II
117th CONGRESS
2d Session
S. 3712
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.
Short title
This Act may be cited as the Auto Reenroll Act of 2022
.
Automatic reenrollment under qualified automatic contribution arrangements and eligible automatic contribution arrangements
Qualified automatic contribution arrangements
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:
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—
who is eligible to participate in the arrangement, and
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,
.
Conforming amendments
Clause (iv) of section 401(k)(13)(C) of such Code is amended—
in the heading, by inserting for pre-2025 arrangements
after required
; and
by striking Clause (i)
and inserting In the case of a qualified automatic contribution arrangement in effect before January 1, 2025, clause (i)
.
Eligible automatic contribution arrangements
Section 414(w)(3) of the Internal Revenue Code of 1986 is amended—
by redesignating subparagraphs (A) through (C) as clauses (i) through (iii), respectively, and moving the margins of such clauses 2 ems to the right;
by striking arrangement.—For purposes of
and inserting the following: “arrangement.—
In general
For purposes of
; and
by adding at the end the following new subparagraph:
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—
who is eligible to participate in the arrangement, and
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,
.
Conforming amendment
Section 514(e)(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1144(e)(2)) is amended—
by redesignating subparagraphs (A) through (C) as clauses (i) through (iii), respectively, and moving the margins of such clauses 2 ems to the right;
by striking (2) For purposes of
and inserting (2)(A) For purposes of
; and
by adding at the end the following:
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—
who is eligible to participate in the arrangement; and
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,
.
Effective date
The amendments made by this section shall apply to arrangements taking effect after December 31, 2024.