funds to individual retirement plans in the pri-
vate market, while 
‘‘(C) permitting individuals to remain in-
vested in retirement bonds if they choose to do 
so. 
‘‘(6) REGULATIONS.—The Secretary may issue 
such regulations as are necessary to carry out the 
purposes of this subsection and subsection (g), in-
cluding— 
‘‘(A) establishment of procedures to com-
municate to individuals the importance of in-
vestment diversification and the transfer option 
described in subparagraph (B), 
‘‘(B) simplified procedures under which 
holders of retirement bonds may periodically 
choose to have the bonds or their proceeds 
transferred to available individual retirement 
plans, and 
‘‘(C) means by which individuals may elect 
(or be treated as electing) whether to have re-
tirement bonds or their proceeds so transferred. 
Any such transfer shall be treated as a rollover con-
tribution for purposes of section 408(d)(3) (other 
than subparagraph (B) thereof). 
‘‘(g) RETIREMENT BOND.— 
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‘‘(1) RETIREMENT BOND.—For purposes of this 
section, the term ‘retirement bond’ means a bond 
issued under chapter 31 of title 31, which by its 
terms, or by regulations prescribed by the Secretary 
under such chapter— 
‘‘(A) provides for interest to be credited at 
rates that take into account the expected dura-
tion of the funds invested in retirement bonds 
and at rates determined or adjusted in a man-
ner and with sufficient frequency to provide 
substantial protection from inflation, 
‘‘(B) is not transferable, and 
‘‘(C) is designed for investment for retire-
ment under automatic IRA arrangements or 
other savings vehicles. 
‘‘(2) INDIVIDUAL RETIREMENT PLAN RULES AP-
PLICABLE.—The provisions of this title applicable to 
an individual retirement plan (as defined in section 
7701(a)(37)), including provisions relating to con-
tributions, holding and distributions, shall apply to 
a retirement bond, except as determined by the Sec-
retary. 
‘‘(3) ANNUAL STATEMENT.—As soon as prac-
ticable after the close of the calendar year, the Sec-
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retary shall make available an annual statement to 
each participant setting forth— 
‘‘(A) payments made by or on behalf of the 
participant for the retirement bond, 
‘‘(B) amounts earned by the retirement 
bond, 
‘‘(C) the value of the account as of the 
close of such calendar year, 
‘‘(D) the importance of diversifying retire-
ment savings, 
‘‘(E) the benefits of a well-balanced and di-
versified investment portfolio, 
‘‘(F) a notice of the internet website of the 
Department of Labor for sources of information 
on individual investing and diversification, 
‘‘(G) the procedures for redeeming a re-
tirement bond and directly transferring the re-
deemed amount into an individual retirement 
plan, 
‘‘(H) other factors affecting retirement 
savings decisions, and 
‘‘(I) such other information as the Sec-
retary determines necessary or appropriate. 
‘‘(h) MODEL NOTICE.—The Secretary shall— 
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‘‘(1) provide a model notice, written in a man-
ner calculated to be understandable to the average 
worker, that is simple for employers to use— 
‘‘(A) to notify employees of the require-
ment under this section for the employer to pro-
vide certain employees with the opportunity to 
participate in an automatic IRA arrangement, 
and 
‘‘(B) to satisfy the requirements of sub-
section (d)(2)(C), 
‘‘(2) provide uniform forms for enrollment, in-
cluding automatic enrollment, in an automatic IRA 
arrangement, and 
‘‘(3) establish a website or other electronic 
means that small employers can access and use to 
obtain information on automatic IRA arrangements 
and to obtain required notices and forms. 
The information referred to in paragraph (3) shall 
be provided in a manner designed to assist employ-
ers and providers by facilitating the identification by 
employers of private-sector providers of individual 
retirement plans and associated investment options 
that are appropriate for use in automatic IRA ar-
rangements. 
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‘‘(i) CROSS REFERENCE.—For provision preempting 
conflicting State laws, see section 2(k) of the Automatic 
IRA Act of 2017.’’. 
(b) 
MANDATORY
TRANSFERS.—Section 
401(a)(31)(B) is amended— 
(1) by inserting ‘‘(including an automatic IRA 
arrangement)’’ after ‘‘individual retirement plan’’ 
each place it appears, and 
(2) by adding at the end the following new sen-
tence: ‘‘Any amount so transferred (and any earn-
ings thereon) shall be invested in a default invest-
ment described in section 408B(d)(5).’’. 
(c) PENALTY FOR FAILURE TO TIMELY REMIT CON-
TRIBUTIONS TO AUTOMATIC IRA ARRANGEMENTS.—Sec-
tion 4975(c) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(7) SPECIAL RULE FOR AUTOMATIC IRA AR-
RANGEMENTS.—For purposes of paragraph (1), if 
an employer is required under an automatic IRA ar-
rangement under section 408B to deposit amounts 
withheld from an employee’s compensation into an 
automatic IRA or toward the purchase of a retire-
ment bond but fails to do so within the time pre-
scribed under section 408B(d)(2)(A), such amounts 
shall be treated as assets of the automatic IRA.’’. 
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