2(d) of the America Saving for Personal 
Investment, Retirement, and Education 
Act of 2005.’’. 
SEC. 8. KIDS ACCOUNT FUND BOARD. 
(a) IN GENERAL.—There is established in the execu-
tive branch of the Government a KIDS Account Fund 
Board. 
(b) COMPOSITION, DUTIES, 
AND
RESPONSIBIL-
ITIES.—Subject to the provisions of this Act, the provi-
sions of — 
(1) section 8472 of title 5, United States Code 
(relating to composition of Federal Retirement 
Thrift Investment Board), 
(2) section 8474 of such title (relating to Exec-
utive Director), 
(3) section 8475 of such title (relating to in-
vestment policies), and 
(4) section 8476 of such title (relating to ad-
ministrative provisions), shall apply with respect to 
the KIDS Account Fund Board in the same manner 
and to the same extent as such provisions relate to 
the Federal Retirement Thrift Investment Board. 
SEC. 9. FIDUCIARY RESPONSIBILITIES. 
(a) IN GENERAL.—Under regulations of the Sec-
retary of Labor, the provisions of sections 8477 and 8478
of title 5, United States Code, shall apply in connection 
with the KIDS Account Fund and the accounts main-
tained in such Fund in the same manner and to the same 
extent as such provisions apply in connection with the 
Thrift Savings Fund and the accounts maintained in the 
Thrift Savings Fund. 
(b) INVESTIGATIVE
AUTHORITY.—Any authority 
available to the Secretary of Labor under section 504 of 
the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1134) is hereby made available to the Sec-
retary of Labor, and any officer designated by the Sec-
retary of Labor, to determine whether any person has vio-
lated, or is about to violate, any provision applicable under 
subsection (a). 
(c) EXCULPATORY PROVISIONS; INSURANCE.— 
(1) IN GENERAL.—Any provision in an agree-
ment or instrument which purports to relieve a fidu-
ciary from responsibility or liability for any responsi-
bility, obligation, or duty under this Act shall be 
void. 
(2) INSURANCE.—Amounts in the KIDS Ac-
count Fund available for administrative expenses 
shall be available and may be used at the discretion 
of the Executive Director to purchase insurance to 
cover potential liability of persons who serve in a fi-
duciary capacity with respect to the Fund and ac-
counts maintained therein, without regard to wheth-
er a policy of insurance permits recourse by the in-
surer against the fiduciary in the case of a breach 
of a fiduciary obligation. 
SEC. 10. ASSIGNMENT, ALIENATION, AND TREATMENT OF 
DECEASED INDIVIDUALS. 
(a) ASSIGNMENT AND ALIENATION.—Under regula-
tions which shall be prescribed by the Executive Director, 
rules relating to assignment and alienation applicable 
under chapter 84 of title 5, United States Code, with re-
spect to amounts held in accounts in the Thrift Savings 
Fund shall apply with respect to amounts held in KIDS 
Accounts in the KIDS Account Fund. 
(b) TREATMENT OF ACCOUNTS OF DECEASED INDI-
VIDUALS.—In the case of a deceased account holder of a 
KIDS Account which has an account balance greater than 
zero, upon receipt of notification of such individual’s 
death, the Executive Director shall close the account and 
shall transfer the balance in such account to the KIDS 
Account of such account holder’s surviving spouse or, if 
there is no such account of a surviving spouse, to the duly 
appointed legal representative of the estate of the deceased 
account holder, or if there is no such representative, to 
the person or persons determined to be entitled thereto
under the laws of the domicile of the deceased account 
holder. 
SEC. 11. ACCOUNTS DISREGARDED IN DETERMINING ELIGI-
BILITY FOR FEDERAL BENEFITS. 
Amounts in any KIDS Account shall not be taken 
into account in determining any individual’s eligibility for 
any federally funded benefit, including student financial 
aid. 
SEC. 12. REPORTS. 
(a) ANNUAL REPORT.—The Executive Director, in 
consultation with the Secretary of the Treasury, shall an-
nually transmit a written report to the Congress. Such re-
port shall include— 
(1) a detailed description of the status and op-
eration of the KIDS Account Fund and the manage-
ment of the KIDS Accounts, and 
(2) a detailed accounting of the administrative 
expenses in carrying out this Act, including the ratio 
of such administrative expenses to the balance of the 
KIDS Account Fund and the methodology adopted 
by the Executive Director for allocating such ex-
penses among the KIDS Accounts. 
(b) REPAYMENT OF AUTOMATIC CONTRIBUTIONS.— 
Not later than 2 years before the issuance of any final 
regulation under section 3(h), the Executive Director shall
transmit a written report to the Congress. Such report 
shall include a draft of the proposed regulation to be 
issued under such section and a description of the conclu-
sions and recommendations of the Executive Director re-
garding the implementation of the following repayment op-
tions: 
(1) Repayment through service or employment 
in high-need professions or areas. 
(2) Increasing the Federal income tax liability 
of each account holder of a KIDS Account by $100 
per year for 5 years after the account holder attains 
age 30. 
(3) Repayment from the account or other 
sources before the account holder of a KIDS Ac-
count attains age 30. 
(4) Alternatives for individuals facing financial 
hardship, including deferred repayment and forgive-
ness. 
SEC. 13. PROGRAMS FOR PROMOTING FINANCIAL LIT-
ERACY. 
The Secretary of the Treasury, in coordination with 
the Financial Literacy and Education Commission, shall 
develop programs to promote the financial literacy of ac-
count holders of KIDS Accounts and the legal guardians