[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2696 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 2696
To establish the American Worker Retirement Plan, improve the financial
security of working Americans by facilitating the accumulation of
wealth, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 7, 2025
Mr. Smucker (for himself, Ms. Sewell, Ms. Malliotakis, Ms. Tenney, Mr.
Fitzpatrick, Mrs. Miller of West Virginia, and Mr. Smith of Nebraska)
introduced the following bill; which was referred to the Committee on
Education and Workforce, and in addition to the Committee on Ways and
Means, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To establish the American Worker Retirement Plan, improve the financial
security of working Americans by facilitating the accumulation of
wealth, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Retirement Savings
for Americans Act of 2025''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Relationship to Social Security.
Sec. 4. Government benefits.
TITLE I--THE AMERICAN WORKER RETIREMENT PLAN
Sec. 101. The American Worker Retirement Fund.
Sec. 102. Investment of American Worker Retirement Fund.
Sec. 103. Eligibility.
Sec. 104. Enrollment.
Sec. 105. Contributions.
Sec. 106. Distributions.
Sec. 107. Accounts.
Sec. 108. Tax treatment.
Sec. 109. Spousal protections; survivor rights.
TITLE II--THE AMERICAN WORKER RETIREMENT PLAN INVESTMENT MANAGEMENT
SYSTEM
Sec. 201. The American Worker Retirement Investment Board.
Sec. 202. The American Worker Retirement Plan Advisory Council.
Sec. 203. Executive Director.
Sec. 204. Investment policies and selection of asset managers.
Sec. 205. Administrative provisions.
Sec. 206. Fiduciary responsibilities; liability and penalties.
Sec. 207. Bonding.
Sec. 208. Investigative authority.
Sec. 209. Exculpatory provisions; insurance.
Sec. 210. Subpoena authority.
TITLE III--GOVERNMENT MATCH TAX CREDIT
Sec. 301. Government Match Tax Credit.
SEC. 2. DEFINITIONS.
As used in this Act, except as otherwise provided:
(1) Account.--The term ``account'' means an account
established and maintained under section 107.
(2) Board.--The term ``Board'' means the American Worker
Retirement Investment Board established under section 201.
(3) Business.--The term ``business'' means any entity,
including any sole proprietor, partnership, limited liability
company, or corporation, that engages in interstate commerce.
(4) Earnings.--The term ``earnings'', when used with
respect to the Fund, means the amount of the gain realized or
yield received from the investment of sums in such Fund.
(5) Executive director.--The term ``Executive Director''
means the Executive Director appointed under section 203.
(6) Existing retirement plan.--The term ``existing
retirement plan'' means--
(A) an eligible retirement plan, as defined in
section 402(c)(8)(B) of the Internal Revenue Code of
1986, including any defined benefit plan;
(B) the Thrift Savings Plan established under
subchapter III of chapter 84 of title 5, United States
Code; and
(C) any other tax deferred employee retirement plan
determined by the Secretary of the Treasury to be
consistent with the purposes of this Act.
(7) Former participant.--
(A) In general.--The term ``former participant''
means a participant who has an account with the Fund
and is no longer a qualifying worker.
(B) Individuals becoming qualifying workers
again.--Such term shall not include an individual who
(without regard to this subparagraph) is a former
participant but who subsequently becomes a qualifying
worker and enrolls again under section 104(a) to
participate in the Fund. This subparagraph shall apply
until such individual is no longer a qualifying worker.
(8) Fund.--The term ``Fund'' means the American Worker
Retirement Fund established under section 101(a).
(9) Investment advisory council.--The term ``Investment
Advisory Council'' means the council established under section
202.
(10) Loss.--The term ``loss'', as used with respect to the
Fund, includes the amount of any loss resulting from the
investment of sums in such Fund, or from the breach of any
responsibility, duty, or obligation under section 206.
(11) Net earnings.--The term ``net earnings'' means the
excess of earnings over losses.
(12) Net losses.--The term ``net losses'' means the excess
of losses over earnings.
(13) Participant.--The term ``participant'' means any
qualifying worker who is enrolled to participate in the Fund
under section 104(a) and has not opted out of participation
under section 104(b)(3).
(14) Participating employer.--The term ``participating
employer'' means any business that--
(A) employs a qualifying worker; or
(B) contracts with an independent contractor who is
a qualifying worker and opts to enroll such independent
contractor to participate in the Fund under section
104(a)(2).
(15) Qualifying worker.--The term ``qualifying worker''
means--
(A) an employee who--
(i) is employed by a business that has not
established an existing retirement plan and
does not provide an individual retirement plan
(as defined in section 7701(a)(37) of the
Internal Revenue Code of 1986) with an
automatic enrollment payroll deduction
arrangement; or
(ii) is not eligible to participate in any
such plan or arrangement established by the
business that employs the employee; or
(B) an independent contractor who--
(i) is self-employed; and
(ii) has not established an existing
retirement plan, and does not have an
individual retirement plan (as defined in
section 7701(a)(37) of the Internal Revenue
Code of 1986) with an automatic enrollment
payroll deduction arrangement.
SEC. 3. RELATIONSHIP TO SOCIAL SECURITY.
Except as otherwise provided in this Act, the funds payable under
the Fund to participants and former participants are in addition to the
benefits payable under the Social Security Act (42 U.S.C. 301 et seq.).
SEC. 4. GOVERNMENT BENEFITS.
In the case of an individual who has not attained age 65, the funds
owned by such individual in an account and any contribution made to
such funds by a participant or the Secretary of the Treasury shall not
be taken into consideration when determining such individual's
eligibility for any Federal public assistance benefit.
TITLE I--THE AMERICAN WORKER RETIREMENT PLAN
SEC. 101. THE AMERICAN WORKER RETIREMENT FUND.
(a) Establishment.--There is established in the Treasury of the
United States the American Worker Retirement Fund.
(b) Purposes.--The Fund shall consist of the sum of all amounts
contributed under section 105 of this Act and section 25F of the
Internal Revenue Code of 1986, as added by this Act, increased by the
total net earnings from investments of the sums in the Fund or reduced
by the total net losses from investments of the Fund, and reduced by
the total amount of payments made from the Fund (including payments for
administrative expenses under subsection (e)).
(c) Investment.--The sums in the Fund shall remain available
without fiscal year limitation--
(1) to invest pursuant to section 102;
(2) to pay the administrative expenses of the Fund under
subsection (e);
(3) to make distributions as provided in section 106;
(4) to make loans as authorized under section 106(h); and
(5) to purchase insurance as provided in section 209.
(d) Accounts.--Each participant shall have an account with the
Fund. Amounts contributed by a participant under section 105 and by the
Secretary of the Treasury under section 25F of the Internal Revenue
Code of 1986 shall be deposited in the Fund and credited to the
participant's account in accordance with such procedures as the
Secretary of the Treasury may, in consultation with the Executive
Director, prescribe in regulation.
(e) Administrative Expenses.--Administrative expenses (including
expenses related to financial literacy requirements under section
201(f)(5)) incurred to carry out this Act shall be paid out of the net
earnings of the Fund, including earnings attributed to returned credit
amounts under section 25F(h) of the Internal Revenue Code of 1986.
(f) Exclusive Benefit.--
(1) In general.--Subject to paragraphs (2) and (3) and
subsection (e), sums in the Fund credited to the accounts of a
participant or former participant may not be used for, or
diverted to, purposes other than for the exclusive benefit of
the participant or former participant, or a beneficiary
thereof, except as otherwise provided by law.
(2) Assignment.--Except as provided in paragraph (3), sums
in the Fund may not be assigned or alienated and are not
subject to execution, levy, attachment, garnishment, or other
legal process. For purposes of this paragraph, a loan made from
the Fund to a participant shall not be considered to be an
assignment or alienation.
(3) Legal obligations.--Moneys due or payable from the Fund
to any individual and, in the case of an individual who is a
participant or former participant, the balance in the account
of the participant or former participant shall be subject to--
(A) legal process for the enforcement of the
individual's legal obligation to provide child support
or make alimony payments as provided in section 459 of
the Social Security Act (42 U.S.C. 659);
(B) an obligation of the Executive Director to make
a payment to another person under section 109; and
(C) any Federal tax levy under section 6331 of the
Internal Revenue Code of 1986.
For the purposes of this paragraph, an amount contributed for
the benefit of a participant or former participant under
section 25F of the Internal Revenue Code of 1986 (including any
earnings attributable thereto) shall be considered part of the
balance in such participant or former participant's account.
(g) Non-Appropriated Funds.--The sums in the Fund shall not be
appropriated for any purpose other than the purposes specified in this
section and may not be used for any other purpose.
(h) Benefit to Participants.--All sums contributed to the Fund by a
participant or the Secretary of the Treasury for the benefit of such
participant and all net earnings in such Fund in trust for such
participant shall be the exclusive property of the participant.
(i) Nonforfeitable.--All the contributions made under section 105
and section 25F of the Internal Revenue Code of 1986 shall be fully
nonforfeitable when made, except as provided in section 25F(h) of such
Code.
SEC. 102. INVESTMENT OF AMERICAN WORKER RETIREMENT FUND.
(a) In General.--The Board shall establish the investment policies
of the Fund and select the investment funds, indexes, and other
investment products that the amounts in the Fund shall be invested in
subject to the following conditions:
(1) The Board shall provide for the following investment
options for participants:
(A) A Government Securities Investment Fund under
which sums in the Fund are invested in--
(i) bonds issued or guaranteed by the
United States Government; and
(ii) bonds issued by Government-sponsored
enterprises or Government corporations.
(B) A Fixed-Income Investment Fund under which sums
are in the Fund are invested in--
(i) insurance contracts;
(ii) certificates of deposit; and
(iii) other instruments or obligations
selected by qualified professional asset
managers (as defined in section 8438(a)(8) of
title 5, United States Code),
which return the amount invested and pay interest, at a
specific rate or rates, on that amount during a
specific period of time.
(C) A Common Stock Index Investment Fund, as
described in section 8438(b)(2) of title 5, United
States Code.
(D) A Small Capitalization Stock Index Investment
Fund, as described in section 8438(b)(3) of title 5,
United States Code.
(E) An International Stock Index Investment Fund,
as described in section 8438(b)(4) of title 5, United
States Code.
(F) A Life-Cycle Investment Fund consisting of
target date asset allocation portfolios.
(2) The Board may, in its discretion, provide for other
investment options for participants consistent with the Board's
fiduciary duty set forth in sections 201 and 206.
(3) The Board shall consult with the Investment Advisory
Council before authorizing additional investment options for
participants.
(b) Investments.--
(1) Investment selection.--The Executive Director shall
invest the sums available in the Fund for investment as
provided in the selection made under subsection (c).
(2) Default option.--If a selection has not been made with
respect to any sums available for investment in the Fund, the
Executive Director shall invest such sums in an age-appropriate
Life-Cycle Investment Fund, as determined by the Executive
Director.
(c) Investment Selection.--As often as is practical, but not less
than twice per year, a participant may select the investment funds and
options referred to in subsection (a) into which the amounts in the
Fund credited to the participant's accounts are to be invested or
reinvested. A selection may be made under this subsection only in
accordance with regulations prescribed by the Executive Director and
within such period as the Executive Director shall provide in such
regulations, but in no event less frequently than twice a year.
(d) Voting Rights.--Participants, former participants, the Board,
and the Executive Director may not exercise voting rights associated
with the ownership of securities by the Fund.
(e) Reports.--The Board shall issue regular reports (not less
frequently than quarterly) to participants and former participants on
the performance of each investment option selected under subsection
(a), which shall include personalized estimates of assets and income at
retirement, the additional assets and income at retirement a
participant would have if the participant makes sufficient
contributions to receive the maximum amount of the Government match tax
credit under section 25F of the Internal Revenue Code of 1986, and any
other information the Board determines may help participants make sound
financial decisions. The Board shall provide the reports required under
this subsection by electronic delivery, except that upon the request of
a participant or former participant, reports shall be provided by mail
to such individual.
SEC. 103. ELIGIBILITY.
(a) Eligibility.--A qualifying worker shall be eligible to
participate in the Fund upon completion of the enrollment process set
forth in section 104.
(b) Cessation of Eligibility.--A former participant shall not be
eligible to contribute to the Fund under section 105(a) but shall
remain the owner of the funds in the former participant's account with
the Fund (and any net earnings attributable to such funds) subject to
the withdrawal conditions established under section 106, and may
exercise investment decisions with respect to such account on the same
basis as a participant.
SEC. 104. ENROLLMENT.
(a) Enrollment.--
(1) In general.--The Secretary of the Treasury and the
Executive Director shall jointly establish an enrollment
process for participating employers to enroll qualifying
workers to participate in the Fund that incorporates, to the
extent practicable, such enrollment and participant
contributions under section 105(a) into Federal tax withholding
forms and payments. Such process shall provide that a business
operating on the date of the establishment of the Fund shall
complete such enrollment process for any qualifying worker as
of such time no later than the date that is 1 year from such
date.
(2) Independent contractors.--
(A) In general.--In the case of independent
contractors who are qualifying workers, the enrollment
process shall allow businesses who have contracts with
such qualifying workers to elect to enroll such
qualifying workers to participate in the Fund.
(B) Classification.--An election (or failure to
make an election) by a business under subparagraph (A)
with respect to any independent contractor who is a
qualifying worker shall not be relevant to the
classification of such worker as an independent
contractor under any Federal, State, or local law.
(b) Auto-Enrollment; Opt-Out.--
(1) In general.--Each participating employer shall enroll
each of its qualifying workers to participate in the Fund under
subsection (a) unless such qualifying worker elects t