fect on January 1 of the year immediately 
succeeding such calendar year.’’. 
(b) COVERAGE
FOR CERTAIN EMPLOYEE BENEFIT 
PLAN DEPOSITS.—Section 11(a)(1)(D) of the Federal De-
posit Insurance Act (12 U.S.C. 1821(a)(1)(D)) is amended 
to read as follows: 
‘‘(D) COVERAGE
FOR
CERTAIN
EMPLOYEE 
BENEFIT PLAN DEPOSITS.— 
‘‘(i) PASS-THROUGH INSURANCE.—The 
Corporation shall provide pass-through de-
posit insurance for the deposits of any em-
ployee benefit plan. 
‘‘(ii) PROHIBITION ON ACCEPTANCE OF 
BENEFIT PLAN DEPOSITS.—An insured de-
pository institution that is not well capital-
ized or adequately capitalized may not ac-
cept employee benefit plan deposits. 
‘‘(iii) DEFINITIONS.—For purposes of 
this subparagraph, the following definitions 
shall apply: 
‘‘(I) CAPITAL
STANDARDS.—The 
terms ‘well capitalized’ and ‘ade-
quately capitalized’ have the same 
meanings as in section 38.
‘‘(II) 
EMPLOYEE
BENEFIT 
PLAN.—The term ‘employee benefit 
plan’ has the same meaning as in 
paragraph (8)(B)(ii), and includes any 
eligible deferred compensation plan de-
scribed in section 457 of the Internal 
Revenue Code of 1986. 
‘‘(III) PASS-THROUGH
DEPOSIT 
INSURANCE.—The term ‘pass-through 
deposit insurance’ means, with respect 
to an employee benefit plan, deposit 
insurance coverage provided on a pro 
rata basis to the participants in the 
plan, in accordance with the interest of 
each participant.’’. 
(c) DOUBLING OF DEPOSIT INSURANCE FOR CERTAIN 
RETIREMENT ACCOUNTS.—Section 11(a)(3)(A) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1821(a)(3)(A)) is 
amended by striking ‘‘$100,000’’ and inserting ‘‘2 times the 
standard maximum deposit insurance amount (as deter-
mined under paragraph (1))’’. 
(d) INCREASED INSURANCE COVERAGE FOR MUNIC-
IPAL DEPOSITS.—Section 11(a)(2) of the Federal Deposit 
Insurance Act (12 U.S.C. 1821(a)(2)) is amended— 
(1) in subparagraph (A)—
(A) by moving the margins of clauses (i) 
through (v) 4 ems to the right; 
(B) by striking, in the matter following 
clause (v), ‘‘such depositor shall’’ and all that 
follows through the period; and 
(C) by striking the semicolon at the end of 
clause (v) and inserting a period; 
(2) by striking ‘‘(2)(A) Notwithstanding’’ and all 
that follows through ‘‘a depositor who is—’’ and in-
serting the following: 
‘‘(2) MUNICIPAL DEPOSITORS.— 
‘‘(A) IN
GENERAL.—Notwithstanding any 
limitation in this Act or in any other provision 
of law relating to the amount of deposit insur-
ance available to any 1 depositor— 
‘‘(i) a municipal depositor shall, for 
the purpose of determining the amount of 
insured deposits under this subsection, be 
deemed to be a depositor separate and dis-
tinct from any other officer, employee, or 
agent of the United States or any public 
unit referred to in subparagraph (E); and 
‘‘(ii) except as provided in subpara-
graph (B), the deposits of a municipal de-
positor shall be insured in an amount equal
to the standard maximum deposit insurance 
amount (as determined under paragraph 
(1)). 
‘‘(B) IN-STATE MUNICIPAL DEPOSITORS.— 
In the case of the deposits of an in-State munic-
ipal depositor described in clause (ii), (iii), (iv), 
or (v) of subparagraph (E) at an insured deposi-
tory institution, such deposits shall be insured in 
an amount not to exceed the lesser of— 
‘‘(i) $2,000,000; or 
‘‘(ii) the sum of the standard max-
imum deposit insurance amount and 80 
percent of the amount of any deposits in ex-
cess of the standard maximum deposit in-
surance amount. 
‘‘(C) MUNICIPAL
DEPOSIT
PARITY.—No 
State may deny to insured depository institu-
tions within its jurisdiction the authority to ac-
cept deposits insured under this paragraph, or 
prohibit the making of such deposits in such in-
stitutions by any in-State municipal depositor. 
‘‘(D) IN-STATE MUNICIPAL DEPOSITOR DE-
FINED.—For purposes of this paragraph, the 
term ‘in-State municipal depositor’ means a mu-
nicipal depositor that is located in the same