ployee for the calendar year an automatic USA Retire-
ment Fund arrangement. 
(b) COVERED EMPLOYER.—For purposes of this 
title— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection and subsection (c)(2), the 
term ‘‘covered employer’’ means, with respect to any 
calendar year, an employer who does not maintain a 
qualifying plan or arrangement for any part of such 
year. 
(2) QUALIFYING PLAN OR ARRANGEMENT.— 
(A) IN GENERAL.—The term ‘‘qualifying 
plan or arrangement’’ means a plan or arrange-
ment described in section 219(g)(5) of the In-
ternal Revenue Code of 1986. 
(B) EXCEPTIONS.—Such term shall not in-
clude the following: 
(i) 
FROZEN
DEFINED
BENEFIT 
PLAN.—A defined benefit plan that had no 
ongoing accruals as of the first day of the 
preceding calendar year, unless the plan 
failed to have accruals only because of the 
application of section 206 of the Employee 
Retirement 
Income 
Security 
Act 
(29 
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U.S.C. 1056) and section 436 of the Inter-
nal Revenue Code of 1986. 
(ii) DEFINED
CONTRIBUTION
PLAN 
WITHOUT LIFETIME INCOME OPTIONS.—A 
defined contribution plan that does not 
provide participants with a distribution op-
tion that provides lifetime income. 
(iii) PLANS NOT MEETING CONTRIBU-
TION REQUIREMENTS.—A plan— 
(I) which consists of a cash or 
deferred arrangement (as defined in 
section 401(k) of such Code) with re-
spect to which the employer does not 
automatically enroll all eligible em-
ployees at contribution rates at or 
above those specified in subsection 
(d)(4); or 
(II) for which the only contribu-
tions are nonelective employer con-
tributions and with respect to which 
the employer’s annual contribution 
rate is not at or above the rates speci-
fied in subsection (d)(4). 
(3) EXCEPTION FOR CERTAIN SMALL AND NEW 
EMPLOYERS.— 
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(A) IN GENERAL.—The term ‘‘covered em-
ployer’’ shall not include an employer for a cal-
endar year if the employer— 
(i) did not employ during the pre-
ceding calendar year more than 10 employ-
ees who each received at least $5,000 of 
compensation 
(as 
defined 
in 
section 
3401(a) of the Internal Revenue Code of 
1986) from the employer for such pre-
ceding calendar year; 
(ii) did not normally employ more 
than 10 employees on a typical business 
day during the preceding calendar year; or 
(iii) was not in existence at all times 
during the calendar year and the preceding 
calendar year. 
(B) OPERATING
RULES.—In determining 
the number of employees for purposes of sub-
paragraph (A)— 
(i) rules consistent with any rules ap-
plicable in determining the number of em-
ployees 
for 
purposes 
of 
section 
408(p)(2)(C) and section 4980B(d) of the 
Internal Revenue Code of 1986 shall apply; 
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(ii) all members of the same family 
(within the meaning of section 318(a)(1) 
of the Internal Revenue Code of 1986) 
shall be treated as 1 individual; and 
(iii) any reference to an employer 
shall include a reference to any predecessor 
employer. 
(4) 
EXCEPTION
FOR
GOVERNMENTS
AND 
CHURCHES.—The term ‘‘covered employer’’ shall not 
include— 
(A) a government or entity described in 
section 414(d) of the Internal Revenue Code of 
1986; or 
(B) a church or a convention or association 
of churches that is exempt from tax under sec-
tion 501 of such Code. 
(5) AGGREGATION RULE.—A person treated as 
a single employer under subsection (a) or (b) of sec-
tion 52 of the Internal Revenue Code of 1986 or 
subsection (m) or (o) of section 414 of such Code 
shall be treated as a single employer. 
(c) QUALIFYING EMPLOYEE.—For purposes of this 
title— 
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(1) IN GENERAL.—The term ‘‘qualifying em-
ployee’’ means any employee who is not an excluded 
employee. 
(2) PLAN SPONSOR’S EMPLOYEES.—If— 
(A) an employer maintains one or more 
qualifying plans or arrangements described in 
section 219(g)(5) of the Internal Revenue Code 
of 1986; and 
(B) the employees of a subsidiary, division, 
or other business unit are generally not eligible 
to participate in any such qualifying plan or ar-
rangement, 
for purposes of this section, the employer shall be 
treated as a covered employer with respect to such 
employees (other than excluded employees), and 
such employees (other than excluded employees) 
shall be treated as qualifying employees for the cal-
endar year. 
(3) EXCLUDED EMPLOYEES.— 
(A) IN
GENERAL.—The term ‘‘excluded 
employee’’ means an employee who is an exclud-
able employee and who is in a class or category 
that the employer excludes from treatment as 
qualifying employees. 
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(B) EXCLUDABLE EMPLOYEE.—The term 
‘‘excludable employee’’ means— 
(i) an employee described in section 
410(b)(3) of the Internal Revenue Code of 
1986; 
(ii) an employee who has not attained 
the age of 21 before the beginning of the 
calendar year; 
(iii) an employee who has not com-
pleted at least 3 months of service with the 
employer; 
(iv) in the case of an employer that 
maintains a qualifying plan or arrange-
ment which excludes employees who have 
not satisfied the minimum age and service 
requirements for participation in the plan, 
an employee who has not satisfied such re-
quirements; 
(v) in the case of an employer that 
maintains an annuity contract (including a 
custodial account or retirement income ac-
count) under section 403(b) of the Internal 
Revenue Code of 1986, an employee who is 
permitted to be excluded from any salary 
reduction arrangement under the contract 
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(C) rules to prevent avoidance of the re-
quirements of this section. 
(d) AUTOMATIC USA RETIREMENT FUND ARRANGE-
MENT.—For purposes of this title— 
(1) IN GENERAL.—The term ‘‘automatic USA 
Retirement Fund arrangement’’ means an arrange-
ment of an employer (determined without regard to 
whether the employer is required to maintain the ar-
rangement)— 
(A) that covers each qualifying employee of 
the covered employer for the calendar year; 
(B) under which a qualifying employee— 
(i) may elect— 
(I) to contribute to an automatic 
USA Retirement Fund by having the 
employer deposit payroll deduction 
amounts or make other periodic direct 
deposits (including electronic pay-
ments) to the Fund; or 
(II) to have such payments paid 
to the employee directly in cash; 
(ii) is treated as having made the elec-
tion under clause (i)(I) in the amount 
specified in paragraph (4) unless the indi-
vidual specifically elects not to have such 
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contributions made (or specifically elects to 
have such contributions made at a dif-
ferent 
percentage 
or 
in 
a 
different 
amount); and 
(iii) not more than once per calendar 
year, may elect to modify the selection of 
the USA Retirement Fund to which con-
tributions are made for such year; and 
(C) that meets the administrative require-
ments of paragraph (3), including the notice re-
quirement of paragraph (3)(C). 
(2) AUTOMATIC RE-ENROLLMENT.—An employ-
ee’s election not to contribute to a USA Retirement 
Fund (or to have such contributions made at a dif-
ferent percentage or in a different amount from 
those specified in paragraph (4)) shall expire after 
2 years. After such 2-year period and absent a new 
election, the employee shall be treated as having 
made the election under paragraph (1)(B)(i)(I) in 
the amount specified in paragraph (4). 
(3) ADMINISTRATIVE REQUIREMENTS.— 
(A) PAYMENTS.—An employer shall make 
the payments elected or treated as elected 
under paragraph (1)(B) on or before— 
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(i) the last day of the month following 
the month in which the compensation oth-
erwise would have been payable to the em-
ployee in cash; or 
(ii) such later date as the Secretary 
may prescribe. 
(B) TERMINATION OF EMPLOYEE PARTICI-
PATION.—Subject to a requirement for reason-
able notice, an employee may elect to terminate 
participation in the arrangement at any time 
during a calendar year. The arrangement may 
provide that, if an employee so terminates par-
ticipation, the employee may not elect to re-
sume participation until the beginning of the 
next calendar year. 
(C) NOTICE OF ELECTION PERIOD.—The 
employer shall notify each employee eligible to 
participate for a year in a USA Retirement 
Fund arrangement, within a reasonable period 
of time before the 30th day before the begin-
ning of such year (and, for the first year the 
employee is so eligible, the 30th day before the 
first day such employee is so eligible), of— 
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(i) the payments that may be elected 
or treated as elected under paragraph 
(1)(B); 
(ii) the opportunity to make the elec-
tion to terminate participation in the ar-
rangement under subparagraph (B); 
(iii) the opportunity to make the elec-
tion under paragraph (1)(B)(ii) to have 
contributions or purchases made at a dif-
ferent percentage or in a different amount; 
and 
(iv) the opportunity under paragraph 
(1)(B)(iii) to modify the manner in which 
such amounts are invested for such year. 
(D) EMPLOYEES
MAY
CHOOSE
USA
RE-
TIREMENT FUND.—The arrangement shall pro-
vide that a qualified employee may elect to have 
contributions made to any USA Retirement 
Fund available to the employee. 
(4) AMOUNT
OF
CONTRIBUTIONS
AND
PAY-
MENTS.—The amount specified in this paragraph 
is— 
(A) 3 percent of compensation for the cal-
endar year beginning on January 1, 2019; 
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(B) 4 percent of compensation for the cal-
endar year beginning on January 1, 2020; 
(C) 5 percent of compensation for the cal-
endar year beginning on January 1, 2021; and 
(D) 6 percent of compensation for calendar 
years beginning after December 31, 2021. 
(5) COORDINATION WITH WITHHOLDING.—The 
Secretary of the Treasury shall modify the with-
holding exemption certificate under section 3402(f) 
of the Internal Revenue Code of 1986 so that, in the 
case of any qualifying employee covered by a USA 
Retirement Fund arrangement, any notice and elec-
tion requirements with respect to the arrangement 
may be met through the use of an attachment to 
such certificate or other modifications of the with-
holding exemption procedures. 
(e) DEPOSITS TO USA RETIREMENT FUNDS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), an employer shall make all contributions 
on behalf of employees to the USA Retirement Fund 
specified by the employee. 
(2) USA RETIREMENT
FUNDS
OTHER
THAN 
THOSE SELECTED BY EMPLOYEE.—In the absence of 
an affirmative selection of a USA Retirement Fund 
by the employee, contributions on behalf of the em-
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daltland on DSKBBV9HB2PROD with BILLS
ployee shall be made to the USA Retirement Fund 
designated by the employer. 
(3) REGULATIONS.—The Secretary may issue 
such regulations as are necessary to carry out this 
subsection. 
(f) PREEMPTION OF CONFLICTING STATE LAWS.— 
The requirements under this section preempt any law of 
a State that directly or indirectly prohibits or restricts the 
establishment or operation of an automatic USA Retire-
ment Fund arrangement. Nothing in this section shall be 
construed to impair or preempt any State law to the extent 
such State law provides a remedy for the failure to make 
payroll deposit payments under any such automatic USA 
Retirement Fund arrangement within the period required. 
SEC. 3. ESTABLISHMENT OF USA RETIREMENT FUNDS. 
(a) QUALIFICATION
AS
A
USA RETIREMENT 
FUND.—For purposes of this title— 
(1) IN GENERAL.—The term ‘‘USA Retirement 
Fund’’ means a fund for which the Secretary has de-
termined the requirements under this title are met. 
(2) 
REQUEST
FOR
DETERMINATION.—The 
board of trustees of a program established for pur-
poses of being treated as a USA Retirement Fund 
under this section shall, prior to beginning oper-
ations, submit to the Secretary (at such time and in 
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such manner as the Secretary may prescribe) a re-
quest for the Secretary to make a determination as 
to whether the plan meets the requirements of this 
title for such treatment. Such request shall include 
copies of the written documents establishing the plan 
and such other materials as the Secretary may re-
quest. The Secretary shall make such determination 
within 180 days of receiving such request. 
(3) PERIODIC REVIEW.—The Secretary shall es-
tablish a process to periodically review each plan de-
termined to be a USA Retirement Fund under para-
graph (1) to ensure that the plan continues to meet 
the requirements of this title. 
(4) PUBLIC
LIST
OF
PLANS.—The Secretary 
shall maintain a public list of plans determined by 
the Secretary to qualify as USA Retirement Funds. 
Such list shall be posted to a publicly available 
Internet website. 
(b) PARTICIPATION.— 
(1) ELIGIBILITY.—An individual may partici-
pate in any USA Retirement Fund for which such 
individual meets the eligibility requirements, individ-
ually or through an arrangement established by an 
employer. 
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(2) PARTICIPATION IN OTHER PLANS.—An indi-
vidual who participates in a USA Retirement Fund 
shall not be precluded from participating in a plan 
or arrangement described in section 219(g)(5) of the 
Internal Revenue Code of 1986. 
(c) GOVERNANCE.— 
(1) ASSETS HELD IN TRUST; BOARD OF TRUST-
EES.—For purposes of this title— 
(A) the assets of each USA Retirement 
Fund shall be held in trust; and 
(B) the Fund shall be governed by a board 
of trustees which shall consist of at least 3 indi-
viduals who— 
(i) are independent of service pro-
viders to the Fund; 
(ii) meet the qualification require-
ments established under this section; and 
(iii) are collectively able to adequately 
represent the interests of active partici-
pants, retirees, and contributing employ-
ers. 
(2) INDEPENDENCE REQUIREMENT.—An indi-
vidual is not independent of Fund service providers 
for purposes of paragraph (1)(B)(i) if such indi-
vidual— 
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(A) is an employee of any Fund service 
provider; 
(B) is a current or former officer or direc-
tor of a significant Fund service provider, or is 
otherwise affiliated with such a provider; 
(C) is a member of the immediate family 
of any person who is affiliated with a signifi-
cant Fund service provider; 
(D) derives more than 1 percent of the in-
dividual’s annual income from a significant 
Fund service provider; 
(E) derives more than 5 percent of the in-
dividual’s annual income from any Fund service 
provider; or 
(F) fails to meet such other criteria as are 
specified by the Secretary to ensure the inde-
pendence of the board of directors. 
(3) MULTIPLE TRUSTEESHIPS.—No individual 
may serve on the board of trustees of more than 1 
USA Retirement Fund unless the Secretary receives 
attestation from the board of trustees of each appli-
cable USA Retirement Fund and the individual that, 
at the time of appointment, there is no reasonably 
foreseeable conflict between the duties of such indi-
vidual to the participants in each applicable USA 
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Retirement Fund. In no case may an individual 
serve on the boards of trustees of more than 3 USA 
Retirement Funds. 
(4) TRUSTEE QUALIFICATIONS.—Each trustee 
of a USA Retirement Fund shall attest that the 
trustee is knowledgeable of the trustee’s duties and 
responsibilities as a fiduciary of a USA Retirement 
Fund. The Secretary may require by regulation such 
other qualifications and documentation as may be 
necessary to ensure that trustees are suitable and 
qualified. Such requirements may include those re-
lated to education, training, and minimum com-
petency standards. 
(5) TRUSTEE SELECTION AND REMOVAL.— 
(A) IN GENERAL.—Each board of trustees 
of a USA Retirement Fund shall establish writ-
ten procedures regarding the appointment, re-
moval, and replacement of trustees on the 
board. Such procedures shall— 
(i) take effect after adoption by the 
majority of the board of trustees; 
(ii) be readily available to partici-
pants; 
(iii) provide participants with a rea-
sonable opportunity to comment on, or 
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participate in, the trustee selection process; 
and 
(iv) provide for periodic election of 
trustees. 
(B) REMOVAL BY THE SECRETARY.—The 
Secretary may require removal or suspension of 
a trustee if the conduct of the trustee is fraudu-
lent or is causing, or can be reasonably ex-
pected to cause, significant, imminent, and ir-
reparable harm to the participants or bene-
ficiaries of a USA Retirement Fund. 
(C) FUNDS WITHOUT QUALIFIED TRUST-
EES.—If a board of trustees of a USA Retire-
ment Fund has no members meeting the cri-
teria under this subsection, the Secretary shall 
appoint replacement trustees. 
(6) TRUSTEE COMPENSATION.—Trustees of the 
Fund may be compensated at reasonable rates from 
the Fund, but only if such compensation is paid in 
accordance with the written board compensation pol-
icy adopted under paragraph (7)(A)(iv). 
(7) TRANSPARENCY AND PARTICIPANT DEMOC-
RACY.— 
(A) PUBLICLY AVAILABLE POLICIES.—The 
board of trustees of a USA Retirement Fund 
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shall adopt and make available to participants 
and beneficiaries of, and employers contributing 
to, the USA Retirement Fund— 
(i) a written investment policy state-
ment; 
(ii) a written lifetime income policy 
statement; 
(iii) an annual performance assess-
ment of the board of trustees, including an 
evaluation of weaknesses of the board and 
a plan to address such weaknesses; 
(iv) a written board compensation pol-
icy that includes current compensation lev-
els and provides a reasonable opportunity 
for comment from participants, bene-
ficiaries, and employers; and 
(v) a written policy addressing con-
flicts of interests with respect to trustees. 
(B) 
PARTICIPANT
INPUT
REGARDING 
BOARD OF TRUSTEES.— 
(i) IN GENERAL.—The board of trust-
ees of a USA Retirement Fund shall estab-
lish procedures whereby a participant or 
beneficiary of such USA Retirement Fund 
may— 
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(I) petition the board of trustees 
to remove a trustee or service pro-
vider; 
(II) comment on the management 
and administration of the USA Re-
tirement Fund; and 
(III) with respect to a USA Re-
tirement 
Fund 
with 
more 
than 
$250,000,000 of assets, vote to ap-
prove or disapprove the compensation 
of the trustees at least once every 3 
years. 
(ii) EFFECT
OF
VOTE.—If partici-
pants and beneficiaries of a USA Retire-
ment Fund vote to disapprove the com-
pensation 
of 
trustees 
under 
clause 
(i)(III)— 
(I) the results of such vote shall 
not be binding on the board of trust-
ees; and 
(II) the board of trustees shall 
notify the Secretary of the results of 
such vote and provide an explanation 
of why the compensation is reasonable 
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or anticipated changes to the com-
pensation. 
(8) LIABILITY
INSURANCE
FOR
TRUSTEES.— 
The trustees of each USA Retirement Fund shall 
have fiduciary liability insurance with a per-claim 
limit equal to no less than the greater of— 
(A) 5 percent of plan assets; or 
(B) $1,000,000. 
(9) TRUSTEE DUTIES.— 
(A) IN GENERAL.—The trustees of a USA 
Retirement Fund shall manage the Fund with 
the intention of providing each participant with 
a cost-effective stream of income in retirement 
and reducing benefit level volatility (particularly 
for those approaching retirement). 
(B) APPLICABILITY OF OTHER REQUIRE-
MENTS.—Each trustee of a USA Retirement 
Fund shall be a fiduciary subject to sections 
404(a), 404(b), 405, 406, and 408 through 413 
of the Employee Retirement Income Security 
Act of 1974 with respect to the Fund and par-
ticipants and beneficiaries of the Fund. Each 
such trustee shall be subject to the standards 
and remedies of such sections and section 502 
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daltland on DSKBBV9HB2PROD with BILLS
of such Act, as if the Fund were an employee 
benefit plan. 
(d) CONTRIBUTION LIMITATIONS.— 
(1) EMPLOYER.—Subject to paragraph (3), em-
ployers may, in addition to contributions an em-
ployee elects (or is treated as having elected) to have 
made, make a contribution of up to $5,000 per year 
to a USA Retirement Fund on behalf of each em-
ployee eligible to participate in a USA Retirement 
Fund, provided such contributions are made in a 
uniform manner (as the same dollar amount for 
each such employee or the same percentage of pay 
for each such employee) and are not intended to 
benefit solely highly compensated employees. 
(2) EMPLOYEE.—An employee may not elect 
(or shall not be treated as having as elected) to con-
tribute more than $15,000 per year to a USA Re-
tirement Fund. 
(3) ANNUAL INDEXING OF AMOUNT.—The dol-
lar amounts under paragraphs (1) and (2) shall be 
indexed annually for inflation. 
(e) BENEFITS IN THE FORM OF AN ANNUITY.— 
(1) IN
GENERAL.—A USA Retirement Fund 
shall pay benefits in the form of an annuity in ac-
cordance with paragraph (2). The amount of such 
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benefits shall be dependent on the amount of con-
tributions made by the participant, the experience of 
the Fund, and the form of distribution elected by 
the participant. The amount of an annuity may be 
adjusted to reflect the experience of the Fund as 
necessary to protect the financial integrity of the 
Fund, except that annuity payments for those in pay 
status shall not be reduced more than 5 percent per 
year unless the Fund is faced with a significant fi-
nancial hardship and the Secretary has approved the 
reduction. 
(2) ANNUITY.—A USA Retirement Fund shall 
pay benefits in accordance with one of the following: 
(A) In the case of a participant who does 
not die before the annuity starting date, the 
benefit payable to such participant shall be pro-
vided in the form of a qualified joint and sur-
vivor annuity (as defined in section 205(d)(1) 
of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1055(d)(1))). 
(B) In the case of a participant who dies 
before the annuity starting date and who has a 
surviving spouse, a qualified preretirement sur-
vivor annuity (as defined in section 205(d)(2) 
of the Employee Retirement Income Security 
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daltland on DSKBBV9HB2PROD with BILLS
Act of 1974 (29 U.S.C. 1055(d)(2))) shall be 
provided to the surviving spouse of such partici-
pant. 
(C) In lieu of a qualified joint and survivor 
annuity form of benefit or the qualified pre-
retirement survivor annuity form of benefit (or 
both), a participant may elect to receive a dis-
tribution described in subsection (f)(2) if one of 
the following conditions are met: 
(i)(I) The spouse of the participant 
consents in writing to the election. 
(II) Such election designates a bene-
ficiary (or form of benefits) which may not 
be changed without spousal consent (or the 
consent of the spouse expressly permits 
designations by the participant without 
any requirement of further consent by the 
spouse). 
(III) The spouse’s consent acknowl-
edges the effect of such election and is wit-
nessed by a plan representative or a notary 
public. 
(ii) It is established to the satisfaction 
of a Fund representative that the consent 
required under subclause (I) cannot be ob-
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tained because there is no spouse, because 
the spouse cannot be located, or because of 
such other circumstances as the Secretary 
may by regulations prescribe. 
The consent of a spouse (or establishment that 
the consent of a spouse cannot be obtained) 
under this subparagraph shall be effective only 
with respect to such spouse. 
(3) 
COMMENCEMENT
OF
BENEFIT
PAY-
MENTS.—A participant may elect the time to start 
receiving benefit payments from the USA Retire-
ment Fund, except that a participant— 
(A) except as provided in subsection 
(f)(2)(B), may not elect to receive benefit pay-
ments before reaching the age of 60; and 
(B) must begin receiving benefit payments 
before the age of 72. 
(4) NOTICE.—Each Fund shall provide to each 
participant, within a reasonable period of time be-
fore the annuity starting date, a written explanation 
substantially similar to that required by section 
205(c)(3) of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1055(c)(3)). 
(5) ASSIGNMENT
OR
ALIENATION
OF
FUND 
BENEFITS.—Benefits under a USA Retirement 
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Fund shall be subject to section 206(d) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1056(d)). 
(f) LIMITS ON WITHDRAWALS AND TRANSFERS.— 
(1) TRANSFERS.—A participant may, not more 
frequently than once per year, transfer such partici-
pant’s benefit to another USA Retirement Fund. 
(2) LIMITS ON DISTRIBUTIONS.— 
(A) IN GENERAL.—Except as provided in 
subparagraphs (B) and (C), a participant may 
not take a distribution other than one described 
in subsection (e)(2). 
(B) PARTICIPANTS AGED 59 AND YOUNG-
ER.—A participant may before age 60 take a 
distribution of a portion of the participant’s 
benefit if such distribution does not to exceed 
$5,500 and is rolled over to a qualifying plan 
or arrangement described in section 219(g)(5) 
of the Internal Revenue Code of 1986 or an in-
dividual retirement plan. 
(C) PARTICIPANTS AGED 60 AND OLDER.— 
A participant who is 60 or older but who has 
not entered pay status may elect one time to 
take a distribution of the greater of $10,000 or 
50 percent of the participant’s benefit if the 
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participant demonstrates to the satisfaction of 
the trustees of the Fund that the participant 
has sufficient retirement income apart from the 
Fund or is facing a substantial hardship. 
(g) METHODS FOR PROVIDING ANNUITIZED BEN-
EFIT PAYMENTS.— 
(1) IN
GENERAL.—A USA Retirement Fund 
shall establish and maintain mechanisms for ade-
quately securing the payment of annuity benefits 
from the Fund. The Fund shall include a written de-
scription of such mechanisms in the investment and 
lifetime income policy statements required to be dis-
closed to participants. 
(2) SPECIFIC
GOALS.—The mechanisms de-
scribed in paragraph (1) shall ensure that— 
(A) each participant receives a stream of 
income for life; 
(B) each participant and beneficiary has 
an opportunity to be protected against longevity 
risk; and 
(C) volatility in benefit levels is minimized 
for participants and beneficiaries in pay status 
and those approaching pay status. 
(3) SELF-ANNUITIZATION.— 
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(A) IN
GENERAL.—Notwithstanding any 
other provision of law, a USA Retirement Fund 
may self-annuitize if the Fund meets such re-
quirements as the Secretary establishes as nec-
essary to protect participants and beneficiaries 
in consideration of the recommendations of the 
Commission under section 103. 
(B) 
DUTY
TO
ADDRESS
EMERGING 
ISSUES.—The Secretary shall, periodically and 
in accordance with established procedures, up-
date the funding requirements promulgated 
under this paragraph in response to changing 
economic and business conditions to the extent 
necessary to carry out the purposes of this Act, 
taking into consideration the recommendations 
of the Commission. 
(h) REPORTING AND DISCLOSURE.— 
(1) ANNUAL STATEMENT.—The trustees of a 
USA Retirement Fund shall provide each participant 
in the Fund an annual statement of— 
(A) the estimated amount of the monthly 
benefit which the participant or beneficiary is 
projected to receive from the USA Retirement 
Fund, in the form of the default benefit de-
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scribed in the plan in accordance with sub-
section (e)(2); 
(B) an explanation, written in a manner 
calculated to be understood by the average plan 
participant, that includes interest and mortality 
assumptions used in calculating the estimate 
and a statement that actual benefits may be 
materially different from such estimate; 
(C) a disclosure of Fund fees and perform-
ance that is substantially similar to the disclo-
sures required of individual account plans under 
the Employee Retirement Income Security Act 
of 1974; 
(D) any other disclosures, including pro-
jected benefit estimates, that the board of trust-
ees of the USA Retirement Fund determines 
appropriate; and 
(E) such other disclosures as may be re-
quired by the Secretary. 
(2) SUMMARY PLAN DESCRIPTION.—The trust-
ees of a USA Retirement Fund shall provide partici-
pants a summary plan description (as described in 
section 102 of the Employee Retirement Income Se-
curity Act (29 U.S.C. 1022)) as required by section 
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104(b) of the Employee Retirement Income Security 
Act (29 U.S.C. 1024(b)). 
(3) ANNUAL REPORTS.—The trustees of a USA 
Retirement Fund shall file with the Secretary of 
Labor periodic reports in accordance with regula-
tions promulgated by the Secretary. 
(4) ADDITIONAL REQUIREMENTS.—Each USA 
Retirement Fund shall be subject to sections 106 
and 107 of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1026, 1027). 
(i) TAX TREATMENT.— 
(1) USA RETIREMENT FUND.—A USA Retire-
ment Fund is exempt from taxation under subtitle 
A of the Internal Revenue Code of 1986. Notwith-
standing the preceding sentence, a USA Retirement 
Fund is subject to the taxes imposed by section 511 
of such Code (relating to imposition of tax on unre-
lated business income of charitable, etc. organiza-
tions). 
(2) CONTRIBUTIONS.—In the case of an indi-
vidual, there shall be allowed as a deduction for the 
taxable year an amount equal to the amount of con-
tributions to a USA Retirement Fund made by or on 
behalf of the individual under an automatic USA 
Retirement Fund arrangement under section 2(d). 
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(3) ROLLOVER CONTRIBUTIONS.—For purposes 
of this Act, rules similar to the rules of subpara-
graphs (A) and (D) of section 408(d)(3) of the In-
ternal Revenue Code of 1986 shall apply. 
(4) DISTRIBUTIONS.—Any distribution from a 
USA Retirement Fund shall be includible in the 
gross income of the distributee in the manner as 
provided in section 72 of the Internal Revenue Code 
of 1986. 
(5) PROHIBITED
TRANSACTIONS, 
ETC.—For 
purposes of this Act, rules similar to the rules of 
paragraphs (2), (3), and (4) of section 408(e)(2) of 
the Internal Revenue Code of 1986 shall apply. 
(6) REPORTS.—The trustees of a USA Retire-
ment Fund shall make such reports regarding such 
Fund to the Secretary of the Treasury and to des-
ignated beneficiaries with respect to contributions, 
distributions, and such other matters as the Sec-
retary of the Treasury may require. The reports re-
quired by this paragraph shall be filed at such time 
and in such manner and furnished to such individ-
uals at such time and in such manner as may be re-
quired by the Secretary of the Treasury. 
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SEC. 4. COMMISSION ON USA RETIREMENT FUNDS. 
(a) RECOGNITION OF PRIVATE COMMISSION.—The 
Secretary shall— 
(1) recognize an independent, private commis-
sion, to be known as the ‘‘Commission for USA Re-
tirement Funds Funding’’ (referred to in this title 
as the ‘‘Commission’’); and 
(2) in carrying out the Secretary’s duties under 
this title, consider the recommendations of such 
Commission. 
(b) COMMISSION.—The Commission recognized under 
subsection (a) shall meet the following requirements: 
(1) MEMBERSHIP.— 
(A) COMPOSITION.—The Commission shall 
be composed of 9 members selected by the Sec-
retary, in consultation with the Secretary of the 
Treasury, of whom no more than 5 may be 
from one political party. The Secretary shall 
designate one member of the Commission as the 
Chairman. No person may be appointed to the 
Commission if, during the 2-year period pre-
ceding the date of appointment, such person 
was a trustee of a USA Retirement Fund. 
(B) DATE.—The appointments of the 
members of the Commission shall be made not 
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later than 90 days after the date of enactment 
of this Act. 
(C) PERIOD
OF
APPOINTMENT; VACAN-
CIES.—Members shall be appointed for terms of 
2 years and may be appointed for consecutive 
terms. Any vacancy in the Commission shall not 
affect its powers, and shall be filled in the same 
manner as the original appointment. 
(2) MAJORITY
VOTE.—The Commission may 
act by majority vote of its members, provided that 
at least 7 members are present. 
(3) COMMISSION PERSONNEL MATTERS.— 
(A) COMPENSATION OF MEMBERS.—Each 
member of the Commission who is not an offi-
cer or employee of the Federal Government 
shall be compensated at a rate equal to the 
daily equivalent of the annual rate of basic pay 
prescribed for level IV of the Executive Sched-
ule under section 5315 of title 5, United States 
Code, for each day (including travel time) dur-
ing which such member is engaged in the per-
formance of the duties of the Commission. All 
members of the Commission who are officers or 
employees of the United States shall serve with-
out compensation in addition to that received 
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for their services as officers or employees of the 
United States. 
(B) TRAVEL EXPENSES.—The members of 
the Commission shall be allowed travel ex-
penses, including per diem in lieu of subsist-
ence, at rates authorized for employees of agen-
cies under subchapter I of chapter 57 of title 5, 
United States Code, while away from their 
homes or regular places of business in the per-
formance of services for the Commission. 
(C) STAFF.— 
(i) IN GENERAL.—The Chairman of 
the Commission may, without regard to 
the civil service laws and regulations, ap-
point and terminate an executive director 
and such other additional personnel as 
may be necessary to enable the Commis-
sion to perform its duties. The employment 
of an executive director shall be subject to 
confirmation by the Commission. 
(ii) COMPENSATION.—The Chairman 
of the Commission may fix the compensa-
tion of the executive director and other 
personnel without regard to chapter 51 
and subchapter III of chapter 53 of title 5, 
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United States Code, relating to classifica-
tion of positions and General Schedule pay 
rates, except that the rate of pay for the 
executive director and other personnel may 
not exceed the rate payable for level V of 
the Executive Schedule under section 5316 
of such title. 
(iii) DETAIL
OF
GOVERNMENT
EM-
PLOYEES.—Any Federal Government em-
ployee may be detailed to the Commission 
without reimbursement, and such detail 
shall be without interruption or loss of civil 
service status or privilege. 
(iv) PROCUREMENT
OF
TEMPORARY 
AND
INTERMITTENT
SERVICES.—The 
Chairman of the Commission may procure 
temporary and intermittent services under 
section 3109(b) of title 5, United States 
Code, at rates for individuals which do not 
exceed the daily equivalent of the annual 
rate of basic pay prescribed for level V of 
the Executive Schedule under section 5316 
of such title. 
(4) RECOMMENDATIONS AND REGULATIONS ON 
FUNDING AND DISTRIBUTION REQUIREMENTS.— 
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(A) IN GENERAL.—After taking into con-
sideration the recommendations of the Commis-
sion and providing the public notice and an op-
portunity for comment, the Secretary shall pro-
mulgate regulations with respect to funding and 
distribution requirements for USA Retirement 
Funds, as necessary or appropriate in the pub-
lic interest and for the protection of partici-
pants and beneficiaries, including regulations 
described in subparagraphs (B) and (C). 
(B) REQUIREMENTS RELATING TO ANNU-
ITY PAYMENTS MADE DIRECTLY BY A FUND.— 
The regulations under subparagraph (A) shall 
provide that in the case of annuity payments 
made directly by the Fund— 
(i) the maximum annuity payment for 
a participant or beneficiary shall be deter-
mined using the mortality tables and inter-
est rates prescribed by the Secretary under 
subparagraph (C) at the time benefits 
commence; and 
(ii) the level of benefits paid may be 
adjusted periodically in order to reflect the 
mortality experience and the investment 
experience of the Fund, but only after the 
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Fund has obtained a certification from a 
member of the American Academy of Actu-
aries that the adjustment is sustainable for 
the remaining lifetime of participants then 
receiving benefits, based on the mortality 
tables and interest rates prescribed under 
subparagraph (C) by the Secretary for that 
time. 
(C) MORTALITY
TABLES
AND
INTEREST 
RATES USED REQUIREMENTS.—The regulations 
promulgated under subparagraph (A) shall in-
clude the following: 
(i) MORTALITY TABLES.— 
(I) IN GENERAL.—The Secretary 
shall prescribe mortality tables to be 
used in determining annuity payments 
made directly by the Fund. Such ta-
bles shall be based on the actual expe-
rience of insurance companies that 
issue group annuities and projected 
trends in such experience. In pre-
scribing such tables, the Secretary 
shall take into account results of 
available independent studies of the 
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mortality of individuals receiving an-
nuities under group annuity contracts. 
(II) PERIODIC
REVISIONS
OF 
MORTALITY
TABLES.—The Secretary 
shall make revisions, to become effec-
tive as soon as practicable, in any 
mortality table in effect to reflect 
more recent actual experience of in-
surance companies that issue group 
annuities and projected trends in such 
experience. In revising such tables, 
the Secretary shall take into account 
the results of more recent available 
independent studies of the mortality 
and projected trends of individuals re-
ceiving annuities under group annuity 
contracts. 
(ii) INTEREST RATES.—The Secretary 
shall prescribe interest rates to be used in 
determining annuity payments made di-
rectly by the Fund. Such rates shall be 
based on the yields on investment grade 
corporate bonds with varying maturities 
and that are in the top 3 quality levels 
available. Interest rates shall be prescribed 
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quarterly or more frequently, as deter-
mined by the Secretary. 
(5) DUTY TO ADDRESS BEST PRACTICES.—The 
Commission shall prepare, and periodically update, a 
report that describes the best practices for the gov-
ernance of boards of trustees of USA Retirement 
Funds, including board of trustee composition, ap-
pointment procedures, term length, term staggering, 
trustee qualifications, delegation of duties, and per-
formance assessment procedures. 
SEC. 5. LIMITATION ON EMPLOYER LIABILITY. 
Section 404 of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1021 et seq.) is amended 
by adding at the end the following: 
‘‘(e) An employer shall not be a fiduciary with respect 
to the selection, management or administration of a USA 
Retirement Fund solely because such employer makes 
available such Fund through an automatic USA Retire-
ment Fund arrangement. Notwithstanding the preceding 
sentence, employers participating in a USA Retirement 
Fund shall be responsible for meeting the enrollment re-
quirements and transmitting contributions, as required 
under the USA Retirement Funds Act.’’. 
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SEC. 6. ENFORCEMENT AND FRAUD PREVENTION. 
(a) PENALTY FOR FAILURE TO TIMELY REMIT CON-
TRIBUTIONS TO AUTOMATIC USA RETIREMENT FUND 
ARRANGEMENTS.— 
(1) IN GENERAL.—If an employer is required 
under an automatic USA Retirement Fund arrange-
ment to deposit amounts withheld from an employ-
ee’s compensation into a USA Retirement Fund but 
fails to do so within the time prescribed under sec-
tion 2(d)(3), such amounts shall be treated as assets 
of a USA Retirement Fund. 
(2) FAILURE TO PROVIDE ACCESS TO PAYROLL 
SAVINGS ARRANGEMENTS.— 
(A) GENERAL RULE.—A covered employer 
who fails to meet the requirements of section 
2(a) for a calendar year shall be subject to a 
civil money penalty of $100 per calendar year 
for each employee to whom such failure relates. 
(B) EXCEPTIONS.—No civil money penalty 
shall be imposed under this paragraph for a 
failure to meet the requirements under section 
2(a)— 
(i) during a period for which the Sec-
retary determines that the employer sub-
ject to liability for the civil money penalty 
did not know that the failure existed and 
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exercised reasonable diligence to meet the 
requirements of section 2(a); or 
(ii)(I) the employer subject to liability 
for the civil money penalty exercised rea-
sonable diligence to meet the requirements 
of section 2(a); and 
(II) the employer provides the auto-
matic USA Retirement Fund arrangement 
described to each employee eligible to par-
ticipate in the arrangement by the end of 
the 90-day period beginning on the first 
date the employer knew, or exercising rea-
sonable diligence should have known, that 
such failure existed. 
(C) WAIVER BY THE SECRETARY.—In the 
case of a failure to meet the requirements of 
section 2(a) that is due to reasonable cause and 
not to willful neglect, the Secretary may, in the 
sole discretion of the Secretary, waive part or 
all of the civil money penalty imposed under 
this paragraph to the extent that the payment 
of such civil money penalty would be excessive 
or otherwise inequitable relative to the failure 
involved. 
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(D) PROCEDURES FOR NOTICE.—The Sec-
retary may prescribe and implement procedures 
for obtaining confirmation that employers are 
in compliance with subsection (a). The Sec-
retary, in the discretion of such Secretary, may 
prescribe that the confirmation shall be ob-
tained on an annual or less frequent basis, and 
may use for this purpose the annual report or 
quarterly report for employment taxes, or such 
other means as the Secretary may deem advis-
able. 
(b) CIVIL ACTIONS AND ENFORCEMENT.— 
(1) ADMINISTRATION
AND
ENFORCEMENT.— 
Part 5 of title I of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1132 et seq.) shall 
apply to a USA Retirement Fund as if a USA Re-
tirement Fund were an employee benefit plan. 
(2) AMENDMENT.—Section 502(a) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1132 et seq.) is amended— 
(A) in paragraph (10), by striking ‘‘; or’’ 
and inserting ‘‘;’’; 
(B) in paragraph (11), by striking the pe-
riod at the end and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
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‘‘(12) in the event that an employer fails to 
make timely contributions or payments to a USA 
Retirement Fund established under title I of the 
USA Retirement Funds Act, by the Secretary, a 
participant, a beneficiary, or a fiduciary, to compel 
an employer to make such contributions or payments 
as if such contributions or payments were delinquent 
contributions or payments under section 515 or sub-
section (g)(2).’’. 
(3) NON-PREEMPTION
OF
CERTAIN
STATE 
LAW.—Nothing in this section shall preempt State 
law insofar as State law relates to the enforcement 
of an obligation to contribute to a USA Retirement 
Fund. 
(c) FALSE STATEMENTS.— 
(1) IN
GENERAL.—No person, in connection 
with a plan or other arrangement that is or purports 
to be a USA Retirement Fund, shall make a false 
statement or false representation of fact, knowing it 
to be false, in connection with the marketing or sale 
of such plan or arrangement, to any employee, any 
member of an employee organization, any bene-
ficiary, any employer, any employee organization, 
the Secretary, or any State, or the representative or 
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agent of any such person, State, or the Secretary, 
concerning— 
(A) the financial condition or solvency of 
such fund or arrangement; 
(B) the benefits provided by such fund or 
arrangement; 
(C) the regulatory status of such fund or 
other arrangement under any Federal or State 
law governing collective bargaining, labor man-
agement relations, or intern union affairs; or 
(D) the regulatory status of such fund or 
other arrangement. 
(2) PENALTY.—Any person who violates this 
subsection shall, upon conviction, be imprisoned not 
more than 10 years or fined under title 18, United 
States Code, or both. 
(d) CEASE AND DESIST ORDERS.— 
(1) ISSUANCE OF ORDER.—The Secretary may 
issue a cease and desist (ex parte) order under this 
title if the Secretary determines that the alleged con-
duct of a fund purporting to be a USA Retirement 
Fund is fraudulent, or creates an immediate danger 
to the public safety or welfare, or is causing or can 
be reasonably expected to cause significant, immi-
nent, and irreparable public injury. 
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(2) HEARINGS.— 
(A) IN GENERAL.—A person who is ad-
versely affected by the issuance of a cease and 
desist order under paragraph (1) may request a 
hearing by the Secretary regarding such order. 
The Secretary may require that a hearing 
under this paragraph, including all related in-
formation and evidence, be conducted in a con-
fidential manner. 
(B) BURDEN OF PROOF.—The burden of 
proof in any hearing conducted under subpara-
graph (A) shall be on the party requesting the 
hearing to show cause why the cease and desist 
order should be set aside. 
(C) DETERMINATION.—Based upon the 
evidence presented at a hearing under subpara-
graph (A), the Secretary may affirm, modify, or 
set aside the cease and desist order at issue, in 
whole or in part. 
(3) REGULATIONS.—The Secretary may pro-
mulgate such regulations or other guidance as may 
be necessary or appropriate to carry out this sub-
section. 
Æ 
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