[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3712 Introduced in Senate (IS)]
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117th CONGRESS
2d Session
S. 3712
To amend the Internal Revenue Code of 1986 and the Employee Retirement
Income Security Act of 1974 to provide for periodic automatic
reenrollment under qualified automatic contribution arrangements, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 28, 2022
Mr. Kaine introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 and the Employee Retirement
Income Security Act of 1974 to provide for periodic automatic
reenrollment under qualified automatic contribution arrangements, 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 ``Auto Reenroll Act of 2022''.
SEC. 2. AUTOMATIC REENROLLMENT UNDER QUALIFIED AUTOMATIC CONTRIBUTION
ARRANGEMENTS AND ELIGIBLE AUTOMATIC CONTRIBUTION
ARRANGEMENTS.
(a) Qualified Automatic Contribution Arrangements.--
(1) In general.--Section 401(k)(13)(C) of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new clause:
``(v) Periodic automatic deferral required
for post-2024 arrangements.--In the case of a
qualified automatic contribution arrangement
which takes effect after December 31, 2024, the
requirements of this subparagraph shall be
treated as met only if, under the arrangement,
at least every 3 plan years each employee--
``(I) who is eligible to
participate in the arrangement, and
``(II) who, at the time of the
determination, has in effect an
affirmative election pursuant to clause
(ii) not to have contributions
described in clause (i) made,
is treated as having made the election
described in clause (i) unless the employee
makes a new affirmative election under clause
(ii). Such determination may be made at one
time for all employees described in the
preceding sentence for a plan year, regardless
of individual employee dates of enrollment.''.
(2) Conforming amendments.--Clause (iv) of section
401(k)(13)(C) of such Code is amended--
(A) in the heading, by inserting ``for pre-2025
arrangements'' after ``required''; and
(B) by striking ``Clause (i)'' and inserting ``In
the case of a qualified automatic contribution
arrangement in effect before January 1, 2025, clause
(i)''.
(b) Eligible Automatic Contribution Arrangements.--Section
414(w)(3) of the Internal Revenue Code of 1986 is amended--
(1) by redesignating subparagraphs (A) through (C) as
clauses (i) through (iii), respectively, and moving the margins
of such clauses 2 ems to the right;
(2) by striking ``arrangement.--For purposes of'' and
inserting the following: ``arrangement.--
``(A) In general.--For purposes of''; and
(3) by adding at the end the following new subparagraph:
``(B) Periodic automatic deferral required.--In the
case of an eligible automatic contribution arrangement
taking effect after December 31, 2024, the requirements
of this subsection shall be treated as met only if,
under the arrangement, at least every 3 plan years each
employee--
``(i) who is eligible to participate in the
arrangement, and
``(ii) who, at the time of the
determination, has in effect an affirmative
election pursuant to subparagraph (A)(ii) not
to have contributions described in such
subparagraph made,
is treated as having made the election at the uniform
percentage level described in subparagraph (A)(ii)
unless the employee makes a new election under such
subparagraph. Such determination may be made at one
time for all employees described in the preceding
sentence for a plan year, regardless of individual
employee dates of enrollment.''.
(c) Conforming Amendment.--Section 514(e)(2) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1144(e)(2)) is
amended--
(1) by redesignating subparagraphs (A) through (C) as
clauses (i) through (iii), respectively, and moving the margins
of such clauses 2 ems to the right;
(2) by striking ``(2) For purposes of'' and inserting
``(2)(A) For purposes of''; and
(3) by adding at the end the following:
``(B) In the case of an eligible automatic contribution arrangement
taking effect after December 31, 2024, the requirements of subparagraph
(A)(ii) shall be treated as met only if, under the arrangement, at
least every 3 plan years each employee--
``(i) who is eligible to participate in the arrangement;
and
``(ii) who, at the time of the determination, has in effect
an affirmative election pursuant to subparagraph (A)(ii) not to
have contributions described in such subparagraph made,
is treated as having made the election at the uniform percentage of
compensation described in subparagraph (A)(ii) unless the employee
makes a new election under such subparagraph. Such determination may be
made at one time for all employees described in the preceding sentence
for a plan year, regardless of individual employee dates of
enrollment.''.
(d) Effective Date.--The amendments made by this section shall
apply to arrangements taking effect after December 31, 2024.
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