Section 1 Short title
This Act may be cited as the “Auto Reenroll Act of 2022”.
Auto Reenroll Act of 2022
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.
Sec. 2 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:
“(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,”
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.—
“(A) In general—For purposes of”
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,”
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:
“(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,”
Effective date— The amendments made by this section shall apply to arrangements taking effect after December 31, 2024.