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that the Commission considers necessary or appropriate,
together with suggested legislative language necessary to
carry out such recommendations.
TITLE 
III—CERTIFICATION 
OF
FINANCIAL 
INSTITUTIONS
OTHER THAN INSURED DE-
POSITORY INSTITUTIONS
SEC. 301. CERTIFICATION OF FINANCIAL INSTITUTIONS BY
THE SECURITIES AND EXCHANGE COMMIS-
SION.
(a) IN GENERAL.—Any financial institution may
apply to the Securities and Exchange Commission (in such
form and manner as shall be provided by the Commission
by regulation) for certification under this title.
(b) REVIEW REQUIREMENTS.—In reviewing any ap-
plication for certification under this title and determining
whether to approve the application for certification, the
Commission shall consider the following factors:
(1) The financial history and condition of the
financial institution.
(2) The adequacy of the financial institution’s
capital structure.
(3) The future earnings prospects of the finan-
cial institution.
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(4) The general character and fitness of the
management of the financial institution.
(5) The risk presented by such financial institu-
tion to the Social Security Savings Guaranty Trust
Fund.
(6) The convenience and needs of individuals
who are account holders with respect to personal re-
tirement accounts for which the institution is to
serve as trustee.
(7) Whether the financial institution’s corporate
powers are consistent with the purposes of this Act.
(c) NOTICE OF DENIAL OF APPLICATION FOR CER-
TIFICATION.—If the Commission votes to deny any appli-
cation for certification by any financial institution, the
Commission shall promptly notify the financial institution
of the denial of such application, giving specific reasons
in writing for the Commission’s determination with ref-
erence to the factors described in subsection (b).
(d) NONDELEGATION REQUIREMENT.—The author-
ity of the Commission to make any determination to deny
any application under this section may not be delegated
by the Commission.
SEC. 302. ACCESS TO RECORDS.
(a) IN GENERAL.—The Securities and Exchange
Commission may from time to time require any certified
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financial institution to file such reports as the Commission
may deem advisable for purposes of this title.
(b) REPORTS BY CERTIFIED FINANCIAL INSTITU-
TIONS.—
(1) IN GENERAL.—Each such report shall con-
tain a declaration by the president, by a vice presi-
dent, by the cashier or the treasurer, or by any other
officer designated by the board of directors or trust-
ees of the reporting certified financial institution to
make such declaration, that the report is true and
correct to the best of his knowledge and belief. The
correctness of such report shall be attested by the
signatures of at least two directors or trustees of the
reporting certified financial institution other than
the officer making such declaration, with a declara-
tion that the report has been examined by them and
to the best of their knowledge and belief is true and
correct. At the time of making such reports each
certified financial institution shall furnish to the
Commission a copy thereof containing such signed
declaration and attestations. Nothing in this para-
graph shall be construed to preclude any Federal or
State agency or instrumentality from requiring a
certified financial institution under its jurisdiction to
make additional reports at any time.
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(2) INFORMATION
TO
BE
PROVIDED.—In the
reports required to be made by paragraph (1), each
certified financial institution shall report the total
amount of the liability of the institution for balances
maintained in personal retirement accounts for
which such institution serves as trustee.
(3) DATA COLLECTIONS.—In addition to or in
connection with any other report required under this
subsection, the Commission shall take such action as
may be necessary to ensure that—
(A) each certified financial institution
maintains; and
(B) the Commission receives on a regular
basis from such institution,
information on the total amount of all liability of the
institution for balances maintained in personal re-
tirement accounts for which such institution serves
as trustee. In prescribing reporting and other re-
quirements for the collection of actual and accurate
information pursuant to this paragraph, the Com-
mission shall minimize the regulatory burden im-
posed upon certified financial institutions while tak-
ing into account the benefit of the information to the
Commission in carrying out its functions under this
title.
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SEC. 303. REVOCATION OF CERTIFICATION.
(a) VOLUNTARY REVOCATION.—Any financial insti-
tution may revoke such institution’s status as a certified
financial institution if such institution provides written no-
tice to the Securities and Exchange Commission of the in-
stitution’s intent to revoke such status not less than 90
days before the effective date of such revocation.
(b) INVOLUNTARY REVOCATION.—
(1) NOTICE TO PRIMARY REGULATOR.—
(A) IN GENERAL.—If the Commission de-
termines that—
(i) a certified financial institution or
the directors or trustees of a certified fi-
nancial institution have engaged or are en-
gaging in unsafe or unsound practices in
conducting the business of the institution,
(ii) a certified financial institution is
in an unsafe or unsound condition to con-
tinue operations as a certified financial in-
stitution, or
(iii) a certified financial institution or
the directors or trustees of the institution
have violated any applicable law, regula-
tion, order, condition imposed in writing by
the Commission in connection with the ap-
proval of any application or other request
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by the institution, or written agreement
entered into between the institution and
the Commission, and the Commission de-
termines that any unsafe or unsound prac-
tice or condition or any violation specified
in such notice requires the revocation of
the certified status of the certified finan-
cial institution, the Commission shall take
the actions required under subparagraph
(B).
(B) REQUIRED ACTIONS.—If the Commis-
sion makes the determination under subpara-
graph (A) with respect to a certified financial
institution, the Commission shall—
(i) serve written notice to the certified
financial institution of the Commission’s
intention to revoke the certified status of
the institution,
(ii) provide the certified financial in-
stitution with a statement of the charges
on the basis of which the determination to
revoke such institution’s certified status
was made; and
(iii) notify the certified financial insti-
tution of the date (not less than 30 days
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after notice under this paragraph) and
place for a hearing before the Commission
(or any person designated by the Commis-
sion) with respect to the revocation of the
institution’s certified status.
(2) HEARING; REVOCATION.—If, on the basis of
the evidence presented at a hearing before the Com-
mission (or any person designated by the Commis-
sion for such purpose), in which all issues shall be
determined on the record pursuant to section 554 of
title 5, United States Code, and the written findings
of the Commission (or such person) with respect to
such evidence (which shall be conclusive), the Com-
mission finds that any unsafe or unsound practice or
condition or any violation specified in the notice to
a certified financial institution under paragraph (1)
has been established, the Commission may issue an
order revoking the certified status of such institution
effective as of a date subsequent to such finding.
(3) APPEARANCE; CONSENT TO REVOCATION.—
Unless the institution appears at the hearing by a
duly authorized representative, it shall be deemed to
have consented to the revocation of its status as a
certified financial institution and revocation of such
status thereupon may be ordered.
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ties and obligations of a qualified financial institu-
tion for the period referred to in the first sentence
of this paragraph from the date of such revocation,
and the Commission shall have the same powers and
rights with respect to such institutions as in the case
of a qualified financial institution.
(6) TEMPORARY
SUSPENSION
OF
CERTIFI-
CATION.—
(A) IN GENERAL.—If the Commission ini-
tiates a revocation proceeding under paragraph
(1), and the Commission, after consultation
with any appropriate regulatory agency with ju-
risdiction over the financial institution, finds
that the institution has no tangible capital
under the capital guidelines or regulations of
regulatory agency, the Commission may issue a
temporary order suspending certification of the
institution.
(B) EFFECTIVE
PERIOD
OF
TEMPORARY
ORDER.—Any order issued under subparagraph
(A) shall become effective not earlier than 10
days from the date of service upon the institu-
tion and, unless set aside, limited, or suspended
by a court in proceedings authorized under this
paragraph, such temporary order shall remain
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effective and enforceable until an order of the
Commission under paragraph (2) becomes final
or until the Commission dismisses the proceed-
ings under paragraph (2).
(C) JUDICIAL REVIEW.—Before the close
of the 10-day period beginning on the date any
temporary order has been served upon the insti-
tution under subparagraph (A), the institution
may apply to the United States District Court
for the District of Columbia, or the United
States district court for the judicial district in
which the home office of the institution is lo-
cated, for an injunction setting aside, limiting,
or suspending the enforcement, operation, or ef-
fectiveness of such order, and such court shall
have jurisdiction to issue such injunction.
(D) PUBLICATION OF ORDER.—The insti-
tution shall give notice of such order to the ac-
count holder of each personal retirement ac-
count for which the institution serves as trustee
in such manner and at such times as the Com-
mission may find to be necessary and may
order for the protection of account holders.
(E) NOTICE BY COMMISSION.—If the Com-
mission determines that the institution has not
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substantially complied with the notice to con-
tributors required by the Commission, the Com-
mission may provide such notice in such man-
ner as the Commission may find to be nec-
essary and appropriate.
(7) FINAL
DECISIONS
TO
REVOKE
CERTIFI-
CATION.—Any decision by the Commission to—
(A) issue a temporary order revoking cer-
tification; or
(B) issue a final order revoking certifi-
cation; shall be made by the Commission and
may not be delegated.
(8) JUDICIAL REVIEW.—Any party to any pro-
ceeding under this subsection to which a financial
institution is a party may obtain a review of any
order served pursuant to this subsection by the filing
in the court of appeals of the United States for the
circuit in which the home office of the financial in-
stitution is located, or in the United States Court of
Appeals for the District of Columbia Circuit, within
30 days after the date of service of such order, a
written petition praying that the order of the Com-
mission be modified, terminated, or set aside. A copy
of such petition shall be forwith transmitted by the
clerk of the court to the Commission, and thereupon
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the Commission shall file in the court the record in
the proceeding, as provided in section 2112 of title
28, United States Code. Upon the filing of such pe-
tition, such court shall have jurisdiction, which upon
the filing of the record shall be exclusive, to affirm,
modify, terminate, or set aside, in whole or in part,
the order of the Commission. Review of such pro-
ceedings shall be had as provided in chapter 7 of
title 5, United States Code. The judgment and de-
cree of the court shall be final, except that the judg-
ment and decree shall be subject to review by the
Supreme Court upon certiorari, as provided in sec-
tion 1254 of title 28, United States Code. The com-
mencement of proceedings for judicial review under
this paragraph shall not, unless specifically ordered
by the court, operate as a stay of any order issued
by the Commission.
TITLE 
IV—PERSONAL 
RETIRE-
MENT ACCOUNT INSURANCE
SEC. 401. GUARANTEES AND SUPPLEMENTAL MINIMUM
BENEFIT PAYMENTS.
(a) DISTRIBUTIONS FROM PERSONAL RETIREMENT
ACCOUNTS GUARANTEED.—In any case in which the Se-
curities and Exchange Commission declares an insurable
event with respect to a qualified financial institution serv-
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ing as trustee of a personal retirement account, subject
to the limitations contained in subsection (b), the Commis-
sion shall guarantee, in accordance with this section, the
timely distribution of the balance in such account to the
account holder in accordance with the terms governing
such account and the provisions of this Act.
(b) LIMITATION.—The amount of any account bal-
ance, the distribution of which is subject to the Commis-
sion’s guarantee under subsection (a), shall not exceed the
minimum annuity amount.
(c) AGGREGATE LIMIT ON AMOUNT GUARANTEED.—
Notwithstanding the preceding provisions of this section,
no person shall receive from the Commission, pursuant to
a guarantee by the Commission with respect to all per-
sonal retirement accounts for which such person is the ac-
count holder, an amount which, in the aggregate, exceeds
the minimum annuity amount.
(d) INSURABLE EVENT.—For purposes of subsection
(a), any of the following shall constitute an insurable event
with respect to a qualified financial institution serving as
trustee of a personal retirement account:
(1) The termination of the qualified status of
the institution.
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(2) Inability of the qualified financial institu-
tion to make full distributions of the balance in the
account when due.
(3) Termination of the account under section
405.
(e) MINIMUM DISTRIBUTION LEVEL GUARANTEE.—
In addition to the guarantee provided under subsection
(a), the Commission shall guarantee a minimum distribu-
tion from the account as of the normal retirement date
in the amount of the minimum annuity amount, notwith-
standing that the balance in the account as of such date
is less than the minimum annuity amount, if—
(1) the account holder was credited with any
quarters of coverage under section 213 of the Social
Security Act as of January 1, 2000,
(2) as of the normal retirement date, no dis-
tributions have been made by the individual from
such account holder’s personal retirement account,
(3) the Commission determines that the failure
of the balance in the account to attain the level of
the minimum annuity amount as of the normal re-
tirement date is due to inadvertent and substantial
investment losses occurring during the 90-day period
ending with such date.
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(f) ALTERNATIVE GUARANTEE ARRANGEMENTS.—
The Commission shall also provide for a range of alter-
native guarantee arrangements providing for timely dis-
tribution of all, or a larger portion, of the balance in the
personal retirement account to the account holder, which
may be elected by the account holder upon payment to
the commission of supplemental premiums.
(g) SUBSTITUTION OF PRIVATE INSURANCE.—The
Commission shall provide by regulation for substitution,
at the election of the account holder, of private insurance
secured by the account holder or by the trustee of the ac-
count holder’s personal retirement account, providing for
a guarantee of timely distribution of the balance in the
account to the account holder, which is at least equivalent
to the guarantee provided for under subsection (a)
(h) PAYMENT OF GUARANTEES.—To the extent that
amounts subject to a guarantee provided for under sub-
section (a), (e), (f), or (g) are not payable from the per-
sonal retirement account, such amounts shall be payable
from the Social Security Savings Insurance Trust Fund.
(i) ENTITLEMENT
TO SUPPLEMENTAL MINIMUM
BENEFIT PAYMENT TO ACCOUNT.—
(1) IN GENERAL.—In any case in which—
(A) an account holder attains retirement
age and, as of the normal retirement date, is a
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fully insured individual (as defined in section
214(a) of the Social Security Act),
(B) as of the normal retirement date, no
distributions have been made by the individual
from such account holder’s personal retirement
account,
(C) as of the normal retirement date, the
balance in the personal retirement account (be-
fore any distributions on such date) is less than
the minimum annuity amount, and
(D) the guarantee under subsection (e)
does not apply with respect to the balance in
the personal retirement account, the account
holder, upon application to the Commission
filed by the account holder or the trustee of the
account on or after the normal retirement date
and in such form and manner as shall be pre-
scribed by the Commission, shall be entitled to
a supplemental minimum benefit payment to
such account. Upon receipt of such application,
the Commission shall certify to the Secretary
of the Treasury the amount of such payment,
and the Secretary shall pay the amount of such
payment to such account in accordance with
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such certification from funds otherwise avail-
able in the general fund of the Treasury.
(2) AMOUNT OF SUPPLEMENTAL MINIMUM BEN-
EFIT
PAYMENT.—The amount of a supplemental
minimum benefit payment to an eligible individual’s
account under paragraph (1) is the excess (if any)
of—
(A) the minimum annuity amount as of
the normal retirement date, over
(B) the balance in such account as of such
date.
(j) PROTECTION FROM ASSIGNMENT
OR ALIEN-
ATION.—Any amount subject to any guarantee provided
for under subsection (a), (e), (f), or (g) and any supple-
mental minimum benefit payment under subsection (i)
may not be assigned or alienated.
(k) NORMAL RETIREMENT DATE.—For purposes of
this section, the term ‘‘normal retirement date’’ means,
in connection with an account holder, the date on which
the account holder attains retirement age (or, if such date
is not a business day, the date which is the first business
day thereafter).
SEC. 402. ASSESSMENTS OF QUALIFIED FINANCIAL INSTI-
TUTIONS BY THE COMMISSION.
(a) RISK-BASED ASSESSMENT SYSTEM.—
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(1) RISK-BASED
ASSESSMENT
SYSTEM
RE-
QUIRED.—The Securities and Exchange Commission
shall, by regulation, establish a risk-based assess-
ment system for qualified financial institutions serv-
ing as trustee of a personal retirement account.
(2) PRIVATE REINSURANCE AUTHORIZED.—In
carrying out this section, the Commission may—
(A) obtain private reinsurance covering not
more than 10 percent of any loss the Commis-
sion incurs with respect to a qualified financial
institution serving as trustee of a personal re-
tirement account; and
(B) base that institution’s semiannual as-
sessment (in whole or in part) on the cost of
the reinsurance.
(3) RISK-BASED
ASSESSMENT
SYSTEM
DE-
FINED.—For purposes of this section, the term
‘‘risk-based assessment system’’ means a system for
calculating a qualified financial institution’s semi-
annual assessment based on—
(A) the probability that the Social Security
Savings Guarantee Trust Fund will incur a loss
with respect to the institution, taking into con-
sideration the risks attributable to—
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(i) different categories and concentra-
tions of assets;
(ii) different categories and concentra-
tions of liabilities, both insured and unin-
sured, contingent and noncontingent; and
(iii) any other factors the Commission
determines are relevant to assessing such
probability;
(B) the likely amount of any such loss; and
(C) the revenue needs of the Trust Fund.
(4) SEPARATE
ASSESSMENT
SYSTEMS.—The
Commission may establish separate risk-based as-
sessment systems for large and small qualified finan-
cial institutions.
(b) SETTING ASSESSMENTS.—
(1) ACHIEVING AND MAINTAINING DESIGNATED
RESERVE RATIO.—
(A) IN GENERAL.—The Commission shall
set semiannual assessments for qualified finan-
cial institutions—
(i) to maintain the reserve ratio of the
Trust Fund at the designated reserve
ratio; or
(ii) if the reserve ratio is less than the
designated reserve ratio, to increase the re-
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serve ratio to the designated reserve ratio
as provided in subsection (c).
(B) FACTORS
TO
BE CONSIDERED.—In
carrying out subparagraph (A), the Commission
shall consider the Trust Fund’s—
(i) expected operating expenses,
(ii) case resolution expenditures and
income,
(iii) the effect of assessments on earn-
ings and capital of qualified financial insti-
tutions, and
(iv) any other factors that the Com-
mission may deem appropriate.
(C) MINIMUM
ASSESSMENT.—The semi-
annual assessment for each qualified financial
institution shall not be less than $1,000.
(D) DESIGNATED
RESERVE
RATIO
DE-
FINED.—The designated reserve ratio of the
Trust Fund for each year shall be—
(i) 1.25 percent of so much of the
total of the estimated balances in personal
retirement accounts as is subject to the
Commission’s guarantee under this title, in
the aggregate; or