(A) by inserting ‘‘or subparagraph (C), as 
appropriate,’’ after ‘‘subparagraph (B)’’; and 
(B) by inserting ‘‘or in a covered annuity 
contract.’’ after ‘‘by the Secretary’’; and 
(2) by adding at the end the following: 
‘‘(C) COVERED ANNUITY CONTRACT.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, the term ‘covered annuity 
contract’ means an investment in an annu-
ity contract that meets the following re-
quirements: 
‘‘(I) The annuity contract does 
not impose a liquidity restriction on 
the transfer of invested amounts dur-
ing the 180-day period beginning on 
the date of the initial investment in 
such contract by the participant or 
beneficiary. 
‘‘(II) The fiduciary ensures that 
each participant or beneficiary is pro-
vided notice in writing in accordance 
with clause (ii). 
‘‘(III) The fiduciary allocates not 
more than 50 percent of any periodic 
contribution or, immediately after a 
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rebalancing of account investments, 
50 percent of the value of the assets 
of the account, to the annuity con-
tract (or, as applicable, to the portion 
thereof to which a liquidity restriction 
applies after the 180-day period in 
subclause (I)). 
‘‘(ii) 
NOTICE
REQUIREMENT.—For 
the purposes of this subparagraph, each 
participant or beneficiary shall be provided 
notice in writing in a manner that is rea-
sonably designed to be understood by the 
average plan participant, as follows: 
‘‘(I) Not later than 30 days in 
advance of the initial investment, a 
notice that includes— 
‘‘(aa) an explanation of the 
circumstances under which assets 
in the account may be invested 
on behalf of the participant or 
beneficiary in the annuity con-
tract, including an explanation of 
the targeted range and maximum 
amount or percentage of such as-
sets to be invested; 
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‘‘(bb) an explanation of the 
rights, and any limitations or re-
strictions thereon, of a partici-
pant or beneficiary to direct or 
transfer amounts invested, or to 
be invested, in an annuity con-
tract to other investment alter-
natives available under the plan; 
‘‘(cc) a general description 
of the annuity contract, including 
the duration of guaranteed pay-
ments and identification of the 
insurer; 
‘‘(dd) an explanation of how 
a participant or beneficiary may 
obtain additional information in 
writing about their investment al-
ternatives; and 
‘‘(ee) a description of how to 
obtain a copy of the annuity con-
tract. 
‘‘(II) Not later than 30 days be-
fore the date of the imposition of a li-
quidity restriction described in sub-
clause (i)(I), that includes— 
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‘‘(aa) a statement explaining 
that the participant’s or bene-
ficiaries’ contributions will short-
ly become subject to liquidity re-
strictions; 
‘‘(bb) an explanation of the 
rights of the participant or bene-
ficiary to direct or transfer 
amounts to be invested in alter-
natives under the plan; and 
‘‘(cc) an explanation of how 
a participant or beneficiary may 
obtain 
additional 
information 
about their investment alter-
natives. 
‘‘(iii) DEFINITION OF ANNUITY CON-
TRACT.—For purposes of this subpara-
graph, the term ‘annuity contract’ means a 
contract (or provision or feature thereof) 
that— 
‘‘(I) is issued by an insurer quali-
fied to do business in a State; and 
‘‘(II) provides for the payment of 
guaranteed benefits annually (or more 
frequently) for a fixed term or for the 
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remainder of the life of the partici-
pant or beneficiary or the joint lives 
of the participant and the partici-
pant’s designated beneficiary.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply with respect to investments 
made on or after the date of enactment of this Act. 
Æ 
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