[Congressional Record Volume 168, Number 55 (Tuesday, March 29, 2022)]
[House]
[Pages H3925-H3950]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                SECURING A STRONG RETIREMENT ACT OF 2022

  Mr. NEAL. Madam Speaker, I move to suspend the rules and pass the 
bill (H.R. 2954) to increase retirement savings, simplify and clarify 
retirement plan rules, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2954

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Securing a 
     Strong Retirement Act of 2022''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:
Sec. 1. Short title; table of contents.

     TITLE I--EXPANDING COVERAGE AND INCREASING RETIREMENT SAVINGS

Sec. 101. Expanding automatic enrollment in retirement plans.
Sec. 102. Modification of credit for small employer pension plan 
              startup costs.
Sec. 103. Promotion of Saver's Credit.
Sec. 104. Enhancement of Saver's Credit.
Sec. 105. Enhancement of 403(b) plans.
Sec. 106. Increase in age for required beginning date for mandatory 
              distributions.
Sec. 107. Indexing IRA catch-up limit.
Sec. 108. Higher catch-up limit to apply at age 62, 63, and 64.
Sec. 109. Pooled employer plans modification.
Sec. 110. Multiple employer 403(b) plans.
Sec. 111. Treatment of student loan payments as elective deferrals for 
              purposes of matching contributions.
Sec. 112. Application of credit for small employer pension plan startup 
              costs to employers which join an existing plan.
Sec. 113. Military spouse retirement plan eligibility credit for small 
              employers.
Sec. 114. Small immediate financial incentives for contributing to a 
              plan.
Sec. 115. Safe harbor for corrections of employee elective deferral 
              failures.
Sec. 116. Improving coverage for part-time workers.
Sec. 117. Deferral of tax for certain sales of employer stock to 
              employee stock ownership plan sponsored by S corporation.
Sec. 118. Certain securities treated as publicly traded in case of 
              employee stock ownership plans.

                    TITLE II--PRESERVATION OF INCOME

Sec. 201. Remove required minimum distribution barriers for life 
              annuities.
Sec. 202. Qualifying longevity annuity contracts.
Sec. 203. Insurance-dedicated exchange-traded funds.

  TITLE III--SIMPLIFICATION AND CLARIFICATION OF RETIREMENT PLAN RULES

Sec. 301. Recovery of retirement plan overpayments.
Sec. 302. Reduction in excise tax on certain accumulations in qualified 
              retirement plans.
Sec. 303. Performance benchmarks for asset allocation funds.
Sec. 304. Review and report to Congress relating to reporting and 
              disclosure requirements.
Sec. 305. Eliminating unnecessary plan requirements related to 
              unenrolled participants.
Sec. 306. Retirement savings lost and found.
Sec. 307. Updating dollar limit for mandatory distributions.
Sec. 308. Expansion of Employee Plans Compliance Resolution System.
Sec. 309. Eliminate the ``first day of the month'' requirement for 
              governmental section 457(b) plans.
Sec. 310. One-time election for qualified charitable distribution to 
              split-interest entity; increase in qualified charitable 
              distribution limitation.
Sec. 311. Distributions to firefighters.
Sec. 312. Exclusion of certain disability-related first responder 
              retirement payments.
Sec. 313. Individual retirement plan statute of limitations for excise 
              tax on excess contributions and certain accumulations.
Sec. 314. Requirement to provide paper statements in certain cases.
Sec. 315. Separate application of top heavy rules to defined 
              contribution plans covering excludible employees.
Sec. 316. Repayment of qualified birth or adoption distribution limited 
              to 3 years.
Sec. 317. Employer may rely on employee certifying that deemed hardship 
              distribution conditions are met.
Sec. 318. Penalty-free withdrawals from retirement plans for 
              individuals in case of domestic abuse.
Sec. 319. Reform of family attribution rules.
Sec. 320. Amendments to increase benefit accruals under plan for 
              previous plan year allowed until employer tax return due 
              date.
Sec. 321. Retroactive first year elective deferrals for sole 
              proprietors.
Sec. 322. Limiting cessation of IRA treatment to portion of account 
              involved in a prohibited transaction.
Sec. 323. Review of pension risk transfer interpretive bulletin.

                     TITLE IV--TECHNICAL AMENDMENTS

Sec. 401. Amendments relating to Setting Every Community Up for 
              Retirement Enhancement Act of 2019.

                   TITLE V--ADMINISTRATIVE PROVISIONS

Sec. 501. Provisions relating to plan amendments.

                      TITLE VI--REVENUE PROVISIONS

Sec. 601. Simple and SEP Roth IRAs.
Sec. 602. Hardship withdrawal rules for 403(b) plans.
Sec. 603. Elective deferrals generally limited to regular contribution 
              limit.
Sec. 604. Optional treatment of employer matching contributions as Roth 
              contributions.

                      TITLE VII--BUDGETARY EFFECTS

Sec. 701. Determination of budgetary effects.

     TITLE I--EXPANDING COVERAGE AND INCREASING RETIREMENT SAVINGS

     SEC. 101. EXPANDING AUTOMATIC ENROLLMENT IN RETIREMENT PLANS.

       (a) In General.--Subpart B of part I of subchapter D of 
     chapter 1 of the Internal

[[Page H3926]]

     Revenue Code of 1986 is amended by inserting after section 
     414 the following new section:

     ``SEC. 414A. REQUIREMENTS RELATED TO AUTOMATIC ENROLLMENT.

       ``(a) In General.--Except as otherwise provided in this 
     section--
       ``(1) an arrangement shall not be treated as a qualified 
     cash or deferred arrangement described in section 401(k) 
     unless such arrangement meets the automatic enrollment 
     requirements of subsection (b), and
       ``(2) an annuity contract otherwise described in section 
     403(b)(1) which is purchased under a salary reduction 
     agreement shall not be treated as described in such section 
     unless such agreement meets the automatic enrollment 
     requirements of subsection (b).
       ``(b) Automatic Enrollment Requirements.--
       ``(1) In general.--An arrangement or agreement meets the 
     requirements of this subsection if such arrangement or 
     agreement is an eligible automatic contribution arrangement 
     (as defined in section 414(w)(3)) which meets the 
     requirements of paragraphs (2) through (4).
       ``(2) Allowance of permissible withdrawals.--An eligible 
     automatic contribution arrangement meets the requirements of 
     this paragraph if such arrangement allows employees to make 
     permissible withdrawals (as defined in section 414(w)(2)).
       ``(3) Minimum contribution percentage.--
       ``(A) In general.--An eligible automatic contribution 
     arrangement meets the requirements of this paragraph if--
       ``(i) the uniform percentage of compensation contributed by 
     the participant under such arrangement during the first year 
     of participation is not less than 3 percent and not more than 
     10 percent (unless the participant specifically elects not to 
     have such contributions made or to have such contributions 
     made at a different percentage), and
       ``(ii) effective for the first day of each plan year 
     starting after each completed year of participation under 
     such arrangement such uniform percentage is increased by 1 
     percentage point (to at least 10 percent, but not more than 
     15 percent) unless the participant specifically elects not to 
     have such contributions made or to have such contributions 
     made at a different percentage.
       ``(B) Initial reduced ceiling for certain plans.--In the 
     case of any eligible automatic contribution arrangement 
     (other than an arrangement that meets the requirements of 
     paragraph (12) or (13) of section 401(k)), for plan years 
     ending before January 1, 2025, subparagraph (A)(ii) shall be 
     applied by substituting `10 percent' for `15 percent'.
       ``(4) Investment requirements.--An eligible automatic 
     contribution arrangement meets the requirements of this 
     paragraph if amounts contributed pursuant to such 
     arrangement, and for which no investment is elected by the 
     participant, are invested in accordance with the requirements 
     of section 2550.404c-5 of title 29, Code of Federal 
     Regulations (or any successor regulations).
       ``(c) Exceptions.--For purposes of this section--
       ``(1) Simple plans.--Subsection (a) shall not apply to any 
     simple plan (within the meaning of section 401(k)(11)).
       ``(2) Exception for plans or arrangements established 
     before enactment of section.--
       ``(A) In general.--Subsection (a) shall not apply to--
       ``(i) any qualified cash or deferred arrangement 
     established before the date of the enactment of this section, 
     or
       ``(ii) any annuity contract purchased under a plan 
     established before the date of the enactment of this section.
       ``(B) Post-enactment adoption of multiple employer plan.--
     Subparagraph (A) shall not apply in the case of an employer 
     adopting after such date of enactment a plan maintained by 
     more than one employer, and subsection (a) shall apply with 
     respect to such employer as if such plan were a single plan.
       ``(3) Exception for governmental and church plans.--
     Subsection (a) shall not apply to any governmental plan 
     (within the meaning of section 414(d)) or any church plan 
     (within the meaning of section 414(e)).
       ``(4) Exception for new and small businesses.--
       ``(A) New business.--Subsection (a) shall not apply to any 
     qualified cash or deferred arrangement, or any annuity 
     contract purchased under a plan, while the employer 
     maintaining such plan (and any predecessor employer) has been 
     in existence for less than 3 years.
       ``(B) Small businesses.--Subsection (a) shall not apply to 
     any qualified cash or deferred arrangement, or any annuity 
     contract purchased under a plan, earlier than the date that 
     is 1 year after the close of the first taxable year with 
     respect to which the employer maintaining the plan normally 
     employed more than 10 employees.
       ``(C) Treatment of multiple employer plans.--In the case of 
     a plan maintained by more than 1 employer, subparagraphs (A) 
     and (B) shall be applied separately with respect to each such 
     employer, and all such employers to which subsection (a) 
     applies (after the application of this paragraph) shall be 
     treated as maintaining a separate plan for purposes of this 
     section.''.
       (b) Clerical Amendment.--The table of sections for subpart 
     B of part I of subchapter D of chapter 1 of such Code is 
     amended by inserting after the item relating to section 414 
     the following new item:

``Sec. 414A. Requirements related to automatic enrollment.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2023.

     SEC. 102. MODIFICATION OF CREDIT FOR SMALL EMPLOYER PENSION 
                   PLAN STARTUP COSTS.

       (a) Increase in Credit Percentage for Smaller Employers.--
     Section 45E(e) of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new paragraph:
       ``(4) Increased credit for certain small employers.--In the 
     case of an employer which would be an eligible employer under 
     subsection (c) if section 408(p)(2)(C)(i) was applied by 
     substituting `50 employees' for `100 employees', subsection 
     (a) shall be applied by substituting `100 percent' for `50 
     percent'.''.
       (b) Additional Credit for Employer Contributions by Certain 
     Small Employers.--Section 45E of such Code, as amended by 
     subsection (a), is amended by adding at the end the following 
     new subsection:
       ``(f) Additional Credit for Employer Contributions by 
     Certain Eligible Employers.--
       ``(1) In general.--In the case of an eligible employer, the 
     credit allowed for the taxable year under subsection (a) 
     (determined without regard to this subsection) shall be 
     increased by an amount equal to the applicable percentage of 
     employer contributions (other than any elective deferrals (as 
     defined in section 402(g)(3)) by the employer to an eligible 
     employer plan (other than a defined benefit plan (as defined 
     in section 414(j))).
       ``(2) Limitations.--
       ``(A) Dollar limitation.--The amount determined under 
     paragraph (1) (before the application of subparagraph (B)) 
     with respect to any employee of the employer shall not exceed 
     $1,000.
       ``(B) Credit phase-in.--In the case of any eligible 
     employer which had for the preceding taxable year more than 
     50 employees, the amount determined under paragraph (1) 
     (without regard to this subparagraph) shall be reduced by an 
     amount equal to the product of--
       ``(i) the amount otherwise so determined under paragraph 
     (1), multiplied by
       ``(ii) a percentage equal to 2 percentage points for each 
     employee of the employer for the preceding taxable year in 
     excess of 50 employees.
       ``(3) Applicable percentage.--For purposes of this section, 
     the applicable percentage for the taxable year during which 
     the eligible employer plan is established with respect to the 
     eligible employer shall be 100 percent, and for taxable years 
     thereafter shall be determined under the following table:
``In the case of the following taxable year beginning after the taxable 
    year during which plan is established with respect to the eligible 
The applicable percentage shall be: 
  1st..............................................................100%
  2nd...............................................................75%
  3rd...............................................................50%
  4th...............................................................25%
  Any taxable year thereafter....................................... 0%

       ``(4) Determination of eligible employer; number of 
     employees.--For purposes of this subsection, whether an 
     employer is an eligible employer and the number of employees 
     of an employer shall be determined under the rules of 
     subsection (c), except that paragraph (2) thereof shall only 
     apply to the taxable year during which the eligible employer 
     plan to which this section applies is established with 
     respect to the eligible employer.''.
       (c) Disallowance of Deduction.--Section 45E(e)(2) of such 
     Code is amended to read as follows:
       ``(2) Disallowance of deduction.--No deduction shall be 
     allowed--
       ``(A) for that portion of the qualified startup costs paid 
     or incurred for the taxable year which is equal to so much of 
     the portion of the credit determined under subsection (a) as 
     is properly allocable to such costs, and
       ``(B) for that portion of the employer contributions by the 
     employer for the taxable year which is equal to so much of 
     the credit increase determined under subsection (f) as is 
     properly allocable to such contributions.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2022.

     SEC. 103. PROMOTION OF SAVER'S CREDIT.

       (a) In General.--The Secretary of the Treasury shall take 
     such steps as the Secretary determines are necessary and 
     appropriate to increase public awareness of the credit 
     provided under section 25B of the Internal Revenue Code of 
     1986.
       (b) Report to Congress.--
       (1) In general.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary shall provide a 
     report to Congress to summarize the anticipated promotion 
     efforts of the Treasury under subsection (a).
       (2) Contents.--Such report shall include--
       (A) a description of plans for--
       (i) the development and distribution of digital and print 
     materials, including the distribution of such materials to 
     States for participants in State facilitated retirement 
     savings programs, and
       (ii) the translation of such materials into the 10 most 
     commonly spoken languages in the United States after English 
     (as determined by reference to the most recent American 
     Community Survey of the Bureau of the Census), and

[[Page H3927]]

       (B) such other information as the Secretary determines is 
     necessary

     SEC. 104. ENHANCEMENT OF SAVER'S CREDIT.

       (a) 50 Percent Credit Rate.--Section 25B(a) of the Internal 
     Revenue Code of 1986 is amended by striking ``the applicable 
     percentage'' and inserting ``50 percent''.
       (b) Adjusted Gross Income Phaseouts.--Section 25B(b) of 
     such Code is amended to read as follows:
       ``(b) Limitation.--For purposes of this section--
       ``(1) In general.--The amount of credit allowable under 
     subsection (a) (determined without regard to this subsection) 
     shall be reduced (but not below zero) by an amount which 
     bears the same ratio to the credit otherwise so allowable 
     as--
       ``(A) the excess (if any) of--
       ``(i) adjusted gross income of the taxpayer, over
       ``(ii) the threshold amount, bears to
       ``(B) the phaseout amount.
       ``(2) Threshold amount.--The term `threshold amount' 
     means--
       ``(A) in the case of a joint return or a surviving spouse 
     (as defined in section 2(a)), $48,000,
       ``(B) in the case of a head of household, 75 percent of the 
     amount in effect for the taxable year under subparagraph (A), 
     and
       ``(C) in the case of any other individual, 50 percent of 
     the amount in effect for the taxable year under subparagraph 
     (A).
       ``(3) Phaseout amount.--The term `phaseout amount' means--
       ``(A) in the case of a joint return or a surviving spouse 
     (as defined in 2(a)), $35,000,
       ``(B) in the case of a head of household (as defined in 
     section 2(b)), 75 percent of the amount in effect for the 
     taxable year under subparagraph (A), and
       ``(C) in the case of any other individual, 50 percent of 
     the amount in effect for the taxable year under subparagraph 
     (A).
       ``(4) Inflation adjustment.--
       ``(A) In general.--In the case of any taxable year 
     beginning in a calendar year after 2026, the $48,000 dollar 
     amount in paragraph (2) and the $35,000 in paragraph (3) 
     shall each be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 2022' 
     for `calendar year 2016' in subparagraph (A)(ii) thereof.
       ``(B) Rounding.--Any increase determined under subparagraph 
     (A) that is not a multiple of $500 shall be rounded to the 
     nearest multiple of $500.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2026.

     SEC. 105. ENHANCEMENT OF 403(B) PLANS.

       (a) In General.--Section 403(b)(7)(A) of the Internal 
     Revenue Code of 1986 is amended by striking ``if the amounts 
     are to be invested in regulated investment company stock to 
     be held in that custodial account'' and inserting ``if the 
     amounts are to be held in that custodial account and invested 
     in regulated investment company stock or a group trust 
     intended to satisfy the requirements of Internal Revenue 
     Service Revenue Ruling 81-100 (or any successor guidance)''.
       (b) Conforming Amendment.--The heading of paragraph (7) of 
     section 403(b) of such Code is amended by striking ``for 
     regulated investment company stock''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts invested after December 31, 2022.

     SEC. 106. INCREASE IN AGE FOR REQUIRED BEGINNING DATE FOR 
                   MANDATORY DISTRIBUTIONS.

       (a) In General.--Section 401(a)(9)(C)(i)(I) of the Internal 
     Revenue Code of 1986 is amended by striking ``age 72'' and 
     inserting ``the applicable age''.
       (b) Spouse Beneficiaries; Special Rule for Owners.--
     Subparagraphs (B)(iv)(I) and (C)(ii)(I) of section 401(a)(9) 
     of such Code are each amended by striking ``age 72'' and 
     inserting ``the applicable age''.
       (c) Applicable Age.--Section 401(a)(9)(C) of such Code is 
     amended by adding at the end the following new clause:
       ``(v) Applicable age.--

       ``(I) In the case of an individual who attains age 72 after 
     December 31, 2022, and age 73 before January 1, 2030, the 
     applicable age is 73.
       ``(II) In the case of an individual who attains age 73 
     after December 31, 2029, and age 74 before January 1, 2033, 
     the applicable age is 74.
       ``(III) In the case of an individual who attains age 74 
     after December 31, 2032, the applicable age is 75.''.

       (d) Conforming Amendments.--The last sentence of section 
     408(b) of such Code is amended by striking ``age 72'' and 
     inserting ``the applicable age (determined under section 
     401(a)(9)(C)(v) for the calendar year in which such taxable 
     year begins)''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to distributions required to be made after 
     December 31, 2022, with respect to individuals who attain age 
     72 after such date.

     SEC. 107. INDEXING IRA CATCH-UP LIMIT.

       (a) In General.--Subparagraph (C) of section 219(b)(5) of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new clause:
       ``(iii) Indexing of catch-up limitation.--In the case of 
     any taxable year beginning in a calendar year after 2023, the 
     $1,000 amount under subparagraph (B)(ii) shall be increased 
     by an amount equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 2022' 
     for `calendar year 2016' in subparagraph (A)(ii) thereof.

     If any amount after adjustment under the preceding sentence 
     is not a multiple of $100, such amount shall be rounded to 
     the next lower multiple of $100.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2023.

     SEC. 108. HIGHER CATCH-UP LIMIT TO APPLY AT AGE 62, 63, AND 
                   64.

       (a) In General.--
       (1) Plans other than simple plans.--Section 414(v)(2)(B)(i) 
     of the Internal Revenue Code of 1986 is amended by inserting 
     the following before the period: ``($10,000, in the case of 
     an eligible participant who would attain age 62, but not age 
     65, before the close of the taxable year)''.
       (2) Simple plans.--Section 414(v)(2)(B)(ii) of such Code is 
     amended by inserting the following before the period: 
     ``($5,000, in the case of an eligible participant who would 
     attain age 62, but not age 65, before the close of the 
     taxable year)''.
       (b) Cost-of-living Adjustments.--Subparagraph (C) of 
     section 414(v)(2) of such Code is amended by adding at the 
     end the following: ``In the case of a year beginning after 
     December 31, 2023, the Secretary shall adjust annually the 
     $10,000 amount in subparagraph (B)(i) and the $5,000 amount 
     in subparagraph (B)(ii) for increases in the cost-of-living 
     at the same time and in the same manner as adjustments under 
     the preceding sentence; except that the base period taken 
     into account shall be the calendar quarter beginning July 1, 
     2022.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2023.

     SEC. 109. POOLED EMPLOYER PLANS MODIFICATION.

       (a) In General.--Section 3(43)(B)(ii) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 
     1002(43)(B)(ii)) is amended to read as follows:
       ``(ii) designate a named fiduciary (other than an employer 
     in the plan) to be responsible for collecting contributions 
     to the plan and require such fiduciary to implement written 
     contribution collection procedures that are reasonable, 
     diligent, and systematic;''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2022.

     SEC. 110. MULTIPLE EMPLOYER 403(B) PLANS.

       (a) In General.--Section 403(b) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(15) Multiple employer plans.--
       ``(A) In general.--Except in the case of a church plan, 
     this subsection shall not be treated as failing to apply to 
     an annuity contract solely by reason of such contract being 
     purchased under a plan maintained by more than 1 employer.
       ``(B) Treatment of employers failing to meet requirements 
     of plan.--
       ``(i) In general.--In the case of a plan maintained by more 
     than 1 employer, this subsection shall not be treated as 
     failing to apply to an annuity contract held under such plan 
     merely because of one or more employers failing to meet the 
     requirements of this subsection if such plan satisfies rules 
     similar to the rules of section 413(e)(2) with respect to any 
     such employer failure.
       ``(ii) Additional requirements in case of non-governmental 
     plans.--A plan shall not be treated as meeting the 
     requirements of this subparagraph unless the plan satisfies 
     rules similar to the rules of subparagraph (A) or (B) of 
     section 413(e)(1), except in the case of a multiple employer 
     plan maintained solely by any of the following: A State, a 
     political subdivision of a State, or an agency or 
     instrumentality of any one or more of the foregoing.''.
       (b) Annual Registration for 403(b) Multiple Employer 
     Plan.--Section 6057 of such Code is amended by redesignating 
     subsection (g) as subsection (h) and by inserting after 
     subsection (f) the following new subsection:
       ``(g) 403(b) Multiple Employer Plans Treated as One Plan.--
     In the case of annuity contracts to which this section 
     applies and to which section 403(b) applies by reason of the 
     plan under which such contracts are purchased meeting the 
     requirements of paragraph (15) thereof, such plan shall be 
     treated as a single plan for purposes of this section.''.
       (c) Annual Information Returns for 403(b) Multiple Employer 
     Plan.--Section 6058 of such Code is amended by redesignating 
     subsection (f) as subsection (g) and by inserting after 
     subsection (e) the following new subsection:
       ``(f) 403(b) Multiple Employer Plans Treated as One Plan.--
     In the case of annuity contracts to which this section 
     applies and to which section 403(b) applies by reason of the 
     plan under which such contracts are purchased meeting the 
     requirements of paragraph (15) thereof, such plan shall be 
     treated as a single plan for purposes of this section.''.
       (d) Amendments to Employee Retirement Income Security Act 
     of 1974.--
       (1) In general.--Section 3(43)(A) of the Employee 
     Retirement Income Security Act of 1974 is amended--
       (A) in clause (ii), by striking ``section 501(a) of such 
     Code or'' and inserting ``section 501(a) of such Code, a plan 
     that consists of contracts described in section 403(b) of 
     such Code, or''; and

[[Page H3928]]

       (B) in the flush text at the end, by striking ``the plan.'' 
     and inserting ``the plan, but such term shall include any 
     program (other than a governmental plan) maintained for the 
     benefit of the employees of more than 1 employer that 
     consists of contracts described in section 403(b) of such 
     Code and that meets the requirements of subparagraph (A) or 
     (B) of section 413(e)(1) of such Code.''.
       (2) Conforming amendments.--Sections 3(43)(B)(v)(II) and 
     3(44)(A)(i)(I) of the Employee Retirement Income Security Act 
     of 1974 are each amended by striking ``section 401(a) of such 
     Code or'' and inserting ``section 401(a) of such Code, a plan 
     that consists of contracts described in section 403(b) of 
     such Code, or''.
       (e) Regulations Relating to Employer Failure to Meet 
     Multiple Employer Plan Requirements.--The Secretary of the 
     Treasury (or the Secretary's delegate) shall prescribe such 
     regulations as may be necessary to clarify, in the case of 
     plans to which section 403(b)(15) of the Internal Revenue 
     Code of 1986 applies, the treatment of an employer departing 
     such plan in connection with such employer's failure to meet 
     multiple employer plan requirements.
       (f) Modification of Model Plan Language, etc.--
       (1) Plan notifications.--The Secretary of the Treasury (or 
     the Secretary's delegate) shall modify the model plan 
     language published under section 413(e)(5) of the Internal 
     Revenue Code of 1986 to include language that notifies 
     participating employers described in section 501(c)(3), and 
     which are exempt from tax under section 501(a), that the plan 
     is subject to the Employee Retirement Income Security Act of 
     1974 and that such employer is a plan sponsor with respect to 
     its employees participating in the multiple employer plan 
     and, as such, has certain fiduciary duties with respect to 
     the plan and to its employees.
       (2) Model plans for multiple employer 403(b) non-
     governmental plans.--For plans to which section 403(b)(15)(A) 
     of the Internal Revenue Code of 1986 applies (other than a 
     plan maintained for its employees by a State, a political 
     subdivision of a State, or an agency or instrumentality of 
     any one or more of the foregoing), the Secretary of the 
     Treasury shall publish model plan language similar to model 
     plan language published under section 413(e)(5) of such Code.
       (3) Educational outreach to employers exempt from tax.--The 
     Secretary of the Treasury (or the Secretary's delegate) shall 
     provide education and outreach to increase awareness to 
     employers described in section 501(c)(3) of the Internal 
     Revenue Code of 1986, and which are exempt from tax under 
     section 501(a) of such Code, that multiple employer plans are 
     subject to the Employee Retirement Income Security Act of 
     1974 and that such employer is a plan sponsor with respect to 
     its employees participating in the multiple employer plan 
     and, as such, has certain fiduciary duties with respect to 
     the plan and to its employees.
       (g) No Inference With Respect to Church Plans.--Regarding 
     any application of section 403(b) of the Internal Revenue 
     Code of 1986 to an annuity contract purchased under a church 
     plan (as defined in section 414(e) of such Code) maintained 
     by more than 1 employer, or to any application of rules 
     similar to section 413(e) of such Code to such a plan, no 
     inference shall be made from section 403(b)(15)(A) of such 
     Code (as added by this Act) not applying to such plans.
       (h) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to plan years beginning after December 31, 2022.
       (2) Rule of construction.--Nothing in the amendments made 
     by subsection (a) shall be construed as limiting the 
     authority of the Secretary of the Treasury or the Secretary's 
     delegate (determined without regard to such amendment) to 
     provide for the proper treatment of a failure to meet any 
     requirement applicable under the Internal Revenue Code of 
     1986 with respect to one employer (and its employees) in the 
     case of a plan to which section 403(b)(15) of the Internal 
     Revenue Code of 1986 applies.

     SEC. 111. TREATMENT OF STUDENT LOAN PAYMENTS AS ELECTIVE 
                   DEFERRALS FOR PURPOSES OF MATCHING 
                   CONTRIBUTIONS.

       (a) In General.--Section 401(m)(4)(A) of the Internal 
     Revenue Code of 1986 is amended by striking ``and'' at the 
     end of clause (i), by striking the period at the end of 
     clause (ii) and inserting ``, and'', and by adding at the end 
     the following new clause:
       ``(iii) subject to the requirements of paragraph (13), any 
     employer contribution made to a defined contribution plan on 
     behalf of an employee on account of a qualified student loan 
     payment.''.
       (b) Qualified Student Loan Payment.--Section 401(m)(4) of 
     such Code is amended by adding at the end the following new 
     subparagraph:
       ``(D) Qualified student loan payment.--The term `qualified 
     student loan payment' means a payment made by an employee in 
     repayment of a qualified education loan (as defined section 
     221(d)(1)) incurred by the employee to pay qualified higher 
     education expenses, but only--
       ``(i) to the extent such payments in the aggregate for the 
     year do not exceed an amount equal to--

       ``(I) the limitation applicable under section 402(g) for 
     the year (or, if lesser, the employee's compensation (as 
     defined in section 415(c)(3)) for the year), reduced by
       ``(II) the elective deferrals made by the employee for such 
     year, and

       ``(ii) if the employee certifies to the employer making the 
     matching contribution under this paragraph that such payment 
     has been made on such loan.
     For purposes of this subparagraph, the term `qualified higher 
     education expenses' means the cost of attendance (as defined 
     in section 472 of the Higher Education Act of 1965, as in 
     effect on the day before the date of the enactment of the 
     Taxpayer Relief Act of 1997) at an eligible educational 
     institution (as defined in section 221(d)(2)).''.
       (c) Matching Contributions for Qualified Student Loan 
     Payments.--Section 401(m) of such Code is amended by 
     redesignating paragraph (13) as paragraph (14), and by 
     inserting after paragraph (12) the following new paragraph:
       ``(13) Matching contributions for qualified student loan 
     payments.--
       ``(A) In general.--For purposes of paragraph (4)(A)(iii), 
     an employer contribution made to a defined contribution plan 
     on account of a qualified student loan payment shall be 
     treated as a matching contribution for purposes of this title 
     if--
       ``(i) the plan provides matching contributions on account 
     of elective deferrals at the same rate as contributions on 
     account of qualified student loan payments,
       ``(ii) the plan provides matching contributions on account 
     of qualified student loan payments only on behalf of 
     employees otherwise eligible to receive matching 
     contributions on account of elective deferrals,
       ``(iii) under the plan, all employees eligible to receive 
     matching contributions on account of elective deferrals are 
     eligible to receive matching contributions on account of 
     qualified student loan payments, and
       ``(iv) the plan provides that matching contributions on 
     account of qualified student loan payments vest in the same 
     manner as matching contributions on account of elective 
     deferrals.
       ``(B) Treatment for purposes of nondiscrimination rules, 
     etc.--
       ``(i) Nondiscrimination rules.--For purposes of 
     subparagraph (A)(iii), subsection (a)(4), and section 410(b), 
     matching contributions described in paragraph (4)(A)(iii) 
     shall not fail to be treated as available to an employee 
     solely because such employee does not have debt incurred 
     under a qualified education loan (as defined in section 
     221(d)(1)).
       ``(ii) Student loan payments not treated as plan 
     contribution.--Except as provided in clause (iii), a 
     qualified student loan payment shall not be treated as a 
     contribution to a plan under this title.
       ``(iii) Matching contribution rules.--Solely for purposes 
     of meeting the requirements of paragraph (11)(B) or (12) of 
     this subsection, or paragraph (11)(B)(i)(II), (12)(B), or 
     (13)(D) of subsection (k), a plan may treat a qualified 
     student loan payment as an elective deferral or an elective 
     contribution, whichever is applicable.
       ``(iv) Actual deferral percentage testing.--In determining 
     whether a plan meets the requirements of subsection 
     (k)(3)(A)(ii) for a plan year, the plan may apply the 
     requirements of such subsection separately with respect to 
     all employees who receive matching contributions described in 
     paragraph (4)(A)(iii) for the plan year.
       ``(C) Employer may rely on employee certification.--The 
     employer may rely on an employee certification of payment 
     under paragraph (4)(D)(ii).''.
       (d) Simple Retirement Accounts.--Section 408(p)(2) of such 
     Code is amended by adding at the end the following new 
     subparagraph:
       ``(F) Matching contributions for qualified student loan 
     payments.--
       ``(i) In general.--Subject to the rules of clause (iii), an 
     arrangement shall not fail to be treated as meeting the 
     requirements of subparagraph (A)(iii) solely because under 
     the arrangement, solely for purposes of such subparagraph, 
     qualified student loan payments are treated as amounts 
     elected by the employee under subparagraph (A)(i)(I) to the 
     extent such payments do not exceed--

       ``(I) the applicable dollar amount under subparagraph (E) 
     (after application of section 414(v)) for the year (or, if 
     lesser, the employee's compensation (as defined in section 
     415(c)(3)) for the year), reduced by
       ``(II) any other amounts elected by the employee under 
     subparagraph (A)(i)(I) for the year.

       ``(ii) Qualified student loan payment.--For purposes of 
     this subparagraph--

       ``(I) In general.--The term `qualified student loan 
     payment' means a payment made by an employee in repayment of 
     a qualified education loan (as defined in section 221(d)(1)) 
     incurred by the employee to pay qualified higher education 
     expenses, but only if the employee certifies to the employer 
     making the matching contribution that such payment has been 
     made on such a loan.
       ``(II) Qualified higher education expenses.--The term 
     `qualified higher education expenses' has the same meaning as 
     when used in section 401(m)(4)(D).

       ``(iii) Applicable rules.--Clause (i) shall apply to an 
     arrangement only if, under the arrangement--

       ``(I) matching contributions on account of qualified 
     student loan payments are provided only on behalf of 
     employees otherwise eligible to elect contributions under 
     subparagraph (A)(i)(I), and
       ``(II) all employees otherwise eligible to participate in 
     the arrangement are eligible to receive matching 
     contributions on account of qualified student loan 
     payments.''.

[[Page H3929]]

       (e) 403(b) Plans.--Section 403(b)(12)(A) of such Code is 
     amended by adding at the end the following: ``The fact that 
     the employer offers matching contributions on account of 
     qualified student loan payments as described in section 
     401(m)(13) shall not be taken into account in determining 
     whether the arrangement satisfies the requirements of clause 
     (ii) (and any regulation thereunder).''.
       (f) 457(b) Plans.--Section 457(b) of such Code is amended 
     by adding at the end the following: ``A plan which is 
     established and maintained by an employer which is described 
     in subsection (e)(1)(A) shall not be treated as failing to 
     meet the requirements of this subsection solely because the 
     plan, or another plan maintained by the employer which meets 
     the requirements of section 401(a) or 403(b), provides for 
     matching contributions on account of qualified student loan 
     payments as described in section 401(m)(13).''.
       (g) Regulatory Authority.--The Secretary shall prescribe 
     regulations for purposes of implementing the amendments made 
     by this section, including regulations--
       (1) permitting a plan to make matching contributions for 
     qualified student loan payments, as defined in sections 
     401(m)(4)(D) and 408(p)(2)(F) of the Internal Revenue Code of 
     1986, as added by this section, at a different frequency than 
     matching contributions are otherwise made under the plan, 
     provided that the frequency is not less than annually;
       (2) permitting employers to establish reasonable procedures 
     to claim matching contributions for such qualified student 
     loan payments under the plan, including an annual deadline 
     (not earlier than 3 months after the close of each plan year) 
     by which a claim must be made; and
       (3) promulgating model amendments which plans may adopt to 
     implement matching contributions on such qualified student 
     loan payments for purposes of sections 401(m), 408(p), 
     403(b), and 457(b) of the Internal Revenue Code of 1986.
       (h) Effective Date.--The amendments made by this section 
     shall apply to contributions made for plan years beginning 
     after December 31, 2022.

     SEC. 112. APPLICATION OF CREDIT FOR SMALL EMPLOYER PENSION 
                   PLAN STARTUP COSTS TO EMPLOYERS WHICH JOIN AN 
                   EXISTING PLAN.

       (a) In General.--Section 45E(d)(3)(A) of the Internal 
     Revenue Code of 1986 is amended by striking ``effective'' and 
     inserting ``effective with respect to the eligible 
     employer''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the enactment of section 
     104 of the Setting Every Community Up for Retirement 
     Enhancement Act of 2019.

     SEC. 113. MILITARY SPOUSE RETIREMENT PLAN ELIGIBILITY CREDIT 
                   FOR SMALL EMPLOYERS.

       (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:

     ``SEC. 45U. MILITARY SPOUSE RETIREMENT PLAN ELIGIBILITY 
                   CREDIT FOR SMALL EMPLOYERS.

       ``(a) In General.--For purposes of section 38, in the case 
     of any eligible small employer, the military spouse 
     retirement plan eligibility credit determined under this 
     section for any taxable year is an amount equal to the sum 
     of--
       ``(1) $250 with respect to each military spouse who is an 
     employee of such employer and who is eligible to participate 
     in an eligible defined contribution plan of such employer at 
     any time during such taxable year, plus
       ``(2) so much of the contributions made by such employer to 
     all such plans with respect to such employee during such 
     taxable year as do not exceed $250.
       ``(b) Limitation.--An individual shall only be taken into 
     account as a military spouse under subsection (a) for the 
     taxable year which includes the date on which such individual 
     began participating in the eligible defined contribution plan 
     of the employer and the 2 succeeding taxable years.
       ``(c) Eligible Small Employer.--For purposes of this 
     section--
       ``(1) In general.--The term `eligible small employer' means 
     an eligible employer (as defined in section 
     408(p)(2)(C)(i)(I)).
       ``(2) Application of 2-year grace period.--A rule similar 
     to the rule of section 408(p)(2)(C)(i)(II) shall apply for 
     purposes of this section.
       ``(d) Military Spouse.--For purposes of this section--
       ``(1) In general.--The term `military spouse' means, with 
     respect to any employer, any individual who is married 
     (within the meaning of section 7703 as of the first date that 
     the employee is employed by the employer) to an individual 
     who is a member of the uniformed services (as defined section 
     101(a)(5) of title 10, United States Code). For purposes of 
     this section, an employer may rely on an employee's 
     certification that such employee's spouse is a member of the 
     uniformed services if such certification provides the name, 
     rank, and service branch of such spouse.
       ``(2) Exclusion of highly compensated employees.--With 
     respect to any employer, the term `military spouse' shall not 
     include any individual if such individual is a highly 
     compensated employee of such employer (within the meaning of 
     section 414(q)).
       ``(e) Eligible Defined Contribution Plan.--For purposes of 
     this section, the term `eligible defined contribution plan' 
     means, with respect to any eligible small employer, any 
     defined contribution plan (as defined in section 414(i)) of 
     such employer if, under the terms of such plan--
       ``(1) military spouses employed by such employer are 
     eligible to participate in such plan not later than the date 
     which is 2 months after the date on which such individual 
     begins employment with such employer, and
       ``(2) military spouses who are eligible to participate in 
     such plan--
       ``(A) are immediately eligible to receive an amount of 
     employer contributions under such plan which is not less the 
     amount of such contributions that a similarly situated 
     participant who is not a military spouse would be eligible to 
     receive under such plan after 2 years of service, and
       ``(B) immediately have a nonforfeitable right to the 
     employee's accrued benefit derived from employer 
     contributions under such plan.
       ``(f) Aggregation Rule.--All persons treated as a single 
     employer under subsection (b), (c), (m), or (o) of section 
     414 shall be treated as one employer for purposes of this 
     section.''.
       (b) Credit Allowed as Part of General Business Credit.--
     Section 38(b) of such Code is amended by striking ``plus'' at 
     the end of paragraph (32), by striking the period at the end 
     of paragraph (33) and inserting ``, plus'', and by adding at 
     the end the following new paragraph:
       ``(34) in the case of an eligible small employer (as 
     defined in section 45U(c)), the military spouse retirement 
     plan eligibility credit determined under section 45U(a).''.
       (c) Specified Credit for Purposes of Certified Professional 
     Employer Organizations.--Section 3511(d)(2) of such Code is 
     amended by redesignating subparagraphs (F), (G), and (H) as 
     subparagraphs (G), (H), and (I), respectively, and by 
     inserting after subparagraph (E) the following new 
     subparagraph:
       ``(F) section 45U (military spouse retirement plan 
     eligibility credit),''.
       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 of such Code is 
     amended by adding at the end the following new item:

``Sec. 45U. Military spouse retirement plan eligibility credit for 
              small employers.''.

       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 114. SMALL IMMEDIATE FINANCIAL INCENTIVES FOR 
                   CONTRIBUTING TO A PLAN.

       (a) In General.--Subparagraph (A) of section 401(k)(4) of 
     the Internal Revenue Code of 1986 is amended by inserting 
     ``(other than a de minimis financial incentive)'' after ``any 
     other benefit''.
       (b) Section 403(b) Plans.--Subparagraph (A) of section 
     403(b)(12) of such Code, as amended by the preceding 
     provisions of this Act, is amended by adding at the end the 
     following: ``A plan shall not fail to satisfy clause (ii) 
     solely by reason of offering a de minimis financial incentive 
     to employees to elect to have the employer make contributions 
     pursuant to a salary reduction agreement.''.
       (c) Exemption From Prohibited Transaction Rules.--
     Subsection (d) of section 4975 of such Code is amended by 
     striking ``or'' at the end of paragraph (22), by striking the 
     period at the end of paragraph (23) and inserting ``, or'', 
     and by adding at the end the following new paragraph:
       ``(24) the provision of a de minimis financial incentive 
     described in section 401(k)(4)(A).''.
       (d) Amendment of Employee Retirement Income Security Act of 
     1974.--Subsection (b) of section 408 of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1108(b)) is 
     amended by adding at the end the following new paragraph:
       ``(21) The provision of a de minimis financial incentive 
     described in section 401(k)(4)(A) or section 403(b)(12)(A) of 
     the Internal Revenue Code of 1986.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply with respect to plan years beginning after the 
     date of enactment of this Act.

     SEC. 115. SAFE HARBOR FOR CORRECTIONS OF EMPLOYEE ELECTIVE 
                   DEFERRAL FAILURES.

       (a) In General.--Section 414 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(aa) Correcting Automatic Contribution Errors.--
       ``(1) In general.--Any plan or arrangement shall not fail 
     to be treated as a plan described in sections 401(a), 403(b), 
     408, or 457(b), as applicable, solely by reason of a 
     corrected error.
       ``(2) Corrected error defined.--For purposes of this 
     subsection, the term `corrected error' means a reasonable 
     administrative error in implementing an automatic enrollment 
     or automatic escalation feature in accordance with the terms 
     of an eligible automatic contribution arrangement (as defined 
     under subsection (w)(3)), provided that such implementation 
     error--
       ``(A) is corrected by the date that is 9\1/2\ months after 
     the end of the plan year during which the error occurred,
       ``(B) is corrected in a manner that is favorable to the 
     participant, and
       ``(C) is of a type which is so corrected for all similarly 
     situated participants in a nondiscriminatory manner.

[[Page H3930]]

     Such correction may occur before or after the participant has 
     terminated employment and may occur without regard to whether 
     the error is identified by the Secretary.
       ``(3) Regulations and guidance for favorable correction 
     methods.--The Secretary shall, by regulations or other 
     guidance of general applicability, specify the correction 
     methods that are in a manner favorable to the participant for 
     purposes of paragraph (2)(B).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to any errors with respect to which 
     the date referred to in section 414(aa) (as added by this 
     section) is after the date of enactment of this Act.

     SEC. 116. IMPROVING COVERAGE FOR PART-TIME WORKERS.

       (a) In General.--Section 202 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1052) is amended by 
     adding at the end the following new subsection:
       ``(c) Special Rule for Certain Part-time Employees.--
       ``(1) In general.--A pension plan that includes either a 
     qualified cash or deferred arrangement (as defined in section 
     401(k) of the Internal Revenue Code of 1986) or a salary 
     reduction agreement (as described in section 403(b) of such 
     Code) shall not require, as a condition of participation in 
     the arrangement or agreement, that an employee complete a 
     period of service with the employer (or employers) 
     maintaining the plan extending beyond the close of the 
     earlier of--
       ``(A) the period permitted under subsection (a)(1) 
     (determined without regard to subparagraph (B)(i) thereof); 
     or
       ``(B) the first 24-month period--
       ``(i) consisting of 2 consecutive 12-month periods during 
     each of which the employee has at least 500 hours of service; 
     and
       ``(ii) by the close of which the employee has attained the 
     age of 21.
       ``(2) Exception.--Paragraph (1)(B) shall not apply to any 
     employee described in section 410(b)(3) of the Internal 
     Revenue Code of 1986.
       ``(3) Coordination with other rules.--
       ``(A) In general.--In the case of employees who are 
     eligible to participate in the arrangement or agreement 
     solely by reason of paragraph (1)(B):
       ``(i) Exclusions.--An employer may elect to exclude such 
     employees from the application of subsections (a)(4), (k)(3), 
     (k)(12), (k)(13), and (m)(2) of section 401 of the Internal 
     Revenue Code of 1986 and section 410(b) of such Code.
       ``(ii) Nondiscrimination rules.--Notwithstanding paragraph 
     (1), section 401(k)(15)(B)(i)(I) of such Code shall apply.
       ``(iii) Time of participation.--The rules of subsection 
     (a)(4) shall apply to such employees.
       ``(B) Top-heavy rules.--An employer may elect to exclude 
     all employees who are eligible to participate in a plan 
     maintained by the employer solely by reason of paragraph 
     (1)(B) from the application of the vesting and benefit 
     requirements under subsections (b) and (c) of section 416 of 
     the Internal Revenue Code of 1986.
       ``(4) 12-month period.--For purposes of this subsection, 
     12-month periods shall be determined in the same manner as 
     under the last sentence of subsection (a)(3)(A), except that 
     12-month periods beginning before January 1, 2021, shall not 
     be taken into account.''
       (b) Vesting.--Section 203(b) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1053(a)) is amended by 
     redesignating paragraph (4) as paragraph (5) and by inserting 
     after paragraph (3) the following new paragraph:
       ``(4) Part-time employees.--For purposes of determining 
     whether an employee who is eligible to participate in a 
     qualified cash or deferred arrangement or a salary reduction 
     agreement under a plan solely by reason of section 
     202(c)(1)(B) has a nonforfeitable right to employer 
     contributions--
       ``(A) except as provided in subparagraph (B), each 12-month 
     period for which the employee has at least 500 hours of 
     service shall be treated as a year of service; and
       ``(B) paragraph (3) shall be applied by substituting `at 
     least 500 hours of service' for `more than 500 hours of 
     service' in subparagraph (A) thereof.
     For purposes of this paragraph, 12-month periods shall be 
     determined in the same manner as under the last sentence of 
     section 202(a)(3)(A), except that 12-month periods beginning 
     before January 1, 2021, shall not be taken into account.''.
       (c) Reduction in Period Service Requirement for Qualified 
     Cash and Deferred Arrangements.--Section 401(k)(2)(D)(ii) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``3'' and inserting ``2''.
       (d) Pre-2021 Service.--Section 112(b) of the Setting Every 
     Community Up for Retirement Enhancement Act of 2019 (26 
     U.S.C. 401 note) is amended by striking ``section 
     401(k)(2)(D)(ii)'' and inserting ``paragraphs (2)(D)(ii) and 
     (15)(B)(iii) of section 401(k)''.
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to plan years 
     beginning after December 31, 2022.
       (2) Subsection (d).--The amendment made by subsection (d) 
     shall take effect as if included in the enactment of section 
     112 of the Setting Every Community Up for Retirement 
     Enhancement Act of 2019.

     SEC. 117. DEFERRAL OF TAX FOR CERTAIN SALES OF EMPLOYER STOCK 
                   TO EMPLOYEE STOCK OWNERSHIP PLAN SPONSORED BY S 
                   CORPORATION.

       (a) In General.--Section 1042(c)(1)(A) of the Internal 
     Revenue Code of 1986 is amended by striking ``domestic C 
     corporation'' and inserting ``domestic corporation''.
       (b) 10 Percent Limitation on Application of Gain on Sale of 
     S Corporation Stock.--Section 1042 of such Code is amended by 
     adding at the end the following new subsection:
       ``(h) Application of Section to Sale of Stock in S 
     Corporation.--In the case of the sale of qualified securities 
     of an S corporation, the election under subsection (a) may be 
     made with respect to not more than 10 percent of the amount 
     realized on such sale for purposes of determining the amount 
     of gain not recognized and the extent to which (if at all) 
     the amount realized on such sale exceeds the cost of 
     qualified replacement property. The portion of adjusted basis 
     that is properly allocable to the portion of the amount 
     realized with respect to which the election is made under 
     this subsection shall be taken into account for purposes of 
     the preceding sentence.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to sales after December 31, 2027.

     SEC. 118. CERTAIN SECURITIES TREATED AS PUBLICLY TRADED IN 
                   CASE OF EMPLOYEE STOCK OWNERSHIP PLANS.

       (a) In General.--Section 401(a)(35) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new subparagraph:
       ``(I) ESOP rules relating to publicly traded securities.--
     In the case of an applicable defined contribution plan which 
     is an employee stock ownership plan, an employer security 
     shall be treated as described in subparagraph (G)(v) if--
       ``(i) the security is the subject of priced quotations by 
     at least 4 dealers, published and made continuously available 
     on an interdealer quotation system (as such term is used in 
     section 13 of the Securities Exchange Act of 1934) which has 
     made the request described in section 6(j) of such Act to be 
     treated as an alternative trading system,
       ``(ii) the security is not a penny stock (as defined by 
     section 3(a)(51) of such Act),
       ``(iii) the security is issued by a corporation which is 
     not a shell company (as such term is used in section 4(d)(6) 
     of the Securities Act of 1933), a blank check company (as 
     defined in section 7(b)(3) of such Act), or subject to 
     bankruptcy proceedings,
       ``(iv) the security has a public float (as such term is 
     used in section 240.12b-2 of title 17, Code of Federal 
     Regulations) which has a fair market value of at least 
     $1,000,000 and constitutes at least 10 percent of the total 
     shares issued and outstanding.
       ``(v) in the case of a security issued by a domestic 
     corporation, the issuer publishes, not less frequently than 
     annually, financial statements audited by an independent 
     auditor registered with the Public Company Accounting 
     Oversight Board established under the Sarbanes-Oxley Act of 
     2002, and
       ``(vi) in the case of a security issued by a foreign 
     corporation, the security is represented by a depositary 
     share (as defined under section 240.12b-2 of title 17, Code 
     of Federal Regulations), or is issued by a foreign 
     corporation incorporated in Canada and readily tradeable on 
     an established securities market in Canada, and the issuer--

       ``(I) is subject to, and in compliance with, the reporting 
     requirements of section 13 or 15(d) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)),
       ``(II) is subject to, and in compliance with, the reporting 
     requirements of section 230.257 of title 17, Code of Federal 
     Regulations, or
       ``(III) is exempt from such requirements under section 
     240.12g3-2(b) of title 17, Code of Federal Regulations.''.

       (b) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2027.

                    TITLE II--PRESERVATION OF INCOME

     SEC. 201. REMOVE REQUIRED MINIMUM DISTRIBUTION BARRIERS FOR 
                   LIFE ANNUITIES.

       (a) In General.--Section 401(a)(9) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new subparagraph:
       ``(J) Certain increases in payments under a commercial 
     annuity.--Nothing in this section shall prohibit a commercial 
     annuity (within the meaning of section 3405(e)(6)) that is 
     issued in connection with any eligible retirement plan 
     (within the meaning of section 402(c)(8)(B), other than a 
     defined benefit plan) from providing one or more of the 
     following types of payments on or after the annuity starting 
     date:
       ``(i) annuity payments that increase by a constant 
     percentage, applied not less frequently than annually, at a 
     rate that is less than 5 percent per year,
       ``(ii) a lump sum payment that--

       ``(I) results in a shortening of the payment period with 
     respect to an annuity or a full or partial commutation of the 
     future annuity payments, provided that such lump sum is 
     determined using reasonable actuarial methods and 
     assumptions, as determined in good faith by the issuer of the 
     contract, or
       ``(II) accelerates the receipt of annuity payments that are 
     scheduled to be received within the ensuing 12 months, 
     regardless of whether such acceleration shortens the payment 
     period with respect to the annuity, reduces the dollar amount 
     of benefits to be paid under the contract, or results in a 
     suspension of annuity payments during the period being 
     accelerated,

       ``(iii) an amount which is in the nature of a dividend or 
     similar distribution, provided that the issuer of the 
     contract determines

[[Page H3931]]

     such amount based on a reasonable comparison of the actuarial 
     factors assumed when calculating the initial annuity payments 
     and the issuer's experience with respect to those factors, or
       ``(iv) a final payment upon death that does not exceed the 
     excess of the total amount of the consideration paid for the 
     annuity payments, less the aggregate amount of prior 
     distributions or payments from or under the contract.''.
       (b) Effective Date.--This section shall apply to calendar 
     years ending after the date of the enactment of this Act.

     SEC. 202. QUALIFYING LONGEVITY ANNUITY CONTRACTS.

       (a) In General.--Not later than the date which is 1 year 
     after the date of the enactment of this Act, the Secretary of 
     the Treasury or the Secretary's delegate (hereafter in this 
     section referred to as the ``Secretary'') shall amend the 
     regulation issued by the Department of the Treasury relating 
     to ``Longevity Annuity Contracts'' (79 Fed. Reg. 37633 (July 
     2, 2014)), as follows:
       (1) Repeal 25-percent premium limit.--The Secretary shall 
     amend Q&A-17(b)(3) of Treasury Regulation section 
     1.401(a)(9)-6 and Q&A-12(b)(3) of Treasury Regulation section 
     1.408-8 to eliminate the requirement that premiums for 
     qualifying longevity annuity contracts be limited to a 
     percentage of an individual's account balance, and to make 
     such corresponding changes to the regulations and related 
     forms as are necessary to reflect the elimination of this 
     requirement.
       (2) Facilitate joint and survivor benefits.--The Secretary 
     shall amend Q&A-17(c) of Treasury Regulation section 
     1.401(a)(9)-6, and make such corresponding changes to the 
     regulations and related forms as are necessary, to provide 
     that, in the case of a qualifying longevity annuity contract 
     which was purchased with joint and survivor annuity benefits 
     for the individual and the individual's spouse which were 
     permissible under the regulations at the time the contract 
     was originally purchased, a divorce occurring after the 
     original purchase and before the annuity payments commence 
     under the contract will not affect the permissibility of the 
     joint and survivor annuity benefits or other benefits under 
     the contract, or require any adjustment to the amount or 
     duration of benefits payable under the contract, provided 
     that any qualified domestic relations order (within the 
     meaning of section 414(p) of the Internal Revenue Code of 
     1986) or, in the case of an arrangement not subject to 
     section 414(p) of such Code or section 206(d) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1056(d)), 
     any divorce or separation instrument (as defined in 
     subsection (b))--
       (A) provides that the former spouse is entitled to the 
     survivor benefits under the contract;
       (B) does not modify the treatment of the former spouse as 
     the beneficiary under the contract who is entitled to the 
     survivor benefits; or
       (C) does not modify the treatment of the former spouse as 
     the measuring life for the survivor benefits under the 
     contract.
       (3) Permit short free look period.--The Secretary shall 
     amend Q&A-17(a)(4) of Treasury Regulation section 
     1.401(a)(9)-6 to ensure that such Q&A does not preclude a 
     contract from including a provision under which an employee 
     may rescind the purchase of the contract within a period not 
     exceeding 90 days from the date of purchase.
       (b) Divorce or Separation Instrument.--For purposes of 
     subsection (a)(2), the term ``divorce or separation 
     instrument'' means--
       (1) a decree of divorce or separate maintenance or a 
     written instrument incident to such a decree,
       (2) a written separation agreement, or
       (3) a decree (not described in paragraph (1)) requiring a 
     spouse to make payments for the support or maintenance of the 
     other spouse.
       (c) Effective Dates, Enforcement, and Interpretations.--
       (1) Effective dates.--
       (A) Paragraph (1) of subsection (a) shall be effective with 
     respect to contracts purchased or received in an exchange on 
     or after the date of the enactment of this Act.
       (B) Paragraphs (2) and (3) of subsection (a) shall be 
     effective with respect to contracts purchased or received in 
     an exchange on or after July 2, 2014.
       (2) Enforcement and interpretations.--Prior to the date on 
     which the Secretary issues final regulations pursuant to 
     subsection (a)--
       (A) the Secretary (or delegate) shall administer and 
     enforce the law in accordance with subsection (a) and the 
     effective dates in paragraph (1) of this subsection; and
       (B) taxpayers may rely upon their reasonable good faith 
     interpretations of subsection (a).
       (d) Regulatory Successor Provision.--Any reference to a 
     regulation under this section shall be treated as including a 
     reference to any successor regulation thereto.

     SEC. 203. INSURANCE-DEDICATED EXCHANGE-TRADED FUNDS.

       (a) In General.--Not later than the date which is 7 years 
     after the date of the enactment of this Act, the Secretary of 
     the Treasury (or the Secretary's delegate) shall amend the 
     regulation issued by the Department of the Treasury relating 
     to ``Income Tax; Diversification Requirements for Variable 
     Annuity, Endowment, and Life Insurance Contracts'', 54 Fed. 
     Reg. 8728 (March 2, 1989), and make any necessary 
     corresponding amendments to other regulations, in order to 
     facilitate the use of exchange-traded funds as investment 
     options under variable contracts within the meaning of 
     section 817(d) of the Internal Revenue Code of 1986, in 
     accordance with subsections (b) and (c) of this section.
       (b) Designate Certain Authorized Participants and Market 
     Makers as Eligible Investors.--The Secretary of the Treasury 
     (or the Secretary's delegate) shall amend Treasury Regulation 
     section 1.817-5(f)(3) to provide that satisfaction of the 
     requirements in Treasury Regulation section 1.817-5(f)(2)(i) 
     with respect to an exchange-traded fund shall not be 
     prevented by reason of beneficial interests in such a fund 
     being held by 1 or more authorized participants or market 
     makers.
       (c) Define Relevant Terms.--In amending Treasury Regulation 
     section 1.817-5(f)(3) in accordance with subsections (b) of 
     this section, the Secretary of the Treasury (or the 
     Secretary's delegate) shall provide definitions consistent 
     with the following:
       (1) Exchange-traded fund.--The term ``exchange-traded 
     fund'' means a regulated investment company, partnership, or 
     trust--
       (A) that is registered with the Securities and Exchange 
     Commission as an open-end investment company or a unit 
     investment trust;
       (B) the shares of which can be purchased or redeemed 
     directly from the fund only by an authorized participant; and
       (C) the shares of which are traded throughout the day on a 
     national stock exchange at market prices that may or may not 
     be the same as the net asset value of the shares.
       (2) Authorized participant.--The term ``authorized 
     participant'' means a financial institution that is a member 
     or participant of a clearing agency registered under section 
     17A(b) of the Securities Exchange Act of 1934 that enters 
     into a contractual relationship with an exchange-traded fund 
     pursuant to which the financial institution is permitted to 
     purchase and redeem shares directly from the fund and to sell 
     such shares to third parties, but only if the contractual 
     arrangement or applicable law precludes the financial 
     institution from--
       (A) purchasing the shares for its own investment purposes 
     rather than for the exclusive purpose of creating and 
     redeeming such shares on behalf of third parties; and
       (B) selling the shares to third parties who are not market 
     makers or otherwise described in paragraphs (2) and (3) of 
     Treasury Regulation section 1.817-5(f).
       (3) Market maker.--The term ``market maker'' means a 
     financial institution that is a registered broker or dealer 
     under section 15(b) of the Securities Exchange Act of 1934 
     that maintains liquidity for an exchange-traded fund on a 
     national stock exchange by being always ready to buy and sell 
     shares of such fund on the market, but only if the financial 
     institution is contractually or legally precluded from 
     selling or buying such shares to or from persons who are not 
     authorized participants or otherwise described in paragraphs 
     (2) and (3) of Treasury Regulations section 1.817-5(f).
       (d) Effective Date.--Subsections (b) and (c) shall apply to 
     segregated asset account investments made on or after the 
     date that is 7 years after the date of the enactment of this 
     Act.

  TITLE III--SIMPLIFICATION AND CLARIFICATION OF RETIREMENT PLAN RULES

     SEC. 301. RECOVERY OF RETIREMENT PLAN OVERPAYMENTS.

       (a) Overpayments Under ERISA.--Section 206 of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1056) is 
     amended by adding at the end the following new subsection:
       ``(h) Special Rules Applicable to Benefit Overpayments.--
       ``(1) General rule.--In the case of an inadvertent benefit 
     overpayment by any pension plan, the responsible plan 
     fiduciary shall not be considered to have failed to comply 
     with the requirements of this title merely because such 
     fiduciary determines, in the exercise of its fiduciary 
     discretion, not to seek recovery of all or part of such 
     overpayment from--
       ``(A) any participant or beneficiary,
       ``(B) any plan sponsor of, or contributing employer to--
       ``(i) an individual account plan, provided that the amount 
     needed to prevent or restore any impermissible forfeiture 
     from any participant's or beneficiary's account arising in 
     connection with the overpayment is, separately from and 
     independently of the overpayment, allocated to such account 
     pursuant to the nonforfeitability requirements of section 203 
     (for example, out of the plan's forfeiture account, 
     additional employer contributions, or recoveries from those 
     responsible for the overpayment), or
       ``(ii) a defined benefit pension plan subject to the 
     funding rules in part 3 of this subtitle B, unless the 
     responsible plan fiduciary determines, in the exercise of its 
     fiduciary discretion, that failure to recover all or part of 
     the overpayment faster than required under such funding rules 
     would materially affect the plan's ability to pay benefits 
     due to other participants and beneficiaries, or
       ``(C) any fiduciary of the plan, other than a fiduciary 
     (including a plan sponsor or contributing employer acting in 
     a fiduciary capacity) whose breach of its fiduciary duties 
     resulted in such overpayment, provided that if the plan has 
     established prudent procedures to prevent and minimize 
     overpayment of benefits and the relevant plan fiduciaries 
     have followed such procedures, an inadvertent benefit 
     overpayment will not give rise to a breach of fiduciary duty.
       ``(2) Reduction in future benefit payments and recovery 
     from responsible

[[Page H3932]]

     party.--Paragraph (1) shall not fail to apply with respect to 
     any inadvertent benefit overpayment merely because, after 
     discovering such overpayment, the responsible plan 
     fiduciary--
       ``(A) reduces future benefit payments to the correct amount 
     provided for under the terms of the plan, or
       ``(B) seeks recovery from the person or persons responsible 
     for the overpayment.
       ``(3) Employer funding obligations.--Nothing in this 
     subsection shall relieve an employer of any obligation 
     imposed on it to make contributions to a plan to meet the 
     minimum funding standards under part 3 of this subtitle B or 
     to prevent or restore an impermissible forfeiture in 
     accordance with section 203.
       ``(4) Recoupment from participants and beneficiaries.--If 
     the responsible plan fiduciary, in the exercise of its 
     fiduciary discretion, decides to seek recoupment from a 
     participant or beneficiary of all or part of an inadvertent 
     benefit overpayment made by the plan to such participant or 
     beneficiary, it may do so, subject to the following 
     conditions:
       ``(A) No interest or other additional amounts (such as 
     collection costs or fees) are sought on overpaid amounts for 
     any period.
       ``(B) If the plan seeks to recoup past overpayments of a 
     non-decreasing periodic benefit by reducing future benefit 
     payments--
       ``(i) the reduction ceases after the plan has recovered the 
     full dollar amount of the overpayment,
       ``(ii) the amount recouped each calendar year does not 
     exceed 10 percent of the full dollar amount of the 
     overpayment, and
       ``(iii) future benefit payments are not reduced to below 90 
     percent of the periodic amount otherwise payable under the 
     terms of the plan.
     Alternatively, if the plan seeks to recoup past overpayments 
     of a non-decreasing periodic benefit through one or more 
     installment payments, the sum of such installment payments in 
     any calendar year does not exceed the sum of the reductions 
     that would be permitted in such year under the preceding 
     sentence.
       ``(C) If the plan seeks to recoup past overpayments of a 
     benefit other than a non-decreasing periodic benefit, the 
     plan satisfies requirements developed by the Secretary for 
     purposes of this subparagraph.
       ``(D) Efforts to recoup overpayments are--
       ``(i) not accompanied by threats of litigation, unless the 
     responsible plan fiduciary reasonably believes it could 
     prevail in a civil action brought in Federal or State court 
     to recoup the overpayments, and
       ``(ii) not made through a collection agency or similar 
     third party, unless the participant or beneficiary ignores or 
     rejects efforts to recoup the overpayment following either a 
     final judgment in Federal or State court or a settlement 
     between the participant or beneficiary and the plan, in 
     either case authorizing such recoupment.
       ``(E) Recoupment of past overpayments to a participant is 
     not sought from any beneficiary of the participant, including 
     a spouse, surviving spouse, former spouse, or other 
     beneficiary.
       ``(F) Recoupment may not be sought if the first overpayment 
     occurred more than 3 years before the participant or 
     beneficiary is first notified in writing of the error.
       ``(G) A participant or beneficiary from whom recoupment is 
     sought is entitled to contest all or part of the recoupment 
     pursuant to the plan's claims procedures.
       ``(H) In determining the amount of recoupment to seek, the 
     responsible plan fiduciary may take into account the hardship 
     that recoupment likely would impose on the participant or 
     beneficiary.
       ``(5) Effect of culpability.--Subparagraphs (A) through (F) 
     of paragraph (4) shall not apply to protect a participant or 
     beneficiary who is culpable. For purposes of this paragraph, 
     a participant or beneficiary is culpable if the individual 
     bears responsibility for the overpayment (such as through 
     misrepresentations or omissions that led to the overpayment), 
     or if the individual knew, or had good reason to know under 
     the circumstances, that the benefit payment or payments were 
     materially in excess of the correct amount. Notwithstanding 
     the preceding sentence, an individual is not culpable merely 
     because the individual believed the benefit payment or 
     payments were or might be in excess of the correct amount, if 
     the individual raised that question with an authorized plan 
     representative and was told the payment or payments were not 
     in excess of the correct amount. With respect to a culpable 
     participant or beneficiary, efforts to recoup overpayments 
     shall not be made through threats of litigation, unless a 
     lawyer for the plan could make the representations required 
     under Rule 11 of the Federal Rules of Civil Procedure if the 
     litigation were brought in Federal court.''.
       (b) Overpayments Under Internal Revenue Code of 1986.--
       (1) Qualification requirements.--Section 414 of the 
     Internal Revenue Code of 1986, as amended by this preceding 
     provisions of this Act, is amended by adding at the end the 
     following new subsection:
       ``(bb) Special Rules Applicable to Benefit Overpayments.--
       ``(1) In general.--A plan shall not fail to be treated as 
     described in clause (i), (ii), (iii), or (iv) of section 
     219(g)(5)(A) (and shall not fail to be treated as satisfying 
     the requirements of section 401(a) or 403) merely because--
       ``(A) the plan fails to obtain payment from any 
     participant, beneficiary, employer, plan sponsor, fiduciary, 
     or other party on account of any inadvertent benefit 
     overpayment made by the plan, or
       ``(B) the plan sponsor amends the plan to increase past or 
     future benefit payments to affected participants and 
     beneficiaries in order to adjust for prior inadvertent 
     benefit overpayments.
       ``(2) Reduction in future benefit payments and recovery 
     from responsible party.--Paragraph (1) shall not fail to 
     apply to a plan merely because, after discovering a benefit 
     overpayment, such plan--
       ``(A) reduces future benefit payments to the correct amount 
     provided for under the terms of the plan, or
       ``(B) seeks recovery from the person or persons responsible 
     for such overpayment.
       ``(3) Employer funding obligations.--Nothing in this 
     subsection shall relieve an employer of any obligation 
     imposed on it to make contributions to a plan to meet the 
     minimum funding standards under sections 412 and 430 or to 
     prevent or restore an impermissible forfeiture in accordance 
     with section 411.
       ``(4) Observance of benefit limitations.--Notwithstanding 
     paragraph (1), a plan to which paragraph (1) applies shall 
     observe any limitations imposed on it by section 401(a)(17) 
     or 415. The plan may enforce such limitations using any 
     method approved by the Secretary of the Treasury for 
     recouping benefits previously paid or allocations previously 
     made in excess of such limitations.
       ``(5) Coordination with other qualification requirements.--
     The Secretary of the Treasury may issue regulations or other 
     guidance of general applicability specifying how benefit 
     overpayments and their recoupment or non-recoupment from a 
     participant or beneficiary shall be taken into account for 
     purposes of satisfying any requirement applicable to a plan 
     to which paragraph (1) applies.''.
       (2) Rollovers.--Section 402(c) of such Code is amended by 
     adding at the end the following new paragraph:
       ``(12) In the case of an inadvertent benefit overpayment 
     from a plan to which section 414(bb)(1) applies that is 
     transferred to an eligible retirement plan by or on behalf of 
     a participant or beneficiary--
       ``(A) the portion of such overpayment with respect to which 
     recoupment is not sought on behalf of the plan shall be 
     treated as having been paid in an eligible rollover 
     distribution if the payment would have been an eligible 
     rollover distribution but for being an overpayment, and
       ``(B) the portion of such overpayment with respect to which 
     recoupment is sought on behalf of the plan shall be permitted 
     to be returned to such plan and in such case shall be treated 
     as an eligible rollover distribution transferred to such plan 
     by the participant or beneficiary who received such 
     overpayment (and the plans making and receiving such transfer 
     shall be treated as permitting such transfer).
     In any case in which recoupment is sought on behalf of the 
     plan but is disputed by the participant or beneficiary who 
     received such overpayment, such dispute shall be subject to 
     the claims procedures of the plan that made such overpayment, 
     such plan shall notify the plan receiving the rollover of 
     such dispute, and the plan receiving the rollover shall 
     retain such overpayment on behalf of the participant or 
     beneficiary (and shall be entitled to treat such overpayment 
     as plan assets) pending the outcome of such procedures.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply as of the date of the enactment of this Act.
       (d) Certain Actions Before Date of Enactment.--Plans, 
     fiduciaries, employers, and plan sponsors are entitled to 
     rely on--
       (1) a good faith interpretation of then existing 
     administrative guidance for inadvertent benefit overpayment 
     recoupments and recoveries that commenced before the date of 
     enactment of this Act, and
       (2) determinations made before the date of enactment of 
     this Act by the responsible plan fiduciary, in the exercise 
     of its fiduciary discretion, not to seek recoupment or 
     recovery of all or part of an inadvertent benefit 
     overpayment.
     In the case of a benefit overpayment that occurred prior to 
     the date of enactment of this Act, any installment payments 
     by the participant or beneficiary to the plan or any 
     reduction in periodic benefit payments to the participant or 
     beneficiary, which were made in recoupment of such 
     overpayment and which commenced prior to such date, may 
     continue after such date. Nothing in this subsection shall 
     relieve a fiduciary from responsibility for an overpayment 
     that resulted from a breach of its fiduciary duties.

     SEC. 302. REDUCTION IN EXCISE TAX ON CERTAIN ACCUMULATIONS IN 
                   QUALIFIED RETIREMENT PLANS.

       (a) In General.--Section 4974(a) of the Internal Revenue 
     Code of 1986 is amended by striking ``50 percent'' and 
     inserting ``25 percent''.
       (b) Reduction in Excise Tax on Failures to Take Required 
     Minimum Distributions.--Section 4974 of such Code is amended 
     by adding at the end the following new subsection:
       ``(e) Reduction of Tax in Certain Cases.--
       ``(1) Reduction.--In the case of a taxpayer who--
       ``(A) corrects, during the correction window, a shortfall 
     of distributions from an individual retirement plan which 
     resulted in imposition of a tax under subsection (a), and

[[Page H3933]]

       ``(B) submits a return, during the correction window, 
     reflecting such tax (as modified by this subsection),
     the first sentence of subsection (a) shall be applied by 
     substituting `10 percent' for `25 percent'.
       ``(2) Correction window.--For purposes of this subsection, 
     the term `correction window' means the period of time 
     beginning on the date on which the tax under subsection (a) 
     is imposed with respect to a shortfall of distributions from 
     an individual retirement plan, and ending on the earlier of--
       ``(A) the date on which the Secretary initiates an audit, 
     or otherwise demands payment, with respect to the shortfall 
     of distributions, or
       ``(B) the last day of the second taxable year that begins 
     after the end of the taxable year in which the tax under 
     subsection (a) is imposed.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2022.

     SEC. 303. PERFORMANCE BENCHMARKS FOR ASSET ALLOCATION FUNDS.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Labor shall provide 
     that, in the case of a designated investment alternative that 
     contains a mix of asset classes, the administrator of a plan 
     may, but is not required to, use a benchmark that is a blend 
     of different broad-based securities market indices if--
       (1) the blend is reasonably representative of the asset 
     class holdings of the designated investment alternative;
       (2) for purposes of determining the blend's returns for 1-, 
     5-, and 10-calendar-year periods (or for the life of the 
     alternative, if shorter), the blend is modified at least once 
     per year to reflect changes in the asset class holdings of 
     the designated investment alternative;
       (3) the blend is furnished to participants and 
     beneficiaries in a manner that is reasonably designed to be 
     understandable; and
       (4) each securities market index that is used for an 
     associated asset class would separately satisfy the 
     requirements of such regulation for such asset class.
       (b) Study.--Not later than 3 years after the date of 
     enactment of this Act, the Secretary of Labor shall deliver a 
     report to the Committees on Finance and Health, Education, 
     Labor, and Pensions of the Senate and the Committees on Ways 
     and Means and Education and Labor of the House of 
     Representatives regarding the utilization, effectiveness, and 
     participants' understanding of the benchmarking requirements 
     under this section.

     SEC. 304. REVIEW AND REPORT TO CONGRESS RELATING TO REPORTING 
                   AND DISCLOSURE REQUIREMENTS.

       (a) Study.--As soon as practicable after the date of 
     enactment of this Act, the Secretary of Labor, the Secretary 
     of the Treasury, and the Director of the Pension Benefit 
     Guaranty Corporation shall review the reporting and 
     disclosure requirements as applicable to each such agency 
     head, of--
       (1) the Employee Retirement Income Security Act of 1974 
     applicable to pension plans (as defined in section 3(2) of 
     such Act (29 U.S.C. 1002(2)); and
       (2) the Internal Revenue Code of 1986 applicable to 
     qualified retirement plans (as defined in section 4974(c) of 
     such Code, without regard to paragraphs (4) and (5) of such 
     section).
       (b) Report.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary of Labor, the Secretary 
     of the Treasury, and the Director of the Pension Benefit 
     Guaranty Corporation, jointly, and after consultation with a 
     balanced group of participant and employer representatives, 
     shall with respect to plans referenced in subsection (a) 
     report on the effectiveness of the applicable reporting and 
     disclosure requirements and make such recommendations as may 
     be appropriate to the Committee on Education and Labor and 
     the Committee on Ways and Means of the House of 
     Representatives and the Committee on Health, Education, 
     Labor, and Pensions and the Committee on Finance of the 
     Senate to consolidate, simplify, standardize, and improve 
     such requirements so as to simplify reporting for such plans 
     and ensure that plans can furnish and participants and 
     beneficiaries timely receive and better understand the 
     information they need to monitor their plans, plan for 
     retirement, and obtain the benefits they have earned.
       (2) Analysis of effectiveness.--To assess the effectiveness 
     of the applicable reporting and disclosure requirements, the 
     report shall include an analysis, based on plan data, of how 
     participants and beneficiaries are providing preferred 
     contact information, the methods by which plan sponsors and 
     plans are furnishing disclosures, and the rate at which 
     participants and beneficiaries (grouped by key demographics) 
     are receiving, accessing, understanding, and retaining 
     disclosures.
       (3) Collection of information.--The agencies shall conduct 
     appropriate surveys and data collection to obtain any needed 
     information.

     SEC. 305. ELIMINATING UNNECESSARY PLAN REQUIREMENTS RELATED 
                   TO UNENROLLED PARTICIPANTS.

       (a) Amendment of Employee Retirement Income Security Act of 
     1974.--
       (1) In general.--Part 1 of subtitle B of subchapter I of 
     the Employee Retirement Income Security Act of 1974 is 
     amended by redesignating section 111 as section 112 and by 
     inserting after section 110 the following new section:

     ``SEC. 111. ELIMINATING UNNECESSARY PLAN REQUIREMENTS RELATED 
                   TO UNENROLLED PARTICIPANTS.

       ``(a) In General.--Notwithstanding any other provision of 
     this title, with respect to any individual account plan, no 
     disclosure, notice, or other plan document (other than the 
     notices and documents described in paragraphs (1) and (2)) 
     shall be required to be furnished under this title to any 
     unenrolled participant if the unenrolled participant 
     receives--
       ``(1) an annual reminder notice of such participant's 
     eligibility to participate in such plan and any applicable 
     election deadlines under the plan; and
       ``(2) any document requested by such participant that the 
     participant would be entitled to receive notwithstanding this 
     section.
       ``(b) Unenrolled Participant.--For purposes of this 
     section, the term `unenrolled participant' means an employee 
     who--
       ``(1) is eligible to participate in an individual account 
     plan;
       ``(2) has received--
       ``(A) the summary plan description pursuant to section 
     104(b), and
       ``(B) any other notices related to eligibility under the 
     plan required to be furnished under this title, or the 
     Internal Revenue Code of 1986, in connection with such 
     participant's initial eligibility to participate in such 
     plan;
       ``(3) is not participating in such plan;
       ``(4) does not have an account balance in the plan; and
       ``(5) satisfies such other criteria as the Secretary of 
     Labor may determine appropriate, as prescribed in guidance 
     issued in consultation with the Secretary of Treasury.
     For purposes of this section, any eligibility to participate 
     in the plan following any period for which such employee was 
     not eligible to participate shall be treated as initial 
     eligibility.
       ``(c) Annual Reminder Notice.--For purposes of this 
     section, the term `annual reminder notice' means a notice 
     provided in accordance with section 2520.104b-1 of title 29, 
     Code of Federal Regulations (or any successor regulation), 
     which--
       ``(1) is furnished in connection with the annual open 
     season election period with respect to the plan or, if there 
     is no such period, is furnished within a reasonable period 
     prior to the beginning of each plan year;
       ``(2) notifies the unenrolled participant of--
       ``(A) the unenrolled participant's eligibility to 
     participate in the plan; and
       ``(B) the key benefits and rights under the plan, with a 
     focus on employer contributions and vesting provisions; and
       ``(3) provides such information in a prominent manner 
     calculated to be understood by the average participant.''.
       (2) Clerical amendment.--The table of contents in section 1 
     of the Employee Retirement Income Security Act of 1974 is 
     amended by striking the item relating to section 111 and by 
     inserting after the item relating to section 110 the 
     following new items:
``Sec. 111. Eliminating unnecessary plan requirements related to 
              unenrolled participants.
``Sec. 112. Repeal and effective date.''.

       (b) Amendment of Internal Revenue Code of 1986.--Section 
     414 of the Internal Revenue Code of 1986, as amended by the 
     preceding provisions of this Act, is amended by adding at the 
     end the following new subsection:
       ``(cc) Eliminating Unnecessary Plan Requirements Related to 
     Unenrolled Participants.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, with respect to any defined contribution plan, no 
     disclosure, notice, or other plan document (other than the 
     notices and documents described in subparagraphs (A) and (B)) 
     shall be required to be furnished under this title to any 
     unenrolled participant if the unenrolled participant 
     receives--
       ``(A) an annual reminder notice of such participant's 
     eligibility to participate in such plan and any applicable 
     election deadlines under the plan, and
       ``(B) any document requested by such participant that the 
     participant would be entitled to receive notwithstanding this 
     subsection.
       ``(2) Unenrolled participant.--For purposes of this 
     subsection, the term `unenrolled participant' means an 
     employee who--
       ``(A) is eligible to participate in a defined contribution 
     plan,
       ``(B) has received--
       ``(i) the summary plan description pursuant to section 
     104(b) of the Employee Retirement Income Security Act of 
     1974, and
       ``(ii) any other notices related to eligibility under the 
     plan and required to be furnished under this title, or the 
     Employee Retirement Income Security Act of 1974, in 
     connection with such participant's initial eligibility to 
     participate in such plan,
       ``(C) is not participating in such plan,
       ``(D) does not have an account balance in the plan, and
       ``(E) satisfies such other criteria as the Secretary of the 
     Treasury may determine appropriate, as prescribed in guidance 
     issued in consultation with the Secretary of Labor.
     For purposes of this subsection, any eligibility to 
     participate in the plan following any period for which such 
     employee was not eligible to participate shall be treated as 
     initial eligibility.

[[Page H3934]]

       ``(3) Annual reminder notice.--For purposes of this 
     subsection, the term `annual reminder notice' means the 
     notice described in section 111(c) of the Employee Retirement 
     Income Security Act of 1974.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2022.

     SEC. 306. RETIREMENT SAVINGS LOST AND FOUND.

       (a) In General.--
       (1) Establishment of retirement savings lost and found.--
     Part 5 of title I of the Employee Retirement Income Security 
     Act of 1974 (29 U.S.C. 1341 et seq.) is amended by adding at 
     the end the following:

     ``SEC. 523. RETIREMENT SAVINGS LOST AND FOUND.

       ``(a) Establishment.--
       ``(1) In general.--Not later than 2 years after the date of 
     the enactment of this section, the Secretary of Labor, in 
     consultation with the Secretary of the Treasury, shall 
     establish an online searchable database (to be managed by the 
     Department of Labor in accordance with this section) to be 
     known as the `Retirement Savings Lost and Found'. The 
     Retirement Savings Lost and Found shall--
       ``(A) allow an individual to search for information that 
     enables the individual to locate the administrator of any 
     plan described in paragraph (2) with respect to which the 
     individual is or was a participant or beneficiary, and 
     provide contact information for the administrator of any such 
     plan;
       ``(B) allow the Department of Labor to assist such an 
     individual in locating any such plan of the individual; and
       ``(C) allow the Department of Labor to make any necessary 
     changes to contact information on record for the 
     administrator based on any changes to the plan due to merger 
     or consolidation of the plan with any other plan, division of 
     the plan into two or more plans, bankruptcy, termination, 
     change in name of the plan, change in name or address of the 
     administrator, or other causes.
     The Retirement Savings Lost and Found established under this 
     paragraph shall include information reported under this 
     section and other relevant information obtained by the 
     Department of Labor.
       ``(2) Plans described.--A plan described in this paragraph 
     is a plan to which the vesting standards of section 203 
     apply.
       ``(b) Administration.--The Retirement Savings Lost and 
     Found established under subsection (a) shall provide 
     individuals described in subsection (a)(1) only with the 
     ability to search for information that enables the individual 
     to locate the administrator and contact information for the 
     administrator of any plan with respect to which the 
     individual is or was a participant or beneficiary, sufficient 
     to allow the individual to locate the individual's plan in 
     order to recover any benefit owing to the individual under 
     the plan.
       ``(c) Safeguarding Participant Privacy and Security.--In 
     establishing the Retirement Savings Lost and Found under 
     subsection (a), the Department of Labor shall take all 
     necessary and proper precautions to ensure that individuals' 
     plan information maintained by the Retirement Savings Lost 
     and Found is protected.
       ``(d) Definition of Administrator.--For purposes of this 
     section, the term `administrator' has the meaning given such 
     term in section 3(16)(A).
       ``(e) Information Collection From Plans.--Effective with 
     respect to plan years beginning after the second December 31 
     occurring after the date of the enactment of this subsection, 
     the administrator of a plan to which the vesting standards of 
     section 203 apply shall submit to the Department of Labor, at 
     such time and in such form and manner as is prescribed in 
     regulations--
       ``(1) the information described in paragraphs (1) through 
     (4) of section 6057(b) of the Internal Revenue Code of 1986;
       ``(2) the information described in subparagraphs (A) and 
     (B) of section 6057(a)(2) of such Code;
       ``(3) the name and taxpayer identifying number of each 
     participant or former participant in the plan--
       ``(A) who, during the current plan year or any previous 
     plan year, was reported under section 6057(a)(2)(C) of such 
     Code, and with respect to whom the benefits described in 
     clause (ii) thereof were fully paid during the plan year;
       ``(B) with respect to whom any amount was distributed under 
     section 401(a)(31)(B) of such Code during the plan year; or
       ``(C) with respect to whom a deferred annuity contract was 
     distributed during the plan year;
       ``(4) in the case of a participant or former participant to 
     whom paragraph (3) applies--
       ``(A) in the case of a participant described in 
     subparagraph (B) thereof, the name and address of the 
     designated trustee or issuer described in section 
     401(a)(31)(B)(i) of such Code and the account number of the 
     individual retirement plan to which the amount was 
     distributed; and
       ``(B) in the case of a participant described in 
     subparagraph (C) thereof, the name and address of the issuer 
     of such annuity contract and the contract or certificate 
     number; and
       ``(5) such other information as the Secretary of Labor may 
     require.
       ``(f) Information Collection From Federal Agencies.--On 
     request, the Secretary of Labor may access and receive such 
     information collected by other Federal agencies as may be 
     necessary and appropriate to perform work related to the 
     Retirement Savings Lost and Found.
       ``(g) Program Integrity Audit.--On an annual basis for each 
     of the first 5 years beginning one year after the 
     establishment of the database in subsection (a)(1) and every 
     5 years thereafter, the Inspector General of the Department 
     of Labor shall conduct an audit of the administration of the 
     Retirement Savings Lost and Found.''.
       (3) Conforming amendment.--The table of contents for the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1001 et seq.) is amended by inserting after the item relating 
     to section 522 the following:
``Sec. 523.Retirement Savings Lost and Found.''.

     SEC. 307. UPDATING DOLLAR LIMIT FOR MANDATORY DISTRIBUTIONS.

       (a) In General.--Section 203(e)(1) of the Employee 
     Retirement Income Security Act of 1974 and sections 
     401(a)(31)(B)(ii) and 411(a)(11)(A) of the Internal Revenue 
     Code of 1986 are each amended by striking ``$5,000'' and 
     inserting ``$7,000''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to distributions made after December 31, 2022.

     SEC. 308. EXPANSION OF EMPLOYEE PLANS COMPLIANCE RESOLUTION 
                   SYSTEM.

       (a) In General.--Except as otherwise provided in the 
     Internal Revenue Code of 1986 or regulations prescribed by 
     the Secretary of the Treasury or the Secretary's delegate 
     (referred to in this section as the ``Secretary''), any 
     eligible inadvertent failure to comply with the rules 
     applicable under section 401(a), 403(a), 403(b), 408(p), or 
     408(k) of such Code may be self-corrected under the Employee 
     Plans Compliance Resolution System (as described in Revenue 
     Procedure 2021-30, or any successor guidance, and hereafter 
     in this section referred to as the ``EPCRS''), except to the 
     extent that such failure was identified by the Secretary 
     prior to any actions which demonstrate a commitment to 
     implement a self-correction. Revenue Procedure 2021-30 is 
     deemed amended as of the date of the enactment of this Act to 
     provide that the correction period under section 9.02 of such 
     Revenue Procedure (or any successor guidance) for an eligible 
     inadvertent failure, except as otherwise provided under such 
     Code or in regulations prescribed by the Secretary, is 
     indefinite and has no last day, other than with respect to 
     failures identified by the Secretary prior to any self-
     correction as described in the preceding sentence.
       (b) Loan Errors.--In the case of an eligible inadvertent 
     failure relating to a loan from a plan to a participant--
       (1) such failure may be self-corrected under subsection (a) 
     according to the rules of section 6.07 of Revenue Procedure 
     2021-30 (or any successor guidance), including the provisions 
     related to whether a deemed distribution must be reported on 
     Form 1099-R, and
       (2) the Secretary of Labor shall treat any such failure 
     which is so self-corrected under subsection (a) as meeting 
     the requirements of the Voluntary Fiduciary Correction 
     Program of the Department of Labor if, with respect to the 
     violation of the fiduciary standards of the Employee 
     Retirement Income Security Act of 1974, there is a similar 
     loan error eligible for correction under EPCRS and the loan 
     error is corrected in such manner.
       (c) EPCRS for IRAs.--The Secretary shall expand the EPCRS 
     to allow custodians of individual retirement plans (as 
     defined in section 7701(a)(37) of the Internal Revenue Code 
     of 1986) to address eligible inadvertent failures with 
     respect to an individual retirement plan (as so defined), 
     including (but not limited to)--
       (1) waivers of the excise tax which would otherwise apply 
     under section 4974 of the Internal Revenue Code of 1986,
       (2) under the self-correction component of the EPCRS, 
     waivers of the 60-day deadline for a rollover where the 
     deadline is missed for reasons beyond the reasonable control 
     of the account owner, and
       (3) rules permitting a nonspouse beneficiary to return 
     distributions to an inherited individual retirement plan 
     described in section 408(d)(3)(C) of the Internal Revenue 
     Code of 1986 in a case where, due to an inadvertent error by 
     a service provider, the beneficiary had reason to believe 
     that the distribution could be rolled over without inclusion 
     in income of any part of the distributed amount.
       (d) Additional Safe Harbors.--The Secretary shall expand 
     the EPCRS to provide additional safe harbor means of 
     correcting eligible inadvertent failures described in 
     subsection (a), including safe harbor means of calculating 
     the earnings which must be restored to a plan in cases where 
     plan assets have been depleted by reason of an eligible 
     inadvertent failure.
       (e) Eligible Inadvertent Failure.--For purposes of this 
     section--
       (1) In general.--Except as provided in paragraph (2), the 
     term ``eligible inadvertent failure'' means a failure that 
     occurs despite the existence of practices and procedures 
     which--
       (A) satisfy the standards set forth in section 4.04 of 
     Revenue Procedure 2021-30 (or any successor guidance), or
       (B) satisfy similar standards in the case of an individual 
     retirement plan.
       (2) Exception.--The term ``eligible inadvertent failure'' 
     shall not include any failure which is egregious, relates to 
     the diversion

[[Page H3935]]

     or misuse of plan assets, or is directly or indirectly 
     related to an abusive tax avoidance transaction.
       (f) Application of Certain Requirements for Correcting 
     Errors.--This section shall not apply to any failure unless 
     the correction of such failure under this section is made in 
     conformity with the general principles that apply to 
     corrections of such failures under the Internal Revenue Code 
     of 1986, including regulations or other guidance issued 
     thereunder and including those principles and corrections set 
     forth in Revenue Procedure 2021-30 (or any successor 
     guidance).''

     SEC. 309. ELIMINATE THE ``FIRST DAY OF THE MONTH'' 
                   REQUIREMENT FOR GOVERNMENTAL SECTION 457(B) 
                   PLANS.

       (a) In General.--Section 457(b)(4) of the Internal Revenue 
     Code of 1986 is amended to read as follows:
       ``(4) which provides that compensation--
       ``(A) in the case of an eligible employer described in 
     subsection (e)(1)(A), will be deferred only if an agreement 
     providing for such deferral has been entered into before the 
     compensation is currently available to the individual, and
       ``(B) in any other case, will be deferred for any calendar 
     month only if an agreement providing for such deferral has 
     been entered into before the beginning of such month,''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 310. ONE-TIME ELECTION FOR QUALIFIED CHARITABLE 
                   DISTRIBUTION TO SPLIT-INTEREST ENTITY; INCREASE 
                   IN QUALIFIED CHARITABLE DISTRIBUTION 
                   LIMITATION.

       (a) One-time Election for Qualified Charitable Distribution 
     to Split-interest Entity.--Section 408(d)(8) of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new subparagraph:
       ``(F) One-time election for qualified charitable 
     distribution to split-interest entity.--
       ``(i) In general.--A taxpayer may for a taxable year elect 
     under this subparagraph to treat as meeting the requirement 
     of subparagraph (B)(i) any distribution from an individual 
     retirement account which is made directly by the trustee to a 
     split-interest entity, but only if--

       ``(I) an election is not in effect under this subparagraph 
     for a preceding taxable year,
       ``(II) the aggregate amount of distributions of the 
     taxpayer with respect to which an election under this 
     subparagraph is made does not exceed $50,000, and
       ``(III) such distribution meets the requirements of clauses 
     (iii) and (iv).

       ``(ii) Split-interest entity.--For purposes of this 
     subparagraph, the term `split-interest entity' means--

       ``(I) a charitable remainder annuity trust (as defined in 
     section 664(d)(1)), but only if such trust is funded 
     exclusively by qualified charitable distributions,
       ``(II) a charitable remainder unitrust (as defined in 
     section 664(d)(2)), but only if such unitrust is funded 
     exclusively by qualified charitable distributions, or
       ``(III) a charitable gift annuity (as defined in section 
     501(m)(5)), but only if such annuity is funded exclusively by 
     qualified charitable distributions and commences fixed 
     payments of 5 percent or greater not later than 1 year from 
     the date of funding.

       ``(iii) Contributions must be otherwise deductible.--A 
     distribution meets the requirement of this clause only if--

       ``(I) in the case of a distribution to a charitable 
     remainder annuity trust or a charitable remainder unitrust, a 
     deduction for the entire value of the remainder interest in 
     the distribution for the benefit of a specified charitable 
     organization would be allowable under section 170 (determined 
     without regard to subsection (b) thereof and this paragraph), 
     and
       ``(II) in the case of a charitable gift annuity, a 
     deduction in an amount equal to the amount of the 
     distribution reduced by the value of the annuity described in 
     section 501(m)(5)(B) would be allowable under section 170 
     (determined without regard to subsection (b) thereof and this 
     paragraph).

       ``(iv) Limitation on income interests.--A distribution 
     meets the requirements of this clause only if--

       ``(I) no person holds an income interest in the split-
     interest entity other than the individual for whose benefit 
     such account is maintained, the spouse of such individual, or 
     both, and
       ``(II) the income interest in the split-interest entity is 
     nonassignable.

       ``(v) Special rules.--

       ``(I) Charitable remainder trusts.--Notwithstanding section 
     664(b), distributions made from a trust described in 
     subclause (I) or (II) of clause (ii) shall be treated as 
     ordinary income in the hands of the beneficiary to whom the 
     annuity described in section 664(d)(1)(A) or the payment 
     described in section 664(d)(2)(A) is paid.
       ``(II) Charitable gift annuities.--Qualified charitable 
     distributions made to fund a charitable gift annuity shall 
     not be treated as an investment in the contract for purposes 
     of section 72(c).''.

       (b) Inflation Adjustment.--Section 408(d)(8) of such Code, 
     as amended by subsection (a), is amended by adding at the end 
     the following new subparagraph:
       ``(G) Inflation adjustment.--
       ``(i) In general.--In the case of any taxable year 
     beginning after 2022, each of the dollar amounts in 
     subparagraphs (A) and (F) shall be increased by an amount 
     equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 2021' 
     for `calendar year 2016' in subparagraph (A)(ii) thereof.

       ``(ii) Rounding.--If any dollar amount increased under 
     clause (i) is not a multiple of $1,000, such dollar amount 
     shall be rounded to the nearest multiple of $1,000.''.
       (c) Effective Date.--The amendment made by this section 
     shall apply to distributions made in taxable years ending 
     after the date of the enactment of this Act.

     SEC. 311. DISTRIBUTIONS TO FIREFIGHTERS.

       (a) In General.--Subparagraph (A) of section 72(t)(10) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``414(d))'' and inserting ``414(d)) or a distribution from a 
     plan described in clause (iii), (iv), or (vi) of section 
     402(c)(8)(B) to an employee who provides firefighting 
     services''.
       (b) Conforming Amendment.--The heading of paragraph (10) of 
     section 72(t) of such Code is amended by striking ``in 
     governmental plans'' and inserting ``and private sector 
     firefighters''
       (c) Effective Date.--The amendments made by this section 
     shall apply to distributions made after December 31, 2022.

     SEC. 312. EXCLUSION OF CERTAIN DISABILITY-RELATED FIRST 
                   RESPONDER RETIREMENT PAYMENTS.

       (a) In General.--Part III of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 is amended by inserting 
     after section 139B the following new section:

     ``SEC. 139C. CERTAIN DISABILITY-RELATED FIRST RESPONDER 
                   RETIREMENT PAYMENTS.

       ``(a) In General.--In the case of an individual who 
     receives qualified first responder retirement payments for 
     any taxable year, gross income shall not include so much of 
     such payments as do not exceed the annualized excludable 
     disability amount with respect to such individual.
       ``(b) Qualified First Responder Retirement Payments.--For 
     purposes of this section, the term `qualified first responder 
     retirement payments' means, with respect to any taxable year, 
     any pension or annuity which but for this section would be 
     includible in gross income for such taxable year and which is 
     received--
       ``(1) from a plan described in clause (iii), (iv), (v), or 
     (vi) of section 402(c)(8)(B), and
       ``(2) in connection with such individual's qualified first 
     responder service.
       ``(c) Annualized Excludable Disability Amount.--For 
     purposes of this section--
       ``(1) In general.--The term `annualized excludable 
     disability amount' means, with respect to any individual, the 
     service-connected excludable disability amounts which are 
     properly attributable to the 12-month period immediately 
     preceding the date on which such individual attains 
     retirement age.
       ``(2) Service-connected excludable disability amount.--The 
     term `service-connected excludable disability amount' means 
     periodic payments received by an individual which--
       ``(A) are not includible in such individual's gross income 
     under section 104(a)(1),
       ``(B) are received in connection with such individual's 
     qualified first responder service, and
       ``(C) terminate when such individual attains retirement 
     age.
       ``(3) Special rule for partial-year payments.--In the case 
     of an individual who only receives service-connected 
     excludable disability amounts properly attributable to a 
     portion of the 12-month period described in paragraph (1), 
     such paragraph shall be applied by multiplying such amounts 
     by the ratio of 365 to the number of days in such period to 
     which such amounts were properly attributable.
       ``(d) Qualified First Responder Service.--For purposes of 
     this section, the term `qualified first responder service' 
     means service as a law enforcement officer, firefighter, 
     paramedic, or emergency medical technician.''.
       (b) Clerical Amendment.--The table of sections for part III 
     of subchapter B of chapter 1 of such Code is amended by 
     inserting after the item relating to section 139B the 
     following new item:

``Sec. 139C. Certain disability-related first responder retirement 
              payments.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts received with respect to taxable years 
     beginning after December 31, 2027.

     SEC. 313. INDIVIDUAL RETIREMENT PLAN STATUTE OF LIMITATIONS 
                   FOR EXCISE TAX ON EXCESS CONTRIBUTIONS AND 
                   CERTAIN ACCUMULATIONS.

       Section 6501(l) of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new paragraph:
       ``(4) Individual retirement plans.--
       ``(A) In general.--For purposes of any tax imposed by 
     section 4973 or 4974 in connection with an individual 
     retirement plan, the return referred to in this section shall 
     be the income tax return filed by the person on whom the tax 
     under such section is imposed for the year in which the act 
     (or failure to act) giving rise to the liability for such tax 
     occurred.
       ``(B) Rule in case of individuals not required to file 
     return.--In the case of a person who is not required to file 
     an income tax return for such year--

[[Page H3936]]

       ``(i) the return referred to in this section shall be the 
     income tax return that such person would have been required 
     to file but for the fact that such person was not required to 
     file such return, and
       ``(ii) the 3-year period referred to in subsection (a) with 
     respect to the return shall be deemed to begin on the date by 
     which the return would have been required to be filed 
     (excluding any extension thereof).''.

     SEC. 314. REQUIREMENT TO PROVIDE PAPER STATEMENTS IN CERTAIN 
                   CASES.

       (a) In General.--Section 105(a)(2) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1025(a)(2)) 
     is amended--
       (1) in subparagraph (A)(iv), by inserting ``subject to 
     subparagraph (E),'' before ``may be delivered''; and
       (2) by adding at the end the following:
       ``(E) Provision of paper statements.--With respect to at 
     least 1 pension benefit statement furnished for a calendar 
     year with respect to an individual account plan under 
     paragraph (1)(A), and with respect to at least 1 pension 
     benefit statement furnished every 3 calendar years with 
     respect to a defined benefit plan under paragraph (1)(B), 
     such statement shall be furnished on paper in written form 
     except--
       ``(i) in the case of a plan that furnishes such statement 
     in accordance with section 2520.104b-1(c) of title 29, Code 
     of Federal Regulations; or
       ``(ii) in the case of a plan that permits a participant or 
     beneficiary to request that the statements referred to in the 
     matter preceding clause (i) be furnished by electronic 
     delivery, if the participant or beneficiary requests that 
     such statements be delivered electronically and the 
     statements are so delivered.''.
       (b) Implementation.--
       (1) In general.--The Secretary of Labor shall, not later 
     than December 31, 2022, update section 2520.104b-1(c) of 
     title 29, Code of Federal Regulations, to provide that a plan 
     may furnish the statements referred to in subparagraph (E) of 
     section 105(a)(2) by electronic delivery only if, in addition 
     to meeting the other requirements under the regulations--
       (A) such plan furnishes each participant or beneficiary, 
     including participants described in subparagraph (B), a one-
     time initial notice on paper in written form, prior to the 
     electronic delivery of any pension benefit statement, of 
     their right to request that all documents required to be 
     disclosed under title I of the Employee Retirement Income 
     Security Act of 1974 be furnished on paper in written form; 
     and
       (B) such plan furnishes each participant who is separated 
     from service with at least 1 pension benefit statement on 
     paper in written form for each calendar year, unless, on 
     election of the participant, the participant receives such 
     statements electronically.
       (2) Other guidance.--In implementing the amendment made by 
     subsection (a) with respect to a plan that discloses required 
     documents or statements electronically, in accordance with 
     applicable guidance governing electronic disclosure by the 
     Department of Labor (with the exception of section 2520.104b-
     1(c) of title 29, Code of Federal Regulations), the Secretary 
     of Labor shall, not later than December 31, 2022, update such 
     guidance to the extent necessary to ensure that--
       (A) a participant or beneficiary under such a plan is 
     permitted the opportunity to request that any disclosure 
     required to be delivered on paper under applicable guidance 
     by the Department of Labor shall be furnished by electronic 
     delivery;
       (B) each paper statement furnished under such a plan 
     pursuant to the amendment shall include--
       (i) an explanation of how to request that all such 
     statements, and any other document required to be disclosed 
     under title I of the Employee Retirement Income Security Act 
     of 1974, be furnished by electronic delivery; and
       (ii) contact information for the plan sponsor, including a 
     telephone number;
       (C) the plan may not charge any fee to a participant or 
     beneficiary for the delivery of any paper statements;
       (D) each paper pension benefit statement shall identify 
     each plan document required to be disclosed and shall include 
     information about how a participant or beneficiary may access 
     each such document;
       (E) each document required to be disclosed that is 
     furnished by electronic delivery under such a plan shall 
     include an explanation of how to request that all such 
     documents be furnished on paper in written form; and
       (F) a plan is permitted to furnish a duplicate electronic 
     statement in any case in which the plan furnishes a paper 
     pension benefit statement.
       (c) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to plan years beginning after 
     December 31, 2023.

     SEC. 315. SEPARATE APPLICATION OF TOP HEAVY RULES TO DEFINED 
                   CONTRIBUTION PLANS COVERING EXCLUDIBLE 
                   EMPLOYEES.

       (a) In General.--Section 416(c)(2) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following:
       ``(C) Separate application to employees not meeting age and 
     service requirements.--If employees not meeting the age or 
     service requirements of section 410(a)(1) (without regard to 
     subparagraph (B) thereof) are covered under a plan of the 
     employer which meets the requirements of subparagraphs (A) 
     and (B) separately with respect to such employees, such 
     employees may be excluded from consideration in determining 
     whether any plan of the employer meets the requirements of 
     subparagraphs (A) and (B).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to plan years beginning after the date of the 
     enactment of this Act.

     SEC. 316. REPAYMENT OF QUALIFIED BIRTH OR ADOPTION 
                   DISTRIBUTION LIMITED TO 3 YEARS.

       (a) In General.--Section 72(t)(2)(H)(v)(I) of the Internal 
     Revenue Code of 1986 is amended by striking ``may make'' and 
     inserting ``may, at any time during the 3-year period 
     beginning on the day after the date on which such 
     distribution was received, make''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the enactment of section 
     113 of the Setting Every Community Up for Retirement 
     Enhancement Act of 2019.

     SEC. 317. EMPLOYER MAY RELY ON EMPLOYEE CERTIFYING THAT 
                   DEEMED HARDSHIP DISTRIBUTION CONDITIONS ARE 
                   MET.

       (a) Cash or Deferred Arrangements.--Section 401(k)(14) of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new subparagraph:
       ``(C) Employee certification.--In determining whether a 
     distribution is upon the hardship of an employee, the 
     administrator of the plan may rely on a certification by the 
     employee that the distribution is on account of a financial 
     need of a type that is deemed in regulations prescribed by 
     the Secretary to be an immediate and heavy financial need and 
     that such distribution is not in excess of the amount 
     required to satisfy such financial need.''.
       (b) 403(b) Plans.--
       (1) Custodial accounts.--Section 403(b)(7) of such Code is 
     amended by adding at the end the following new subparagraph:
       ``(D) Employee certification.--In determining whether a 
     distribution is upon the financial hardship of an employee, 
     the administrator of the plan may rely on a certification by 
     the employee that the distribution is on account of a 
     financial need of a type that is deemed in regulations 
     prescribed by the Secretary to be an immediate and heavy 
     financial need and that such distribution is not in excess of 
     the amount required to satisfy such financial need.''.
       (2) Annuity contracts.--Section 403(b)(11) of such Code is 
     amended by adding at the end the following: ``In determining 
     whether a distribution is upon hardship of an employee, the 
     administrator of the plan may rely on a certification by the 
     employee that the distribution is on account of a financial 
     need of a type that is deemed in regulations prescribed by 
     the Secretary to be an immediate and heavy financial need and 
     that such distribution is not in excess of the amount 
     required to satisfy such financial need.''.
       (c) 457(b) Plan.--Section 457(d) of such Code is amended by 
     adding at the end the following new paragraph:
       ``(4) Participant certification.--In determining whether a 
     distribution to a participant is made when the participant is 
     faced with an unforeseeable emergency, the administrator of a 
     plan maintained by an eligible employer described in 
     subsection (e)(1)(A) may rely on a certification by the 
     participant that the distribution is made when the 
     participant is faced with unforeseeable emergency of a type 
     that is described in regulations prescribed by the Secretary 
     as an unforeseeable emergency and that the distribution is 
     not in excess of the amount reasonably necessary to satisfy 
     the emergency need.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2022.

     SEC. 318. PENALTY-FREE WITHDRAWALS FROM RETIREMENT PLANS FOR 
                   INDIVIDUALS IN CASE OF DOMESTIC ABUSE.

       (a) In General.--Section 72(t)(2) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new subparagraph:
       ``(I) Distributions from retirement plans in case of 
     domestic abuse.--
       ``(i) In general.--Any eligible distribution to a domestic 
     abuse victim.
       ``(ii) Limitation.--The aggregate amount which may be 
     treated as an eligible distribution to a domestic abuse 
     victim by any individual shall not exceed an amount equal to 
     the lesser of--

       ``(I) $10,000, or
       ``(II) 50 percent of the present value of the 
     nonforfeitable accrued benefit of the employee under the 
     plan.

       ``(iii) Eligible distribution to a domestic abuse victim.--
     For purposes of this subparagraph--

       ``(I) In general.--A distribution shall be treated as an 
     eligible distribution to a domestic abuse victim if such 
     distribution is from an applicable eligible retirement plan 
     to an individual and made during the 1-year period beginning 
     on any date on which the individual is a victim of domestic 
     abuse by a spouse or domestic partner.
       ``(II) Domestic abuse.--The term `domestic abuse' means 
     physical, psychological, sexual, emotional, or economic 
     abuse, including efforts to control, isolate, humiliate, or 
     intimidate the victim, or to undermine the victim's ability 
     to reason independently, including by means of abuse of the 
     victim's child or another family member living in the 
     household.

       ``(iv) Treatment of plan distributions.--

[[Page H3937]]

       ``(I) In general.--If a distribution to an individual would 
     (without regard to clause (ii)) be an eligible distribution 
     to a domestic abuse victim , a plan shall not be treated as 
     failing to meet any requirement of this title merely because 
     the plan treats the distribution as an eligible distribution 
     to a domestic abuse victim, unless the aggregate amount of 
     such distributions from all plans maintained by the employer 
     (and any member of any controlled group which includes the 
     employer) to such individual exceeds the limitation under 
     clause (ii).
       ``(II) Controlled group.--For purposes of subclause (I), 
     the term `controlled group' means any group treated as a 
     single employer under subsection (b), (c), (m), or (o) of 
     section 414.

       ``(v) Amount distributed may be repaid.--

       ``(I) In general.--Any individual who receives a 
     distribution described in clause (i) may, at any time during 
     the 3-year period beginning on the day after the date on 
     which such distribution was received, make one or more 
     contributions in an aggregate amount not to exceed the amount 
     of such distribution to an applicable eligible retirement 
     plan of which such individual is a beneficiary and to which a 
     rollover contribution of such distribution could be made 
     under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 
     457(e)(16), as the case may be.
       ``(II) Limitation on contributions to applicable eligible 
     retirement plans other than IRAs.--The aggregate amount of 
     contributions made by an individual under subclause (I) to 
     any applicable eligible retirement plan which is not an 
     individual retirement plan shall not exceed the aggregate 
     amount of eligible distributions to a domestic abuse victim 
     which are made from such plan to such individual. Subclause 
     (I) shall not apply to contributions to any applicable 
     eligible retirement plan which is not an individual 
     retirement plan unless the individual is eligible to make 
     contributions (other than those described in subclause (I)) 
     to such applicable eligible retirement plan.
       ``(III) Treatment of repayments of distributions from 
     applicable eligible retirement plans other than iras.--If a 
     contribution is made under subclause (I) with respect to an 
     eligible distribution to a domestic abuse victim from an 
     applicable eligible retirement plan other than an individual 
     retirement plan, then the taxpayer shall, to the extent of 
     the amount of the contribution, be treated as having received 
     such distribution in an eligible rollover distribution (as 
     defined in section 402(c)(4)) and as having transferred the 
     amount to the applicable eligible retirement plan in a direct 
     trustee to trustee transfer within 60 days of the 
     distribution.
       ``(IV) Treatment of repayments for distributions from 
     iras.--If a contribution is made under subclause (I) with 
     respect to an eligible distribution to a domestic abuse 
     victim from an individual retirement plan, then, to the 
     extent of the amount of the contribution, such distribution 
     shall be treated as a distribution described in section 
     408(d)(3) and as having been transferred to the applicable 
     eligible retirement plan in a direct trustee to trustee 
     transfer within 60 days of the distribution.

       ``(vi) Definition and special rules.--For purposes of this 
     subparagraph:

       ``(I) Applicable eligible retirement plan.--The term 
     `applicable eligible retirement plan' means an eligible 
     retirement plan (as defined in section 402(c)(8)(B)) other 
     than a defined benefit plan.
       ``(II) Exemption of distributions from trustee to trustee 
     transfer and withholding rules.--For purposes of sections 
     401(a)(31), 402(f), and 3405, an eligible distribution to a 
     domestic abuse victim shall not be treated as an eligible 
     rollover distribution.
       ``(III) Distributions treated as meeting plan distribution 
     requirements; self-certification.--Any distribution which the 
     employee or participant certifies as being an eligible 
     distribution to a domestic abuse victim shall be treated as 
     meeting the requirements of sections 401(k)(2)(B)(i), 
     403(b)(7)(A)(i), 403(b)(11), and 457(d)(1)(A).''.

       (b) Effective Date.--The amendments made by this section 
     shall apply to distributions made after the date of the 
     enactment of this Act.

     SEC. 319. REFORM OF FAMILY ATTRIBUTION RULES.

       (a) Controlled Groups.--Section 414(b) of the Internal 
     Revenue Code of 1986 is amended--
       (1) by striking ``For purposes of'' and inserting the 
     following:
       ``(1) In general.--For purposes of'', and
       (2) by adding at the end the following new paragraphs:
       ``(2) Special rules for applying family attribution.--For 
     purposes of applying the attribution rules under section 1563 
     with respect to paragraph (1), the following rules apply:
       ``(A) Community property laws shall be disregarded for 
     purposes of determining ownership.
       ``(B) Except as provided by the Secretary, stock of an 
     individual not attributed under section 1563(e)(5) to such 
     individual's spouse shall not be attributed to such spouse by 
     reason of section 1563(e)(6)(A).
       ``(C) Except as provided by the Secretary, in the case of 
     stock in different corporations that is attributed to a child 
     under section 1563(e)(6)(A) from each parent, and is not 
     attributed to such parents as spouses under section 
     1563(e)(5), such attribution to the child shall not by itself 
     result in such corporations being members of the same 
     controlled group.
       ``(3) Plan shall not fail to be treated as satisfying this 
     section.--If the application of paragraph (2) causes two or 
     more entities to be a controlled group, or to no longer be in 
     a controlled group, such change shall be treated as a 
     transaction to which section 410(b)(6)(C) applies.''.
       (b) Affiliated Service Groups.--Section 414(m)(6)(B) of 
     such Code is amended--
       (1) by striking ``Ownership.--In determining'' and 
     inserting the following: ``Ownership.--
       ``(i) In general.--In determining'', and
       (2) by adding at the end the following new clauses:
       ``(ii) Special rules for applying family attribution.--For 
     purposes of applying the attribution rules under section 318 
     with respect to clause (i), the following rules apply:

       ``(I) Community property laws shall be disregarded for 
     purposes of determining ownership.
       ``(II) Except as provided by the Secretary, stock of an 
     individual not attributed under section 318(a)(1)(A)(i) to 
     such individual's spouse shall not be attributed by reason of 
     section 318(a)(1)(A)(ii) to such spouse from a child who has 
     not attained the age of 21 years.
       ``(III) Except as provided by the Secretary, in the case of 
     stock in different corporations that is attributed under 
     section 318(a)(1)(A)(ii) to a child who has not attained the 
     age of 21 years from each parent, and is not attributed to 
     such parents as spouses under section 318(a)(1)(A)(i), such 
     attribution to the child shall not by itself result in such 
     corporations being members of the same affiliated service 
     group.

       ``(iii) Plan shall not fail to be treated as satisfying 
     this section.--If the application of clause (ii) causes two 
     or more entities to be an affiliated service group, or to no 
     longer be in an affiliated service group, such change shall 
     be treated as a transaction to which section 410(b)(6)(C) 
     applies.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning on or after the date of 
     the enactment of this Act.

     SEC. 320. AMENDMENTS TO INCREASE BENEFIT ACCRUALS UNDER PLAN 
                   FOR PREVIOUS PLAN YEAR ALLOWED UNTIL EMPLOYER 
                   TAX RETURN DUE DATE.

       (a) In General.--Section 401(b) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(3) Retroactive plan amendments that increase benefit 
     accruals.--If--
       ``(A) an employer amends a stock bonus, pension, profit-
     sharing, or annuity plan to increase benefits accrued under 
     the plan effective for the preceding plan year (other than 
     increasing the amount of matching contributions (as defined 
     in subsection (m)(4)(A))),
       ``(B) such amendment would not otherwise cause the plan to 
     fail to meet any of the requirements of this subchapter, and
       ``(C) such amendment is adopted before the time prescribed 
     by law for filing the return of the employer for a taxable 
     year (including extensions thereof) during which such 
     amendment is effective,
     the employer may elect to treat such amendment as having been 
     adopted as of the last day of the plan year in which the 
     amendment is effective.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2023.

     SEC. 321. RETROACTIVE FIRST YEAR ELECTIVE DEFERRALS FOR SOLE 
                   PROPRIETORS.

       (a) In General.--Section 401(b)(2) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following: 
     ``In the case of an individual who owns the entire interest 
     in an unincorporated trade or business, and who is the only 
     employee of such trade or business, any elective deferrals 
     (as defined in section 402(g)(3)) under a qualified cash or 
     deferred arrangement to which the preceding sentence applies, 
     which are made by such individual before the time for filing 
     the return of such individual for the taxable year 
     (determined without regard to any extensions) ending after or 
     with the end of the plan's first plan year, shall be treated 
     as having been made before the end of such first plan 
     year.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to plan years beginning after the date of the 
     enactment of this Act.

     SEC. 322. LIMITING CESSATION OF IRA TREATMENT TO PORTION OF 
                   ACCOUNT INVOLVED IN A PROHIBITED TRANSACTION.

       (a) In General.--Section 408(e)(2)(A) of the Internal 
     Revenue Code of 1986 is amended by striking ``such account 
     ceases to be an individual retirement account'' and inserting 
     the following: ``the amount involved (as defined in section 
     4975(f)(4)) in such transaction shall be treated as 
     distributed to the individual''.
       (b) Conforming Amendments.--
       (1) Section 408(e)(2)(B) of such Code is amended to read as 
     follows:
       ``(B) Account treated as distributing potion of assets used 
     in prohibited transaction.--In any case in which a portion of 
     an individual retirement account is treated as distributed 
     under subparagraph (A) as of the first day of any taxable 
     year, paragraph (1) of subsection (d) applies as if there 
     were a distribution on such first day in an amount equal to 
     the fair market value of such portion, determined as of the 
     date on which the

[[Page H3938]]

     transaction prohibited by section 4975 occurs.''.
       (A) by striking ``all its assets.--In any case'' and all 
     that follows through ``by reason of subparagraph (A)'' and 
     inserting the following: ``portion of assets used in 
     prohibited transaction.--In any case in which a portion of an 
     individual retirement account is treated as distributed under 
     subparagraph (A)'', and
       (B) by striking ``all assets in the account'' and inserting 
     ``such portion''.
       (2) Section 4975(c)(3) of such Code is amended by striking 
     ``the account ceases'' and all that follows and inserting the 
     following: ``the portion of the account used in the 
     transaction is treated as distributed under paragraph (2)(A) 
     or (4) of section 408(e).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 323. REVIEW OF PENSION RISK TRANSFER INTERPRETIVE 
                   BULLETIN.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary of Labor shall--
       (1) review section 2509.95-1 of title 29, Code of Federal 
     Regulations (relating to the fiduciary standards under the 
     Employee Retirement Income Security Act of 1974 when 
     selecting an annuity provider for a defined benefit pension 
     plan) to determine whether amendments to such section are 
     warranted; and
       (2) report to Congress on the findings of such review, 
     including an assessment of any risk to participants.

                     TITLE IV--TECHNICAL AMENDMENTS

     SEC. 401. AMENDMENTS RELATING TO SETTING EVERY COMMUNITY UP 
                   FOR RETIREMENT ENHANCEMENT ACT OF 2019.

       (a) Technical Amendments.--
       (1) Amendments relating to section 103.--
       (A) Section 401(k)(12)(G) of the Internal Revenue Code of 
     1986 is amended by striking ``the requirements under 
     subparagraph (A)(i)'' and inserting ``the contribution 
     requirements under subparagraph (B) or (C)''.
       (B) Section 401(k)(13)(D)(iv) of such Code is amended by 
     striking ``and (F)'' and inserting ``and (G)''.
       (C) Section 401(m)(12) of such Code is amended by striking 
     ``and'' at the end of subparagraph (A), by redesignating 
     subparagraph (B) as subparagraph (C), and by inserting after 
     subparagraph (A) (as so amended) the following new 
     subparagraph:
       ``(B) meets the notice requirements of subsection 
     (k)(13)(E), and''.
       (2) Amendment relating to section 112.--Section 
     401(k)(15)(B)(i)(II) of such Code is amended by striking 
     ``subsection (m)(2)'' and inserting ``paragraphs (2), (11), 
     and (12) of subsection (m)''.
       (3) Amendment relating to section 114.--Section 
     401(a)(9)(C)(iii) of such Code is amended by striking 
     ``employee to whom clause (i)(II) applies'' and inserting 
     ``employee (other than an employee to whom clause (i)(II) 
     does not apply by reason of clause (ii))''.
       (4) Amendment relating to section 116.--Section 4973(b) of 
     such Code is amended by adding at the end of the flush matter 
     the following: ``Such term shall not include any designated 
     nondeductible contribution (as defined in subparagraph (C) of 
     section 408(o)(2)) which does not exceed the nondeductible 
     limit under subparagraph (B) thereof by reason of an election 
     under section 408(o)(5).''.
       (5) Effective date.--The amendments made by this subsection 
     shall take effect as if included in the section of the 
     Setting Every Community Up for Retirement Enhancement Act of 
     2019 to which the amendment relates.
       (b) Clerical Amendments.--
       (1) Section 408(o)(5)(A) of such Code is amended by 
     striking ``subsection (b)'' and inserting ``section 219(b)''.
       (2) Section 72(t)(2)(H)(vi)(IV) of such Code is amended by 
     striking ``403(b)(7)(A)(ii)'' and inserting `` 
     403(b)(7)(A)(i)''.

                   TITLE V--ADMINISTRATIVE PROVISIONS

     SEC. 501. PROVISIONS RELATING TO PLAN AMENDMENTS.

       (a) In General.--If this section applies to any retirement 
     plan or contract amendment--
       (1) such retirement plan or contract shall be treated as 
     being operated in accordance with the terms of the plan 
     during the period described in subsection (b)(2)(A); and
       (2) except as provided by the Secretary of the Treasury (or 
     the Secretary's delegate), such retirement plan shall not 
     fail to meet the requirements of section 411(d)(6) of the 
     Internal Revenue Code of 1986 and section 204(g) of the 
     Employee Retirement Income Security Act of 1974 by reason of 
     such amendment.
       (b) Amendments to Which Section Applies.--
       (1) In general.--This section shall apply to any amendment 
     to any retirement plan or annuity contract which is made--
       (A) pursuant to any amendment made by this Act or pursuant 
     to any regulation issued by the Secretary of the Treasury or 
     the Secretary of Labor (or a delegate of either such 
     Secretary) under this Act; and
       (B) on or before the last day of the first plan year 
     beginning on or after January 1, 2024, or such later date as 
     the Secretary of the Treasury may prescribe.
     In the case of a governmental plan (as defined in section 
     414(d) of the Internal Revenue Code of 1986), or an 
     applicable collectively bargained plan, this paragraph shall 
     be applied by substituting ``2026'' for ``2024''. For 
     purposes of the preceding sentence, the term ``applicable 
     collectively bargained plan'' means a plan maintained 
     pursuant to 1 or more collective bargaining agreements 
     between employee representatives and 1 or more employers 
     ratified before the date of enactment of this Act.
       (2) Conditions.--This section shall not apply to any 
     amendment unless--
       (A) during the period--
       (i) beginning on the date the legislative or regulatory 
     amendment described in paragraph (1)(A) takes effect (or in 
     the case of a plan or contract amendment not required by such 
     legislative or regulatory amendment, the effective date 
     specified by the plan); and
       (ii) ending on the date described in paragraph (1)(B) (as 
     modified by the second sentence of paragraph (1)) (or, if 
     earlier, the date the plan or contract amendment is adopted),
     the plan or contract is operated as if such plan or contract 
     amendment were in effect; and
       (B) such plan or contract amendment applies retroactively 
     for such period.
       (c) Coordination With Other Provisions Relating to Plan 
     Amendments.--
       (1) SECURE act.--Section 601(b)(1) of the Setting Every 
     Community Up for Retirement Enhancement Act of 2019 is 
     amended--
       (A) by striking ``January 1, 2022'' in subparagraph (B) and 
     inserting ``January 1, 2024'', and
       (B) by striking ``substituting `2024' for `2022'.'' in the 
     flush matter at the end and inserting ``substituting `2026' 
     for `2024'.''.
       (2) CARES act.--
       (A) Special rules for use of retirement funds.--Section 
     2202(c)(2)(A) of the CARES Act is amended by striking 
     ``January 1, 2022'' in clause (ii) and inserting ``January 1, 
     2024''.
       (B) Temporary waiver of required minimum distributions 
     rules for certain retirement plans and accounts.--Section 
     2203(c)(2)(B)(i) of the CARES Act is amended--
       (i) by striking ``January 1, 2022'' in subclause (II) and 
     inserting ``January 1, 2024'', and
       (ii) by striking ``substituting `2024' for `2022'.'' in the 
     flush matter at the end and inserting ``substituting `2026' 
     for `2024'.''.
       (C) Taxpayer certainty and disaster tax relief act of 
     2020.--Section 302(d)(2)(A) of the Taxpayer Certainty and 
     Disaster Tax Relief Act of 2020 is amended by striking 
     ``January 1, 2022'' in clause (ii) and inserting ``January 1, 
     2024''.

                      TITLE VI--REVENUE PROVISIONS

     SEC. 601. SIMPLE AND SEP ROTH IRAS.

       (a) In General.--Section 408A of the Internal Revenue Code 
     of 1986 is amended by striking subsection (f).
       (b) Rules Relating to Simplified Employee Pensions.--
       (1) Contributions.--Section 402(h)(1) of such Code is 
     amended by striking ``and'' at the end of subparagraph (A), 
     by striking the period at the end of subparagraph (B) and 
     inserting ``, and'', and by adding at the end the following 
     new subparagraph:
       ``(C) in the case of any contributions pursuant to a 
     simplified employer pension which are made to an individual 
     retirement plan designated as a Roth IRA, such contribution 
     shall not be excludable from gross income.''.
       (2) Distributions.--Section 402(h)(3) of such Code is 
     amended by inserting ``, or section 408A(d) in the case of an 
     individual retirement plan designated as a Roth IRA'' before 
     the period at the end.
       (3) Election required.--Section 408(k) of such Code is 
     amended by redesignating paragraphs (7), (8), and (9) as 
     paragraphs (8), (9), and (10), respectively, and by inserting 
     the after paragraph (6) the following new paragraph:
       ``(7) Roth contribution election.--An individual retirement 
     plan which is designated as a Roth IRA shall not be treated 
     as a simplified employee pension under this subsection unless 
     the employee elects for such plan to be so treated (at such 
     time and in such manner as the Secretary may provide).''.
       (c) Rules Relating to Simple Retirement Accounts.--
       (1) Election required.--Section 408(p) of such Code is 
     amended by adding at the end the following new paragraph:
       ``(11) Roth contribution election.--An individual 
     retirement plan which is designated as a Roth IRA shall not 
     be treated as a simple retirement account under this 
     subsection unless the employee elects for such plan to be so 
     treated (at such time and in such manner as the Secretary may 
     provide).''.
       (2) Rollovers.--Section 408A(e) of such Code is amended by 
     adding at the end the following new paragraph:
       ``(3) Simple retirement accounts.--In the case of any 
     payment or distribution out of a simple retirement account 
     (as defined in section 408(p)) with respect to which an 
     election has been made under section 408(p)(11) and to which 
     72(t)(6) applies, the term `qualified rollover contribution' 
     shall not include any payment or distribution paid into an 
     account other than another simple retirement account (as so 
     defined).''.
       (d) Coordination With Roth Contribution Limitation.--
     Section 408A(c) of such Code is amended by adding at the end 
     the following new paragraph:
       ``(7) Coordination with limitation for simple retirement 
     plans and SEPs.--In the case of an individual on whose behalf 
     contributions are made to a simple retirement account or a 
     simplified employee pension,

[[Page H3939]]

     the amount described in paragraph (2)(A) shall be increased 
     by an amount equal to the contributions made on the 
     individual's behalf to such account or pension for the 
     taxable year, but only to the extent such contributions--
       ``(A) in the case of a simplified retirement account--
       ``(i) do not exceed the sum of the dollar amount in effect 
     for the taxable year under section 408(p)(2)(A)(ii) and the 
     employer contribution required under subparagraph (A)(iii) or 
     (B)(i), as the case may be, of section 408(p)(2), and
       ``(ii) do not cause the elective deferrals (as defined in 
     section 402(g)(3)) on behalf of such individual to exceed the 
     limitation under section 402(g)(1) (taking into account any 
     additional elective deferrals permitted under section 
     414(v)), or
       ``(B) in the case of a simplified employee pension, do not 
     exceed the limitation in effect under section 408(j).''.
       (e) Conforming Amendment.--Section 408A(d)(2)(B) of such 
     Code is amended by inserting ``, or employer in the case of a 
     simple retirement account (as defined in section 408(p)) or 
     simplified employee pension (as defined in section 408(k)),'' 
     after ``individual's spouse''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2022.

     SEC. 602. HARDSHIP WITHDRAWAL RULES FOR 403(B) PLANS.

       (a) In General.--Section 403(b) of the Internal Revenue 
     Code of 1986, as amended by the preceding provisions of this 
     Act, is amended by adding at the end the following new 
     paragraph:
       ``(16) Special rules relating to hardship withdrawals.--For 
     purposes of paragraphs (7) and (11)--
       ``(A) Amounts which may be withdrawn.--The following 
     amounts may be distributed upon hardship of the employee:
       ``(i) Contributions made pursuant to a salary reduction 
     agreement (within the meaning of section 3121(a)(5)(D)).
       ``(ii) Qualified nonelective contributions (as defined in 
     section 401(m)(4)(C)).
       ``(iii) Qualified matching contributions described in 
     section 401(k)(3)(D)(ii)(I).
       ``(iv) Earnings on any contributions described in clause 
     (i), (ii), or (iii).
       ``(B) No requirement to take available loan.--A 
     distribution shall not be treated as failing to be made upon 
     the hardship of an employee solely because the employee does 
     not take any available loan under the plan.''.
       (b) Conforming Amendments.--
       (1) Section 403(b)(7)(A)(i)(V) of such Code is amended by 
     striking ``in the case of contributions made pursuant to a 
     salary reduction agreement (within the meaning of section 
     3121(a)(5)(D))'' and inserting ``subject to the provisions of 
     paragraph (16)''.
       (2) Paragraph (11) of section 403(b) of such Code, as 
     amended by the preceding provisions of this Act, is amended--
       (A) by striking ``in'' in subparagraph (B) and inserting 
     ``subject to the provisions of paragraph (16), in'', and
       (B) by striking the penultimate sentence.
       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2022.

     SEC. 603. ELECTIVE DEFERRALS GENERALLY LIMITED TO REGULAR 
                   CONTRIBUTION LIMIT.

       (a) Applicable Employer Plans.--Section 414(v)(1) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following: ``Except in the case of an applicable employer 
     plan described in paragraph (6)(A)(iv), the preceding 
     sentence shall only apply if contributions are designated 
     Roth contributions (as defined in section 402A(c)(1)).''.
       (b) Conforming Amendments.--
       (1) Section 402(g)(1) of such Code is amended by striking 
     subparagraph (C).
       (2) Section 457(e)(18)(A)(ii) of such Code is amended by 
     inserting ``the lesser of any designated Roth contributions 
     made by the participant to the plan or'' before ``the 
     applicable dollar amount''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2022.

     SEC. 604. OPTIONAL TREATMENT OF EMPLOYER MATCHING 
                   CONTRIBUTIONS AS ROTH CONTRIBUTIONS.

       (a) In General.--Section 402A(a) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (2) as 
     paragraph (3), by striking ``and'' at the end of paragraph 
     (1), and by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) any designated Roth contribution which is made by the 
     employer to the program on the employee's behalf, and on 
     account of the employee's contribution, elective deferral, or 
     (subject to the requirements of section 401(m)(13)) qualified 
     student loan payment, shall be treated as a matching 
     contribution for purposes of this chapter, except that such 
     contribution shall not be excludable from gross income, 
     and''.
       (b) Matching Included in Qualified Roth Contribution 
     Program.--Section 402A(b)(1) of such Code is amended--
       (1) by inserting ``, or to have made on the employee's 
     behalf,'' after ``elect to make'', and
       (2) by inserting ``, or of matching contributions which may 
     otherwise be made on the employee's behalf,'' after 
     ``otherwise eligible to make''.
       (c) Designated Roth Matching Contributions.--Section 
     402A(c)(1) of such Code is amended by inserting ``or matching 
     contribution'' after ``elective deferral''.
       (d) Matching Contribution Defined.--Section 402A(e) of such 
     Code is amended by adding at the end the following:
       ``(3) Matching contribution.--The term `matching 
     contribution' means--
       ``(A) any matching contribution described in section 
     401(m)(4)(A), and
       ``(B) any contribution to an eligible deferred compensation 
     plan (as defined in section 457(b)) by an eligible employer 
     described in section 457(e)(1)(A) on behalf of an employee 
     and on account of such employee's elective deferral under 
     such plan.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to contributions made after the date of the 
     enactment of this Act.

                      TITLE VII--BUDGETARY EFFECTS

     SEC. 701. DETERMINATION OF BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the House Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

  The SPEAKER pro tempore. Pursuant to the order of the House today, 
the gentleman from Massachusetts (Mr. Neal) and the gentleman from 
Texas (Mr. Brady) each will control 40 minutes.
  The Chair recognizes the gentleman from Massachusetts.
  Mr. NEAL. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, H.R. 2954 will help all Americans successfully save 
for a secure retirement by expanding coverage and increasing retirement 
savings, simplifying the current retirement system and protecting 
Americans' retirement accounts.
  Retirement security has consistently been one of my top priorities as 
chairman of the Committee on Ways and Means. Too many workers in this 
Nation reach retirement age without having the savings they need. In 
fact--and I hope people will listen to this number--it is estimated 
that up to 50 percent of the individuals in America who go to work 
every single day do not have enrollment in a qualified retirement plan. 
That means those households are at risk of not having enough to 
maintain their living standards in retirement.
  We need to do more to encourage workers to begin planning for 
retirement earlier and we need to make saving considerably easier.
  Last Congress, Mr. Brady and I worked together on a bipartisan basis 
to do that by enacting the SECURE Act, one of the most significant 
retirement bills to become law in well over a decade.
  Thanks to the SECURE Act, 4 million more Americans are now able to 
save for retirement through their employers, and as many as 700,000 new 
retirement accounts will be formed.
  Last year, we built on this progress with the passage into law, my 
legislation, the Butch Lewis Act. After years of fighting for a 
solution to the multiemployer pension crisis, the Butch Lewis Act saved 
multiemployer pension plans from insolvency and secured the financial 
future of over a million workers and retirees who have played by the 
rules and made responsible savings decisions. Think of that and couple 
it with what we are about to do today with the guarantee of Social 
Security, and we will help to improve the opportunity for members of 
American families to have a secure retirement.
  Madam Speaker, but more work needs to be done. That is why I am 
pleased the H.R. 2954, the Securing a Strong Retirement Act of 2022, is 
before us today.
  This bipartisan legislation--and by bipartisan, let me thank Mr. 
Brady again for his good work on this legislation as well--will expand 
automatic enrollment in 401(k) plans by requiring 401(k), 403(b), and 
SIMPLE plans to automatically enroll participants upon becoming 
eligible, with the ability for employees to opt out of coverage--which 
I think, by the way, is not the best idea, but we do provide that 
option. Expansion of automatic enrollment will significantly increase 
participation in retirement savings plans at work.
  H.R. 2954 also enhances the start-up credit, making it easier for 
small businesses to sponsor a retirement plan. And the legislation 
increases the required minimum distribution age to 75 and indexes the 
catch-up contribution limit for individual retirement accounts. These 
changes will make it

[[Page H3940]]

easier for American families to prepare for a financially secure 
retirement.
  On a related note, I think it is important to highlight that U.S. 
defined contribution plans have created a unique reservoir of capital 
in the innovation economy. Retirement plans are investing in areas such 
as tech, financial services, digital commerce, and biotech. That means 
that workers' retirement assets are directly tying middle-class workers 
to our national innovation economy. That certainly is a win-win for all 
of us.
  Madam Speaker, I am really pleased that Ranking Member Brady and I 
were able to come together on a bipartisan basis to develop this 
important legislation. Once again, it passed the Committee on Ways and 
Means unanimously. Our efforts have resulted in an excellent product 
that has broad support from organizations representing diverse 
interests, including retirees, charitable organizations, financial 
services providers, police officers, small businesses, and employers. 
The list of specific supporters is too long to read but we can start 
with the American Red Cross, AARP, and many others, which we will 
submit for the Record. Hundreds of groups have endorsed this plan.
  Let's work together to expand retirement savings in America.
  Madam Speaker, I urge my colleagues to support this legislation, and 
I reserve the balance of my time.
  Mr. BRADY. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, I am pleased to join with my friend, Chairman Rich 
Neal, in jointly reintroducing SECURE 2.0, which will help hardworking 
Americans approach retirement with both confidence and dignity.

  For 5 years now, members of the Committee on Ways and Means have 
worked tirelessly together to ensure Americans have the resources to 
save for a secure retirement. A lot of hard work and negotiation has 
gotten us to this point, and I am grateful to Chairman Neal for his 
commitment to get this bill across the finish line to the President's 
desk.
  It is important to remember how far we have come in our joint efforts 
to help Americans better prepare for their long-term financial goals. 
Following the historic rewrite of our Tax Code with the Tax Cuts and 
Jobs Act, Republicans moved toward building on this success for years 
to come.
  That happened when the Republicans and Democrats worked together to 
develop and enact the Setting Every Community Up for Retirement 
Enhancement Act, known as the SECURE Act, the most significant 
retirement legislation to become law in over a decade.
  We made it easier for Main Street businesses to offer retirement 
plans to their workers by easing administrative burdens, cutting down 
on unnecessary and often costly paperwork.
  The SECURE Act made significant improvements to our country's 
retirement system. And today, we will do even more.
  A recent AARP survey found that rising prices are taking a big toll 
on workers, making it difficult to cover everyday expenses or save for 
the future. In fact, with a 40-year high inflation, nearly a quarter of 
workers surveyed reported that their financial situation is worse today 
than it was last year.
  A study also found that nearly 40 percent of workers said that they 
have no emergency savings, with one out of five reporting they have 
nothing saved for retirement. Nothing.

                              {time}  1615

  Both groups peg rising prices of everyday goods as the biggest 
barrier for planning for their financial future.
  Ensuring Americans have the resources they need for a prosperous 
retirement is a bipartisan priority. And with American families' 
paychecks falling further behind through rising prices, it has really 
never been more important for Congress to help workers get back on 
track with their retirement plans.
  With this bill we build on the landmark provisions in the SECURE Act, 
enabling more workers, especially those with low income and modest 
income, to begin saving earlier and giving them piece of mind as they 
plan for the future.
  Our bill, SECURE 2.0 improves workers' long-term financial wellbeing 
by helping more Americans save for retirement at every stage of their 
life. SECURE 2.0 contains more than 20 provisions sponsored or 
cosponsored by Republicans and Democrats in standalone legislation.
  By providing flexibility, for example, we make it easier for local 
businesses to tailor retirement plans to best fit the needs of their 
workers. These reforms help Americans not only save earlier in their 
careers, but helps families save longer as well.
  We expand access to workplace retirement by increasing the incentives 
for businesses, especially small businesses, to create new plans or 
join groups of plans while sharing the cost of administration.
  To further help small businesses shoulder the burden of creating a 
new plan, our bill matches employer contributions with the new business 
tax credit. That can help a small business match up to the first $1,000 
in matching contributions for that work.
  For those Americans who are further along in their career or already 
in retirement, this bill raises the amount these workers can contribute 
to catch up on their retirement savings as they near retirement, 
doubling it to $10,000 a year. Because we want Americans to save 
throughout their lifetime, together we increase the age at which 
retirement plan distributions become mandatory to age 75 over time from 
72 today.
  These changes are especially important because many workers find 
themselves making more at the end of their careers and are more open to 
focusing on retirement. Those already in retirement often worry about 
the effects of mandatory taxable distributions on their long-term 
financial plans.
  Another recent study by Edward Jones and Morning Consult found 57 
percent of Americans who prioritize paying off a student loan are now 
behind on their schedule on saving for retirement. Our bill allows 
employers to essentially match their workers' student loan repayments 
with contributions to the workers' retirement plan.
  This means from workers struggling to make ends meet under crushing 
student debt and rising prices, they are able to tackle both, paying 
off their debt and getting help in working toward a secure retirement.
  Madam Speaker, I want to thank Chairman Neal and the members of the 
Ways and Means Committee from both parties for their long-term and 
diligent efforts. Together, we will ensure more hardworking Americans 
are confident in their retirement.
  Madam Speaker, I reserve the balance of my time.
  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentleman from 
California (Mr. Thompson), a real champion of retirement savings.
  Mr. THOMPSON of California. Madam Speaker, I thank Chairman Neal and 
Ranking Member Brady for their hard work on this important piece of 
legislation.
  The Securing a Strong Retirement Act of 2021 is bipartisan 
legislation that gives workers the tools they need to retire with the 
financial stability they deserve and worked so hard to obtain.
  Importantly, this legislation allows individuals to pay down a 
student loan instead of contributing to a 401(k) plan while still 
receiving an employer match in their retirement plan.
  I have heard from thousands of individuals in my district who are 
facing an overwhelming amount of student loan debt. These are people 
who are struggling to start their careers while also trying to pay off 
their loans. The SECURE Act provides the opportunity to make payments 
on their student loans now while also investing in their future.
  I am proud to support this legislation that we are hearing today, and 
I thank you for this great bipartisan bill that you have put before us.
  Mr. BRADY. Madam Speaker, I yield 1 minute to the gentleman from 
Nebraska (Mr. Smith), the Republican leader of the Trade Subcommittee.
  Mr. SMITH of Nebraska. Madam Speaker, I am glad we are finally 
considering SECURE 2.0, which will help every American family save. The 
Savers Credit improvements in this bill will help low-income families 
start putting aside money for the future, certainly a key to getting 
out of poverty.
  The enhanced credit for small employers offering retirement plans 
will

[[Page H3941]]

help more businesses offer plans, an important factor in recruiting and 
retaining talent.
  New tools--like allowing employers to match workers' student loan 
repayments with retirement contributions--eliminate the need for young 
workers to choose between paying their debt or saving for retirement.
  Provisions like enhanced catch-up contributions and delaying required 
minimum distributions until age 75 will help older workers have more 
control as they near retirement. This is a strong package for savers of 
all ages.
  Madam Speaker, I thank the chairman and the ranking member for their 
efforts to get this to the floor and I certainly urge support.
  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentleman from 
Connecticut (Mr. Larson), a real champion of retirement savings, 
including all things Social Security.
  Mr. LARSON of Connecticut. Madam Speaker, I thank Chairman Neal and 
Leader Brady--what an outstanding example of bipartisan cooperation. 
But especially as it relates to what has amounted to a financial 
retirement crisis, this clearly will help aid in the work that has 
already been done by Chairman Neal with regard to both the SECURES Act 
and the Butch Lewis Act, but this even adds more flexibility and also 
provides an automatic opportunity for people to put money forward.

  I went to the Aetna School of Insurance and they said there are three 
legs on this table: personal savings, pension, and Social Security. 
This helps address the pension issue as no one can. Again, I want to 
commend Mr. Neal and Mr. Brady for their efforts, and point out that we 
have another leg on that stool that is called Social Security that 
Congress hasn't addressed in more than 50 years. I commend the chairman 
as we go through the process of markup on that as well.
  Mr. BRADY. Madam Speaker, I yield 1 minute to the gentleman from 
Arizona (Mr. Schweikert).
  Mr. SCHWEIKERT. Madam Speaker, it is neat to see us actually have 
something that we are all doing together.
  A bit of trivia, at the end of this decade, 22 percent of our 
population will be 65 or older. Retirement security is--besides just 
the moral imperative--it is going to be the financial, it is going to 
be the driver of almost all sovereign debt.
  Look, there are a couple dozen provisions in this legislation, and in 
many ways they look like tinkering, but they come together. If you 
happen to have a profession where you have a mandatory retirement age 
that might be 60, 65, the ability to do catch-up--to be a small 
business and knowing what you can contribute to your 401(k) when you 
are doing your taxes instead of trying to guess at the end of the 
year--these things all come together.
  We are also going to have to look forward in the coming year and deal 
with the reality of what did inflation do to the cost of future 
retirement? The taxation on, really, gain, that isn't purchasing power, 
but is inflation. This is a terrific first step and it is neat to have 
us do something together.
  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentleman from 
Wisconsin (Mr. Kind), another real champion of retirement savings.
  Mr. KIND. Madam Speaker, I rise in strong support of Securing a 
Strong Retirement Act, or SECURE 2.0, as it is being referred to. This 
falls on the heels of passage of the SECURE Act roughly 2 years ago, to 
try to make it easier for individuals to save for their retirement 
security, especially for small businesses to offer retirement savings 
plans for their employees, which has traditionally been a big black 
hole when it comes to individual savings.
  I am proud that a few of the provisions in this legislation have been 
based on legislation I have been working on throughout the years with 
my friend and colleague from Pennsylvania (Mr. Kelly). We offered 
legislation that would extend the startup tax credit to small employers 
that joined multiemployer plans.
  Again, with Mr. Kelly, this allows 403(b) plans to participate in 
MEPS, including pooled employer plans, or PEPS, as they are known under 
the SECURE Act.
  Finally, there has been an anomaly in the tax code that we are 
addressing in part trying to make it easier for S corporations to be 
able to convert to an ESOP model, or an employee share ownership plan. 
It is a very good business model, but we are trying to bring that on 
par with C corporations.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. NEAL. Madam Speaker, I yield an additional 30 seconds to the 
gentleman.
  Mr. KIND. This has been a great bipartisan effort in committee. 
Again, I thank the chairman and the ranking member for creating the 
environment not just with today's legislation, but the previous SECURE 
Act that we passed roughly 2 years ago, and the ongoing work that we 
will have.
  My friend from Arizona is right, with 70 million baby boomers 
beginning their massive retirement, we have to figure out ways to make 
it easier for individuals to save for their own retirement and for 
future generations to participate and get a head start. I believe this 
legislation accomplishes that.
  Mr. BRADY. Madam Speaker, I yield 1\1/2\ minutes to the gentleman 
from Illinois (Mr. LaHood).
  Mr. LaHOOD. Madam Speaker, I rise today in support of SECURE 2.0. As 
a member of the Ways and Means Committee, I thank Chairman Neal and 
Ranking Member Brady for their bipartisan work on this legislation that 
will help workers save for retirement at all stages of their career and 
protect American futures.
  This bill includes two key provisions that I was proud to work on, 
Retirement Parity for Student Loans Act and the Public Service 
Retirement Fairness Act.
  The Retirement Parity for Student Loans Act allows workers to make 
student loan payments while receiving employer matching contributions 
into their retirement plan. This will allow individuals to pay down 
student loan debt and save for retirement at the same time.
  The Public Service Retirement Fairness Act creates parity between the 
public and private sectors, ensuring public-sector and nonprofit 
retirement-saving programs have the same access to low-cost investments 
as private sector retirement plans.
  SECURE 2.0 supports workers at all stages to save for retirement, 
helps small businesses create retirement plan options, and builds on 
bipartisan success of the SECURE Act passed last Congress.
  Madam Speaker, I want to thank my colleagues that worked in a 
bipartisan effort for their work on this vital legislation, and I urge 
my colleagues to vote ``yes''.
  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentlewoman from 
California (Ms. Chu), another real champion of retirement savings.
  Ms. CHU. Madam Speaker, I rise in strong support of H.R. 2954, the 
Securing a Strong Retirement Act. This bill continues the work the Ways 
and Means Committee began 2 years ago with the SECURE Act to expand 
access to retirement savings and enhance retirement readiness 
for millions of Americans across the country.

  I am especially proud of provisions drawn from my bill, the 
Encouraging Americans to Save Act, that strengthens the Saver's Credit. 
This credit provides millions of low- and middle-income taxpayers with 
an incentive to save for retirement each year. But currently it is 
split into three tiers of 10, 20, or 50 percent.
  This legislation not only directs the IRS to promote the credit to 
more communities, including those with limited English proficiency, but 
also makes it both simpler and more generous by setting it at 50 
percent for all eligible taxpayers.
  Madam Speaker, I urge a ``yes'' vote on this bill.
  Mr. BRADY. Madam Speaker, I yield 1 minute to the gentleman from 
Kansas (Mr. Estes).
  Mr. ESTES. Madam Speaker, today I rise in support of SECURE 2.0. 
Since my time as Kansas State Treasurer and a member of the Ways and 
Means Committee, increased retirement security for Americans of all 
ages has been a major policy priority for me.
  Building on our great success with the SECURE Act in 2019, SECURE 2.0 
includes a number of provisions for new employees and near-retirees, 
like my bill to improve the required minimum distribution rules, and my 
bill that

[[Page H3942]]

would make it easier for employees to save for retirement and pay off 
their student loans.
  Employers who are part of an employee stock ownership plan--like the 
Kansas workers I have talked to at Inland Truck Parts, Conco, and 
others--benefit from the bipartisan ESOP provisions in SECURE 2.0.
  The bill also ensures public-sector and nonprofit retirement programs 
have the same access to low-cost retirements, just like for-profit 
retirement plans.
  It allows individuals who have decided to pay down a student loan 
instead of contributing to a 401(k) to still receive an employee match 
for their retirement plans.
  These commonsense retirement security reforms deserve to be law, and 
I strongly encourage my colleagues to vote ``yes'' on SECURE 2.0.

                              {time}  1630

  Mr. NEAL. Madam Speaker, I am pleased to yield 1 minute to the 
gentleman from California (Mr. Panetta), another real champion of 
Social Security and retirement.
  Mr. PANETTA. Madam Speaker, I rise in support of H.R. 2954, the 
SECURE 2.0.
  This bipartisan legislation would make it easier for something that 
has been getting harder and harder, saving for retirement for workers 
and working families.
  I commend the chairman and the ranking member for their very, very 
hard work, and I thank them for including two of my bipartisan bills in 
SECURE 2.0.
  My Public Service Retirement Fairness Act ensures that retirement 
savings programs for nonprofits and the public sector have the same 
access to low-cost investments as private-sector plans.
  This bill would greatly benefit many teachers and nonprofit employees 
who serve in my district and also have to spend an inordinate amount on 
housing by providing them access to affordable retirement plans.
  My Family Attribution Modernization Act, which I worked on with my 
good friend, Jodey Arrington, is also included in SECURE 2.0.
  This bill would modernize outdated family attribution rules so that 
women-owned businesses and other small businesses in community property 
States, like California, have more flexibility and independence.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. NEAL. Madam Speaker, I yield the gentleman an additional 30 
seconds.
  Mr. PANETTA. Madam Speaker, these bills, along with many, many other 
provisions in this bipartisan legislation, are commonsense solutions 
for the futures and the retirements of working families. That is why, 
Madam Speaker, I urge a ``yes'' vote for SECURE 2.0.
  Mr. BRADY. Madam Speaker, I am proud to yield 1 minute to the 
gentleman from Pennsylvania (Mr. Kelly).
  Mr. KELLY of Pennsylvania. Madam Speaker, I think we should mark this 
down, March 29, 2022, the day that the people who were elected and came 
to represent our folks back home actually got together and did 
something on the House floor that was good for everybody in America.
  We are not firing bullets back and forth at each other. We are 
saying: Do you know what? Isn't it great, when we work together, what 
we can get done.
  Mr. Kind and I were walking over together, and he said: Mike, I am 
really happy this happened because there is a lot in there that we both 
worked on, and it looks like it is going to put a little more gold in 
our retirees' pockets when they hit their golden years.
  But this is one thing the press will never cover. They will never 
say: My God, these Republicans and Democrats got together for American 
workers to make sure that they go into retirement and lay their heads 
on pillows at night and sleep because they know they have enough to get 
through the rest of their lives.
  What a moment. What a moment.
  I have to tell you, I am so proud to be a part of this. I thank Mr. 
Brady and Mr. Neal.
  For both sides of the aisle, why don't we use this as an example as 
we move forward as to what the heck we are supposed to do for the 
people who sent us here to represent them?
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. BRADY. Madam Speaker, I yield an additional 30 seconds to the 
gentleman.
  Mr. KELLY of Pennsylvania. Madam Speaker, I thank Kara Getz, from 
Chairman Neal's staff, and Payson Peabody, from Ranking Member Brady's 
staff, for working together on this. They get so little credit for all 
the midnight oil they burn to make sure that we can get legislation 
done. I thank them so much, not just for me but for all the retirees 
and future retirees we have in this country.
  Mr. NEAL. Madam Speaker, might I inquire of the ranking member how 
many more speakers he might have.
  Mr. BRADY. Madam Speaker, I have a few more.
  Mr. NEAL. Madam Speaker, I reserve the balance of my time.
  Mr. BRADY. Madam Speaker, I am really proud to yield 1 minute to the 
gentleman from North Carolina (Mr. Murphy).
  Mr. MURPHY of North Carolina. Madam Speaker, I rise today in support 
of SECURE Act 2.0.
  When our military members pledge a commitment to the United States, 
we promise, in return, to care for them and their families. As the 
proud Representative of close to 90,000 veterans in North Carolina, I 
am committed to supporting strong legislation that improves the lives 
of our veterans and their families.
  When servicemembers change base assignments, their spouses often 
relocate with them, putting their own careers at stake and on hold. The 
SECURE Act prioritizes military family retirements by providing a tax 
credit for small employers that make more benefit plans available for 
military spouses.
  Incentivizing job creators to hire and retain military spouses is an 
important step to strengthening military family retirement savings.
  I am proud of the bipartisan effort by the Ways and Means Committee 
to lead the charge to support our military families, who so often face 
many uphill challenges in attaining retirement security. We must always 
fight for those who have given us so much to keep our safety.
  Mr. NEAL. Madam Speaker, I continue to reserve the balance of my 
time.
  Mr. BRADY. Madam Speaker, first, I include in the Record a number of 
letters and documents in support of SECURE 2.0.
  Among a litany of letters advocating for swift passage, there are 
four I would like to include. These letters are led by the Employee-
owned S Corporations of America, the American Benefits Council, the 
American Retirement Association, and the Investment Company Institute, 
all of which were invaluable members in crafting this bipartisan 
legislation.

                                                    Employee-Owned


                                    S Corporations of America,

                                   Washington, DC, March 24, 2022.
     Hon. Richard Neal,
     Chairman, Committee on Ways & Means,
     Washington, DC.
     Hon. Kevin Brady,
     Ranking Member, Committee on Ways & Means,
     Washington, DC.
       Dear Chairman Neal and Ranking Member Brady: Employee-Owned 
     S Corporations of America (``ESCA'') applauds your efforts to 
     advance the bipartisan Securing a Strong Retirement Act. We 
     are particularly supportive of the inclusion of a key 
     provision reflecting themes of legislation introduced by 
     Committee members Ron Kind and Jason Smith to encourage the 
     creation of more private, employee-owned businesses. We thank 
     you for recognizing the value of S corporation ESOPs to 
     worker retirement savings, and for reflecting that 
     recognition in your important legislation.
       ESCA is the national voice for employee-owned S 
     corporations, and its exclusive mission is to preserve and 
     promote employee-owned S corporations and the benefits 
     provided to their employee-owners. Most S corporation 
     employee stock ownership plans (``S ESOPS'') are 100-percent 
     owned by their employees. Our S ESOP companies engage in a 
     broad spectrum of business activities ranging from 
     manufacturing to construction to playing critical supporting 
     roles such as retail grocery stores and other essential 
     functions to America's infrastructure.
       As you know well, S corporation ESOPs were created 25 years 
     ago with significant bipartisan support from Congress. Today 
     S ESOPs accomplish exactly what Congress intended: they 
     create jobs, generate economic activity, and promote 
     retirement savings.

[[Page H3943]]

       Both specifically for S ESOP employees and more generally, 
     your bill will increase retirement savings opportunities at a 
     time when more than 30 percent of Americans do not have 
     access to a workplace retirement plan and 20 percent of 
     Americans have no retirement savings at all. By contrast, we 
     note, the vast majority of S ESOP companies offer their 
     workers two retirement plans--typically the ESOP plus a 
     401(k). This focus on retirement security is a hallmark of 
     employee-owned companies.
       A new study conducted by the National Center for Employee 
     Ownership found that, heading into and during the pandemic, 
     employees at S ESOP companies had greater job retention and 
     retirement security, including more than twice the average 
     total retirement savings of Americans who work at non-ESOP 
     companies.
       We appreciate you recognizing the value of having more S 
     corporation ESOP companies and look forward to working with 
     you to continue to identify more ways to enable more working 
     Americans to be employee-owners.
       Thank you for your leadership.
           Sincerely,
                                              Stephanie Silverman,
     President and CEO.
                                  ____

       Dear Paige: I am writing on behalf of the American Benefits 
     Council to express our support for bipartisan retirement 
     security legislation that will soon be considered on the 
     floor of the U.S. House of Representatives. This important 
     legislation follows in the tradition of the Setting Every 
     Community Up for Retirement Enhancement (SECURE) Act of 2019.
       The forthcoming ``SECURE 2.0'' bill reflects a thoroughness 
     and thoughtfulness that provides enormous value to the 
     American worker by expanding access to workplace retirement 
     plans and removing barriers to financial well-being. We have 
     recently completed a study of the enormously beneficial 
     impact of the past 25 years of bipartisan retirement 
     legislation:
       Millions of Americans are facing short-term challenges that 
     need critical attention. But it is also important to continue 
     our work on enhancing retirement security because of the 
     harmful effect of the pandemic on savings and retirement 
     programs, which were facing challenges even before the 
     pandemic. As we rebuild our economy, part of that effort 
     needs to include even greater attention to the role of 
     retirement programs that have been jeopardized. We look 
     forward to continued progress in the field of retirement 
     security and stand ready to assist in those efforts.
     Lynn Dudley,
       Senior Vice President, Global Retirement and Compensation 
     Policy, American Benefits Council.
     Diann Howland,
       Vice President, Legislative Affairs, American Benefits 
     Council.
                                  ____



                              American Retirement Association,

                                    Arlington, VA, March 28, 2022.
     Re Letter of Support for the Securing a Strong Retirement Act 
         of 2022.

     Hon. Richard Neal,
     Chairman, Ways & Means Committee,
     House of Representatives, Washington, DC.
     Hon. Bobby Scott,
     Chairman, Education & Labor Committee,
     House of Representatives, Washington, DC.
     Hon. Kevin Brady,
     Ranking Member, Ways & Means Committee,
     House of Representatives, Washington, DC.
     Hon. Virginia Foxx,
     Ranking Member, Education & Labor Committee,
     House of Representatives, Washington, DC.
       Dear Chairman Neal, Ranking Member Brady, Chairman Scott, 
     and Ranking Member Foxx: On behalf of the over 30,000 members 
     of the American Retirement Association (ARA), we hereby 
     express our support for the Securing a Strong Retirement Act 
     of 2022. We commend you for championing this important piece 
     of bipartisan retirement legislation.
       The ARA is the coordinating entity for its five underlying 
     affiliate organizations representing the full spectrum of 
     America's private retirement system--the American Society of 
     Enrolled Actuaries (ASEA), the American Society of Pension 
     Professionals and Actuaries (ASPPA), the National Association 
     of Plan Advisors (NAPA), the National Tax-Deferred Savings 
     Association (NTSA), and the Plan Sponsor Council of America 
     (PSCA). The ARA's members include organizations of all sizes 
     and industries across the nation who sponsor and/or support 
     retirement saving plans and are dedicated to expanding on the 
     success of employer-sponsored plans. The ARA and its 
     underlying affiliate organizations are diverse but united in 
     their common dedication to the success of America's private 
     retirement system.
       The Securing a Strong Retirement Act of 2022 (SSRA) builds 
     upon the success of the Setting Every Community Up for 
     Retirement Enhancement (SECURE) Act to make it even easier 
     for small businesses to adopt and maintain a workplace-based 
     retirement savings plan. The SSRA further increases the small 
     employer pension plan start-up credit to cover 100 percent of 
     the cost to small employers to implement a 401(k) plan for 
     the first three years. The SSRA creates an additional new 
     credit to encourage small employers to make direct 
     contributions to their 401(k) plan for their employees, 
     offsetting up to $1,000 of these employer contributions for 
     each participating employee.
       The SSRA contains several policy items championed by the 
     American Retirement Association. The first item gives 
     employers more time to adopt beneficial discretionary 
     retirement plan amendments up until the due date of the 
     employer's tax return. This new deadline to adopt a 
     beneficial discretionary amendment is consistent with the 
     deadline to adopt a new retirement plan that was provided for 
     in the SECURE Act. This provision gives employers with 
     existing retirement plans the flexibility to make their 
     401(k) plans more generous to rank and files workers after 
     the end of the year. The second item corrects and modernizes 
     the outdated and unfair family attribution rules to ensure 
     women business owners are not penalized if they happen to 
     have minor children or live in a community property state. A 
     third item would broaden the scope of the SECURE Act's pooled 
     employer plan or open multiple employer plan provisions to 
     allow unrelated public education and other non-profit 
     employers to join a single 403(b) plan.
       The SSRA also creates a retirement plan matching program to 
     encourage employees to pay off student loans. The latest 
     version of this program addresses a problem that ARA 
     identified about the impact this new retirement plan design 
     feature could have with the special test that applies to 
     401(k) plans called the average deferral percentage (ADP) 
     test. Since that problem has been fixed in this bill, small 
     businesses will now not have to worry that this benefit puts 
     their retirement plan testing at risk.
       While the SSRA has many good provisions, it is not perfect. 
     The ARA remains concerned about the provision in the bill 
     (Section 314) that would require at least one participant 
     benefit statement be mailed in a paper format given the 
     impact on the environment as well as plan and participant 
     costs. ARA supports the provision that would direct the 
     Department of Labor, Treasury, and the Pension Benefit 
     Guaranty Corporation to issue a report recommending ways to 
     consolidate, simplify, standardize, and improve the various 
     retirement plan disclosure requirements. The ARA will 
     continue to work with Congress on ways to ensure retirement 
     plan participants are effectively accessing the required 
     disclosures.
       But on balance the Securing a Strong Retirement Act of 2022 
     builds upon the success of the workplace-based retirement 
     system and is yet another example of the extensive history of 
     bipartisan legislating in this critical policy area. The ARA 
     thanks Chairman Neal, Ranking Member Brady, Chairman Scott, 
     and Ranking Member Foxx for your hard work and results to 
     improve and enhance the retirement savings of the American 
     workforce and would urge Congress to enact this bill into 
     law.
           Sincerely,

                                     Brian H. Graff, Esq. APM,

                                           Executive Director/CEO,
     American Retirement Association.
                                  ____



                                 Investment Company Institute,

                                   Washington, DC, March 28, 2022.
     Re. Securing a Strong Retirement Act of 2022.

     Hon. Richard Neal,
     Chairman, Committee on Ways and Means,
     House of Representatives, Washington, DC.
     Hon. Kevin Brady,
     Ranking Member, Committee on Ways and Means,
     House of Representatives, Washington, DC.
     Hon. Bobby Scott,
     Chairman, Committee on Education and Labor,
     House of Representatives, Washington, DC.
     Hon. Virginia Foxx,
     Ranking Member, Committee on Education and Labor
     House of Representatives, Washington, DC.
       Dear Chairmen Neal and Scott and Ranking Members Brady and 
     Foxx: On behalf of the Investment Company Institute (ICI), I 
     commend your leadership on the bipartisan Securing a Strong 
     Retirement Act of 2022 or SECURE Act 2.0, which would expand 
     access to retirement savings plans and improve Americans' 
     ability to save.
       The ICI urges the House of Representatives to pass this 
     landmark bipartisan bill as soon as possible and work with 
     the Senate on a unified package of retirement-savings 
     reforms.
       The ICI notes that the bill would:
       Allow savers to keep their retirement savings invested 
     longer by increasing the age for required minimum 
     distributions from retirement accounts to 75 from 72;
       Ensure that workers get the same ``bang for their buck'' 
     for their retirement saving efforts over time by indexing 
     individual retirement account (IRA) catch-up contribution 
     limits to inflation;
       Broaden the ability of employers of various sizes, across 
     different industries to band together in a new type of 
     multiple-employer

[[Page H3944]]

     retirement plan--called a ``pooled employer plan'' or 
     ``PEP''--created by the original SECURE Act;
       Streamline and clarify information retirement savers 
     receive concerning increasingly popular target date funds by 
     allowing use of a single benchmark for the funds that more 
     appropriately tracks its asset allocation;
       Allow employer matching contributions based on student loan 
     payments; and
       Simplify and clarify more than a dozen retirement plan 
     rules.
       We hope that the legislation can be further improved by 
     allowing 403(b) plans to invest in collective investment 
     trusts.
       We wholeheartedly support these provisions and believe your 
     legislation is vitally important to the country and the 
     financial well-being of millions of Americans. SECURE Act 2.0 
     would strengthen our nation's retirement-savings system by 
     expanding coverage, further increasing savings opportunities, 
     and streamlining administrative rules. We look forward to 
     seeing its enactment into law.
           Sincerely,

                                                  Eric J. Pan,

                                                  President & CEO,
                                     Investment Company Institute.

  Mr. BRADY. Madam Speaker, I reserve the balance of my time.
  Mr. NEAL. Madam Speaker, we are waiting on one more speaker. If Mr. 
Brady has anybody else he wants to thank, that would be great.
  I reserve the balance of my time.
  Mr. BRADY. Actually, never make that offer to a sitting Member of 
Congress.
  Madam Speaker, I yield myself such time as I may consume.
  This has been awfully good work on behalf of the bipartisan Members 
of Congress on an issue they believe in. But Chairman Neal and I are 
both blessed to have incredibly hardworking personnel, a professional 
team.
  Madam Speaker, I thank Payson Peabody and Derek Theurer, from our tax 
subcommittee team, for the work that they put in, along with Chairman 
Neal's folks, to develop this legislation, fine-tune the legislation, 
make adjustments as it comes to the floor, and, again, put it in the 
format and with the right designs that we think will do great things 
for the American people and American workers.
  Madam Speaker, I reserve the balance of my time.
  Mr. NEAL. Madam Speaker, I include in the Record a letter that has 
been signed by 50 different charities in support of this legislation.

                                                   March 27, 2022.
     Hon. Richard Neal,
     Chair, Ways and Means Committee,
     House of Representatives.
     Hon. Bobby Scott,
     Chair, Education & Labor Committee,
     House of Representatives.
     Hon. Kevin Brady,
     Ranking Member, Ways and Means Committee,
     House of Representatives.
     Hon. Virginia Foxx,
     Ranking Member, Education & Labor Committee,
     House of Representatives.
       Dear Chairmen Neal and Scott and Ranking Members Brady and 
     Foxx: On behalf of the undersigned nonprofits, including 
     charities and faith-based organizations, we want to express 
     our strong support for the inclusion of the Legacy IRA Act in 
     the bipartisan Securing a Strong Retirement Act (H.R. 2954, 
     section 310). The Legacy IRA Act was originally introduced as 
     H.R. 2909 by Representatives Don Beyer (D-VA-08) and Mike 
     Kelly (R-PA-16).
       We appreciate you placing a priority on families in America 
     who are saving for retirement and simplifying the retirement 
     system through the broader Securing a Strong Retirement Act. 
     Specifically, the Legacy IRA provision will encourage more 
     charitable giving by enabling seniors to make tax-free 
     contributions from their traditional IRAs to charities 
     through life-income plans. It is an important piece of 
     broader efforts to increase charitable giving to enable 
     nonprofits to continue to provide critical services in local 
     communities such as health research and patient education, 
     food assistance, domestic violence services, childcare, youth 
     homeless shelters, and cultural and arts programming.
       Many of our organizations are dependent on private 
     philanthropy, including gift planning. We believe the Legacy 
     IRA provision simply offers seniors another philanthropic 
     option and would incentivize more giving to help charities 
     while helping middle-income seniors who need a lifetime 
     income.
       We strongly support the inclusion of the Legacy IRA Act in 
     the Securing a Strong Retirement Act and urge the House of 
     Representatives to approve this measure. America is stronger 
     when everyone has the opportunity to give, to get involved, 
     and to strengthen their communities.
           Sincerely,
       ALS Association, Alternate ROOTS, Alzheimer's Association, 
     American Alliance of Museums, American Cancer Society Cancer 
     Action Network, American Council on Gift Annuities, American 
     Heart Association, American Lung Association, American Red 
     Cross, Americans for the Arts, Arab Community Center for 
     Economic and Social Services (ACCESS), Association of Art 
     Museum Directors, Association of Fundraising Professionals, 
     Big Brothers Big Sisters of America, Boys & Girls Clubs of 
     America, Catalyst of San Diego & Imperial Counties, Council 
     for Advancement and Support of Education, Council for 
     Christian Colleges & Universities, Council on Foundations, 
     Covenant House International, DANCE/USA, Florida 
     Philanthropic Network, Girl Scouts of the USA, Girls Inc., 
     Goodwill Industries International, Inc., Grantmakers in the 
     Arts, Habitat for Humanity International, Hemophilia 
     Federation of America.
       Independent Sector, JDRF, Jewish Federations of North 
     America, Leadership 18, League of American Orchestras, 
     Lutheran Services in America, March of Dimes, Mental Health 
     America, Momentum Nonprofit Partners, National Alliance on 
     Mental Illness, National Association of Charitable Gift 
     Planners, National Community Action Partnership, National MS 
     Society, New York Funders Alliance, OPERA America, Performing 
     Arts Alliance, Philanthropy Ohio, Philanthropy Southeast, 
     Providence, Social Current, The Nonprofit Alliance, The 
     Salvation Army USA, Theatre Communications Group, UNICEF USA, 
     United Philanthropy Forum, Volunteers of America, Wabash 
     College, YMCA of the USA, YWCA USA.

  Mr. NEAL. Madam Speaker, I also include in the Record a letter from 
the AARP supporting this legislation.

                                                         AARP,

                                                   March 28, 2022.
     Hon. Richard Neal,
     Chair, Committee on Ways and Means, Washington, DC.
     Hon. Robert Scott,
     Chair, House Committee on Education and Labor, Washington, 
         DC.
     Hon. Kevin Brady,
     Ranking Member, Committee on Ways and Means, Washington, DC.
     Hon. Virginia Foxx,
     Ranking Member, House Committee on Education and Labor, 
         Washington, DC.
       Dear Chairs Neal and Scott, Ranking Members Brady and Foxx:
       On behalf of our 38 million members and all older Americans 
     nationwide, AARP appreciates your leadership to improve 
     retirement savings opportunities via the Securing a Strong 
     Retirement Act of 2022. While Social Security continues to be 
     the bedrock of retirement income for most American workers 
     and their families, individuals want and need additional 
     retirement income sources. Your bipartisan legislation would 
     make several significant enhancements to current law.
       AARP strongly supports the provision in this bill that 
     would provide an annual paper statement of benefits to ensure 
     families know where they stand when saving for retirement. As 
     the U.S. increasingly relies on individual account-based 
     retirement savings, workers and their families must timely 
     understand, monitor, and manage their lifetime savings. Full 
     and meaningful disclosure is critical to individual planning 
     and pension law generally. As such, to be effective, Congress 
     needs to ensure all workers and plan participants will 
     receive and can review important retirement plan documents in 
     the form that most workers and families want. No document is 
     more fundamental than an individual's annual benefit 
     statement. AARP also supports the optional delivery--and 
     retention--of important information electronically.
       The Securing a Strong Retirement Act also takes important 
     steps towards improving worker access to retirement plans. 
     Under this bill, more people who work part-time will be able 
     to enroll in their employers' retirement savings plans by 
     allowing them to save after only two (rather than three) 
     years of employment. More than 27 million employees across 
     the country work less than full-time. This provision will be 
     especially helpful to the many older workers who can only 
     find part-time work or need to work part-time due to 
     caregiving responsibilities. In addition, employers with more 
     than ten employees would be required to automatically enroll 
     workers in new retirement savings plans under this bill. This 
     provision will help many employees benefit from automatic 
     savings tools.
       For workers who are struggling to save for retirement, the 
     bill expands the current SAVERS tax credit to provide an 
     enhanced matching contribution to millions of additional low- 
     and moderate-income families. The matching contribution is 
     both an incentive for individuals to save for retirement 
     while also providing additional retirement funds.
       Additionally, the creation of a national retirement Lost 
     and Found database will help workers locate retirement 
     accounts they may have had with previous employers. This is 
     increasingly important as more and more workers change jobs 
     several times over the course of their careers. The 
     legislation also establishes limitations and safeguards for 
     retirees who may have mistakenly received plan overpayments, 
     including allowing a retirement plan to forego recouping the 
     overpayment. Finally, we urge the retention of

[[Page H3945]]

     the pretax option for catch-up contributions to help the 50+ 
     save for retirement.
       We look forward to continuing to work with you to help 
     every American adequately save for retirement in order to be 
     independent as they age.
           Sincerely,

                                                 Bill Sweeney,

                                            Senior Vice President,
                                               Government Affairs.

  Mr. NEAL. Madam Speaker, I reserve the balance of my time.
  Mr. BRADY. Madam Speaker, I yield myself such time as I may consume.
  I think one of the things I am most proud of in this legislation 
began almost 2 years ago. After the passage of the SECURE Act, Chairman 
Neal and I sat down on the floor talking about what more we could do to 
help people save for retirement.
  What we both talked about is what everyone knows exists, the savings 
gap, and what little is being done to address it. This is the gap of 
how many Americans will spend their lifetime and save virtually 
nothing. When it is time to retire, their retirement isn't in their 
hands. It is all owed to government or other help.
  We decided we would do the hard work to try to engage millions of 
Americans. We know who they are. They don't make lots of money. It is 
low income or moderate income. They usually work for a very small 
business. They are the toughest to be able to begin getting into that 
savings environment.
  We designed this bill to really focus on those who have not saved in 
the past and, unless we do something differently, were not going to be 
saving for the future.
  That is why so much of this bill is designed around them. That is why 
we help small businesses set up plans.
  Here is what we know, Madam Speaker. To have a secure retirement, we 
need to make sure a business offers a plan.
  Secondly, we need to make sure that worker is part of that plan.
  Thirdly, we need to have those contributions matched.
  Fourthly, you need to save more over time as your income increases.
  This bill really takes significant steps to make sure small 
businesses are offering those plans and get help matching those first 
thousand dollars.
  We use the saver's credit, which is pretty unused these days, and 
muscle it up, make it more available to help those with low income 
provide those first dollars.
  Then, we make the changes so it is easier for small businesses to 
either start their own plan or pool with others, as we did in the 
SECURE Act, all of which we think are the elements to close that 
saver's gap and give Americans who really had no chance to save an 
opportunity to do that.
  That is what, in my view, is the importance of this legislation, why 
I am proud of the work.
  Chairman Neal and the Republican and Democrat members of our 
committee worked together beautifully on this bill. I think this is an 
important one that I urge the Senate to take up and pass as well.
  Madam Speaker, I yield the balance of my time to the gentleman from 
Georgia (Mr. Allen), and I ask unanimous consent that he may control 
the remainder of the time.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  Mr. NEAL. Madam Speaker, I yield myself such time as I may consume.
  Oftentimes in this Chamber, you will hear the phrase 
``transformative.'' Sometimes it is hyperbolic, but on this occasion, 
this is transformative legislation.
  We have fundamentally changed the opportunities for retirement for 
the American family, for millions and millions of people. I want to 
acknowledge the work of the ranking member on this, Mr. Brady, because 
his input has been invaluable in helping to get to this moment.
  We are proud of this work. We are helping Americans prepare for a 
secure retirement. The catch-up provisions alone are startling in this 
legislation.
  Remember, there are a lot of people in America who are trying to 
simultaneously educate their children and save for retirement. It is a 
real challenge.
  The catch-up provisions here mean that if people wish to work longer 
or begin to set aside more prescribed dollars for retirement because 
they couldn't do it during certain years of paying college expenses, we 
provide that opportunity.
  This has been meaningful for Members on both sides. I have heard 
Members on the Republican side point out their contributions to it, and 
they are entirely correct.
  We, on our side, have also included Mr. Davis' legislation that 
ensures workers with student loans don't miss out on 401(k) matching 
contributions. Representative Murphy's legislation to increase the 
required minimum distribution age to 75 is here as well.
  We created a higher catch-up contribution amount for those years just 
before retirement, a provision particularly important for pilots who 
have a mandatory retirement age. That was a priority of Representatives 
Sanchez and Pascrell.
  Mr. Kind's bills have been included. His legislation fixing a problem 
with startup credits and multiple employer plans is here as well.
  SECURE 2.0 contains Representative Chu's legislation that would 
enhance the saver's credit, which was also a priority for 
Representative Sewell.
  We have included Representative Panetta's legislation that provides 
403(b) custodial accounts that are permitted to invest in collective 
investment trusts, as well as his legislation reforming family 
attribution rules.
  We have included Representative Sewell's legislation to reduce by 1 
year the period of service requirement for long-term part-time workers 
to participate in 401(k) plans. This provision is particularly 
important for women who tend to work part-time more frequently than 
men.
  Mr. Suozzi contributed legislation that would direct Treasury to 
issue regulations addressing a glitch with respect to insurance-
dedicated exchange-traded funds.
  Mr. Beyer's legislation is included. That was important to the 
charitable community and would, among other things, index the inflation 
rate for annual IRA charitable distribution limits.
  The bill includes Representative Moore's legislation that would 
provide penalty-free withdrawals from retirement plans for individuals 
in case of domestic abuse.
  We have included Representative Evans' legislation directing the 
Labor Department to update its disclosure rules to allow better 
comparisons amongst investments to aid participant decisionmaking.
  Finally, we have included Representative Pascrell's legislation that 
would allow first responders to exclude service-connected disability 
pension plans and payments from their gross income after they reach 
retirement age. That also touches upon Representative Higgins' ESOP 
Fairness Act.

                              {time}  1645

  Mr. Brady noted earlier, and let me reinforce, the exceptional work 
of the Ways and Means Committee staff on this occasion. As I have said 
many times before, we are blessed with amongst the brightest, smartest, 
and hardest working staff members in Congress. Let me thank MaiLan 
Rodgers for her work and Kara Getz, who has been integral to the 
development of not only this legislation but also the SECURE Act and 
the Butch Lewis Act, both of which became law.
  The SECURE Act was one of the most significant retirement 
opportunities, and this legislation will become law, I hope, in the 
near future. Let's not wait another decade to enact the important 
provisions of this legislation. This bill goes a long way in addressing 
this country's retirement crisis.
  I want to point out something I said earlier. Half the people who get 
up and go to work every day in America are not in a qualified 
retirement plan. We need to continue to address that issue.
  This is important legislation. I know it will pass. I think the last 
time this legislation came to the floor, all but four Members of this 
Chamber voted for this legislation.
  I thank Mr. Brady, again, for his good work and the good work of his 
staff.
  Madam Speaker, I yield the balance of my time to the gentleman from 
Virginia (Mr. Scott), and I ask unanimous consent that he be permitted 
to control the remainder of the time.

[[Page H3946]]

  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Massachusetts?
  There was no objection.
  Mr. SCOTT of Virginia. Madam Speaker, I yield myself such time as I 
may consume.
  Madam Speaker, I rise in support of H.R. 2954, the Securing a Strong 
Retirement Act of 2022, which incorporates the bipartisan Retirement 
Improvement and Savings Enhancement Act, or RISE Act, that the 
Committee on Education and Labor approved by voice vote last fall.
  I thank the gentleman from Massachusetts (Mr. Neal) for his hard work 
in incorporating this legislation into SECURE 2.0. Our committee was 
able to reach a bipartisan agreement on the RISE Act, thanks in large 
part to the leadership of the chairman and ranking member of our 
Subcommittee on Health, Employment, Labor, and Pensions, the gentleman 
from California (Mr. DeSaulnier) and the gentleman from Georgia (Mr. 
Allen). I want to recognize them and thank them for their important 
contributions to this bill.
  American workers deserve a decent wage and the ability to retire with 
dignity and security. Unfortunately, far too many Americans are working 
later in their lives and still relying on the next paycheck to cover 
monthly expenses. This legislation makes meaningful improvements to our 
retirement system, helping Americans prepare for and achieve the secure 
retirement that they deserve.
  I am particularly pleased that this bill incorporates several key 
priorities authorized by Committee on Education and Labor members.
  For example, it includes legislation sponsored by the gentlewoman 
from Oregon (Ms. Bonamici), the chair of the Subcommittee on Civil 
Rights and Human Services, which creates an online retirement lost-and-
found database at the Department of Labor to help workers locate their 
hard-earned retirement savings as they move from job to job. According 
to the Government Accountability Office, more than 25 million people 
who changed jobs between 2004 and 2014 left behind one or more 
retirement accounts. Establishing this kind of database at the 
Department of Labor is necessary and long overdue.
  The bill includes legislation sponsored by the gentlewoman from North 
Carolina (Ms. Manning) that reduces barriers preventing part-time 
workers from participating in their employer's retirement savings 
plans. This simple change will benefit many part-time workers, 
particularly women.
  It also includes legislation sponsored by the gentleman from Indiana 
(Mr. Mrvan) requiring the Department of Labor to review and update 
guidance from the mid-1990s regarding pension risk transfers.
  Importantly, Madam Speaker, this bill offers an opportunity to send a 
message to workers and retirees across the country that their 
retirement security is a critical priority for every Member of this 
House.
  Madam Speaker, I urge my colleagues to support the bill, and I 
reserve the balance of my time.
  Mr. ALLEN. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, I rise today in support of H.R. 2954, which includes 
the text of the Education and Labor Committee's bipartisan Retirement 
Improvement and Savings Enhancement Act, the RISE Act, H.R. 5891, a 
bill that I was proud to cosponsor with the distinguished chairman of 
the Education and Labor Committee and Ranking Member Foxx.
  This bipartisan legislation is a much-needed push toward 
modernization that our country's retirement system needs. Our economy 
has evolved and so have the ways Americans plan for retirement.
  Neither employers nor employee benefit plans fit into the same 
cookie-cutter policies they did when the Employee Retirement Income 
Security Act of 1974 was first enacted. The RISE Act and H.R. 2954 
include reforms that will benefit America's workforce and job creators.
  Worker access to employer-sponsored retirement plans has improved 
over the last three decades, and participation has grown. Today, more 
workers are saving and saving more in employer-sponsored plans.
  However, there remains room for improvement, as too many Americans 
still lack access to these benefits. This legislation is a major step 
toward providing reasonable solutions to solve the problems hindering 
Americans from being able to save for a secure future.
  Building on the SECURE Act of 2019, the RISE Act and H.R. 2954 expand 
multiple and pooled employer plans, giving charities, educational 
institutions, and nonprofit organizations the opportunity to offer 
affordable retirement plans. Expanding pooled employer plans give small 
businesses access to more affordable plans by allowing them to band 
together, decreasing the costs and burdens associated with sponsoring a 
plan and providing more Americans with an opportunity to save.

  Allowing small businesses and nonprofits the opportunity to offer 
competitive retirement plans so they can attract workers is extremely 
important, as the labor shortage has hit them the hardest.
  Additionally, the RISE Act and H.R. 2954 will allow employers to 
offer small financial incentives to employees for participating in a 
retirement plan. This will help encourage employees to start preparing 
for retirement earlier in their careers, which is vital for employee 
contributions to earn years of compounding benefits for their 
retirement accounts.
  Finally, this bill expands access to retirement savings for part-time 
workers who otherwise would be limited from participating in the 
employer plan. Removing barriers to saving ensures more Americans have 
a secure and self-sufficient retirement. Red tape and unnecessary 
barriers must not keep employees from building a strong retirement.
  The RISE Act and H.R. 2954 also ease the burden of administering 
retirement accounts by removing unnecessary disclosure requirements. 
The legislation directs the Department of Labor, Department of the 
Treasury, and the Pension Benefit Guaranty Corporation to simplify 
reporting and disclosure regulations, streamline the collection of 
contributions to pooled employer plans, and update benchmarking 
guidelines to accommodate a broader selection of plan investments.
  Importantly, retirement professionals themselves are in support of 
the RISE Act. Organizations like the American Benefits Council, the 
Insured Retirement Institute, the American Retirement Association, and 
the SPARK Institute are supportive of this legislation.
  Workers and plan sponsors alike can see that the RISE Act will make 
commonsense reforms and improve the lives and futures of the American 
worker. The RISE Act offers creative and practical solutions to the 
problems in our retirement system.
  As legislators, we must take action to tackle issues that affect the 
daily lives of our constituents. As a businessman, I know firsthand the 
issues that are affecting American workers that can be improved upon.
  This legislation will improve the retirement security for millions of 
Americans. I urge my colleagues to join in support, and I look forward 
to its passage in the House and for these reforms to be ultimately 
signed into law.
  Madam Speaker, I reserve the balance of my time.
  Mr. SCOTT of Virginia. Madam Speaker, I yield 3 minutes to the 
gentlewoman from North Carolina (Ms. Manning), a distinguished member 
of the Committee on Education and Labor.
  Ms. MANNING. Madam Speaker, I thank Chairman Scott for yielding me 
this time.
  Madam Speaker, I rise in strong support of the Securing a Strong 
Retirement Act.
  Today, too many workers face difficulty saving for retirement. Even 
for those who have access to retirement plans, it can be difficult to 
grow and protect hard-earned savings.
  There are roughly 55 million Americans who lack access to a 
retirement savings plan at work, with many lacking any retirement 
savings at all. This is particularly true for women. Approximately 50 
percent of women ages 55 to 66 have no personal retirement savings, 
compared to 47 percent of men, and only 22 percent of women have 
$100,000 or more in savings, compared to 30 percent of men.

[[Page H3947]]

  Women are also more likely than men to work in part-time jobs that 
don't qualify for a retirement plan and are more likely than men to 
quit work, transfer jobs, or interrupt their careers to care for family 
members, resulting in lower retirement savings.
  This is why I am proud to have my bill, the Improving Part-Time 
Workers Access to Retirement Act, included in this important 
legislation. This provision will make it easier for long-term part-time 
workers to access retirement by shortening the amount of time they are 
required to work for their employer in order to participate in their 
401(k) plan. This will have an important impact on the ability of women 
and low-wage workers to be able to save for retirement.
  As a member of the House Education and Labor Committee and a strong 
supporter of college affordability, I am also pleased that this 
legislation will allow borrowers the option to pay down their student 
loans while still receiving an employer match in their retirement plan. 
This commonsense approach to retirement savings will help the nearly 46 
million Americans facing student loan debt become more financially 
stable while overcoming the barriers too many in our country face upon 
graduating, like advancing in their career, buying a home, or starting 
a family.

  SECURE 2.0 will help workers save more longer, improve flexibility 
and protections for Americans' retirement accounts, and eliminate some 
of the barriers small businesses face in providing comprehensive 
retirement options to their employees.
  These are bipartisan, commonsense provisions that will better serve 
workers and employers across our country. I strongly urge my colleagues 
to vote in favor of this critical legislation.
  Mr. ALLEN. Madam Speaker, I yield 2 minutes to the gentleman from 
Michigan (Mr. Walberg), my good friend.
  Mr. WALBERG. Madam Speaker, I rise in support of the Securing a 
Strong Retirement Act.
  As an entire generation moves closer to retirement, we must ensure 
our laws are up to date to help Americans achieve their retirement 
goals.
  Last Congress, we passed the SECURE Act, which made significant 
improvements to our Nation's retirement policies. Today, we are 
building upon that success to ensure Americans can live their golden 
years with dignity.
  I would like to highlight one provision of this bill, which 
incorporates a bipartisan policy I have long championed with my 
colleague, Representative Sablan. Our provision will reduce the 
administrative costs for employers sponsoring retirement plans for 
their employees.
  Businesses often cite limited financial resources as a key reason for 
not offering retirement benefits. The Retirement Plan Modernization Act 
would ease the administrative burdens on employers, especially small 
businesses, enabling more small businesses to offer retirement benefits 
and ensure employees are not needlessly paying higher fees.
  I thank both the Committee on Education and Labor and the Committee 
on Ways and Means for including text from our bill in H.R. 2954.
  Madam Speaker, the Securing a Strong Retirement Act will enhance 
opportunities for Americans to save for retirement. I urge all Members 
to support it.

                              {time}  1700

  Mr. SCOTT of Virginia. Madam Speaker, I yield 3 minutes to the 
gentleman from Indiana (Mr. Mrvan), a distinguished member of the 
Committee on Education and Labor.
  Mr. MRVAN. Madam Speaker, I thank Chairman Scott for allowing me the 
time.
  I rise today in support of H.R. 2954, the Securing a Strong 
Retirement Act. I am grateful for the bipartisan collaboration to 
produce this legislation that makes commonsense improvements to our 
Nation's retirement system.
  There are far too many challenges today that prevent workers from 
having access to secure retirement benefits and information to protect 
their hard-earned savings.
  I also appreciate the inclusion of the provisions of my legislation, 
the Pension Risk Transfer Accountability Act, which requires the 
Department of Labor to review existing rules on pension risk transfers.
  A promise made should be a promise kept for all workers and retirees.
  I encourage all my colleagues to support this legislation to further 
ensure that workers can retire with dignity, security, and peace of 
mind.
  Mr. ALLEN. Madam Speaker, I yield 2 minutes to the gentleman from 
Pennsylvania (Mr. Keller), another good friend.
  Mr. KELLER. Madam Speaker, I thank the gentleman from Georgia. I rise 
in support of the Securing a Strong Retirement Act. As part of the 
Education and Labor Committee, our goal is to provide employers and 
employees with opportunities to access a safe, effective, and 
productive workplace.
  We also work on policy that encourages people to save for retirement 
and provides opportunities for their families. This bill accomplishes 
both by improving employer-sponsored benefits to help workers make good 
decisions that will serve them well in the future.
  The bill increases access to retirement accounts, lowers the cost of 
administering programs for small businesses, and provides incentives 
for workers to voluntarily put money towards savings.
  It also requires the Department of Labor to review existing reporting 
and disclosure requirements, making them easier to comply with and 
understand, updates the dollar threshold for automatic distributions by 
plans to participants which was last updated in 1997.
  It streamlines the collection of contributions to pooled employer 
plans and updates benchmarking guidelines to accommodate different 
investment products. The bill also adds tax incentives for small 
businesses that offer employee stock ownership plans, a great tool and 
benefit for employees to have a stake with their employer.
  The Employee Retirement Income Security Act of 1974 set a foundation 
for today's policies, but the measure needs to be updated to reflect 
the 21st century workforce.
  I urge my colleagues to support this important measure and look 
forward to this legislation becoming law.
  Mr. SCOTT of Virginia. Madam Speaker, I yield 3 minutes to the 
gentleman from Oregon (Mr. Blumenauer), a distinguished member of the 
Committee on Ways and Means and chair of its Subcommittee on Trade.
  Mr. BLUMENAUER. Madam Speaker, I appreciate the chairman's courtesy 
for permitting me to speak on this issue and his leadership on an issue 
that concerns us all.
  We are facing a retirement crisis in this country. Too many people do 
not have adequate resources. The aging population is exploding, and we 
have seen financial uncertainty in the midst of the COVID crisis, in 
particular.
  I am pleased that we are able to come together as a Congress on a 
bipartisan basis to advance this legislation.
  Recently, we watched people come together dealing with trade 
relations with Russia, ratcheting up sanctions on a bipartisan basis, 
and this is another strong signal, I think.
  I also appreciate Chairman Neal for his leadership in spearheading 
the SECURE 2.0 which takes the Oregon auto-enrollment model to the 
Federal level and provides new incentives to promote and expand 
employee stock ownership plans, ESOPs.
  I have long supported ESOPs as a successful model that provides a 
company's workers with retirement savings through their investment in 
their employee stock. I have been stunned at the stories I have heard 
about people who have what one would think are unexceptional jobs who, 
through this mechanism, have been able to retire with significant 
savings as a result.
  Now, by giving employees skin in the game, the ESOP structure 
produces employees that are more likely to set aside money for 
retirement. They can retire earlier and worry less about retirement 
income.
  The companies that use this mechanism are fundamentally different. We 
have seen in times of economic strife, employee ESOP-owned companies 
are more generous with their employees. They are slower to lay people 
off, they bring them back, and, in fact, they are more profitable.
  It is an encouraging mechanism that I think epitomizes the best of 
the American ingenuity and the creation of wealth.

[[Page H3948]]

  This is a structure that works and one that is being expanded by this 
legislation. By allowing for a deferral of gain on a small amount of 
the proceeds of sales of employer stock to an ESOP, there will be even 
more companies incented to sell stock to ESOPs, promoting and expanding 
this innovative model.
  I am honored to support this legislation. I hope that we will be able 
to promote greater awareness and understanding of this powerful model. 
This is an important step forward.
  Mr. ALLEN. Madam Speaker, I yield 5 minutes to the gentlewoman from 
North Carolina (Ms. Foxx), our great Republican leader.
  Ms. FOXX. Madam Speaker, I thank my colleague from Georgia for 
yielding me time.
  H.R. 2954 includes the text of the RISE Act, a bill that I am proud 
to lead with Chairman Scott of the Education and Labor Committee.
  This bill was born out of true bipartisan collaboration, and I am 
pleased at the progress we have made with our colleagues across the 
aisle.
  Hardworking Americans deserve the opportunity to save for a secure 
future, yet too many workers aren't putting anything towards their 
retirement nest egg.
  By removing the red tape tying up job creators and providing 
incentives for workers to save more, this legislation will strengthen 
and modernize America's retirement system, so our Nation's workers, 
retirees, and employers are better served.
  It truly is a much-needed step in the right direction. Practical 
solutions like the RISE Act and H.R. 2954 are a win for job creators, 
workers, and our Nation's economic future.
  I urge my colleagues to vote ``yes''.
  Madam Speaker, I would like to inquire if the distinguished chairman 
of the Education and Labor Committee would be willing to engage in a 
colloquy with me about the matter of furnishing paper ERISA disclosures 
to participants and beneficiaries.
  I yield to the chairman.
  Mr. SCOTT of Virginia. I would be happy to enter into a colloquy with 
my colleague.
  Ms. FOXX. I thank the chairman.
  Madam Speaker, the underlying bill includes an imperfect provision 
requiring retirement plans to provide a paper statement annually.
  The bill also directs the Department of Labor to revise its 2002 and 
2020 safe harbor regulations to conform with this requirement.
  While I support the bill, I have serious concerns about this blunt 
provision which would undermine DOL's 2002 and 2020 e-delivery safe 
harbor regulations. Participants in plans have been relying on the 2002 
safe harbor regulations for nearly 20 years.
  The Committee on Education and Labor has dedicated considerable time 
to this issue. I do not consider this a settled matter, and I will 
continue to engage with my House and Senate colleagues to find a 
workable solution that simplifies and modernizes the disclosure 
requirements for retirement plans.
  Mr. SCOTT of Virginia. Will the gentlewoman yield?
  Ms. FOXX. I yield to the gentleman from Virginia.
  Mr. SCOTT of Virginia. Madam Speaker, I thank the ranking member for 
yielding to me and for her comments.
  It is my understanding that our staffs will continue their efforts, 
along with their Senate counterparts, to try to find a path forward on 
this issue that balances the interests of plan sponsors and the 
retirement plan participants.
  Ms. FOXX. Madam Speaker, reclaiming my time, I thank the chairman for 
his willingness to continue working on this issue together.
  Again, I urge a ``yes'' vote on the bill.
  Mr. SCOTT of Virginia. Madam Speaker, I yield 3 minutes to the 
gentlewoman from Oregon (Ms. Bonamici), the chair of the Subcommittee 
on Civil Rights of the Education and Labor Committee.
  Ms. BONAMICI. Madam Speaker, I thank Chairman Scott for yielding, and 
I thank him for his leadership on this and so many important issues in 
the Education and Labor Committee.
  I rise in strong support of the Securing a Strong Retirement Act of 
2022 or SECURE 2.0, which makes important and bipartisan improvements 
that will improve enrollment in and access to retirement savings plans.
  As employers have shifted from pension plans to retirement plans such 
as 401(k)'s, workers have increasingly become responsible for tracking, 
managing, and consolidating their retirement accounts when they change 
jobs.
  There is no standard way for workers to consolidate their accounts, 
and many workers actually lose track of their hard-earned investments.
  According to a Government Accountability Office report, about 25 
million people changed jobs between 2004 and 2014 and left one or more 
retirement accounts behind. This problem is only expected to grow as 
young workers transition between jobs at greater rates than previous 
generations.
  The SECURE Act 2.0 includes provisions from my Retirement Savings 
Lost and Found Act which will help address the challenge of tracking 
retirement savings. My bill creates a national lost-and-found registry 
for retirement accounts housed at the Department of Labor.
  The lost-and-found registry will provide workers with a centralized 
way to track their retirement accounts, and it will also help workers 
claim their hard-earned retirement funds regardless of how often they 
transition from job to job.
  I strongly support the commonsense improvements in the SECURE Act 
2.0, including the creation of a retirement savings lost-and-found 
registry which will help working families retire with dignity.
  I urge all of my colleagues to vote in favor of passage of this 
important legislation.
  Mr. ALLEN. Madam Speaker, I yield myself the balance of my time.
  Madam Speaker, the goal of every American is to retire with security 
and dignity. The RISE Act and H.R. 2954 will help workers do just that. 
This bill will expand the availability of private retirement programs 
to more Americans.
  Neither small businesses, nor non-profits and educational 
institutions should be prohibited from accessing the benefits offered 
to larger retirement plans.
  Building on the success of the SECURE Act of 2019, this legislation 
cuts red tape, streamlines reporting and disclosure requirements, and 
provides American workers retirement.

  I thank the chairman and our Republican leader for their commitment 
to bipartisanship and for defending the committee's important 
jurisdiction over retirement issues in this bill.
  I urge my colleagues to vote in favor of H.R. 2954, and I yield back 
the balance of my time.
  Mr. SCOTT of Virginia. Madam Speaker, I yield myself the balance of 
the time.
  Madam Speaker, as my colleagues have said, the bill makes meaningful 
and sensible improvements to America's retirement system. It will help 
workers, retirees, and employers.
  I again congratulate my Education and Labor Committee colleagues who 
have authored provisions in this bill, and I want to recognize and 
thank the ranking member of the Committee on Education and Labor, Dr. 
Foxx, and her staff for their partnership and work on this important 
bill with my staff which includes Kevin McDermott, Richard Miller, 
Daniel Foster, and Eli Hovland who have worked hard on this bill from 
start to finish.
  Madam Speaker, I urge all Members to support the bill, and I yield 
back the balance of my time.
  Mr. DANNY K. DAVIS of Illinois. Madam Speaker, I strongly support the 
Securing a Strong Retirement Act because it will strengthen the 
retirement coverage and savings of millions of Americans. I applaud the 
many provisions included to expand retirement coverage and savings, 
such as automatic enrollment in the retirement plans, modernizing the 
Saver's Credit, creating new incentives to small businesses to offer 
retirement plans, and increasing charitable donations permitted through 
an IRA.
  I thank Chairman Neal for including my bill, the Retirement Parity 
for Student Loans Act, that promotes increased retirement savings 
through an employer match for employees making student loan payments. 
By allowing employers to contribute an employer-match into a retirement 
plan based on an employee's student loan payment, younger workers who 
currently cannot afford to save for their retirement will begin saving 
much sooner.

[[Page H3949]]

  Although over three-quarters of Americans have access to an 
employment-based retirement savings account, few Americans can make the 
maximum contribution of $19,500 to their retirement savings. Any 
contribution to retirement savings is particularly limited for 
millennials struggling with heavy student loan debt. The average 
student loan balance for 2019 graduates was $32,731, and only 30 
percent of young workers use 401(k) programs to save for retirement. 
This policy is an important tool for employers to retain their 
workforce and for workers to improve retirement savings and lower 
educational debt.
  I urge passage of this bill that does so much to expand retirement 
coverage and savings to improve workers' long-term financial well-
being.
  Mr. DeSAULNIER. Madam Speaker, Americans are living longer than ever 
before--about 30 years longer, on average, than a century ago. To quote 
the founder of the Stanford Center on Longevity, ``longevity is . . . 
among the greatest opportunities we have had in human history.''
  Those extra years mean more time spent with family and friends and 
enjoying retirement.
  Unfortunately, while life expectancy increases, Americans are falling 
behind on retirement savings.
  More than 4 in 10 American adults have less than $25,000 saved for 
retirement.
  And the coronavirus pandemic has made it worse. According to a recent 
study, 1 in 5 Americans said they are saving less for retirement due to 
the pandemic's impact on their finances.
  We need to act now to correct course to improve retirement savings.
  The Securing a Strong Retirement Act is a comprehensive, bipartisan 
bill that eliminates many of the hurdles to workers enrolling in and 
remaining in retirement savings plans.
  As a former small business owner and as the current Chair of the 
Health, Employment, Labor, and Pensions Subcommittee, I have seen 
firsthand how reforms like the ones in this bill can help people live 
happier lives into their retirement.
  Importantly, this legislation incorporates the RISE Act, which I was 
proud to co-author with the Chairman of the full Committee Chairman 
Scott, Ranking Member Foxx, and the Ranking member of my HELP 
Subcommittee Mr. Allen. Through that effort, we can:
  Help part-time workers join an employers' retirement savings plan;
  Incentivize workers to participate in retirement plans with small 
financial incentives; and
  Through the ``Retirement Lost and Found'' database at the Department 
of Labor help workers locate their hard-earned retirement savings as 
they move from job to job.
  I am proud to have played a part in this significant and bipartisan 
effort, and will proudly vote in support of this legislation.
  Mr. BEYER. Madam Speaker, I rise today to speak in support of the 
bipartisan Securing a Strong Retirement Act which includes the Legacy 
IRA Act. This legislation, led by my colleague Mike Kelly and I, would 
encourage charitable giving by American seniors. Donating to charity is 
a hallmark of American society. We are fortunate to have one of the 
most generous countries in the world. In spite of, or possibly because 
of, the upheavals in recent years, we have seen increases in American 
charitable giving to the highest levels in our history.
  We must do all we can to encourage this impulse, particularly among 
middle-income seniors who wish to continue giving post-retirement. The 
Legacy IRA Act would enable seniors to make tax-free contributions from 
their traditional IRAs to charities through life-income plans. This 
bill is a win-win, for philanthropic seniors who want to continue 
giving, and for charitable organizations that benefit from donations. I 
would like to thank Chairman Neal for his support in including this 
measure in the SECURE Act and Rep. Kelly for his partnership on this 
important legislation.
  Mr. SUOZZI. Madam Speaker, I rise in support of the Securing a Strong 
Retirement Act of 2022. Everyone can agree that the American Dream 
should be achievable for anyone willing to work hard. The American 
Dream is the ability for families to one day own a home, provide an 
education for their children, and retire with dignity. The SECURE Act 
2.0 does several things to help make retirement security easier for 
millions of hardworking Americans. I rise today not only in support of 
the bill, but to advocate for the inclusion of another bipartisan bill, 
the ABLE Employment Flexibility Act, as SECURE 2.0 progresses through 
the legislative process.
  Along with my colleague Mr. Wenstrup, I introduced another practical 
solution that will allow more hardworking Americans the ability to 
participate in the labor force more fully by providing them access to 
benefits tailored to their needs. My bill permits employers to make 
tax-exempt contributions to ABLE (Achieving Better Life Experience) 
accounts in lieu of making contributions to existing tax-exempt defined 
contribution retirement plans. An ABLE account is established to pay 
expenses such as food, education, housing, transportation, employment 
training and support, and health care expenses of a designated 
beneficiary who is disabled. In other words, it will allow millions of 
Americans with disabilities to receive, and their employers the ability 
to provide, similar tax-preferred benefits as their fellow employees.
  The ABLE Employment Flexibility Act would allow ABLE-eligible workers 
to permit an employer to make contributions to a 529A account in lieu 
of contributions to the employer's defined contribution plan. The 
legislation is needed because, under current law, an employer that 
offers employees with a disability the choice to have employer 
contributions that would be made to the retirement plan instead 
contributed to a 529A account would jeopardize the tax-qualified status 
of the retirement plan.
  Many defined contribution plans permit an eligible employee to defer 
compensation into that defined contribution plan, with the employer 
sponsoring the plan providing for a matching contribution on such 
deferrals. The plan may also have nonelective employer contributions 
that are automatically made. Unfortunately, assets in these plans could 
adversely impact the availability of means-tested benefits. By 
eliminating this barrier, employers will be able to provide equitable 
opportunities to their employees to save for critical services while 
allowing them to retain critical government support and services.
  Through the leadership of Chairman Neal and Ranking Member Brady, we 
are passing SECURE 2.0, a bill with overwhelming support. The bill has 
support from every stakeholder, from advocates for seniors to the 
retirement industry, and the practical solutions contained have 
garnered bipartisan support. Both things the American people are 
clamoring for in these hyper-partisan times. Like SECURE 2.0, the ABLE 
Employment Flexibility Act has received support from an array of 
stakeholders from disability advocates to associations representing the 
retirement industry.
  I want to thank the Chairman, Ranking Member, their staffs, and the 
Joint Committee on Taxation for their willingness to work with myself 
and Mr. Wenstrup to address technical issues with the legislative text 
of the ABLE Employment Flexibility Act to achieve the underlying policy 
goal--help more Americans save effectively and efficiently to live and 
retire in dignity. I look forward to our continued efforts and hope 
that we can resolve outstanding issues as we advance the SECURE Act 2.0 
to the President for his signature.
  Mr. BUCHANAN. Madam Speaker, I rise today in strong support of H.R. 
2954, the Securing a Strong Retirement Act, also known as SECURE 2.0.
  It is a sad reality that today too many hardworking Americans enter 
retirement without enough savings.
  In fact, according to a recent report, only 36 percent of working 
adults feel their retirement savings are on track to meet their goals 
and more than one-third of U.S. workers have never even had a 
retirement account.
  It's clear that millions of Americans could face a financial crisis 
during their retirement years. Congress can help head off this 
avoidable emergency and give individuals, families, and businesses more 
tools to boost their retirement nest eggs.
  Last year, the House Ways & Means Committee unanimously passed the 
bipartisan Securing a Strong Retirement Act of 2021, legislation 
providing new incentives to help improve the retirement financial 
landscape for Americans across the country.
  This bipartisan retirement savings bill seeks to build on the 
momentum from legislation that passed last Congress.
  Specifically, this important new legislation would double the 
existing tax credit for businesses with 50 or fewer employees that 
start a company retirement plan, expand-auto-enrollment, push back the 
withdrawal retirement age, and allow workers to double their catch-up 
contributions. This bipartisan bill also authorizes new protections for 
people paying down student loan debts and incentives to America's 
veterans.
  SECURE 2.0 is also completely budget neutral.
  Retirement doesn't have to turn into another U.S. financial crisis. 
With responsible incentives and smart planning, we can give more people 
the peace of mind they deserve as they grow older. I'm pleased to see 
Congress put aside partisan games and finally come together to enact 
SECURE 2.0 and strengthen America's retirement security.
  Ms. JACKSON LEE. Madam Speaker, I rise in strong support of H.R. 
2954, the Securing a Strong Retirement Act of 2021, which will make 
various changes with respect to employer-sponsored retirement plans, 
including providing for the automatic enrollment of employees in 
certain plans and increasing the age at which participants are required 
to begin receiving mandatory distributions.

[[Page H3950]]

  This legislation expands opportunities for Americans to increase 
their retirement savings, improves workers' long-term financial 
wellbeing, and builds on the Setting Every Community Up for Retirement 
Enhancement (SECURE) Act of 2019.
  The purpose of this legislation is to expand automatic enrollment, 
simplify many retirement plan rules, and strengthen small businesses' 
ability to offer workplace retirement plans.
  Among other things, H.R. 2954 would:
  Expand automatic enrollment of workers in employer-sponsored 
retirement saving plans.
  Employees would be automatically enrolled in plans such as 401(k)s 
and 403(b)s unless they opt out.
  The initial automatic enrollment amount is at least 3 percent but no 
more than 10 percent. And then each year that amount is increased by 1 
percent until it reaches 10 percent.
  The age at which seniors must take required minimum distributions 
(RMDs) from their retirement savings accounts would be raised from 72 
to 73. The bill subsequently would raise the age to 74 starting in 2029 
and to 75 starting in 2032.
  Reduce the penalty for failure to take RMDs to 25 percent from 50 
percent. If this failure is corrected in a timely manner, as defined by 
the bill, the penalty would be further reduced to 10 percent.
  Increase the limits on so-called catch-up contributions for employees 
ages 62 to 64. In 2021, these workers were allowed to contribute up to 
$6,500 to their retirement savings plans beyond the otherwise 
applicable limits. This bill would increase that amount to $10,000 and 
index it to inflation.
  The catch-up contribution limit for individual retirement accounts 
would be indexed to inflation. Currently, savers ages 50 and up may 
contribute an additional $1,000 annually to their IRAs, but that limit 
isn't indexed to inflation.
  Allow employers to match a worker's student loan payment by making an 
equivalent contribution to that worker's retirement savings plan.
  This provision is intended to help workers who can't afford to save 
for retirement because of high student-loan debt, which causes them to 
miss out on their employers' matching contributions to retirement 
savings plans.
  Today's workplace is more generationally diverse than ever.
  Older employees are working longer, and millennials make up roughly a 
third of the American workforce. This bill helps both older and younger 
workers.
  For younger workers, this can help jump start the saving process 
earlier by making employer matches available for those who are also 
paying off student loans.
  For older workers nearing retirement, they would have more time to 
save, due to the increased catch-up contribution limits and delayed 
required minimum distributions (RMD).
  By automatically enrolling every working person in a plan, with the 
option to opt out, we begin to solve the biggest reasons people don't 
save for retirement.
  According to the U.S. Census Bureau, the three biggest reasons people 
do not save for retirement are: not having a plan at work (74 percent 
of non-savers), being self-employed (14 percent) and not being included 
in a workplace plan (12 percent).
  These proposed changes are beneficial to Americans of all ages, 
helping them reach their savings goals and provide more flexibility 
upon retirement.
  Though there are many paths to retirement, it's critical to be 
financially prepared, especially as people are living longer.
  For these reasons, I ask my colleagues to join me in voting for H.R. 
2954 because we need to ensure that every American can benefit from the 
best retirement plan for them.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Massachusetts (Mr. Neal) that the House suspend the 
rules and pass the bill, H.R. 2954, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. ALLEN. Madam Speaker, on that I demand the yeas and nays.
  The SPEAKER pro tempore. Pursuant to section 3(s) of House Resolution 
8, the yeas and nays are ordered.
  Pursuant to clause 8 of rule XX, further proceedings on this motion 
are postponed.

                          ____________________