text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Education for Retirement Security 
  Act of 2002''.
  
  SEC. 2. FINDINGS.
  
      Congress finds the following:
              (1) Improving financial literacy is a critical and complex 
          task for Americans of all ages.
              (2) Low levels of savings and high levels of personal and 
          real estate debt are serious problems for many households 
          nearing retirement.
              (3) Only 53 percent of working Americans have any form of 
          pension coverage. Three out of four women aged 65 or over 
          receive no income from employer-provided pensions.
              (4) The more limited timeframe that mid-life and older 
          individuals and families have to assess the realities of their 
          individual circumstances, to recover from counter-productive 
          choices and decisionmaking processes, and to benefit from more 
          informed financial practices, has immediate impact and near 
          term consequences for Americans nearing or of retirement age.
              (5) Research indicates that there are now 4 basic sources 
          of retirement income security. Those sources are social 
          security benefits, pensions and savings, healthcare insurance 
          coverage, and, for an increasing number of older individuals, 
          necessary earnings from working during one's ``retirement'' 
          years.
              (6) The $5,000,000,000,000 loss in stock market equity 
          values since 2000 has had a significantly negative effect on 
          mid-life and older individuals and on their pension plans and 
          retirement accounts, affecting both individuals with plans to 
          retire and those who are already in retirement.
              (7) Although today's older individuals are generally 
          thought to be doing well, nearly \1/5\ (18 percent) of such 
          individuals were living below 125 percent of the poverty line 
          during a year of national prosperity, 1995.
              (8) Over the next 30 years, the number of older individuals 
          in the United States is expected to double, from 35,000,000 to 
          nearly 75,000,000, and long-term care costs are expected to 
          skyrocket.
              (9) Financial exploitation is the largest single category 
          of abuse against older individuals and this population 
          comprises more than \1/2\ of all telemarketing victims in the 
          United States.
              (10) The Federal Trade Commission (FTC) Identity Theft Data 
          Clearinghouse has reported that incidents of identity theft 
          targeting individuals over the age of 60 increased from 1,821 
          victims in 2000 to 5,802 victims in 2001, a threefold increase.
  
  SEC. 3. GRANT PROGRAM TO ENHANCE FINANCIAL AND RETIREMENT LITERACY AND 
                REDUCE FINANCIAL ABUSE AND FRAUD AMONG MID-LIFE AND OLDER 
                AMERICANS.
  
      (a) Authority.--The Secretary is authorized to award grants to 
  eligible entities to provide financial education programs to mid-life 
  and older individuals who reside in local communities in order to--
              (1) enhance financial and retirement knowledge among such 
          individuals; and
              (2) reduce financial abuse and fraud, including 
          telemarketing, mortgage, and pension fraud, among such 
          individuals.
      (b) Eligible Entities.--An entity is eligible to receive a grant 
  under this section if such entity is--
              (1) a State agency or area agency on aging; or
              (2) a nonprofit organization with a proven record of 
          providing--
                      (A) services to mid-life and older individuals;
                      (B) consumer awareness programs; or
                      (C) supportive services to low-income families.
      (c) Application.--An eligible entity desiring a grant under this 
  section shall submit an application to the Secretary in such form and 
  containing such information as the Secretary may require, including a 
  plan for continuing the programs provided with grant funds under this 
  section after the grant expires.
      (d) Limitation on Administrative Costs.--A recipient of a grant 
  under this section may not use more than 4 percent of the total amount 
  of the grant in each fiscal year for the administrative costs of 
  carrying out the programs provided with grant funds under this section.
      (e) Evaluation and Report.--
              (1) Establishment of performance measures.--The Secretary 
          shall develop measures to evaluate the programs provided with 
          grant funds under this section.
              (2) Evaluation according to performance measures.--Applying 
          the performance measures developed under paragraph (1), the 
          Secretary shall evaluate the programs provided with grant funds 
          under this section in order to--
                      (A) judge the performance and effectiveness of such 
                  programs;
                      (B) identify which programs represent the best 
                  practices of entities developing such programs for mid-
                  life and older individuals; and
                      (C) identify which programs may be replicated.
              (3) Annual reports.--For each fiscal year in which a grant 
          is awarded under this section, the Secretary shall submit a 
          report to Congress containing a description of the status of 
          the grant program under this section, a description of the 
          programs provided with grant funds under this section, and the 
          results of the evaluation of such programs under paragraph (2).
  
  SEC. 4. NATIONAL TRAINING AND TECHNICAL ASSISTANCE PROGRAM.
  
      (a) Authority.--The Secretary is authorized to award a grant to 1 
  or more eligible entities to--
              (1) create and make available instructional materials and 
          information that promote financial education; and
              (2) provide training and other related assistance regarding 
          the establishment of financial education programs to eligible 
          entities awarded a grant under section 3.
      (b) Eligible Entities.--An entity is eligible to receive a grant 
  under this section if such entity is a national nonprofit organization 
  with substantial experience in the field of financial education.
      (c) Application.--An eligible entity desiring a grant under this 
  section shall submit an application to the Secretary in such form and 
  containing such information as the Secretary may require.
      (d) Basis and Term.--The Secretary shall award a grant under this 
  section on a competitive, merit basis for a term of 5 years.
  
  SEC. 5. DEFINITIONS.
  
      In this Act:
              (1) Financial education.--The term ``financial education'' 
          means education that promotes an understanding of consumer, 
          economic, and personal finance concepts, including saving for 
          retirement, long-term care, and estate planning and education 
          on predatory lending and financial abuse schemes.
              (2) Mid-life individual.--The term ``mid-life individual'' 
          means an individual aged 45 to 64 years.
              (3) Older individual.--The term ``older individual'' means 
          an individual aged 65 or older.
              (4) Secretary.--The term ``Secretary'' means the Secretary 
          of Health and Human Services.
  
  SEC. 6. AUTHORIZATION OF APPROPRIATIONS.
  
      (a) Authorization.--There are authorized to be appropriated to 
  carry out this Act, $100,000,000 for each of the fiscal years 2003 
  through 2007.
      (b) Limitation on Funds for Evaluation and Report.--The Secretary 
  may not use more than $200,000 of the amounts appropriated under 
  subsection (a) for each fiscal year to carry out section 3(e).
      (c) Limitation on Funds for Training and Technical Assistance.--The 
  Secretary may not use less than 5 percent or more than 10 percent of 
  amounts appropriated under subsection (a) for each fiscal year to carry 
  out section 4.
target: Education for Retirement Security Act of 2002 - Authorizes the Secretary of Health and Human Services to award grants to eligible entities to provide financial education programs to mid-life and older individuals who reside in local communities in order to: (1) enhance financial and retirement knowledge among them; and (2) reduce financial abuse and fraud, including telemarketing, mortgage, and pension fraud, among them.Authorizes the Secretary to award a grant to one or more eligible entities to: (1) create and make available instructional materials and information that promote financial education; and (2) provide training and other related assistance regarding the establishment of financial education programs.
feat_title: A bill to establish a grant program to enhance the financial and retirement literacy of mid-life and older Americans and to reduce financial abuse and fraud among such Americans, and for other purposes.