I
106TH CONGRESS
1ST SESSION
H. R. 249
To provide for the retirement of all Americans.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 6, 1999
Mr. SANFORD introduced the following bill; which was referred to the Commit-
tee on Ways and Means, and in addition to the Committees on Banking
and Financial Services, Rules, and Education and the Workforce, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned
A BILL
To provide for the retirement of all Americans.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Personal Retirement Account Act of 1999’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title and table of contents.
Sec. 2. Definitions.
TITLE I—CONTRIBUTIONS TO PERSONAL RETIREMENT
ACCOUNTS
Sec. 101. Personal retirement account payroll deduction program.
Sec. 102. Designation of personal retirement accounts.
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Sec. 103. Self-employed individuals.
Sec. 104. Elective participation.
Sec. 105. Penalties.
TITLE II—PERSONAL RETIREMENT ACCOUNTS
Sec. 201. General requirements for personal retirement accounts.
Sec. 202. Investment requirements.
Sec. 203. Distribution requirements.
Sec. 204. Insurance requirements.
Sec. 205. Personal retirement account exempt from income tax.
Sec. 206. Tax treatment of distributions.
Sec. 207. Penalty on trustee for failure of personal retirement account to meet
requirement.
Sec. 208. Notification regarding insured depository institutions.
Sec. 209. Reports.
Sec. 210. Study on implementation of early retirement options.
TITLE III—CERTIFICATION OF FINANCIAL INSTITUTIONS OTHER
THAN INSURED DEPOSITORY INSTITUTIONS
Sec. 301. Certification of financial institutions by the Securities and Exchange
Commission.
Sec. 302. Access to records.
Sec. 303. Revocation of certification.
TITLE IV—PERSONAL RETIREMENT ACCOUNT INSURANCE
Sec. 401. Guarantees and supplemental minimum benefit payments.
Sec. 402. Assessment of qualified financial institutions by the Commission.
Sec. 403. Establishment of Social Security Savings Insurance Trust Fund.
Sec. 404. Institution of termination proceedings by the Commission.
Sec. 405. Liability upon termination of accounts.
Sec. 406. Insurance logo.
Sec. 407. Report by the Commission.
TITLE V—ENFORCEMENT AUTHORITY
Sec. 501. Cause of action.
Sec. 502. Jurisdiction and venue.
Sec. 503. Right of Securities and Exchange Commission to intervene.
Sec. 504. Awards of costs and expenses.
Sec. 505. Limitation on actions.
Sec. 506. Penalty for failure to timely provide required information.
Sec. 507. Actions by Securities and Exchange Commission.
TITLE VI—TRANSITION FROM COVERAGE FOR OLD-AGE AND
SURVIVORS INSURANCE BENEFITS UNDER TITLE II OF THE
SOCIAL SECURITY ACT
Sec. 601. Primary insurance amounts for transitional eligible individuals.
Sec. 602. Certification of covered status under the old-age, survivors, and dis-
ability insurance program.
Sec. 603. Reduction in FICA and SECA taxes with respect to eligible individ-
uals.
Sec. 604. Supplemental retirement benefits.
Sec. 605. Phased in increase in social security retirement age.
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Sec. 606. Limitation in cost-of-living adjustments.
Sec. 607. Modification of CPI calculation for social security COLAs.
Sec. 608. Phased reduction in spousal benefits other than survivor’s benefits to
33 percent of primary insurance amount.
Sec. 609. Coverage of newly hired State and local employees.
Sec. 610. Adjustments in formula for determining primary insurance amount.
Sec. 611. Annual statement of accrued liability of the old-age and survivors in-
surance program.
TITLE VII—PROVISIONS RELATING TO FEDERAL CIVILIAN AND
MILITARY PERSONNEL
Sec. 701. Federal civilian and military personnel.
Sec. 702. Provisions relating to the continued operation of existing retirement
systems.
Sec. 703. Provisions relating to the new system.
TITLE VIII—SOCIAL SECURITY TRANSITION COMMISSION
Sec. 801. Establishment of Commission.
Sec. 802. Duties.
Sec. 803. Membership.
Sec. 804. Powers.
Sec. 805. Congressional consideration of recommendations.
Sec. 806. Definitions.
Sec. 807. Authorization of appropriations.
SEC. 2. DEFINITIONS.
For purposes of this Act—
(1) ACCOUNT
HOLDER.—The term ‘‘account
holder’’ means, with respect to any personal retire-
ment account, the individual for whose benefit such
account is maintained.
(2) BUSINESS DAY.—The term ‘‘business day’’
means any day other than a Saturday, Sunday, or
legal holiday in the area involved.
(3) COVERED EMPLOYER.—The term ‘‘covered
employer’’ means, for any calendar year, a person
for whom an eligible individual is engaged in em-
ployment during the year.
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(4) ELIGIBLE INDIVIDUAL.—The term ‘‘eligible
individual’’ means any individual who, as of January
1, 2001—
(A) is not entitled to an old-age insurance
benefit under section 202(a) of the Social Secu-
rity Act or to a disability insurance benefit
under section 223 of such Act, and
(B) has made the election under section
104(a).
(5) EMPLOYMENT.—The term ‘‘employment’’
has the meaning provided in section 210 of Social
Security Act.
(6) MINIMUM ANNUITY AMOUNT; MINIMUM AN-
NUITY.—
(A) MINIMUM ANNUITY AMOUNT.—
(i) IN
GENERAL.—The term ‘‘mini-
mum annuity amount’’ means, as of any
date, the amount determined by the trust-
ee (under regulations issued by appropriate
regulatory agency) to be necessary to pur-
chase on such date an immediate annuity
which is a minimum annuity.
(ii) REDUCTION
TO
ACCOUNT
FOR
OLD-AGE
INSURANCE
BENEFITS.—In the
case of an eligible individual who is enti-
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tled to old-age insurance benefits under
section 202 of the Social Security Act, the
minimum 
annuity 
amount 
determined
under clause (i) shall be reduced by the ac-
tuarial present value, as of the date re-
ferred to in clause (ii), of future old-age in-
surance benefits payable to such individual
under such section (determined by using
reasonable assumptions which shall be pre-
scribed by the Commission).
(iii) IMMEDIATE ANNUITY.—For pur-
poses of clause (i), the term ‘‘immediate
annuity’’ means an annuity—
(I) which is purchased with a sin-
gle premium or annuity consideration,
(II) the annuity starting date (as
defined in section 72(c)(4) of the In-
ternal Revenue Code of 1986) of
which commences no later than 1 year
from the date of the purchase of the
annuity, and
(III) which provides for a series
of substantially equal periodic pay-
ments (to be made not less frequently
than annually) during the annuity pe-
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riod, subject to adjustment under sub-
paragraph (C).
(B) MINIMUM ANNUNITY.—
(i) IN
GENERAL.—The term ‘‘mini-
mum annuity’’ means an annuity making
payments over the life (or life expectancy)
of the account holder which (on an annual
basis) equals $9,150.
(ii) JOINT
AND
SURVIVOR
ANNUITY
AND PRERETIREMENT SURVIVOR ANNUITY
REQUIREMENTS.—An annuity shall not be
treated as a minimum annunity within the
meaning of clause (i) unless the require-
ments of section 401(a)(11) of the Internal
Revenue Code of 1986 applicable to plans
are met with respect to such annuity.
(C) COST-OF-LIVING ADJUSTMENT.—
(i) IN GENERAL.—The Securities and
Exchange Commission shall—
(I) assume, in determining any
minimum annuity amount under sub-
paragraph (A), an annual adjustment
in the equal periodic payments re-
ferred 
to 
in 
subparagraph
(A)(iii)(III), and
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(II) adjust annually after cal-
endar year 2000 the dollar amount
set forth in subparagraph (B)(i),
for increases in the cost of living in accord-
ance with regulations prescribed by the
Commission.
(ii) ADJUSTMENT METHOD.—The reg-
ulations shall provide for—
(I) in the case of assumptions
made pursuant to clause (i)(I), pro-
jected annual adjustments in the peri-
odic payments with respect to future
calendar years based on projected in-
creases in the Consumer Price Index
(published by the Bureau of Labor
Statistics) for the last calendar quar-
ter of each future calendar year over
such Index for the last calendar quar-
ter of the year in which the deter-
mination is made pursuant to sub-
paragraph (A)(i),
(II) in the case of adjustments
made pursuant to clause (i)(II), an
adjustment with respect to any cal-
endar year based on the increase in
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such Consumer Price Index for the
calendar quarter ending September 30
of the preceding calendar year over
such Index for the calendar quarter
ending with September 30, 1999 (in
the case of adjustments made pursu-
ant to clause (i)(II)), and
(III) in either case, adjustment
procedures which are similar to the
procedures used to adjust benefit
amounts under section 215(i)(2)(A) of
the Social Security Act.
Any dollar amount in subparagraph
(B)(i), as in effect for any calendar year
(taking into account any adjustments
under this clause), shall apply with respect
to determinations under this paragraph
made during such calendar year of mini-
mum annuity amounts and of whether an
annuity is a minimum annuity.
(7) PERSONAL
RETIREMENT
ACCOUNT.—The
term ‘‘personal retirement account’’ has the meaning
provided in section 201.
(8) PRESCRIBED EMPLOYEE CONTRIBUTION.—
The term ‘‘prescribed employee contribution’’ means,
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with respect to any eligible individual who is en-
gaged in employment for a covered employer, an
amount equal to 4.0 percent of the wages received
by such employee with respect to such employment.
(9) PRESCRIBED EMPLOYER CONTRIBUTION.—
The term ‘‘prescribed social security employer con-
tribution’’ means, with respect to a covered employer
for whom an eligible individual is engaged in em-
ployment, 4.0 percent of the wages paid by such em-
ployer to such individual with respect to employment
of such individual.
(10) PRESCRIBED
SELF-EMPLOYMENT
CON-
TRIBUTION.—The term ‘‘prescribed social security
self-employment contribution’’ means, with respect
to the self-employment income of an eligible individ-
ual for any calendar year, 8.0 percent of the amount
of such self-employment income for such calendar
year.
(11) QUALIFIED
FINANCIAL
INSTITUTION.—
The term ‘‘qualified financial institution’’ means any
financial institution if—
(A) such institution is an insured deposi-
tory institution (as defined in section 3(c)(2) of
the Federal Deposit Insurance Act) or an in-
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sured credit union (as defined in section 102(7)
of the Federal Credit Union Act), or
(B) there is in effect a certification of the
financial institution by the Securities and Ex-
change Commission under title III.
(12) RETIREMENT AGE.—The term ‘‘retirement
age’’ has the meaning provided such term by section
216(l).
(13) SELF-EMPLOYMENT
INCOME.—The term
‘‘self-employment income’’ has the meaning provided
in section 211(b) of the Social Security Act.
(14) TRUSTEE-TO-TRUSTEE
TRANSFER.—The
term ‘‘trustee-to-trustee transfer’’ means a transfer
by the trustee from a personal retirement account
for the benefit of an individual to the trustee of an-
other such account for the benefit of such individual.
(15) WAGES.—The term ‘‘wages’’ has the
meaning provided in section 209 of the Social Secu-
rity Act.
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TITLE 
I—CONTRIBUTIONS 
TO
PERSONAL RETIREMENT AC-
COUNTS
SEC. 101. PERSONAL RETIREMENT ACCOUNT PAYROLL DE-
DUCTION PROGRAMS.
(a) IN GENERAL.—Each person who is a covered em-
ployer for any calendar year shall have in effect through-
out such calendar year a personal retirement accounts
payroll deduction program for such person’s employees
who are eligible individuals.
(b) REQUIREMENTS.—For purposes of this title, the
term ‘‘personal retirement account payroll deduction pro-
gram’’ means a written program maintained by a covered
employer if—
(1) under such program, the prescribed em-
ployee contribution is deducted from the wages of
each employee who is an eligible individual and paid
as a contribution on behalf of the employee to a per-
sonal retirement account of such employee des-
ignated in accordance with section 102,
(2) under such program, the covered employer
makes timely payment of the amount so deducted as
a contribution to the designated personal retirement
account under regulations of the Securities and Ex-
change Commission applying the same principles re-
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lating to the timeliness of payment as are applicable
under chapter 62 of the Internal Revenue Code of
1986 with respect to taxes under chapter 21 of such
Code,
(3) under such program, the covered employer
pays as a contribution to the personal retirement ac-
count, together with the contribution paid pursuant
to paragraph (2), the prescribed employer contribu-
tion with respect to the employee, and
(4) the employer receives no compensation for
the cost of administering such program.
(c) AMOUNT DEDUCTED MAY BE ACCUMULATED BY
EMPLOYER IN CERTAIN CASES.—If, under the terms of
the governing instruments creating a personal retirement
account selected under section 102, contributions below a
specified amount will not be accepted, the requirements
of subsection (b)(2) shall be treated as met if amounts
deducted from the wages of an employee who is an eligible
individual are accumulated by the covered employer and
paid to such account otherwise in accordance with sub-
section (b)(2) with reference to the first day on which the
accumulated amount exceeds such specified amount.
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SEC. 102. DESIGNATION OF PERSONAL RETIREMENT AC-
COUNTS.
(a) IN GENERAL.—Except as provided in subsection
(b), the personal retirement accounts to which contribu-
tions with respect to any employee who is an eligible indi-
vidual are required to be paid under section 101 shall be
such an account designated by such employee to such em-
ployer not later than 10 business days after the date on
which such employee becomes an employee of such em-
ployer. Any such designation shall be made in such form
and manner as may be prescribed in regulations of the
Securities and Exchange Commission.
(b) DESIGNATION IN ABSENCE OF TIMELY DESIGNA-
TION BY EMPLOYEE.—In any case in which no timely des-
ignation of the personal retirement account is made, the
covered employer shall designate such account in accord-
ance with regulations of the Commission.
(c) SUBSEQUENT SUBSTITUTION OF ACCOUNTS.—
The Commission shall provide by regulation for subse-
quent designation of a personal retirement account by an
account holder in lieu of an account previously designated
by such account holder under this section.
SEC. 103. SELF-EMPLOYED INDIVIDUALS.
(a) IN GENERAL.—In the case of an eligible individ-
ual who has self-employment income for any calendar
year, such individual shall make timely payments to a per-
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sonal retirement account designated by such individual of
the prescribed self-employment contribution with respect
to such individual for such calendar year in accordance
with regulations of the Securities and Exchange Commis-
sion applying the same principles relating to timeliness of
payment as are applicable under chapter 62 of the Inter-
nal Revenue Code of 1986 with respect to taxes under
chapter 2 of such Code.
(b) DESIGNATION OF ACCOUNT.—The designation of
a personal retirement account for payment of prescribed
self-employment contributions shall be made in such form
and manner as may be prescribed in regulations of the
Securities and Exchange Commission.
SEC. 104. ELECTIVE PARTICIPATION.
(a) ELECTION FOR INCLUSION BY INDIVIDUALS.—
(1) IN GENERAL.—Any individual may, during
calendar year 2001, elect to be included in the defi-
nition of ‘‘eligible individual’’ under section 2(4), ir-
respective of whether such individual is (or may be
as of January 1, 2002) credited with one or more
quarters of coverage under section 213 of the Social
Security Act, by filing with the employer, the Social
Security Administration, and the Securities and Ex-
change Commission, in such form and manner as
shall be prescribed in regulations of the Administra-
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tion (in consultation with the Commission), a writ-
ten and signed declaration of such individual’s inten-
tion to be treated as an eligible individual for pur-
poses of this title. Any such filing shall not be final
in the case of an individual who is engaged in em-
ployment as of December 31, 2001, unless a copy of
such filing is provided by the individual to the cov-
ered employer during such period.
(2) IRREVOCABILITY.—Any election under para-
graph (1) shall be irrevocable and shall be effective
with respect to wages paid, and self-employment in-
come derived, after December 31, 2001.
(3) SUBSEQUENT OPEN SEASONS.—The Com-
missioner of Social Security, in consultation with the
Securities and Exchange Commission, may provide
by regulation for subsequent periods of time during
which elections under paragraph (1) may be made
periodically (not more frequently than biennially), ef-
fective with respect to wages paid, and self-employ-
ment income derived, after one year after the close
of such periods.
SEC. 105. PENALTIES.
(a) FAILURE TO ESTABLISH PERSONAL RETIRE-
MENT ACCOUNT PAYROLL DEDUCTION PROGRAM.—Any
covered employer who fails to meet the requirements of
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section 101 for any calendar year shall be subject to a
civil penalty of not to exceed—
(1) $250,000, in the case of an employer who
is an individual, or
(2) $500,000, in any other case.
(b) FAILURE TO MAKE DEDUCTIONS REQUIRED
UNDER PROGRAM.—Any covered employer who fails to
timely deduct in full the amount from the wages of an
employee who is an eligible individual as required under
an applicable personal retirement account payroll deduc-
tion program shall be subject to a civil penalty for each
such failure of not to exceed—
(1) $250,000, in the case of an employer who
is an individual, or
(2) $500,000, in any other case.
(c) FAILURE TO PAY DEDUCTED WAGES TO PER-
SONAL RETIREMENT ACCOUNT.—If an amount deducted
under a personal retirement account payroll deduction
program from the wages of an employee who is an eligible
individual is not timely paid in full to the designated per-
sonal retirement account in accordance with section 101,
the covered employer failing to make such payment—
(1) shall be subject to a civil penalty for each
such failure of not to exceed—
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(A) $250,000, in the case of an employer
who is an individual, or
(B) $500,000, in any other case, and
(2) shall be liable to the employee for interest
on the unpaid amount at a rate equal to 10 percent-
age points in excess of the Federal short-term rate
under section 1274(d)(1) of the Internal Revenue
Code of 1986, calculated from the last day by which
such amount was required to be so paid to the date
on which such amount is paid into the designated
personal retirement account.
(d) FAILURE TO PAY PRESCRIBED SELF-EMPLOY-
MENT CONTRIBUTIONS TO PERSONAL RETIREMENT AC-
COUNT.—Any eligible individual failing to timely pay in
full a prescribed self-employment contribution to a des-
ignated personal retirement account as required under
section 103 shall be subject to a civil penalty for each such
failure of not to exceed $250,000, plus interest on the un-
paid amount at a rate equal to 10 percentage points in
excess of the Federal short-term rate under section
1274(d)(1) of the Internal Revenue Code of 1986, cal-
culated from the last day by which such amount was re-
quired to be so paid to the date on which such amount
is paid into the designated personal retirement account.
(e) RULES FOR APPLICATION OF SECTION.—
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(1) PENALTIES ASSESSED BY SECURITIES AND
EXCHANGE COMMISSION.—Any civil penalty assessed
by this section shall be imposed by the Securities
and Exchange Commission and collected in a civil
action.
(2) COMPROMISES.—The Commission may com-
promise the amount of any civil penalty imposed by
this section.
(3) AUTHORITY TO WAIVE PENALTY IN CER-
TAIN CASES.—The Commission may waive the appli-
cation of this section with respect to any failure if
the Commission determines that such failure is due
to reasonable cause and not to intentional disregard
of rules and regulations.
TITLE II—PERSONAL
RETIREMENT ACCOUNTS
SEC. 201. GENERAL REQUIREMENTS FOR PERSONAL RE-
TIREMENT ACCOUNTS.
(a) IN GENERAL.—For purposes of this Act, the term
‘‘personal retirement account’’ means a trust created or
organized in the United States for the exclusive benefit
of an eligible individual or his beneficiaries, but only if
the written governing instrument creating the trust meets
the following requirements:
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(1) No contribution may be made to such trust
unless—
(A) such contribution is made pursuant to
title I of this Act, subsection (c) or (d) of this
section, or section 401 of this Act, or
(B) such contribution is a trustee-to-trust-
ee transfer.
(2) The trustee is a qualified financial institu-
tion.
(3) The investment requirements of section 202
shall be met.
(4) The distribution limitations of section 203
shall be met.
(5) The insurance requirements of section 204
are met.
(6) The interest of an individual in the balance
in his account is nonforfeitable.
(7) The trustee makes an annual disclosure to
each beneficiary of all fees and other charges im-
posed by the trustee with respect to the trust.
(8) The trustee provides to the beneficiary—
(A) on a quarterly basis, an accounting of
all activity of the trust during the preceding
quarter, and
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(B) on an annual basis, an accounting of
all activity of the trust during the preceding
year.
(b) AGGREGATION OF ACCOUNTS.—For purposes of
determining whether the requirements of sections 202 and
203 are met in a taxable year, a predecessor personal re-
tirement account and a successor personal retirement ac-
count of an account holder shall be treated as 1 account.
(c) CONTRIBUTIONS TO INDIVIDUAL’S NONWORKING
SPOUSE’S PERSONAL RETIREMENT ACCOUNT.—
(1) IN GENERAL.—In the case of an individual
to whom this paragraph applies for the taxable year,
there shall be allowed as a deduction from gross in-
come qualified nonworking spousal contributions
made by such individual for the taxable year.
(2) MAXIMUM AMOUNT OF DEDUCTION.—The
amount allowable as a deduction under paragraph
(1) to any individual for any taxable year shall not
exceed—
(A) an amount equal to 5 percent of the
taxpayer’s adjusted gross income for the taxable
year, reduced (but not below zero) by
(B) the compensation of such individual’s
spouse that is includible in gross income for the
taxable year.
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(3) INDIVIDUALS TO WHOM PARAGRAPH (1) AP-
PLIES.—Paragraph (1) shall apply to any individual
if—
(A) such individual files a joint return for
the taxable year, and
(B) the amount of compensation (if any)
includible in such individual’s gross income for
the taxable year is greater than the compensa-
tion includible in the gross income of such indi-
vidual’s spouse for the taxable year.
(d) ADDITIONAL CONTRIBUTIONS TO INDIVIDUAL’S
OWN PERSONAL RETIREMENT ACCOUNT.—
(1) IN
GENERAL.—An individual may make
contributions to the personal retirement account of
the individual for the taxable year.
(2) MAXIMUM AMOUNT OF CONTRIBUTIONS.—
The amount allowable as a contribution under para-
graph (1) to any individual for any taxable year
shall not exceed the amount in effect under section
415(c)(1) of the Internal Revenue Code of 1986 (re-
lating to limitation on contribution to defined con-
tribution plans), determined by substituting ‘‘indi-
vidual’s’’ for ‘‘participant’s’’ in subparagraph (B) of
such section 415(c)(1).
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SEC. 202. INVESTMENT REQUIREMENTS.
(a) IN GENERAL.—The investment requirements of
this section are met with respect to a trust only if—
(1) the risk limitations of subsection (b) are
met,
(2) no asset of the trust is—
(A) a life insurance contract (except as
provided in section 204), or
(B) a collectible (as defined in section
408(m) of the Internal Revenue Code of 1986)
other 
than 
a 
coin 
described 
in 
section
408(m)(3) of such Code,
(3) no asset of the trust is commingled with
other property except in a common trust fund or
common investment fund,
(4) no person borrows any money under or by
use of such trust or uses any portion of such trust
as security for a loan.
(b) RISK LIMITATIONS.—The risk limitations of this
subsection are met only if so much of the balance in the
trust as does not exceed the minimum annuity amount is
invested in common stock having a moderate or lower risk,
as determined under regulations which shall be prescribed
by the Securities and Exchange Commission, and forming
a portfolio designed to replicate the performance of a com-
monly recognized index comprised of common stock the
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aggregate market value of which is a reasonably complete
representation of the United States equity markets.
SEC. 203. DISTRIBUTION REQUIREMENTS.
(a) IN GENERAL.—The distribution requirements of
this section are met with respect to a trust only if—
(1) the distribution timing requirements of sub-
section (b) are met, and
(2) the distribution amount requirements of
subsection (c) are met.
(b) TIMING REQUIREMENTS.—
(1) IN GENERAL.—The distribution timing re-
quirements of this subsection are met only if—
(A) no distribution may be made from the
trust before the date the account holder attains
retirement age, unless the balance in the trust
immediately after the distribution is not less
than the minimum annuity amount, and
(B) no distribution may be made from the
trust before the date the account holder attains
age 62.
(2) EXCEPTIONS.—Paragraph (1) shall not
apply to—
(A) any trustee-to-trustee transfer, and
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(B) any distribution made to a beneficiary
(or to the estate of the employee) on or after
the death of the account holder.
(c) AMOUNT REQUIREMENTS.—
(1) IN GENERAL.—The distribution amount re-
quirements of this subsection are met only if no dis-
tribution may be made from the trust on or after the
date the account holder attains retirement age un-
less the aggregate amount of distributions for any
year does not exceed the amount which would be
payable to the account holder from the trust under
a minimum annuity.
(2) EXCEPTIONS.—Paragraph (1) shall not
apply to any distribution if—
(A) subsection (b)(1) does not apply to
such distribution,
(B) the balance in the trust immediately
after the distribution is not less than the mini-
mum annuity amount, or
(C) the distribution is used to purchase a
minimum annuity.
(d) CROSS REFERENCE.—For penalty on trustee for
failure of trust to meet the distribution requirements of
this section, see section 207.
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(4) PUBLICATION
OF
NOTICE
OF
REVOCA-
TION.—The Commission may publish notice of such
revocation and the institution shall give notice of
such revocation to the account holder of each per-
sonal retirement account for which the institution
serves as trustee at his last address of record on the
books of the institution, in such manner and at such
time as the Commission may find to be necessary
and may order for the protection of account holders.
(5) TEMPORARY
CONTINUANCE
OF
CERTIFI-
CATION AS OF REVOCATION.—After the Commission
has determined under the provisions of this sub-
section that the certified status of any financial in-
stitution is to be revoked, the certification of the in-
stitution shall continue for a period of at least 6
months or up to 2 years, within the discretion of the
Commission. No further contributions may be made
to any personal retirement account for which the in-
stitution serves as trustee after the date of such de-
termination of the Commission, and the institution
shall not advertise or hold itself out as being a quali-
fied financial institution unless in the same connec-
tion it shall also state with equal prominence that
such contributions may not be made. Such institu-
tion shall, in all other respects, be subject to the du-