S. 266Senate114th Congress (2015-2017)In Committee

Retirement Security Act of 2015

Introduced January 27, 2015

Legislative Activity

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

January 27, 2015

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SenateIntro Referral

Introduced in Senate

January 27, 2015

SenateIntro Referral

Read twice and referred to the Committee on Finance.

January 27, 2015

Floor Debate

24 members

What members said about S. 266 on the floor

11 Republicans13 Democrats
Lisa Murkowski
Sen. Lisa MurkowskiR-AK · Jan 29, 2015

Mr. President, as we just heard, the House has sent over legislation they have moved through that body that would allow for export of LNG. As we speak, in the Energy and Natural Resources Committee…

John Cornyn
Sen. John CornynR-TX · Jan 29, 2015

The following Senator is necessarily absent: the Senator from Florida (Mr. Rubio). I move to lay that motion on the table. The motion to lay on the table was agreed to. Amendment No. 77 The following…

Benjamin L. Cardin
Sen. Benjamin L. CardinD-MD · Jan 29, 2015

Madam President, I ask unanimous consent that I take a few minutes to debate the next amendment and save a little bit of time at the end by withdrawing the amendment. Madam President, as we consider…

Richard Burr
Sen. Richard BurrR-NC · Jan 29, 2015

Madam President, I will be brief, but I would like my colleagues' attention because we have an opportunity today to take a program that functions well, that this body designed, funded from royalties…

Lamar Alexander
Sen. Lamar AlexanderR-TN · Jan 29, 2015

Mr. President, I ask unanimous consent to speak for up to 15 minutes, and that following me, the Senator from North Carolina be recognized for up to 15 minutes. Mr. President, I am advised by the…

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Susan M. Collins
Sen. Susan M. CollinsR-ME · Jan 29, 2015

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I ask unanimous consent that the Senator from Florida, Mr. Nelson, and I be permitted to proceed…

Maria Cantwell
Sen. Maria CantwellD-WA · Jan 29, 2015

I know originally we pushed the bill back, so I am happy to move it back to reclaim some of that time and help us. I know there are a few things which have been worked out, and we very much…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Jan 29, 2015

Mr. President, I wish to speak in opposition to the Keystone XL Pipeline. This bill will not help our economy, it will not create permanent jobs, and it certainly is not a boon to the environment. On…

Christopher Murphy
Sen. Christopher MurphyD-CT · Jan 29, 2015

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I know we are about to bring some final votes on Keystone to the floor, but I want to take a few…

John Hoeven
Sen. John HoevenR-ND · Jan 29, 2015

Madam President, I wish to thank the Senator from Alaska and the Senator from Washington as the bill managers. I think they have done an exceptional job. I know that is not just my opinion, but it is…

Bill Nelson
Sen. Bill NelsonD-FL · Jan 29, 2015

Mr. President, this bill is borne out of the work Senator Collins and I did on the Special Committee on Aging. After we had a hearing on the condition of the American senior citizen, it was certainly…

Sherrod Brown
Sen. Sherrod BrownD-OH · Jan 29, 2015

Mr. President, I ask unanimous consent to speak as in morning business for up to 5 minutes. Mr. President, I rise to discuss the Children's Health Insurance Program. This Congress 20 years ago passed…

Debbie Stabenow
Sen. Debbie StabenowD-MI · Jan 29, 2015

Mr. President, I assume there is a little bit of time to make a couple of comments as we are waiting. I would commend the chairwoman of the Energy and Natural Resources Committee, for she and the…

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David Vitter
Sen. David VitterR-LA · Jan 29, 2015

Thank you, Mr. President. I want to thank the Senator for her kind words and continuing commitment to work on revenue-sharing measures. As her new role as the Chair of the Energy and Natural…

Edward J. Markey
Sen. Edward J. MarkeyD-MA · Jan 29, 2015

Mr. President, my amendment is very simple. It would require that before the Keystone XL Pipeline is deemed approved, we should determine whether carbon pollution, including the carbon pollution from…

David Perdue
Sen. David PerdueR-GA · Jan 29, 2015

Mr. President, today I wish to speak on S. 1, legislation to approve the Keystone XL pipeline. I am proud to be a cosponsor of this bipartisan bill, which will approve construction of the pipeline…

Cory A. Booker
Sen. Cory A. BookerD-NJ · Jan 29, 2015

Mr. President, my amendment No. 155 ensures that Federal agencies disclose to the public, landowners, and communities any significant new circumstances learned about the impact of the Keystone XL…

Steve Daines
Sen. Steve DainesR-MT · Jan 29, 2015

Mr. President, the Land and Water Conservation Fund has been instrumental in increasing access to our public lands, growing opportunities for outdoor recreation, and protecting wildlife. And there is…

Michael F. Bennet
Sen. Michael F. BennetD-CO · Jan 29, 2015

Mr. President, I rise to oppose the Daines amendment. While I respect the perspective of my colleague from Montana, this amendment does nothing to support the Land and Water Conservation Fund. If you…

Barbara Boxer
Sen. Barbara BoxerD-CA · Jan 29, 2015

If I could ask for the attention of my friends. The reason I so wanted have this 1 minute even though I am not asking for a rollcall vote is because I want to make clear what we are doing in this…

Mitch McConnell
Sen. Mitch McConnellR-KY · Jan 29, 2015

Mr. President, I ask unanimous consent that at 4:30 p.m. on Monday, February 2, the Senate proceed to the consideration of Calendar No. 6, H.R. 203; that the time until 5:30 p.m. be equally divided…

Tom Udall
Sen. Tom UdallD-NM · Jan 29, 2015

Madam President, this amendment creates a national market for renewable energy. A bill similar to this has passed the Senate three times and also passed the House once. These are the jobs of the…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Jan 29, 2015

I announce that the Senator from Nevada (Mr. Reid) is necessarily absent. I announce that the Senator from Hawaii (Ms. Hirono) and the Senator from Nevada (Mr. Reid) are necessarily absent.

John Thune
Sen. John ThuneR-SD · Jan 29, 2015

Mr. President, I ask unanimous consent that there be 2 minutes equally divided after each vote and that all after the first vote in the series be 10 minutes each.

Bill Text

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Introduced in SenateIssued January 27, 2015

II

114th CONGRESS

1st Session

S. 266

IN THE SENATE OF THE UNITED STATES

January 27, 2015

Ms. Collins (for herself and Mr. Nelson) 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 modify safe harbor requirements applicable to automatic contribution arrangements, and for other purposes.

1.

Short title

This Act may be cited as the Retirement Security Act of 2015.

2.

Elimination of disincentive to pooling for multiple employer plans

(a)

In general

Not later than one year after the date of the enactment of this Act, the Secretary of the Treasury shall prescribe final regulations under which a plan described in section 413(c) of the Internal Revenue Code of 1986 may be treated as satisfying the qualification requirements of section 401(a) of such Code despite the violation of such requirements with respect to one or more participating employers. Such rules may require that the portion of the plan attributable to such participating employers be spun off to plans maintained by such employers.

3.

Modification of ERISA rules relating to multiple employer defined contribution plans

(a)

In general

(1)

Requirement of common interest

Section 3(2) of the Employee Retirement Income Security Act of 1974 is amended by adding at the end the following:

(C)
(i)

A qualified multiple employer plan shall not fail to be treated as an employee pension benefit plan or pension plan solely because the employers sponsoring the plan share no common interest.

(ii)

For purposes of this subparagraph, the term qualified multiple employer plan means a plan described in section 413(c) of the Internal Revenue Code of 1986 which—

(I)

is an individual account plan with respect to which the requirements of clauses (iii), (iv), and (v) are met, and

(II)

includes in its annual report required to be filed under section 104(a) the name and identifying information of each participating employer.

(iii)

The requirements of this clause are met if, under the plan, each participating employer retains fiduciary responsibility for—

(I)

the selection and monitoring of the named fiduciary, and

(II)

the investment and management of the portion of the plan's assets attributable to employees of the employer to the extent not otherwise delegated to another fiduciary.

(iv)

The requirements of this clause are met if, under the plan, a participating employer is not subject to unreasonable restrictions, fees, or penalties by reason of ceasing participation in, or otherwise transferring assets from, the plan.

(v)

The requirements of this clause are met if each participating employer in the plan is an eligible employer as defined in section 408(p)(2)(C)(i) of the Internal Revenue Code of 1986, applied—

(I)

by substituting 500 for 100 in subclause (I) thereof,

(II)

by substituting 5 for 2 each place it appears in subclause (II) thereof, and

(III)

without regard to the last sentence of subclause (II) thereof.

.

(2)

Simplified reporting for small multiple employer plans

Section 104(a) of such Act (29 U.S.C. 1024(a)) is amended by adding at the end the following:

(7)
(A)

In the case of any eligible small multiple employer plan, the Secretary may by regulation—

(i)

prescribe simplified summary plan descriptions, annual reports, and pension benefit statements for purposes of section 102, 103, or 105, respectively, and

(ii)

waive the requirement under section 103(a)(3) to engage an independent qualified public accountant in cases where the Secretary determines it appropriate.

(B)

For purposes of this paragraph, the term eligible small multiple employer plan means, with respect to any plan year—

(i)

a qualified multiple employer plan, as defined in section 3(2)(C)(ii), or

(ii)

any other plan described in section 413(c) of the Internal Revenue Code of 1986 that satisfies the requirements of clause (v) of section 3(2)(C).

.

(b)

Effective date

The amendments made by this section shall apply to years beginning after December 31, 2015.

4.

Secure deferral arrangements

(a)

In general

Subsection (k) of section 401 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(14)

Alternative method for secure deferral arrangements to meet nondiscrimination requirements

(A)

In general

A secure deferral arrangement shall be treated as meeting the requirements of paragraph (3)(A)(ii).

(B)

Secure deferral arrangement

For purposes of this paragraph, the term secure deferral arrangement means any cash or deferred arrangement which meets the requirements of subparagraphs (C), (D), and (E) of paragraph (13), except as modified by this paragraph.

(C)

Qualified percentage

For purposes of this paragraph, with respect to any employee, the term qualified percentage means, in lieu of the meaning given such term in paragraph (13)(C)(iii), any percentage determined under the arrangement if such percentage is applied uniformly and is—

(i)

at least 6 percent, but not greater than 10 percent, during the period ending on the last day of the first plan year which begins after the date on which the first elective contribution described in paragraph (13)(C)(i) is made with respect to such employee,

(ii)

at least 8 percent during the first plan year following the plan year described in clause (i), and

(iii)

at least 10 percent during any subsequent plan year.

(D)

Matching contributions

(i)

In general

For purposes of this paragraph, an arrangement shall be treated as having met the requirements of paragraph (13)(D)(i) if and only if the employer makes matching contributions on behalf of each employee who is not a highly compensated employee in an amount equal to the sum of—

(I)

100 percent of the elective contributions of the employee to the extent that such contributions do not exceed 1 percent of compensation,

(II)

50 percent of so much of such contributions as exceed 1 percent but do not exceed 6 percent of compensation, plus

(III)

25 percent of so much of such contributions as exceed 6 percent but do not exceed 10 percent of compensation.

(ii)

Application of rules for matching contributions

The rules of clause (ii) of paragraph (12)(B) and clauses (iii) and (iv) of paragraph (13)(D) shall apply for purposes of clause (i) but the rule of clause (iii) of paragraph (12)(B) shall not apply for such purposes. The rate of matching contribution for each incremental deferral must be at least as high as the rate specified in clause (i), and may be higher, so long as such rate does not increase as an employee’s rate of elective contributions increases.

.

(b)

Matching contributions and employee contributions

Subsection (m) of section 401 of the Internal Revenue Code of 1986 is amended by redesignating paragraph (13) as paragraph (14) and by inserting after paragraph (12) the following new paragraph:

(13)

Alternative method for secure deferral arrangements

A defined contribution plan shall be treated as meeting the requirements of paragraph (2) with respect to matching contributions and employee contributions if the plan—

(A)

is a secure deferral arrangement (as defined in subsection (k)(14)),

(B)

meets the requirements of clauses (ii) and (iii) of paragraph (11)(B), and

(C)

provides that matching contributions on behalf of any employee may not be made with respect to an employee’s contributions or elective deferrals in excess of 10 percent of the employee’s compensation.

.

(c)

Effective date

The amendments made by this section shall apply to plan years beginning after December 31, 2015.

5.

Credit for employers with respect to modified safe harbor requirements

(a)

In general

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 section:

45S.

Credit for small employers with respect to modified safe harbor requirements for automatic contribution arrangements

(a)

General rule

For purposes of section 38, in the case of a small employer, the safe harbor adoption credit determined under this section for any taxable year is the amount equal to the total of the employer's matching contributions under section 401(k)(14)(D) during the taxable year on behalf of employees who are not highly compensated employees, subject to the limitations of subsection (b).

(b)

Limitations

(1)

Limitation with respect to compensation

The credit determined under subsection (a) with respect to contributions made on behalf of an employee who is not a highly compensated employee shall not exceed 2 percent of the compensation of such employee for the taxable year.

(2)

Limitation with respect to years of participation

Credit shall be determined under subsection (a) with respect to contributions made on behalf of an employee who is not a highly compensated employee only during the first 5 years such employee participates in the qualified automatic contribution arrangement.

(c)

Definitions

(1)

In general

Any term used in this section which is also used in section 401(k)(14) shall have the same meaning as when used in such section.

(2)

Small employer

The term small employer means an eligible employer (as defined in section 408(p)(2)(C)(i)).

(d)

Denial of double benefit

No deduction shall be allowable under this title for any contribution with respect to which a credit is allowed under this section.

.

(b)

Credit To be part of general business credit

Subsection (b) of section 38 of the Internal Revenue Code of 1986 is amended—

(1)

by striking plus at the end of paragraph (35),

(2)

by striking the period at the end of paragraph (36) and inserting , plus, and

(3)

by adding at the end the following new paragraph:

(37)

the safe harbor adoption credit determined under section 45S.

.

(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 after the item relating to section 45R the following new item:

.

(d)

Effective date

The amendments made by this section shall apply to taxable years that include any portion of a plan year beginning after December 31, 2015.

6.

Modification of regulations

The Secretary of the Treasury shall promulgate regulations or other guidance that—

(1)

simplify and clarify the rules regarding the timing of participant notices required under section 401(k)(13)(E) of the Internal Revenue Code of 1986, with specific application to—

(A)

plans that allow employees to be eligible for participation immediately upon beginning employment, and

(B)

employers with multiple payroll and administrative systems, and

(2)

simplify and clarify the automatic escalation rules under sections 401(k)(13)(C)(iii) and 401(k)(14)(C) of the Internal Revenue Code of 1986 in the context of employers with multiple payroll and administrative systems.

Such regulations or guidance shall address the particular case of employees within the same plan who are subject to different notice timing and different percentage requirements, and provide assistance for plan sponsors in managing such cases.
7.

Opportunity to claim the saver's credit on Form 1040EZ

The Secretary of the Treasury shall modify the forms for the return of tax of individuals in order to allow individuals claiming the credit under section 25B of the Internal Revenue Code of 1986 to file (and claim such credit on) Form 1040EZ.