Sec. 3. Contracts to provide portable retirement and investment accounts
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Not later than 1 year after the date of the enactment of this Act, the Director shall establish a program under which— the Director shall invest the assets in each PRIA Basic Account established under section 4 in a lifecycle fund described in subsection (c); and the Director shall group PRIA Basic Accounts so established into classes based on the year the beneficiary of each such account will attain age 65. Once a class of PRIA Basic Accounts contains, in the aggregate, enough assets so that the establishment of a dedicated target date fund for such class would be cost effective, the Director shall award (on a rotating basis) to an entity certified under subsection
(b)a contract to act as trustee of all such accounts and to invest such accounts in a lifecycle fund provided by the trustee as described in subsection (c). The Director may not award a contract to an entity under subsection
(a)unless the Director has certified such entity under this subsection. The Director shall establish certification criteria which shall include the following: Expertise, including the professional qualifications, business model, experience, and training of the trustee and any service providers that the trustee intends to use. Registration, licensing, and financial soundness demonstrating that participant funds would be handled by a regulated financial entity. Reputation and customer service, including records of comments or complaints from employers and participants, timely consideration and resolution of complaints filed, and independent rating or accreditations. A lifecycle fund described in this subsection is a fund that— is comprised of an appropriate mix of index funds; is automatically adjusted over time during the time horizon of the fund; strikes a balance between expected risk and return over the time horizon of the fund; and has an initial target retirement date that is consistent with retirement at age 65. A trustee of a portable retirement and investment account shall act as a fiduciary to the account holder and shall discharge his duties with respect to the account in the sole interest of the account holder under rules similar to those applicable to an ERISA fiduciary under section 404 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1104 ). The Director shall enter into contracts with 10 entities at any given time to provide services under subsection (a), and shall not award a contract to any entity which has an existing contract under such subsection. Each such contract shall have a duration of 5 years. In awarding contracts to entities under subsection (a), the Director shall consider— the specific composition of the lifecycle funds provided by such trustee; the services to account holders offered by such trustee, including available investment advice; the fees charged by such trustee; and the importance of maintaining a diversity of trustees.