[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2517 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 2517

To amend the Internal Revenue Code of 1986 and the Employee Retirement 
      Income Security Act of 1974 to allow for periodic automatic 
 reenrollment under qualified automatic contribution arrangements, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 26, 2023

Mr. Kaine (for himself and Mr. Cassidy) 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 allow 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 2023''.

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 
                        permitted.--A qualified automatic contribution 
                        arrangement shall not fail to be treated as 
                        meeting the requirements of this subparagraph 
                        solely by reason of the fact that, under the 
                        arrangement--
                                    ``(I) an election by an employee 
                                under clause (ii)(I) terminates after 
                                not more than 3 years (but not less 
                                than 1 year), and
                                    ``(II) such employee is treated as 
                                having made an election under clause 
                                (i) after such termination unless such 
                                employee makes a new affirmative 
                                election under clause (ii).
                        A termination described in subclause (I) may be 
                        made at one time for a plan year for all 
                        employees who have made an election described 
                        in such subclause.''.
            (2) Coordination with rule for current employees.--
                    (A) In general.--Clause (iv) of section 
                401(k)(13)(C) of such Code is amended by striking 
                ``either to participate in the arrangement or not to 
                participate in the arrangement'' and inserting ``to 
                participate in the arrangement''.
                    (B) Special rule for previously disregarded 
                employees.--
                            (i) In general.--For purposes of applying 
                        section 401(k)(13)(C)(v) of the Internal 
                        Revenue Code of 1986 (as added by paragraph 
                        (1)), a previously disregarded employee may be 
                        treated as an employee who has made an election 
                        under section 401(k)(13)(C)(ii)(I) of such 
                        Code.
                            (ii) Previously disregarded employee.--For 
                        purposes of this subparagraph, the term 
                        ``previously disregarded employee'' means any 
                        employee who was not taken into account under 
                        section 401(k)(13)(C)(i) of the Internal 
                        Revenue Code of 1986 by reason of an election 
                        described in section 401(k)(13)(C)(iv)(II) of 
                        such Code (as in effect for plan years 
                        beginning on or before the date of the 
                        enactment of this Act) to not participate in an 
                        arrangement described in section 
                        401(k)(13)(C)(iv)(I) of such Code.
    (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 permitted.--An 
                arrangement shall not fail to be treated as an eligible 
                automatic contribution arrangement under this 
                subsection solely by reason of the fact that, under the 
                arrangement--
                            ``(i) an election by an employee under 
                        subparagraph (A)(ii) not to have contributions 
                        made terminates after not more than 3 years 
                        (but not less than 1 year), and
                            ``(ii) such employee is treated as having 
                        made an election under subparagraph (A)(ii) to 
                        make contributions at the uniform percentage 
                        level described in such subparagraph after such 
                        termination unless such employee makes a new 
                        election not to so make such contributions.
                A termination described in clause (i) may be made at 
                one time for a plan year for all employees who have 
                made an election described in such clause.''.
    (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;
            (2) by striking ``(2) For purposes of'' and inserting 
        ``(2)(A) For purposes of''; and
            (3) by adding at the end the following:
    ``(B) An arrangement shall not fail to be treated as an automatic 
contribution arrangement under this subsection solely by reason of the 
fact that under the arrangement--
                    ``(i) an election by an employee under subparagraph 
                (A)(ii) not to have contributions made terminates after 
                not more than 3 years (but not less than 1 year), and
                    ``(ii) such employee is treated as having made an 
                election under subparagraph (A)(ii) to make 
                contributions at the uniform percentage level described 
                in such subparagraph after such termination unless such 
                employee makes a new election not to so make such 
                contributions.
        A termination described in clause (i) may be made at one time 
        for a plan year for all employees who have made an election 
        described in such clause, regardless of individual employee 
        dates of enrollment.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after the date of the enactment of this 
Act.
    (e) No Inference.--The amendments made by this section shall not be 
construed to create any inference with respect to--
            (1) the application of section 401(k)(13)(C) of the 
        Internal Revenue Code of 1986, section 414(w)(3) of such Code, 
        or section 514(e)(2) of the Employee Retirement Income Security 
        Act of 1974 to plan years beginning before the date of the 
        enactment of this Act, or
            (2) the application of section 401(k)(13)(C)(v) of the 
        Internal Revenue Code of 1986 (as added by subsection (a)), 
        section 414(w)(3)(B) of such Code (as amended by subsection 
        (b)), or section 514(e)(2)(B) of the Employee Retirement Income 
        Security Act of 1974 (as amended by subsection (c)) to 
        arrangements terminating elections not to have contributions 
        made after more than 3 years.
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