMITATION ON FIDUCIARY DUTIES UNDER THE 
SAVE UP ACCOUNT CONTRIBUTION PROGRAMS OF AN 
EMPLOYER.— 
(1) TIMELY
PAYMENT
OF
CONTRIBUTIONS.— 
For purposes of the Employee Retirement Income 
Security Act of 1974, the employer’s fiduciary duties 
under a SAVE UP Account contribution program 
established under section 102 shall be limited to 
those duties related to the timely payment in full to 
the individual’s SAVE UP Account of elective con-
tributions made on behalf of employees as required 
under section 102(b)(2) and such employer contribu-
tions as may be provided for under the program pur-
suant to section 102(b)(3). 
(2) RULE OF CONSTRUCTION.—Nothing in this 
Act shall be construed to impose on any employer 
with respect to any employee who is a participant in 
the employer’s SAVE UP Account contribution pro-
gram any fiduciary duty with respect to the invest-
ment or distribution of assets held under the em-
ployee’s SAVE UP Account. 
(b) FIDUCIARY DUTIES OF BOARD OF GOVERNORS 
AND TRUSTEES.—For purposes of the provisions of part 
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4 of subtitle B of title I of the Employee Retirement In-
come Security Act of 1974, and the provisions of part 5 
of such subtitle as they relate to the enforcement of the 
provisions of such part 4, each member of the SAVE UP 
Board of Governors, each trustee of a SAVE UP Board 
of Trustees, and any person who has or exercises discre-
tionary authority or discretionary control over the man-
agement or disposition of the SAVE UP Accounts Fund, 
and amounts held to the credit of SAVE UP Accounts, 
or the crediting of assets to SAVE UP Accounts, shall 
be included within the meaning of ‘‘fiduciary’’ under sec-
tion 3(21)(A) of such Act. 
SEC. 109. SAVE UP ACCOUNTS DISREGARDED FOR PUR-
POSES OF MEANS-TESTED PROGRAMS. 
Notwithstanding any other provision of Federal law, 
any amount contributed by or on behalf of an individual 
pursuant to a SAVE UP Account contribution program, 
or credited to an individual’s SAVE UP Account under 
this title, shall not be taken into account in determining 
any individual’s or household’s financial eligibility for, or 
amount of, any benefit or service, paid for in whole or 
in part with Federal funds. 
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TITLE II—TAX TREATMENT OF 
SAVE UP ACCOUNTS 
SEC. 201. TAX TREATMENT OF SAVE UP ACCOUNTS. 
(a) IN GENERAL.—Subpart A of part I of subchapter 
D of chapter 1 of the Internal Revenue Code of 1986 is 
amended by inserting after section 408A the following new 
section: 
‘‘SEC. 408B. TAX TREATMENT OF SAVE UP ACCOUNTS. 
‘‘(a) IN GENERAL.—For purposes of this title, except 
as otherwise provided in this section— 
‘‘(1) the SAVE UP Accounts Fund shall be 
treated as a trust described in section 401(a) which 
is exempt from taxation under section 501(a) and a 
SAVE UP Account shall be treated as a defined con-
tribution plan which includes such a trust, 
‘‘(2) any contribution to, or distribution from, 
the SAVE UP Accounts Fund under a SAVE UP 
Account contribution program shall be treated in the 
same manner as contributions to or distributions 
from such a trust, and 
‘‘(3) contributions to a SAVE UP Account 
under a SAVE UP Account contribution program 
shall not be treated as distributed or made available 
to the employee or as contributions made by the em-
ployee merely because the employee has, under such 
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ment that loan be repayable in 5 years) solely be-
cause the loan terms allow additional time (not to 
exceed an aggregate of 1 year) for repayment to ac-
count for any periods of unemployment. 
‘‘(e) DEFINITIONS.—For purposes of this section, the 
terms ‘SAVE UP Accounts Fund’, ‘SAVE UP Account’, 
and ‘SAVE UP Account contribution program’ shall have 
the respective meanings as when used in title I of the 
SAVE UP Act.’’. 
(b) LIMITATION ON EXCLUSION FOR ELECTIVE DE-
FERRALS.—Paragraph (3) of section 402(g) of such Code 
is amended by striking ‘‘and’’ at the end of subparagraph 
(C), by striking the period at the end of subparagraph (D) 
and inserting ‘‘, and’’, and by adding at the end the fol-
lowing new subparagraph: 
‘‘(E) any elective employer contribution 
under a SAVE UP Account contribution pro-
gram (as defined in section 408B).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part I of subchapter D of chapter 1 of 
such Code is amended by inserting after the item relating 
to section 409A the following new section: 
‘‘408C. Tax treatment of SAVE UP Accounts.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
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SEC. 202. SAVE UP ACCOUNT CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45S. SAVE UP ACCOUNT CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of an eligible small employer that elects the appli-
cation of this section, the SAVE UP Account credit deter-
mined under this section for any taxable year is an amount 
equal to the lesser of— 
‘‘(1) the amount of nonelective employer con-
tributions made by the employer for the taxable year 
with respect to employees under section 102(b)(3) of 
the Secure, Accessible, Valuable, Efficient Universal 
Pension Accounts Act, or 
‘‘(2) $10,400. 
‘‘(b) ELIGIBLE SMALL EMPLOYER.—For purposes of 
this section, the term ‘eligible small employer’ means any 
person the gross receipts of which for the preceding tax-
able year did not exceed $5,000,000. 
‘‘(c) LIMITATION.—A taxpayer may elect the applica-
tion of the section with respect to not more than 5 taxable 
years. 
‘‘(d) SPECIAL RULES.— 
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‘‘(1) CONTROLLED
GROUPS.—All members of 
the same controlled group of corporations (within 
the meaning of section 52(a)) and all persons under 
common control (within the meaning of section 
52(b)) shall be treated as 1 person for purposes of 
this section. 
‘‘(2) DISALLOWANCE OF DEDUCTION.—No de-
duction shall be allowed for that portion of the non-
elective employer contributions made for the taxable 
year which is equal to the credit determined under 
subsection (a).’’. 
(b) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) of such Code is amended by strik-
ing ‘‘plus’’ at the end of paragraph (35), by striking the 
period at the end of paragraph (36) and inserting ‘‘, plus’’, 
and by adding at the end the following new paragraph: 
‘‘(37) the SAVE UP Account credit determined 
under section 45S(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new section: 
‘‘Sec. 45S. SAVE UP Account credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
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SEC. 203. DISALLOWANCE OF DEDUCTION FOR COMPENSA-
TION FOR CERTAIN EMPLOYERS FAILING TO 
PROVIDE SAVE UP ACCOUNT CONTRIBUTION 
PROGRAM. 
(a) IN GENERAL.—Section 162 of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
(q) as subsection (r) and by inserting after subsection (p) 
the following new subsection: 
‘‘(q) FAILURE TO PROVIDE SAVE UP ACCOUNT 
CONTRIBUTION PROGRAM.— 
‘‘(1) IN GENERAL.—In the case of an applicable 
employer who fails to maintain a SAVE UP Account 
contribution program for any calendar year begin-
ning during the taxable year, no deduction shall be 
allowed under this chapter for any remuneration 
made by the employer for services performed by em-
ployees of the employer. 
‘‘(2) APPLICABLE EMPLOYER.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘applicable employer’ 
means, with respect to any calendar year, any 
employer which is an applicable employer de-
scribed in section 101(c)(1)(A) of the Secure, 
Accessible, Valuable, Efficient Universal Pen-
sion Accounts Act. 
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‘‘(B) AGGREGATION
RULE.—All persons 
treated as a single employer under subsection 
(a) or (b) of section 52, or subsection (m) or 
(o) of section 414, of the Internal Revenue 
Code of 1986 shall be treated as a single em-
ployer for purposes of this paragraph. 
‘‘(3) WAIVER.—The Secretary may waive the 
application of paragraph (1) with respect to a tax-
payer on a showing by the taxpayer that there was 
reasonable cause for the failure and that the tax-
payer acted in good faith.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
Æ 
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