Dear Leslie, “Obama’s Organizing for American is pulling together volunteers in [Wisconsin] this weekend to knock on doors and make phone calls,” my local ABC News station reported.   Hi, this is Wisconsin Senator Dan Kapanke (R). My recall election is just days away –August 9th – and my Liberal opponent knows they are losing ground, so they brought in Obama’s volunteer army.   We are just days away from rebuffing one of the largest Liberal political gambles in Wisconsin history, but I need your last minute donation in order to make sure we defeat the Wisconsin recall election.    I stood shoulder to shoulder with Governor Scott Walker to eliminate collective bargaining for government employee unions.   Liberals angrily responded by attempting to recall six Republican senators in a bid to take over the Wisconsin State Senate from Republicans.   My seat has been rated the most vulnerable. Your contribution today could help make the difference in turning out my supporters. Click here to make a secure online donation.   The repercussions of losing the recall elections are huge. Obama’s union allies will be re-energized, liberals will co-opt this technique is states across the nation, and our success against big government in Wisconsin could be turned on its head.   I have been blown away by your generosity when I emailed you in the past to inform you of the situation in Wisconsin. I feel compelled to email again because we are so close to victory.   Your contribution of $35, $50, or even $100 will help me turn out my supporters in this important recall election.   Thank you from the bottom of my heart for your support.   Regards,   Dan Wisconsin Republican State Senator Dan Kapanke

 

111th CONGRESS

2d Session

S. 3760

To amend the Internal Revenue Code of 1986 to expand personal savings and retirement savings coverage by allowing employees not covered by qualified retirement plans to save for retirement through automatic IRAs, and for other purposes.

IN THE SENATE OF THE UNITED STATES

August 5, 2010

Mr. BINGAMAN (for himself and Mr. KERRY) introduced the following bill; which was read twice and referred to the Committee on Finance

---

A BILL

To amend the Internal Revenue Code of 1986 to expand personal savings and retirement savings coverage by allowing employees not covered by qualified retirement plans to save for retirement through automatic IRAs, 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.

 

This Act may be cited as the `Automatic IRA Act of 2010′.

 

SEC. 2. EMPLOYEES NOT COVERED BY QUALIFIED RETIREMENT PLANS OR ARRANGEMENTS ENTITLED TO PARTICIPATE IN AUTOMATIC IRA ARRANGEMENTS.

 

(a) In General- Subchapter D of chapter 1 of the Internal Revenue Code of 1986 (relating to pension, profit-sharing, stock bonus plans, etc.) is amended by inserting at the end the following new part:

 

`PART IV–AUTOMATIC IRA ARRANGEMENTS

 

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  `Sec. 438. Right to automatic IRA arrangements at work.

 

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  `Sec. 439. Automatic IRAs.

 

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  `Sec. 440. Rules relating to choice of IRA providers.

 

`SEC. 438. RIGHT TO AUTOMATIC IRA ARRANGEMENTS AT WORK.

 

`(a) Requirement To Provide Automatic IRA Arrangement- If an applicable employer does not maintain a qualified plan or arrangement (as defined in subsection (i)) for any calendar year, the employer shall make available an automatic IRA arrangement which meets the requirements of this section to each qualifying employee of the employer for the calendar year.

 

`(b) Qualifying Employee Defined- For purposes of this section–

 

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  `(1) IN GENERAL- The term `qualifying employee’ means any employee of the employer other than an excludable employee.

 

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  `(2) EXCLUDABLE EMPLOYEE- The term `excludable employee’ means any employee who is in one of the following categories of employees that the employer elects to exclude from treatment as qualifying employees–

 

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  •  
    `(A) employees described in section 410(b)(3),

 

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    `(B) employees who have not attained the age of 18 before the beginning of the calendar year, or

 

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    `(C) employees who have not completed at least 3 months of service with the employer.

 

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  `(3) EXCEPTION FOR EMPLOYEES OF GOVERNMENTS AND CHURCHES- The term `qualifying employee’ shall not include an employee of–

 

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  •  
    `(A) a government or entity described in section 414(d), or

 

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    `(B) a church or a convention or association of churches which is exempt from tax under section 501, including any employee described in section 414(e)(3)(B).

 

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  `(4) PLAN SPONSOR’S EMPLOYEES-

 

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  •  
    `(A) IN GENERAL- If–

 

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    •  
      `(i) an employer maintains 1 or more qualified plans or arrangements, and

 

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    •  
      `(ii) the employees of a subsidiary, division, or other major business unit of the employer are not generally eligible to participate in any such qualified plan or arrangement,

 

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  •  
    then, except as provided in subparagraph (B), the employer shall make available an automatic IRA arrangement which meets the requirements of this section to all qualifying employees described in clause (ii) for the calendar year.

 

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  •  
    `(B) EXCEPTION FOR CERTAIN EMPLOYEES- An employer may exclude from coverage under the automatic IRA arrangement under subparagraph (A)–

 

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    •  
      `(i) any employee not eligible to participate in any qualified plan or arrangement solely because the employee has not satisfied the minimum age and service requirements for participation in the plan or arrangement,

 

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  •  
    •  
      `(ii) in the case of an employer which maintains a qualified plan or arrangement which consists of a section 403(b) annuity contract (including a custodial account), an arrangement described in section 408(p), or a simplified employee pension described in section 408(k), any employee who is permitted to be excluded from, or who is not required to be eligible to participate in, any such plan, arrangement, or pension under section 403(b)(12), 408(p)(4), or 408(k)(2), whichever is applicable.

 

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  `(5) DESIGNATION OF QUALIFYING EMPLOYEES- The Secretary shall issue guidelines for determining the class or classes of qualifying employees to be covered by an automatic IRA arrangement. Such guidelines shall permit employers to designate under paragraph (2) the classification or categories of employees who are not eligible for the arrangement.

 

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  `(6) EMPLOYEE INCLUDES SELF-EMPLOYED- For purposes of this part, an employer described in section 401(c)(4) may elect to treat self-employed individuals (within the meaning of section 401(c)(1)) as employees of the trade or business, except that if the employer has employees other than such individuals, the employer may only make the election under this paragraph if the employer makes available an automatic IRA arrangement to such other employees in accordance with the rules of subsection (a) and paragraph (4).

 

`(c) Automatic IRA Arrangement- For purposes of this section, the term `automatic IRA arrangement’ means an arrangement of an employer–

 

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  `(1) under which, in accordance with subsection (d)–

 

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    `(A) a qualifying employee may elect to have an amount contributed to a designated automatic IRA established on behalf of the employee instead of having that amount paid to the employee directly in cash,

 

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    `(B) a qualifying employee is treated as having elected such contributions in the amount specified in subsection (d)(2) until the employee specifically elects not to have such contributions made (or specifically elects to have such contributions made at a different percentage or in a different amount), and

 

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    `(C) the contributions are invested as provided in subsection (d)(3),

 

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  `(2) under which payments are to be made to the designated automatic IRA of each qualifying employee by having the employer of the employee–

 

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  •  
    `(A) make periodic direct deposit or other payroll deposit payments (including electronic payments) to the plan by payroll deduction, or

 

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    `(B) in the case of employees not paid through regular periodic payments, make such deposit or payments in such manner as the Secretary may provide in guidance, including through available automatic debit or similar arrangements or the use of authorized intermediary entities such as business, professional, or trade associations,

 

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  `(3) under which the payments described in paragraph (1) are to be made by the employer on or before–

 

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    `(A) the last day of the month following the month in which the compensation would otherwise have been payable to the employee in cash, or

 

•  
  •  
    `(B) such later date as the Secretary may prescribe, except that the Secretary may not prescribe a date later than the due date for the deposit of tax required to be deducted and withheld under chapter 24 (relating to collection of income tax at source on wages) for the payroll period to which such payments relate, and

 

•  
  `(4) which meets the notice and election requirements of subsection (e).

 

`(d) Definitions and Rules Relating to Automatic Enrollment Requirements- For purposes of this section–

 

•  
  `(1) DESIGNATED AUTOMATIC IRA-

 

•  
  •  
    `(A) IN GENERAL- Except as provided in subparagraph (B), the term `designated automatic IRA’ means, with respect to any automatic IRA arrangement of an employer, an automatic IRA of a provider designated by, or on behalf of, the employer under subsection (g).

 

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  •  
    `(B) IRA SPECIFIED BY EMPLOYEE- An employer may also elect to allow each of its qualifying employees to designate an individual retirement plan (whether or not an automatic IRA) established by or on behalf of the employee as the designated automatic IRA with respect to that employee.

 

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  •  
    `(C) SPECIAL RULES-

 

•  
  •  
    •  
      `(i) NOTICE REQUIREMENT- If contributions are made to designated automatic IRAs that are designated by the employer in accordance with subparagraph (A), the employer shall provide each participating employee a standard written notice, as provided by the Secretary, that the employee’s balance may be periodically transferred without cost or penalty from the designated automatic IRA to another individual retirement plan, or to a retirement bond described in section 440(d), established by or on behalf of the employee.

 

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    •  
      `(ii) TREATMENT OF PERIODIC TRANSFERS- For tax treatment of transfers described in clause (i), see subsection (f)(3).

 

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  •  
    `(D) CONTRIBUTIONS TO DESIGNATED AUTOMATIC IRAS- An employer shall not be treated as failing to satisfy the requirements of this section or any other provision of this title merely because the employer makes all contributions (or all contributions on behalf of qualifying employees who do not specify a designated automatic IRA under subparagraph (B)) to a designated automatic IRA or to a retirement bond described in section 440(d) and held on behalf of the employee.

 

•  
  `(2) AMOUNT OF CONTRIBUTIONS-

 

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  •  
    `(A) IN GENERAL- The amount specified in this paragraph is–

 

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  •  
    •  
      `(i) 3 percent of compensation, or

 

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    •  
      `(ii) such other percentage of compensation as is specified in regulations prescribed by the Secretary which is not less than 2 percent or more than 4 percent.

 

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  •  
    `(B) AUTHORITY OF SECRETARY TO PROVIDE FOR PERIODIC INCREASES- In the case of qualifying employees under an automatic IRA arrangement for 2 or more consecutive years, the Secretary may by regulation provide for periodic (not more frequent than annual) increases in the percentage of compensation an employee is deemed to have elected under subparagraph (A).

 

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  •  
    `(C) PERMITTED ADDITIONAL PROCEDURES TO LIMIT CONTRIBUTIONS- An employer–

 

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    •  
      `(i) shall have no responsibility for any calendar year for determining whether, or ensuring that, the contributions with respect to any employee do not exceed the deductible amount in effect for taxable years beginning in the calendar year under section 219(b)(5) (determined without regard to subparagraph (B) thereof), and

 

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  •  
    •  
      `(ii) shall not be treated as failing to satisfy the requirements of this section or any other provision of this title merely because the employer chooses to limit the contributions under this subsection on behalf of a qualifying employee for any calendar year in a manner reasonably designed to avoid exceeding such deductible amount.

 

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  `(3) INVESTMENT OF ASSETS IN AUTOMATIC IRAS-

 

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  •  
    `(A) INVESTMENT IN SPECIFIED OPTIONS- Amounts contributed under this subsection for a calendar year shall, unless otherwise directed by the qualifying employee, be invested in–

 

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  •  
    •  
      `(i) the principal preservation investment option of the designated automatic IRA described in section 439(c)(2)(A) if, as of the close of the preceding calendar year or at such other time as may be prescribed by the Secretary, the outstanding balance of such plan was less than the amount described in paragraph (2)(C)(i), and

 

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    •  
      `(ii) if clause (i) does not apply, the blended investment option of the designated automatic IRA described in section 439(c)(2)(B),

 

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  •  
    except that the Secretary may provide by regulation or other guidance that, in the case of a designated automatic IRA to which clause (ii) applies, amounts previously invested in the principal preservation option shall be reinvested in the blended investment option.

 

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  •  
    `(B) TYPE OF AUTOMATIC IRA- A qualifying employee for whom a designated automatic IRA is established under paragraph (1)(A) may elect, at such time and in such manner and form as the Secretary may prescribe, whether to treat the plan as described, or not described, in section 408A. If no such election is made, the plan shall be treated as described in section 408A.

 

•  
  `(4) ALTERNATIVE AUTOMATIC ENROLLMENT PROCEDURE- An arrangement shall not be treated as failing to meet the automatic enrollment requirements under subsection (c)(1)(B) merely because the employer, in accordance with guidance prescribed by the Secretary, elects to provide employees with communications informing the employees that the employer wishes to obtain from each employee an affirmative election either to contribute (including specification by the employee of the information necessary to permit the election to be implemented) or not to contribute to an automatic IRA, except that such employer shall treat any employee who fails to make such an election in the manner provided under subsection (c)(1)(B).

 

`(e) Election and Notice Requirements-

 

•  
  `(1) ELECTION REQUIREMENTS- Each automatic IRA arrangement shall permit–

 

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  •  
    `(A) each qualifying employee to elect, during the 60-day period or other period specified by the Secretary before the beginning of any calendar year (and during the 60-day period or other period specified by the Secretary before the first day the employee is eligible to participate), to participate in the arrangement, or to modify the employee’s election under the arrangement (including the amounts subject to the arrangement and the manner in which such amounts are invested), for such year, and

 

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  •  
    `(B) subject to a requirement for reasonable notice, an employee to elect to terminate participation in the arrangement at any time during a calendar year, except that if an employee so terminates, the employer may provide that the employee may not resume participation until the beginning of the next calendar year.

 

•  
  `(2) EMPLOYER NOTICE- Under an automatic IRA arrangement, the employer shall provide, within a reasonable period before the beginning of each period described in paragraph (1)(A), a notice to each qualifying employee meeting the requirements of section 414(w)(4).

 

•  
  `(3) MODEL NOTICE, FORMS, AND WEBSITE- The Secretary, in consultation with the Secretary of Labor, shall–

 

•  
  •  
    `(A) provide a model notice, written in a manner calculated to be understandable to the average worker, that is simple for employers to use, that meets the requirements of paragraph (2), and that informs qualifying employees of the automatic enrollment arrangement (including the types of individual retirement plans to which contributions may be deposited),

 

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  •  
    `(B) provide model forms for enrollment, including automatic enrollment, in an automatic IRA arrangement, and

 

•  
  •  
    `(C) establish an Internet website under section 440 that allows employers and individuals to obtain information on automatic IRA arrangements and on saving and investing for retirement, and to obtain required notices and forms.

 

•  
  `(4) COORDINATION WITH WITHHOLDING- The Secretary shall modify the withholding exemption certificate under section 3402(f) so that, in the case of any qualifying employee covered under an automatic IRA arrangement, any notice and election requirements with respect to the arrangement may be met through the use of an attachment to such certificate or other modifications of the withholding exemption procedures.

 

`(f) Automatic IRA Contributions Treated Like Other Contributions to Individual Retirement Plans-

 

•  
  `(1) TAX TREATMENT UNAFFECTED- The fact that a contribution to an individual retirement plan is made on behalf of a qualifying employee under an automatic IRA arrangement instead of being made directly by the employee shall not affect the deductibility or other tax treatment of the contribution or of other amounts under this title.

 

•  
  `(2) PAYROLL SAVINGS CONTRIBUTIONS TAKEN INTO ACCOUNT- Any contribution made on behalf of a qualifying employee under an automatic IRA arrangement shall be taken into account in applying the limitations on contributions to individual retirement plans and the other provisions of this title applicable to individual retirement plans as if the contribution had been made directly by the employee.

 

•  
  `(3) ROLLOVER LIMIT NOT TO APPLY- For purposes of section 408(d)(3)(B), there shall be disregarded any qualified rollover contribution which is a transfer described in subsection (d)(1)(C)(i).

 

`(g) Designation of Provider for Employer’s Automatic IRA Arrangement-

 

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  `(1) IN GENERAL- For purposes of subsection (d)(1)(A), the provider of an automatic IRA under any automatic IRA arrangement of an employer shall be the trustee or issuer of the individual retirement plan and shall be determined under one of the following methods:

 

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  •  
    `(A) PROVIDER DESIGNATED BY EMPLOYER-

 

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  •  
    •  
      `(i) IN GENERAL- An employer may designate a single provider for the automatic IRA arrangement.

 

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  •  
    •  
      `(ii) EXEMPTION FROM ERISA- If the provider designated by the employer is included on the list of providers contained in the website established under section 440(b), see the exemption under section 3(2)(C) of the Employee Retirement Income Security Act of 1974 of the arrangement from such Act.

 

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  •  
    `(B) ELECTION TO USE DEFAULT PROVIDER- An employer may elect to have the provider selected on the employer’s behalf under the procedures established under section 440(c).

 

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  •  
    `(C) ELECTION TO INVEST IN RETIREMENT BONDS- An employer may elect to have the provider be the Secretary by electing to have contributions under an automatic IRA arrangement invested in retirement bonds described in section 440(d).

 

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  `(2) MULTIPLE EMPLOYER ARRANGEMENTS AND USE OF RECORD KEEPERS- An employer shall be treated as meeting the requirements of this subsection if, in accordance with the procedures established under section 440(e), the provider is selected through the use of a record keeper described in section 440(e)(1)(A), a sponsor of a multiple employer arrangement described in section 440(e)(1)(B), or another intermediary authorized by the Secretary under section 440(e)(1)(C).

 

`(h) Applicable Employer- For purposes of this section–

 

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  `(1) IN GENERAL- The term `applicable employer’ means, with respect to any calendar year, an employer which had at least the applicable number of employees who received at least $5,000 of compensation (as defined in section 408(p)(6)(A)) from the employer for the preceding calendar year.

 

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  `(2) EMPLOYERS NOT IN EXISTENCE- Such term shall not include an employer which was not in existence at all times during the calendar year and the preceding calendar year.

 

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  `(3) OPERATING RULES- In determining the number of employees for purposes of this subsection–

 

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  •  
    `(A) any rule applicable in determining the number of employees for purposes of section 408(p)(2)(C) shall be applicable under this subsection,

 

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  •  
    `(B) all members of the same family (within the meaning of section 318(a)(1)) shall be treated as 1 individual, and

 

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  •  
    `(C) any reference to an employer shall include a reference to any predecessor employer.

 

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  `(4) APPLICABLE NUMBER- For purposes of paragraph (1), the term `applicable number’ means the number of employees determined in accordance with the following table:

The applicable

number for the

`If the calendar

preceding calendar

year is:

year is:

2012

–100

2013

–50

2014

–25

2015 or thereafter

–10.

`(i) Qualified Plan or Arrangement- For purposes of this section–

 

•  
  `(1) IN GENERAL- The term `qualified plan or arrangement’ means a plan, contract, pension, or trust described in section 219(g)(5).

 

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  `(2) EXCLUDED PLANS- Such term shall not include a plan or arrangement if–

 

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  •  
    `(A) the plan or arrangement is frozen as of the first day of the preceding calendar year, or

 

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  •  
    `(B) in the case of a plan or arrangement under which the only contributions are discretionary on the part of the sponsor, there has not been an employer contribution made to the plan or arrangement for the 2-plan-year period ending with the last plan year ending in the second preceding calendar year and it is not reasonable to assume that an employer contribution will be made for the plan year ending in the preceding calendar year.

 

`(j) Authority- The Secretary may prescribe rules to prevent avoidance of the requirements of this section through the use of insubstantial, frozen, or suspended plans or arrangements or by other means.

 

`SEC. 439. AUTOMATIC IRAS.

 

`(a) General Rule- For purposes of this title–

 

•  
  `(1) an automatic IRA shall be treated in the same manner as an individual retirement plan, and

 

•  
  `(2) the determination of whether the automatic IRA is described in section 408 or 408A shall be made on the basis of whether it meets the requirements of either such section.

 

`(b) Automatic IRA- For purposes of this section, the term `automatic IRA’ means an individual retirement plan (as defined in section 7701(a)(37)) which meets the investment and fee requirements set forth in this section.

 

`(c) Investment Options-

 

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  `(1) IN GENERAL- The Secretary of Labor and the Secretary, in consultation with the Chairman of the Securities and Exchange Commission, shall, not later than 18 months after the date of the enactment of this section, prescribe regulations which set forth the requirements for each of the classes of investments described in paragraph (2) and procedures for determining which assets meet the requirements for each of such classes.

 

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  `(2) INVESTMENT CLASSES- The regulations under paragraph (1) shall provide that an automatic IRA shall allow the individual on whose behalf the individual retirement plan is established to invest contributions to, and earnings of, the plan only in the following investment options:

 

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  •  
    `(A) PRINCIPAL PRESERVATION- A class of assets or fund that is designed to protect the principal of the individual on an ongoing basis, including passbook savings, certificates of deposit, insurance contracts, mutual funds, United States savings bonds (which may be indexed for inflation), or similar classes of assets.

 

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  •  
    `(B) BLENDED INVESTMENT OPTION- A broadly diversified class of assets or fund, as specified in such regulations, that is substantially similar to target date, life cycle, balanced or similar funds, as so specified.

 

•  
  •  
    `(C) THIRD OPTION- A broadly diversified class of assets or fund providing a somewhat higher investment in equities than the investment options under subparagraph (B), as specified in such regulations.

 

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  `(3) USE OF LOW-COST FUNDS; AVOIDANCE OF COMPLEXITY- The Secretary of Labor and the Secretary shall, in the regulations prescribed under paragraph (1), provide that the investment options under subparagraphs (A), (B), and (C) thereof be based on low-cost investment options, which may include index funds, and provide that such investment options avoid undue complexity.

 

•  
  `(4) FLEXIBILITY- The Secretary of Labor and the Secretary, in consultation with the Chairman of the Securities and Exchange Commission, shall periodically review the investment options under paragraph (2) to ensure that such options include appropriate alternative investment options that become available after the initial investment options are established. The Secretary of Labor and the Secretary, in consultation with the Chairman of the Securities and Exchange Commission, may revise such options if the Secretary of Labor and the Secretary determine necessary, but only to the extent that the new options–

 

•  
  •  
    `(A) are consistent with the risk-return profiles of the investment classes described in paragraph (2), and

 

•  
  •  
    `(B) are low-cost investment options as provided in paragraph (3).

 

`(d) Investment Fees-

 

•  
  `(1) IN GENERAL- The Secretary of Labor and the Secretary, in consultation with the Chairman of the Securities and Exchange Commission, shall include in the regulations under subsection (c)(1)–

 

•  
  •  
    `(A) clear and uniform methods for reporting the fees imposed with respect to the investment options provided under subsection (c), and

 

•  
  •  
    `(B) a prohibition on charging additional fees solely on the basis that the balance in an automatic IRA is small.

 

•  
  `(2) AVAILABILITY- The Secretary shall provide for the information described in paragraph (1)(A) to be furnished or made available to employers and employees, and included on the Internet website established under section 440, in such a manner that employers and employees will be able to easily compare fees of all providers under the various investment options.

 

•  
  `(3) FEES- For purposes of this subsection, the term `fee’ includes any fee, commission, asset management charge, compensation for services, or any other charge or expense specified in the regulations described in paragraph (1) which is imposed with respect to the automatic IRA.

 

`SEC. 440. RULES RELATING TO CHOICE OF INVESTMENT PROVIDERS.

 

`(a) In General- The Secretary shall establish a program to assist in the implementation of this part. Such program shall include–

 

•  
  `(1) the establishment of an Internet website meeting the requirements of subsection (b),

 

•  
  `(2) the establishment of an arrangement meeting the requirements of subsection (c) for the default assignment of automatic IRA providers to employers, and

 

•  
  `(3) procedures for record keepers, multiple employer arrangements, and other intermediaries described in section 440(e) to administer any automatic IRA arrangement of an employer required under this section.

 

`(b) Internet Website-

 

•  
  `(1) IN GENERAL- The Secretary shall develop an Internet website or other electronic means by which–

 

•  
  •  
    `(A) employers can obtain information on automatic IRA arrangements, including the required notices and forms described in section 438(e)(3)(C),

 

•  
  •  
    `(B) providers of automatic IRAs may register for inclusion in a list of providers of automatic IRAs from which employers may designate for purposes of section 438(g)(1)(A),

 

•  
  •  
    `(C) employers may elect to have contributions under an automatic IRA arrangement made to a provider selected under the default provider program established under subsection (c), and

 

•  
  •  
    `(D) employers may elect to have contributions under an automatic IRA arrangement made to the retirement bond program established under subsection (d).

 

•  
  `(2) REGISTRATION- A provider seeking to register under paragraph (1)(B) shall provide such information as the Secretary may require in order to ensure that an employer may easily compare and select a provider from among providers that serve the employer’s geographic area and that are appropriate for the employer taking into account other relevant characteristics of the employer.

 

•  
  `(3) SECRETARY MAY LIMIT REGISTRATION- The Secretary–

 

•  
  •  
    `(A) may by regulation provide standards for inclusion on the website list described in paragraph (1)(B), and

 

•  
  •  
    `(B) shall establish procedures for a provider to certify that it meets those standards.

 

`(c) Default Assignment of Automatic IRA Providers-

 

•  
  `(1) IN GENERAL- The Secretary shall include in the program under subsection (a) an arrangement under which employers electing under section 438(g)(1)(B) to be included in the program would be randomly assigned a provider from the participating providers selected under paragraph (2) to establish automatic IRAs for its employees under the automatic IRA arrangement.

 

•  
  `(2) ESTABLISHMENT- The Secretary, through a competitive process, shall select providers of automatic IRAs for participation in the arrangement under this subsection from among providers who apply for inclusion in such arrangement. The Secretary shall select such providers, and the number of such providers, taking into account–

 

•  
  •  
    `(A) the extent of the provider’s willingness to accept all employers that are in the geographic area the provider serves, that elect to participate in the arrangement under paragraph (1), and that are randomly assigned to the provider,

 

•  
  •  
    `(B) the investment options offered through the provider’s automatic IRA, particularly the value such options offer to participants (taking into account the relative fees), and

 

•  
  •  
    `(C) whether or not inclusion of the provider will avoid concentration of assets in too few providers.

 

•  
  `(3) ALTERNATE ARRANGEMENT- The Secretary may establish an alternate arrangement to carry out the responsibilities of the participating providers under this subsection if the Secretary determines such arrangement would reduce administrative costs and burdens.

 

`(d) Retirement Bond Program-

 

•  
  `(1) IN GENERAL- The Secretary shall include in the program under subsection (a) an arrangement under which–

 

•  
  •  
    `(A) employers may elect for purposes of section 438(g)(1)(C) to have all payments described in section 438(c)(1) with respect to a qualifying employee be deposited for investment in a retirement bond described in paragraph (3) in the name of such qualifying employee, and

 

•  
  •  
    `(B) if the value of the retirement bond as of the time specified in clause (i) of section 438(d)(3)(A) exceeds the amount specified in such clause, the Secretary shall, unless otherwise directed by the qualifying employee after receiving written notice, redeem such bond and transfer the proceeds from such redemption (and any subsequent deposits described in subparagraph (A)) to the blended investment option of the automatic IRA described in section 439(c)(2)(B) established for such employee by a provider selected under subsection (c) as the provider for employees of that employer.

 

•  
  `(2) DETAILS OF ARRANGEMENT-

 

•  
  •  
    `(A) SIMPLIFICATION- The Secretary shall ensure that under the arrangement no more than 1 retirement bond of each type (traditional or Roth) is issued for each TIN and that contributions may be applied to the purchase of retirement bonds without undue administrative or paperwork requirements.

 

•  
  •  
    `(B) TREATMENT OF CONTRIBUTIONS- For purposes of this title–

 

•  
  •  
    •  
      `(i) any payment invested under the arrangement shall be treated as if it were contributed to and held under an individual retirement plan established on behalf of the employee and as if the provider of the individual retirement plan were described in section 408(a)(2), and

 

•  
  •  
    •  
      `(ii) for purposes of section 408(d)(3)(B), the transfer under paragraph (1)(B) or subparagraph (C) shall be disregarded.

 

•  
  •  
    `(C) FORWARDING OF CERTAIN PAYMENTS- If–

 

•  
  •  
    •  
      `(i) an employer has elected to make contributions to the Secretary, and

 

•  
  •  
    •  
      `(ii) either–

 

•  
  •  
    •  
      •  
        `(I) an employee has designated a provider to receive automatic payroll deduction contributions, or

 

•  
  •  
    •  
      •  
        `(II) the Secretary has transferred the proceeds of a redeemed retirement bond to the provider selected under the procedures under paragraph (1)(B),

 

•  
  •  
    •  
      then the Secretary shall periodically forward the amount contributed to the designated or selected provider.

 

•  
  •  
    `(D) NOTICE- The Secretary shall provide notice to a qualifying employee within a reasonable period before a redemption under paragraph (1)(B) that informs the employee of the option to direct the Secretary not to redeem such bond or to transfer the proceeds of the redemption to an individual retirement plan of a provider selected by the employee.

 

•  
  `(3) RETIREMENT BONDS- For purposes of this subsection, the term `retirement bond’ means a bond issued under chapter 31 of title 31, which by its terms, or by regulations or other guidance prescribed by the Secretary under such chapter–

 

•  
  •  
    `(A) provides for interest to be credited at rates that take into account the expected duration of the funds invested in retirement bonds,

 

•  
  •  
    `(B) provides for the interest to be determined or adjusted in a manner and with sufficient frequency to provide substantial protection from inflation,

 

•  
  •  
    `(C) is designed for investment under an automatic IRA, and

 

•  
  •  
    `(D) is not transferable.

 

`(e) Alternative Structures-

 

•  
  `(1) IN GENERAL- The Secretary may, under the program established under subsection (a), establish procedures under which the responsibilities for implementing an automatic IRA arrangement under this part may be carried out through–

 

•  
  •  
    `(A) record keepers (including persons performing recordkeeping services in connection with their investment products, payroll processors, or payroll software providers) that meet such requirements as the Secretary and the Secretary of Labor may establish and that contract with providers of automatic IRAs,

 

•  
  •  
    `(B) sponsors of arrangements involving multiple employers, or

 

•  
  •  
    `(C) other intermediaries authorized by the Secretary and the Secretary of Labor.

 

•  
  `(2) OTHER RULES-

 

•  
  •  
    `(A) BONDING- The requirements under paragraph (1)(A) may include bonding requirements similar to the requirements under section 412 of the Employee Retirement Income Security Act of 1974 for persons who handle money or other property of automatic IRAs.

 

•  
  •  
    `(B) SEPARATE ACCOUNTS- For purposes of this part, each separate account under a trust created or organized in the United States by a person described in paragraph (1) or a provider of an automatic IRA shall, except to the extent provided by the Secretary, be treated as an individual retirement account described in section 408(a) if the trust would be described in section 408(c) had it been created or organized by an employer.

 

•  
  `(3) RULE OF CONSTRUCTION- Nothing in this subsection shall be construed to prohibit a person described in paragraph (1) that otherwise qualifies as a trustee or issuer of an automatic IRA from registering for inclusion in the list described in subsection (b)(1)(B) or participating in the competitive process under subsection (c)(2).’.

 

(b) Notice of Availability of Investment Guidelines- Section 408(i) of the Internal Revenue Code of 1986 (relating to reports) is amended by adding at the end the following new sentence: `Any report furnished under paragraph (2) to an individual shall include notice of the availability of, and methods of acquiring, the basic investment guidelines prepared by the Secretary of Labor.’.

 

(c) Development of Basic Investment Guidelines-

 

•  
  (1) IN GENERAL- The Secretary of Labor shall, in consultation with the Secretary of the Treasury, develop and publish basic guidelines for investing for retirement. Except as otherwise provided by the Secretary of Labor, such guidelines shall include–

 

•  
  •  
    (A) information on the benefits of diversification,

 

•  
  •  
    (B) information on the essential differences, in terms of risk and return, between various pension plan investments, including stocks, bonds, mutual funds, and money market investments,

 

•  
  •  
    (C) information on how an individual’s pension plan investment allocations may differ depending on the individual’s age and years to retirement and on other factors determined by the Secretary of Labor,

 

•  
  •  
    (D) sources of information where individuals may learn more about pension rights, individual investing, and investment advice, and

 

•  
  •  
    (E) such other information related to individual investing as the Secretary of Labor determines appropriate.

 

•  
  (2) CALCULATION INFORMATION- The guidelines under paragraph (1) shall include addresses for Internet sites and worksheets which a participant or beneficiary in a pension plan may use to calculate–

 

•  
  •  
    (A) the retirement age value of the participant’s or beneficiary’s nonforfeitable pension benefits under the plan (expressed as an annuity amount and determined by reference to varied historical annual rates of return and annuity interest rates), and

 

•  
  •  
    (B) other important amounts relating to retirement savings, including the amount which a participant or beneficiary would be required to save annually to provide a retirement income equal to various percentages of current salary (adjusted for expected growth prior to retirement).

 

•  
  (3) PUBLIC COMMENT- The Secretary of Labor shall provide at least 90 days for public comment on proposed guidelines before publishing the final guidelines.

 

•  
  (4) RULES RELATING TO GUIDELINES- The guidelines under paragraph (1)–

 

•  
  •  
    (A) shall be written in a manner calculated to be understood by the average plan participant, and

 

•  
  •  
    (B) may be delivered in written, electronic, or other appropriate manner to the extent such manner would ensure that the guidelines are reasonably accessible to participants and beneficiaries.

 

(d) Failure To Provide Access to Automatic IRA Arrangements- Chapter 43 of the Internal Revenue Code of 1986 (relating to qualified pension, etc., plans) is amended by adding at the end the following new section:

 

`SEC. 4980J. REQUIREMENTS FOR APPLICABLE EMPLOYERS TO PROVIDE EMPLOYEES ACCESS TO AUTOMATIC IRA ARRANGEMENTS.

 

`(a) General Rule- There is hereby imposed a tax on any failure by an applicable employer (as defined in section 438(h)) to meet the requirements of section 438 for a calendar year.

 

`(b) Amount-

 

•  
  `(1) IN GENERAL- The amount of the tax imposed by subsection (a) on any failure for any calendar year shall be $100 with respect to each employee to whom such failure relates.

 

•  
  `(2) TAX NOT TO APPLY WHERE FAILURE NOT DISCOVERED AND REASONABLE DILIGENCE EXERCISED- No tax shall be imposed by subsection (a) on any failure during any period for which it is established to the satisfaction of the Secretary that the employer subject to liability for the tax did not know that the failure existed and exercised reasonable diligence to meet the requirements of section 438.

 

•  
  `(3) TAX NOT TO APPLY TO FAILURES CORRECTED WITHIN 90 DAYS- No tax shall be imposed by subsection (a) on any failure if–

 

•  
  •  
    `(A) the employer subject to liability for the tax under subsection (a) exercised reasonable diligence to meet the requirements of section 438, and

 

•  
  •  
    `(B) the employer provides the automatic IRA arrangement described in section 438 to each employee eligible to participate in the arrangement by the end of the 90-day period beginning on the first date the employer knew, or exercising reasonable diligence would have known, that such failure existed.

 

•  
  `(4) WAIVER BY SECRETARY- In the case of a failure which is due to reasonable cause and not to willful neglect, the Secretary may waive part or all of the tax imposed by subsection (a) to the extent that the payment of such tax would be excessive or otherwise inequitable relative to the failure involved. The Secretary, in consultation with the Secretary of Labor, may establish a voluntary corrections program as part of the waiver authority under this paragraph.

 

`(c) Procedures for Notice- The Secretary may prescribe and implement procedures for obtaining from employers confirmation that such employers are in compliance with the requirements of section 438. The Secretary, in the Secretary’s discretion, may prescribe that the confirmation shall be obtained 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 advisable.’.

 

(e) Provisions Relating to Penalties-

 

•  
  (1) PENALTY FOR FAILURE TIMELY TO REMIT CONTRIBUTIONS TO AUTOMATIC IRA ARRANGEMENTS- Section 4975(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

 

•  
  `(7) SPECIAL RULE FOR AUTOMATIC IRA ARRANGEMENTS- For purposes of paragraph (1), if an employer is required under an automatic IRA arrangement under section 438 to deposit amounts withheld from an employee’s compensation into a designated automatic IRA but fails to do so within the time prescribed under such arrangement, such amounts shall be treated as assets of the automatic IRA.’.

 

•  
  (2) WAIVER OF EARLY WITHDRAWAL PENALTY FOR CERTAIN DISTRIBUTIONS FOLLOWING INITIAL ELECTION TO PARTICIPATE IN QUALIFIED AUTOMATIC IRA ARRANGEMENT- Subsection (t) of section 72 of such Code is amended by adding at the end the following new paragraph:

 

•  
  `(11) DISTRIBUTION FOLLOWING INITIAL ELECTION TO PARTICIPATE IN QUALIFIED AUTOMATIC IRA ARRANGEMENT- Paragraph (1) shall not apply in the case of a distribution to a qualifying employee made not later than 90 days after the initial election under section 438(c)(1)(A).’.

 

(f) Coordination With ERISA-

 

•  
  (1) EXEMPTION-

 

•  
  •  
    (A) IN GENERAL- Section 3(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(2)) is amended–

 

•  
  •  
    •  
      (i) by inserting `or (C)’ after `subparagraph (B)’ in subparagraph (A), and

 

•  
  •  
    •  
      (ii) by adding at the end the following new subparagraph:

 

•  
  •  
    `(C) An automatic IRA arrangement described in section 438(c) of the Internal Revenue Code of 1986 shall not be treated as an employee pension benefit plan or pension plan if, under the arrangement, contributions are to be made to a designated automatic IRA the provider of which is included on the website list established under section 440(b) of such Code, are to be made to an individual retirement plan pursuant to section 440(c), or are to be made to the Secretary of the Treasury for investment in retirement bonds pursuant to section 440(d).’.

 

•  
  •  
    (B) CUSTOMER IDENTIFICATION PROGRAM- Notwithstanding the amendment made by subparagraph (A), an individual retirement plan established pursuant to an automatic IRA arrangement described in section 438(c) of the Internal Revenue Code of 1986 shall, for purposes of any customer identification program established under section 5318(l) of title 31, United States Code, be treated as an account opened for the purpose of participating in an employee benefit plan established under the Employee Retirement Income Security Act of 1974.

 

•  
  (2) FIDUCIARY DUTIES- Section 404(c)(2) of such Act is amended–

 

•  
  •  
    (A) by inserting the following sentence before the last sentence: `In the case of an automatic IRA designated by the employer under section 438 of such Code that is not exempt under section 3(2)(C), a participant or beneficiary shall, for purposes of paragraph (1), be treated as exercising control over the assets in the account on and after the 7th day after notice has been given to an employee that such automatic IRA has been established on behalf of the employee.’, and

 

•  
  •  
    (B) by inserting `or with respect to an automatic IRA designated by an employer under section 438 of such Code’ after `arrangement’ in the last sentence.

 

(g) Preemption of Conflicting State Laws- Section 514(e) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1144(e)(1)) is amended by adding at the end the following:

 

•  
  `(5) Notwithstanding any other provision of this section, this title shall supersede any law of a State which would directly or indirectly prohibit or restrict the establishment or operation of an automatic IRA arrangement in accordance with section 438 of the Internal Revenue Code of 1986. Nothing in this title shall be construed to impair or supersede any State law to the extent it provides a remedy for the failure to make payments required under such arrangement within the required time period under such section 438.’.

 

(h) Mandatory Transfers- Section 401(a)(31)(B) of the Internal Revenue Code of 1986 is amended by inserting `(including an automatic IRA)’ after `individual retirement plan’ each place it appears.

 

(i) Automatic IRA Advisory Group-

 

•  
  (1) IN GENERAL- Not later than 60 days after the date of enactment of this Act, the Secretary of the Treasury and the Secretary of Labor shall jointly establish an Automatic IRA Advisory Group (in this subsection referred to as the `Advisory Group’). The purpose of the Advisory Group shall be to make recommendations regarding requirements for the automatic IRA investment options and procedures described in section 439(c) of the Internal Revenue Code of 1986, including disclosure of information regarding fees and expenses and such other related matters as may be determined by the Secretaries.

 

•  
  (2) MEMBERSHIP- The Advisory Group shall consist of not more than 15 members and shall be composed of–

 

•  
  •  
    (A) such persons as the Secretaries of the Treasury and Labor may consider appropriate to provide expertise regarding investments for retirement, including providers of individual retirement accounts and individual retirement annuities described in section 408 or 408A of such Code; and

 

•  
  •  
    (B) one or more representatives of the Department of Labor and of the Department of the Treasury.

 

•  
  (3) COMPENSATION- The members of the Advisory Group shall serve without compensation.

 

•  
  (4) ADMINISTRATIVE SUPPORT- The Department of the Treasury and the Department of Labor shall jointly provide appropriate administrative support to the Advisory Group, including technical assistance. The Advisory Group may use the services and facilities of such Departments, with or without reimbursement, as jointly determined by such Departments.

 

•  
  (5) REPORTS BY ADVISORY GROUP- Not later than 12 months after the date of the enactment of this Act, the Advisory Group shall submit to the Secretary of Labor and the Secretary of the Treasury a report containing its recommendations. The Secretaries may request that the Advisory Group submit subsequent reports.

 

(j) Conforming Amendment- The table of parts for subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to part III the following new item:

 

`Part IV. Automatic IRA Arrangements’.

 

(k) Effective Date- The amendments made by this section shall apply to calendar years beginning after December 31, 2011.

 

SEC. 3. CREDIT FOR SMALL EMPLOYERS MAINTAINING AUTOMATIC IRA ARRANGEMENTS.

 

(a) In General- Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business related credits) is amended by adding at the end the following new section:

 

`SEC. 45S. SMALL EMPLOYER AUTOMATIC IRA CREDIT.

 

`(a) General Rule- For purposes of section 38, in the case of an eligible employer maintaining an automatic IRA arrangement meeting the requirements of section 438 (without regard to whether the employer is required to maintain the arrangement), the small employer automatic IRA credit determined under this section for any taxable year is the amount determined under subsection (b).

 

`(b) Amount of Credit-

 

•  
  `(1) IN GENERAL- The amount of the credit determined under this section for any taxable year with respect to an eligible employer shall be equal to the lesser of–

 

•  
  •  
    `(A) $25 multiplied by the number of qualifying employees (within the meaning of section 438(b)) for whom contributions are made under the automatic IRA arrangement referred to in subsection (a) for the calendar year in which the taxable year begins, or

 

•  
  •  
    `(B) $250.

 

•  
  `(2) DURATION OF CREDIT- No credit shall be determined under this section for any taxable year other than a taxable year which begins during the first 2 calendar years in which the eligible employer maintains an automatic IRA arrangement meeting the requirements of section 438.

 

•  
  `(3) COORDINATION WITH SMALL EMPLOYER STARTUP CREDIT- No credit shall be allowed under this section to the employer for any taxable year if a credit is determined under section 45E with respect to the employer for the taxable year.

 

`(c) Eligible Employer- For purposes of this section, the term `eligible employer’ means, with respect to any calendar year in which the taxable year begins, an employer which maintains an automatic IRA arrangement meeting the requirements of section 438, which had no more than 100 employees on each day during the preceding calendar year, and which did not maintain a qualified plan or arrangement (as defined in section 438(i)) during any portion of the calendar year preceding the adoption of the automatic IRA arrangement or any portion of the 2 preceding calendar years.

 

`(d) Other Rules- For purposes of this section, the rules of section 45E(e) shall apply.’.

 

(b) Credit Allowed as Part of General Business Credit- Section 38(b) of the Internal Revenue Code of 1986 (defining current year business credit) is amended by striking `plus’ at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting `, plus’, and by adding at the end the following new paragraph:

 

•  
  `(37) in the case of an eligible employer (as defined in section 45S(c)) maintaining an automatic IRA arrangement meeting the requirements of section 438, the small employer automatic IRA credit determined under section 45S(a).’

 

(c) Clerical Amendment- The table of sections for subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

 

•  
  `Sec. 45S. Small employer automatic IRA credit.’.

 

(d) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2011.

 

SEC. 4. PROMOTING QUALIFIED PLANS.

 

(a) Increase in Credit for Small Employer Pension Plan Startup Costs-

 

•  
  (1) IN GENERAL- Section 45E(b)(1) of the Internal Revenue Code of 1986 is amended by striking `$500′ and inserting `$1,000′.

 

•  
  (2) EFFECTIVE DATE- The amendment made by this subsection shall apply to taxable years beginning after December 31, 2010.

 

(b) Eliminating Barriers to Use of Multiple Employer Plans- The Secretaries of the Treasury and Labor shall, within 12 months after the date of the enactment of this Act–

 

•  
  (1) prescribe guidance establishing conditions under which an employer participating in a plan described in section 413(c) of the Internal Revenue Code of 1986 shall not have any liability under title I of the Employee Retirement Income Security Act of 1974 with respect to the acts or omissions of one or more other participating employers, which regulations may require that the portion of the plan attributable to such participating employers be spun off to plans maintained by such employers,

 

•  
  (2) prescribe guidance establishing conditions under which a plan described in section 413(c) of such Code may be treated as satisfying the qualification requirements of sections 401(a) and 413(c) of such Code despite the violation of such requirements by one or more participating employers, including requiring, if appropriate, that the portion of the plan attributable to such participating employers be spun off to plans maintained by such employers, and

 

•  
  (3) prescribe guidance providing simplified means, including a model plan document, by which plans described in section 413(c) of such Code may satisfy the requirements of sections 102, 103, and 105 of the Employee Retirement Income Security Act of 1974.

 

SEC. 5. STUDIES.

 

(a) Studies of Spousal Consent Requirements and Promotion of Certain Lifetime Income Arrangements- The Secretary of the Treasury and the Secretary of Labor shall jointly conduct a separate study of the feasibility and desirability of each of the following:

 

•  
  (1) Extending to automatic IRAs spousal consent requirements similar to, or based on, those that apply under the Federal Employees’ Thrift Savings Plan, including consideration of whether modifications of such requirements are necessary to apply the requirements to automatic IRAs.

 

•  
  (2) Promoting the use of low-cost annuities, longevity insurance, or other guaranteed lifetime income arrangements in automatic IRAs, including consideration of–

 

•  
  •  
    (A) appropriate means of arranging for, or encouraging, individuals to receive at least a portion of their distributions in some form of low-cost guaranteed lifetime income, and

 

•  
  •  
    (B) issues presented by possible additional differences in, or uniformity of, provisions governing different IRAs.

 

(b) Study of Consolidation of Individual Retirement Plans- The Secretary of the Treasury and the Secretary of Labor shall jointly conduct a separate study of the feasibility and desirability of–

 

•  
  (1) using data on investments in individual retirement accounts and annuities to enable individuals with multiple such accounts and annuities that include very small amounts to receive periodic notices informing them about the location of these accounts and how such accounts and annuities might be consolidated, and

 

•  
  (2) using investment arrangements associated with automatic IRAs to assist in addressing the problem of abandoned accounts.

 

(c) Report- Not later than 18 months after the date of the enactment of this Act, the Secretaries shall report the results of each study conducted under subsections (a) and (b), together with any recommendations for legislative changes, to the Committees on Finance and Health, Education, Labor, and Pensions of the Senate and the Committees on Ways and Means and Education and Labor of the House of Representatives.

END

 http://thomas.loc.gov/cgi-bin/query/z?c111:S.3760:

Democrats in the Senate on Thursday held a recess hearing covering a taxpayer bailout of union pensions and a plan to seize private 401(k) plans to more "fairly" distribute taxpayer-funded pensions to everyone.

Sen. Harkin (D-Iowa), Chairman of the Health, Education, Labor and Pensions (HELP) Committee heard from hand-picked witnesses advocating the infamous "Guaranteed Retirement Account" (GRA) authored by Theresa Guilarducci.

In a nutshell, under the GRA system government would seize private 401(k) accounts, setting up an additional 5% mandatory payroll tax to dole out a "fair" pension to everyone using that confiscated money coupled with the mandated contributions.

***

“We need a comprehensive solution that addresses interrelated problems. For example, a system that places most of the burden for retirement saving on individuals will always have to wrestle with the problem of pre-retirement loans and withdrawals (simply plugging these leaks will not work, because many workers would stop contributing to the system). A system that relies on tax incentives to promote individual retirement savings will necessarily tend to favor high-income workers who can afford to save more and who benefit the most from these tax breaks. Conversely, a truly universal system would need to shield low-income workers from out-of-pocket costs or wage cuts.

***

Brett McMahon, spokesman for the Associated Builders and Contractors (ABC), a trade association, warns this hearing exposed part of a process that may come as early as the November lame duck push to bailout union pensions by attaching the bailout to an across-the-board extension of the current tax rates.

"I am deeply concerned that they will try to attach something like the Casey bill or the Casey bill in and of itself to tax cut extensions bill that is inevitably going to have to be dealt with at some point during the lame duck session,"

(Excerpt) Read more at humanevents.com

The American people are tired of attack politics and want candidates who will focus on important issues such as reducing taxes, putting families back to work and getting our economy moving again.

It is true that I have faced challenging times in this difficult economy, and I think that gives me a better perspective than some of the more privileged in our society.

But there are some myths out there, and it is important to dispel some of them..

MYTH: Did not get college diploma

• FACT: Americans are struggling and I understand those struggles, because I’ve also faced difficult times, but in the end, I persevered. It took me over ten years to pay off my tuition bill. As a result my diploma was delayed. As FOX News, the Wilmington News Journal, and numerous other media sources have confirmed, I have a degree from Fairleigh Dickinson University and am a very proud alumna.

MYTH: Not a Delaware resident

• FACT: While some individuals might try to intimidate me to get out of the race, I will never back down from what’s right for Delaware citizens. During my 2008 campaign, both my home and campaign office were vandalized, broken into, and files were stolen. Threatening messages were left and nasty names were scrawled across my front door and porch. For security reasons, I simply do not want my Delaware home address made public this time around.

MYTH: Lost home in foreclosure

• FACT: Over the last few years, the American real estate market crashed and many families were faced with tough decisions. Contrary to what others are saying, I was lucky to survive this economic turmoil and my home was not foreclosed upon. My home was privately sold in 2008 through a realtor and private mortgage company, not a public foreclosure.

You can view the document here.

Citimortgage – Confirmation of Final Mortgage Payment

MYTH: Owes money to the IRS

• FACT: The following is an excellent example of our bloated government and the need for a simplified tax code in America. The IRS says the erroneous tax bill was a “computer error.” During my previous campaign against then Sen. Joe Biden, I was audited by the IRS. After a long appeals process; the issue was supposed to have been wrapped up this past spring. Yet, in March, rather than a letter finalizing the appeals process, I received an erroneous tax lien claiming I had not responded to their previous correspondence. The IRS admitted the letter was a mistake, issued a Certificate of Release of Federal Tax Lien on May 19, 2010 and chalked it up to a “computer error.” The remaining balance was paid in full on May 16, 2010.

You can view the document here.

Certificate of Release of Federal Tax Lien

IRS Phone Call Transcript:

IRS Call Transcription

The following document shows that I was complying with IRS during the appeals process. This proves that the lien was erroneous and a “computer error” since you can’t get a tax lien placed on your home while under the appeals process (especially one you sold 2 years ago).

IRS Compliance

Christine O’Donnell

FOR IMMEDIATE RELEASE 
MONDAY, JUNE 28
NEWS RELEASE

Phoenix, AZ (JUNE 28) - U.S. Senate Candidate J.D. Hayworth (R-AZ) today released three videos on his website debunking charges made by Sen. John McCain this month.

“The Senator has spent most of this month and untold millions of dollars on television, radio and direct mail attacking me,” Hayworth said. “I thought it was about time his double talk was replaced by my straight talk.”

McCain, whose top political advisors are high-paid Washington, D.C., lobbyists, has attacked Hayworth for his one-time work for a friend who needed help with a problem in Congress.

McCain, who voted for $150 billion in earmarks last year, has criticized Hayworth for supporting projects that benefited Arizona.

McCain, who has taken more than $11,000 in political contributions from a shady businessman, has criticized Hayworth for a 30 minute video presentation he did for the same company and for which Hayworth has apologized.

“I hope voters will take the time to hear the truth directly from me by going to www.jdforsenate.com and not rely on the lies behind the slick, misleading campaign ads of Sen. McCain,” Hayworth said.

For more information, please visit http://www.JDforSenate.com or email info@jdforsenate.com.

by Jim Kelley on May.07, 2010, under Politics

This evening, JD Hayworth, Republican Party candidate for the US Senate, opened his Tucson campaign office. Attendance hovered over 100 people for about 2 hours. KGUN-9 covered the event alongside the BBC. Yes, the BBC, as in the British Broadcasting Corporation. I wiggled my way into an at length sit down interview with the former Congressman, radio host, television broadcaster, college football player and Eagle Scout. Of course I am reminded by Eagle Scouts throughout Arizona that there is no former to the Eagle Scout moniker, he is an Eagle Scout.

Prior to my time with the candidate, I spent some time talking to the people who came out to greet him. I spoke to a couple from Tucson who owns a local business, Tad Denton, age 42 and his wife Anita, age 37. They have never been active in politics before but have followed it. Tad is a native of Tucson and has some real estate investments and she runs an assisted living facility. They have belonged to the Tucson Metropolitan Chamber of Commerce, the Better Business Bureau, and other industry groups. They are pretty normal everyday Republicans living their dream as best as possible. I wanted to know what brought them out and what they intended to do. “Well, my city has only one level one trauma center at UMC. It seems all the politicians here care more about illegal immigrants than they do their own citizens.” Anita said. “I’m looking for a candidate that will cut the Federal government in half and secure our border. The government has grown way too large and is taking on responsibilities that don’t belong to the state.” said Tad. I asked them why they supported JD instead of John McCain. “I can relate to JD. As much as we appreciate Senator McCain’s service to our country, it is time for him to retire. From his past voting record we just can’t trust him anymore” they added.

 JD opened the Tucson office by standing on a table outside in the courtyard and opened with a joke. He said he was glad to see the BBC present because when the Daily Telegraph wrote a story about him they called him “the candidate with the broad shoulders, excellent voice projection and Trump like hair.” He was proud to announce that his son John Micah Hayworth has been elected to the president of the philosophy club at Notre Dame Preparatory High School in Phoenix and unseated an incumbent to do it. JD hopes it is ominous and prophetic. JD likes to tell the story of the woman and her daughter in Philadelphia at the time the Constitutional Convention was being held. Afterwards, the woman saw Benjamin Franklin and asked, “Dr Franklin, what form of government have you given us?” Franklin replied, “A Republic, if you can keep it.” This is probably one of JD’s favorite stump quotes because it takes him immediately into his philosophy of government and his view of our tasks and his vision for the future as a Republic. The other Franklin quote he gives is “A democracy is two wolves and a lamb voting on what’s for dinner. A republic is a well armed lamb contesting the vote.” JD believes the context of “well armed” means well educated and knowledgeable about the constitution and love for the Republic respecting the rights of the minority. He said  “There should always be energetic opposition, not grounded in negativity but on the Constitution itself.” He said Obamacare could have been defeated with four words that Senator McCain knew he could say and never did. Senator McCain could have at the time the clerk read the title and the motion made to accept the bill like it had been read, said “ Mr President , I object.” That would have forced under Senate rules the entire bill be read by the clerk and when he came upon a blank portion under any section, the American people would then know full well that Rahm Emanuel, the president’s Chief of Staff, was in Harry Reid’s office doing his best to fill in those blanks while Senators who had never read the bill prepared to vote on it.

“To date Senator John McCain, has not signed on as a co-sponsor to Senator Jim Dement’s (R-SC) bill to repeal Obamacare, nor has he signed any pledge to do so. All he has to do is go to www.repealitnow.org, and add his name to the petition and ask Senator Dement to be added as a co-sponsor.” “Senator McCain talks about his and Senator Jon Kyl’s ten point plan to reform immigration laws and secure the border, yet he has introduced no bill to that affect.” “In the past the people of Arizona have been skeptical of Senator McCain’s behavior, now they are just cynical.”

What subsidies would you support and what subsidies would you oppose?

Well the United States Postal Service is constitutionally subsidized, so that one stays. I see the Department of Commerce disappearing except for the National Weather Service and the Census Bureau. Everything else is on the table. The Obama administration has raised discretionary spending 80%. We need to freeze government spending at pre-stimulus levels and cut away at the size of government. We are going to have to make profound cuts in entitlements. We have no choice but to raise retirement age for Social Security.

Who can tell you when you are wrong?

First and foremost my wife.  (Immediately, his cell phone rang and it was his wife, Mary confirming that she can tell him when he is wrong). But the people of Arizona can and have and will. Persuasive argument is accepted and I do want to hear it and I will listen to it. I didn’t go to D.C the first time to be a career politician. I served from 1994 to 2006. The defeat helped me re-center myself back to my family and gave me time to reflect. I did register as a lobbyist but my primary function in that role was more as a political advisor to people that needed to know how to approach legislation than anything else. I have learned some tough lessons and I am stronger, and my family is stronger for it. I have been and will, with the voters consent again, be a citizen legislator. I will do twelve years and come home. I will be a steward of the office.

What calibrates your moral compass?

The Gospel of Jesus Christ. I am a Christian, which means I am a sinner requiring and requesting the grace of God. The constitution says no religious test is to be given as a qualification for office. It does not say I have to abandon my faith or my religion to be in office. When Winston Churchill, Harry Truman and Joseph Stalin were at Potsdam after World War II, Churchill returned to England for his campaign for the office of the Prime Minister of England. When he lost, he did not return to Potsdam. His wife said “Winston this may be a blessing in disguise.” Churchill replied “Well my dear, it is a very well disguised blessing indeed.”

If you were a cactus what kind of cactus would you be?

A stately saguaro. They have longevity.  (He then repeated a joke that Mo Udall once told him about the difference between a cactus and a caucus. Let’s just say I haven’t figured out how to clean up the punch line for this article).

So there you have it. JD Hayworth, candidate for the US Senate. I have met him on numerous occasions before this interview. He always remembered my name. He always greeted me enthusiastically. He did not know that I was writing a column at the Tucson Citizen for the last month until tonight. He just thought I was a substitute teacher and precinct committeeman. He didn’t hesitate to go on the record and he did not distract from any issue I discussed. I think his experience with various and nefarious players in the political world have honed his instincts but have not dampened his enthusiasm. I saw no cynicism in him tonight. I saw a man who believes in himself, believes all is not lost and believes that there are solutions to everything we are experiencing.  He knows he doesn’t have all the answers but he thinks he can bring the people who can contribute to solutions to the process, particularly people who have been marginalized by party organizations in the past. His grassroots support from the new conservative activists, the over 400 new precinct committeemen in Pima County as well as the large number of new recruits in Maricopa County give energy to his campaign not experienced for a long time in the Republican Party.

Can JD Hayworth beat Rodney Glassman? The polling shows he can. Can JD Hayworth beat John McCain? I don’t know yet. This summer will be the true test. JD Hayworth supporters are younger and have more to lose than John McCain supporters. They use the social media better than McCain supporters. They are more decentralized and cell like. They have a fire in their gut that McCain supporters don’t have in my opinion. McCain supporters are the same people that let Obama win.  I do know this; most McCain supporters do so out of a feeling of obligation. Hayworth supporters do so out of a desire for change. Change in the party, change in the state and change in the White House. Who usually wins those fights? A hint, as I was leaving the office I scanned the new volunteer sign up sheet, the Denton’s signed up.

New Television Ad Needs Support!
Spread the word…

 

For now, this ad is only running on our website and being distributed electronically to J.D. Hayworth supporters. 

But J.D. needs your help to get this advertisement on a television station near you.  Can you please help J.D. out by making a $25, $50, $100, or more contribution to the campaign so we can put this spot and others like it on television.  

The reality is – television ads are very expensive and our opponent is already spending millions on television and radio spots.  That’s why we urgently need whatever you can send.  

Early voting starts in July with the Republican Primary on August 24th.  Time is running out to raise money to get J.D.’s consistent conservative message to the voters. 

Please help today.  With your support, and with your vote, we can win this.  

For now, this ad is only running on our website and being distributed electronically to J.D. Hayworth supporters. 

  

But J.D. needs your help to get this advertisement on a television station near you.  Can you please help J.D. out by making a $25, $50, $100, or more contribution to the campaign so we can put this spot and others like it on television. 

  

The reality is – television ads are very expensive and our opponent is already spending millions on television and radio spots.  That’s why we urgently need whatever you can send.   

  

Early voting starts in July with the Republican Primary on August 24th.  Time is running out to raise money to get J.D.’s consistent conservative message to the voters. 

  

Please help today.  With your support, and with your vote, we can win this. 

Was this Yet Another Backroom Deal to Force Obama’s Bill Down the American People’s Throats?

Three airports in the district of infamous fence-sitting and ultimately kowtowing Democrat Bart Stupak were awarded $726,409 in grants by the Obama Administration just two days before a vote on Obama and Pelosi’s government takeover of healthcare.

Did Stupak compromise his supposed principled stand against taxpayer funding of abortion in exchange for taxpayer dollars for pet projects?

Alpena County Regional Airport received a $85,500 grant, but had only 7,519 passenger boardings in 2008 (the most recent year for which there is information) according to Federal Aviation Administration (FAA) data. Alpena County Regional Airport serves fewer passengers than even the late Rep. John Murtha’s famous “Airport for Nobody.”

Delta County Airport has even less customers than that, but still received a $179,209 grant.  

Chippewa County International Airport received a $461,700 grant,  but had only 13,733  passenger boardings in 2008.

Will Stupak come clean about this apparent backroom deal for his vote? 

Call Stupak’s district office at (989) 356 0690 and ask.

Learn more at http://gopcodered.com/

JD Surges in Recent Polls
Its Time to Throw Senator John McCain a Retirement Party!

Dear Fellow Conservatives,

Thanks to your efforts and thanks to your support, just one month after officially announcing my candidacy and kicking off our campaign we are soaring in the polls!

In a survey released today, prominent independent pollster Scott Rasmussen of Rasmussen Reports released new findings that shows our race has considerably tightened against John McCain – and is now one of the most competitive races in the nation!

Here are the results:

41% JD Hayworth (+15% !!)
48% John McCain

Back in January, long before I was even a candidate, Rasmussen released a similar poll – but the difference between then and now is remarkable. In January, 53% said they favored McCain – while I received 31%.

Now that voters are beginning to hear our Consistent Conservative message…

And now that voters are learning there is a real alternative to John McCain and his Washington Establishment voting record and bank account, they are following YOUR LEAD and sending a message to Washington that “enough is enough” by supporting our campaign!

In just one month since we announced, our hard work brought the Washington Establishment’s ultimate insider back under 50% and closed the gap by an earthshaking 15%. IN JUST ONE MONTH!

There is still so much to do… so I hope you’ll answer this email in two special ways…

First, I hope you’ll CLICK HERE and make an important contribution of $25, $50 or even $100 today to help us keep this momentum going! John McCain and his Washington Establishment cronies won’t sit back and take this defeat lightly.

They have already spent more than $1 MILLION attacking us and I need your help to keep reaching out to the voters on issues important to Arizona and America: creating jobs, reducing Washington spending, stopping ObamaCare schemes from becoming law, and preventing John McCain and Barack Obama from passing Amnesty as they have vowed to do.

And, second, I need to ask a special favor: Please look among your friends and find just one person who will join our campaign by matching your contribution of $25, $50 or even $100 today with one of their own.

Right now John McCain is calling in every favor he’s got. Every debt he’s owed by the Washington Establishment and special interests is being cashed-in. He is trotting-out their Beltway endorsements whenever he can. But this race isn’t about serving Washington. This race is about Washington serving us. That’s why I’m running and that’s why our campaign is gaining momentum each and every day!

Thank you again for your support, your determination, your hard work and the commitment you share with me to bring a Consistent Conservative voice to the U.S. Senate!

Together, since we announced our campaign just one month ago, we have made this one of the most competitive races in the nation! Please take a moment to CLICK HERE and send $25, $50 or even $100… or whatever you can afford… and help us continue building this amazing momentum!

Clearly, voters are rejecting John McCain’s negative attacks… all $1 million dollars of them!

Clearly, voters are tired of John McCain’s 28-years of votes for bailouts, deficit spending, Amnesty and higher taxes.

And clearly, your support has been effective so far – so please, help us build on our momentum with a special contribution of $25, $50 or even $100 today!

Thank you in advance for your generous support – and thank you again!

Please make checks payable to:
JD Hayworth 2010
PO Box 28604
Scottsdale, AZ 85255

Senator Bayh,

As a practicing physician I have major concerns with the health care bill before Congress. I actually have read the bill and am shocked by the brazenness of the government’s proposed involvement in the patient-physician relationship. The very idea that the government will dictate and ration patient care is dangerous and certainly not helpful in designing a health care system that works for all. Every physician I work with agrees that we need to fix our health care system, but the proposed bills currently making their way through congress will be a disaster if passed.

I ask you respectfully and as a patriotic American to look at the following troubling lines that I have read in the bill. You cannot possibly believe that these proposals are in the best interests of the country and our fellow citizens.

Page 22 of the HC Bill: Mandates that the Govt will audit books of all employers that self-insure!!

 Page 30 Sec 123 of HC bill: THERE WILL BE A GOVT COMMITTEE that decides what treatments/benefits you get.

 Page 29 lines 4-16 in the HC bill: YOUR HEALTH CARE IS RATIONED!!!

 Page 42 of HC Bill: The Health Choices Commissioner will choose your HC benefits for you. You have no choice!

 Page 50 Section 152 in HC bill: HC will be provided to ALL non-US citizens, illegal or otherwise.

 Page 58 HC Bill: Govt will have real-time access to individuals’ finances & a ‘National ID Health card’ will be issued! (Papers please!)

 Page 59 HC Bill lines 21-24: Govt will have direct access to your bank accounts for elective funds transfer.(Time for more cash and carry)

 Page 65 Sec 164: Is a payoff subsidized plan for retirees and their families in unions & community organizations: (ACORN).

 Page 84 Sec 203 HC bill: Govt mandates ALL benefit packages for private HC plans in the ‘Exchange.’

 Page 85 Line 7 HC Bill: Specifications of Benefit Levels for Plans — The Govt will ration your health care!

 Page 91 Lines 4-7 HC Bill: Govt mandates linguistic appropriate services. (Translation: illegal aliens.)

 Page 95 HC Bill Lines 8-18: The Govt will use groups (i.e. ACORN & Americorps to sign up individuals for Govt HC plan.

 Page 85 Line 7 HC Bill: Specifications of Benefit Levels for Plans. (AARP members – your health care WILL be rationed!)

Page 102 Lines 12-18 HC Bill: Medicaid eligible individuals will be automatically enrolled in Medicaid. (Nochoice.)

 Page 12 4 lines 24-25 HC: No company can sue GOVT on price fixing. No "judicial review" against Govt monopoly.

 Page 127 Lines 1-16 HC Bill: Doctors/ American Medical Association – The Govt will tell YOU what salary you can make.

 Page 145 Line 15-17: An Employer MUST auto-enroll employees into public option plan. (NO choice!)

 Page 126 Lines 22-25: Employers MUST pay for HC for part-time employees ANDtheir families. (Employees shouldn’t get excited about this as employers will be forced to reduce its work force, benefits, and wages/salaries to cover such a huge expense.)

 Page 149 Lines 16-24: ANY Employer with payroll 401k & above who does not provide public option will pay 8% tax on all payroll! (See the last comment in parenthesis.)

Page 150 Lines 9-13: A business with payroll between $251K & $401K who doesn’t provide public option will pay 2-6% tax on all payroll.

 Page 167 Lines 18-23: ANY individual who doesn’t have acceptable HC according to Govt will be taxed 2.5% of income.

 Page 170 Lines 1-3 HC Bill: Any NONRESIDENT Alien is exempt from individual taxes. (Americans will pay.)(Like always)

 Page 195 HC Bill: Officers & employees of the GOVT HC Admin.. will have access to ALL Americans’ finances and personal records. (I guess so they can ‘deduct’ their fees)

 Page 203 Line 14-15 HC: "The tax imposed under this section shall not be treated as tax." (Yes, it really says that!) ( a ‘fee’ instead)

Page 239 Line 14-24 HC Bill: Govt will reduce physician services for Medicaid Seniors. (Low-income and the poor are affected.)

 Page 241 Line 6-8 HC Bill: Doctors: It doesn’t matter what specialty you have trained yourself in — you will all be paid the same! (Just TRY to tell me that’s not Socialism!)

 Page 253 Line 10-18: The Govt sets the value of a doctor’s time, profession, judgment, etc. (Literally– the value of humans.)

 Page 265 Sec 1131: The Govt mandates and controls productivity for "private" HC industries.

 Page 268 Sec 1141: The federal Govt regulates the rental and purchase of power driven wheelchairs.

 Page 272 SEC. 1145: TREATMENT OF CERTAIN CANCER HOSPITALS – Cancer patients – welcome to rationing!

 Page 280 Sec 1151: The Govt will penalize hospitals for whatever the Govt deems preventable (i.e…re-admissions).

 Page 298 Lines 9-11: Doctors: If you treat a patient during initial admission that results in a re-admission — the Govt will penalize you.

 Page 317 L 13-20: PROHIBITION on ownership/investment. (The Govt tells doctors what and how much they can own!)

 Page 317-318 lines 21-25, 1-3: PROHIBITION on expansion. (The Govt is mandating that hospitals cannot expand.)

Page 321 2-13: Hospitals have the opportunity to apply for exception BUT community input is required. (Can you say ACORN?)

 Page 335 L 16-25 Pg 336-339: The Govt mandates establishment of=2 outcome-based measures. (HC the way they want — rationing.)

Page 341 Lines 3-9: The Govt has authority to disqualify Medicare Advance Plans, HMOs, etc. (Forcing people into the Govt plan)

 Page 354 Sec 1177: The Govt will RESTRICT enrollment of ‘special needs people!’ Unbelievable!

 Page 379 Sec 1191: The Govt creates more bureaucracy via a "Tele-Health Advisory Committee." (Can you say HC by phone?)

 Page 425 Lines 4-12: The Govt mandates "Advance-Care Planning Consult." (Think senior citizens end-of-life patients.)

 Page 425 Lines 17-19: The Govt will instruct and consult regarding living wills, durable powers of attorney, etc. (And it’s mandatory!)

Page 425 Lines 22-25, 426 Lines 1-3: The Govt provides an "approved" list of end-of-life resources; guiding you in death. (Also called ‘assisted suicide.’)(Sounds like Soylent Green to me.)

 Page 427 Lines 15-24: The Govt mandates a program for orders on "end-of-life." (The Govt has a say in how your life ends!)

 Page 429 Lines 1-9: An "advanced-care planning consultant" will be used frequently as a patient’s health deteriorates.

 Page 429 Lines 10-12: An "advanced care consultation" may include an ORDER for end-of-life plans.. (AN ORDER TO DIE FROM THE GOVERNMENT?!?)

 Page 429 Lines 13-25: The GOVT will specify which doctors can write an end-of-life order.. (I wouldn’t want to stand before God after getting paid for THAT job!)

 Page 430 Lines 11-15: The Govt will decide what level of treatment you will have at end-of-life! (Again — no choice!)

 Page 469: Community-Based Home Medical Services = Non-Profit Organizations. (Hello? ACORN Medical Services here!?!)

 Page 489 Sec 1308: The Govt will cover marriage and family therapy. (Which means Govt will insert itself into your marriage even.)

 Page 494-498: Govt will cover Mental Health Services including defining, creating, and rationing those services.

 Senator, I guarantee that I personally will do everything possible to inform patients and my fellow physicians about the dangers of the proposed bills you and your colleagues are debating.

 Furthermore, if you vote for a bill that enforces socialized medicine on the country and destroys the doctor-patient relationship, I will do everything in my power to make sure you lose your job in the next election.

 Respectfully,

 Stephen E. Fraser, MD

 Dear Reader,

 I urge you to use the power that you were born with (and the power that may soon be taken away) and circulate this email to as many people as you can reach. The Power of the People can stop this from happening to us, our parents, our grandparents, our children, and to following generations

http://candicemiller.house.gov/pdf/hr3200.pdf