II 

Calendar No. 426 

117TH CONGRESS 

2D SESSION S. 4353 

To amend the Employee Retirement Income Security Act of 1974 and the 

Internal Revenue Code of 1986 to improve retirement plan provisions, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 7, 2022 

Mrs. MURRAY (for herself and Mr. BURR) introduced the following bill; which 

was read twice and referred to the Committee on Health, Education, 

Labor, and Pensions 

JUNE 21, 2022 

Reported by Mrs. MURRAY, with amendments 

[Omit the part struck through and insert the part printed in italic] 

A BILL 

To amend the Employee Retirement Income Security Act 

of 1974 and the Internal Revenue Code of 1986 to 

improve retirement plan provisions, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Retirement Improvement and Savings Enhancement to 

4 Supplement Healthy Investments for the Nest Egg Act’’ 

5 or the ‘‘RISE & SHINE Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—RETIREMENT IMPROVEMENT AND SAVINGS 

ENHANCEMENT (RISE) 

Sec. 101. Updating dollar limit for mandatory distributions. 

Sec. 102. Multiple employer 403(b) plans. 

Sec. 103. Performance benchmarks for asset allocation funds. 

Sec. 104. Pooled employer plans modification. 

Sec. 105. Review of pension risk transfer interpretive bulletin. 

Sec. 106. Review and report to congress relating to reporting and disclosure requirements. 

Sec. 107. Eliminating unnecessary plan requirements related to unenrolled participants. 

Sec. 108. Recovery of retirement plan overpayments. 

Sec. 109. Improving coverage for part-time workers. 

Sec. 110. Recognition of tribal government domestic relations orders. 

TITLE II—EMERGENCY SAVINGS ACT OF 2022 

Sec. 201. Short title. 

Sec. 202. Emergency savings accounts linked to defined contribution plans. 

TITLE III—NOTICE AND DISCLOSURE 

Sec. 301. Defined contribution plan fee disclosure improvements. 

Sec. 302. Consolidation of defined contribution plan notices. 

Sec. 303. Information needed for financial options risk mitigation act. 

Sec. 304. Defined benefit annual funding notices. 

TITLE IV—MODERNIZATION 

Sec. 401. Automatic reenrollment under qualified automatic contribution arrangements and eligible automatic contribution arrangements. 

Sec. 402. Incidental plan expenses. 

TITLE V—AMENDMENTS TO PLANS OFFERED BY MULTIPLE 

EMPLOYERS 

Sec. 501. Report on pooled employer plans. 

Sec. 502. Annual audits for group of plans. 

TITLE VI—DEFINED BENEFIT PLAN PROVISIONS 


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Sec. 601. Cash balance. 

Sec. 602. Termination of variable rate premium indexing. 

Sec. 603. Enhancing retiree health benefits in pension plans. 

TITLE VII—ADDITIONAL RETIREMENT ENHANCEMENTS 

Sec. 701. Provisions relating to plan amendments. 

Sec. 702. Worker Ownership, Readiness, and Knowledge (WORK) Act. 

Sec. 703. Report by the Secretary of Labor on the impact of inflation on retirement savings. 

1 TITLE I—RETIREMENT IM2 PROVEMENT AND SAVINGS 

3 ENHANCEMENT (RISE) 

4 SEC. 101. UPDATING DOLLAR LIMIT FOR MANDATORY DIS5 TRIBUTIONS. 

6 (a) IN GENERAL.—Section 203(e)(1) of the Em7 ployee Retirement Income Security Act of 1974 (29 

8 U.S.C. 1053(e)(1)) and sections 401(a)(31)(B)(ii) and 

9 411(a)(11)(A) of the Internal Revenue Code of 1986 are 

10 each amended by striking ‘‘$5,000’’ and inserting 

11 ‘‘$7,000’’. 

12 (b) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to distributions made after Decem14 ber 31, 2023. 

15 SEC. 102. MULTIPLE EMPLOYER 403(B) PLANS. 

16 (a) IN GENERAL.—Section 3(43)(A) of the Employee 

17 Retirement Income Security Act of 1974 (29 U.S.C. 

18 1002(43)(A)) is amended— 

19 (1) in clause (ii), by striking ‘‘section 501(a) of 

20 such Code or’’ and inserting ‘‘section 501(a) of such 


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1 Code, a plan that consists of contracts described in 

2 section 403(b) of such Code, or’’; and 

3 (2) in the flush text at the end, by striking ‘‘the 

4 plan.’’ and inserting ‘‘the plan, but such term shall 

5 include any program (other than a governmental 

6 plan) maintained for the benefit of the employees of 

7 more than 1 employer that consists of contracts de8 scribed in section 403(b) of such Code and that 

9 meets the requirements of subparagraph (A) or (B) 

10 of section 413(e)(1) of such Code.’’. 

11 (b) CONFORMING AMENDMENTS.—Sections 

12 3(43)(B)(v)(II) and 3(44)(A)(i)(I) of the Employee Re13 tirement Income Security Act of 1974 (29 U.S.C. 

14 1002(43)(B)(v)(II) and 1002(44)(A)(i)(I)) are each 

15 amended by striking ‘‘section 401(a) of such Code or’’ and 

16 inserting ‘‘section 401(a) of such Code, a plan that con17 sists of contracts described in section 403(b) of such Code, 

18 or’’. 

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to plan years beginning after De21 cember 31, 2022. 

22 SEC. 103. PERFORMANCE BENCHMARKS FOR ASSET ALLO23 CATION FUNDS. 

24 (a) IN GENERAL.—Not later than 2 years after the 

25 date of enactment of this Act, the Secretary of Labor shall 


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1 promulgate regulations providing that, in the case of a 

2 designated investment alternative that contains a mix of 

3 asset classes, the administrator of a plan may, but is not 

4 required to, use a benchmark that is a blend of different 

5 broad-based securities market indices if— 

6 (1) the blend is reasonably representative of the 

7 asset class holdings of the designated investment al8 ternative; 

9 (2) for purposes of determining the blend’s re10 turns for 1-, 5-, and 10-calendar-year periods (or for 

11 the life of the alternative, if shorter), the blend is 

12 modified at least once per year to reflect changes in 

13 the asset class holdings of the designated investment 

14 alternative; 

15 (3) the blend is furnished to participants and 

16 beneficiaries in a manner that is reasonably designed 

17 to be understandable; and 

18 (4) each securities market index that is used for 

19 an associated asset class would separately satisfy the 

20 requirements of such regulation for such asset class. 

21 (b) STUDY.—Not later than 3 years after the date 

22 of enactment of this Act, the Secretary of Labor shall de23 liver a report to the Committees on Finance and Health, 

24 Education, Labor, and Pensions of the Senate and the 

25 Committees on Ways and Means and Education and 


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1 Labor of the House of Representatives regarding the utili2 zation, effectiveness, and participants’ understanding of 

3 the benchmarking requirements under this section. 

4 SEC. 104. POOLED EMPLOYER PLANS MODIFICATION. 

5 (a) IN GENERAL.—Section 3(43)(B)(ii) of the Em6 ployee Retirement Income Security Act of 1974 (29 

7 U.S.C. 1002(43)(B)(ii)) is amended to read as follows: 

8 ‘‘(ii) designate a named fiduciary 

9 (other than an employer in the plan) to be 

10 responsible for collecting contributions to 

11 the plan and require such fiduciary to im12 plement written contribution collection pro13 cedures that are reasonable, diligent, and 

14 systematic;’’. 

15 (b) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to plan years beginning after De17 cember 31, 2022. 

18 SEC. 105. REVIEW OF PENSION RISK TRANSFER INTERPRE19 TIVE BULLETIN. 

20 Not later than 1 year after the date of enactment 

21 of this Act, the Secretary of Labor shall— 

22 (1) review section 2509.95–1 of title 29, Code 

23 of Federal Regulations (relating to the fiduciary 

24 standards under the Employee Retirement Income 

25 Security Act of 1974 when selecting an annuity proVerDate Sep 11 2014 02:17 Jun 22, 2022 Jkt 029200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S4353.RS S4353

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1 vider for a defined benefit pension plan) and consult 

2 with the Advisory Council on Employee Welfare and 

3 Pension Benefit Plans (established under section 

4 512 of the Employee Retirement Income Security 

5 Act of 1974 (29 U.S.C. 1142)), to determine wheth6 er amendments to section 2509.95–1 of title 29, 

7 Code of Federal Regulations are warranted; and 

8 (2) report to Congress on the findings of such 

9 review and consultation, including an assessment of 

10 any risk to participants. 

11 SEC. 106. REVIEW AND REPORT TO CONGRESS RELATING 

12 TO REPORTING AND DISCLOSURE REQUIRE13 MENTS. 

14 (a) STUDY.—As soon as practicable after the date of 

15 enactment of this Act, the Secretary of Labor, the Sec16 retary of the Treasury, and the Director of the Pension 

17 Benefit Guaranty Corporation shall review the reporting 

18 and disclosure requirements, as applicable to each such 

19 agency head, of the Employee Retirement Income Security 

20 Act of 1974 applicable to pension plans (as defined in sec21 tion 3(2) of such Act (29 U.S.C. 1002(2)). 

22 (b) REPORT.— 

23 (1) IN GENERAL.—Not later than 3 years after 

24 the date of enactment of this Act, the Secretary of 

25 Labor, the Secretary of the Treasury, and the DirecVerDate Sep 11 2014 02:17 Jun 22, 2022 Jkt 029200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4353.RS S4353

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1 tor of the Pension Benefit Guaranty Corporation, 

2 jointly, and after consultation with a balanced group 

3 of participant and employer representatives, shall 

4 with respect to plans referenced in subsection (a) re5 port on the effectiveness of the applicable reporting 

6 and disclosure requirements and make such rec7 ommendations as may be appropriate to the Com8 mittee on Education and Labor and the Committee 

9 on Ways and Means of the House of Representatives 

10 and the Committee on Health, Education, Labor, 

11 and Pensions and the Committee on Finance of the 

12 Senate to consolidate, simplify, standardize, and im13 prove such requirements so as to simplify reporting 

14 for such plans and ensure that plans can furnish 

15 and participants and beneficiaries timely receive and 

16 better understand the information they need to mon17 itor their plans, plan for retirement, and obtain the 

18 benefits they have earned. 

19 (2) ANALYSIS OF EFFECTIVENESS.—To assess 

20 the effectiveness of the applicable reporting and dis21 closure requirements, the report shall include an 

22 analysis, based on plan data, of how participants 

23 and beneficiaries are providing preferred contact in24 formation, the methods by which plan sponsors and 

25 plans are furnishing disclosures, and the rate at 


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1 which participants and beneficiaries (grouped by key 

2 demographics) are receiving, accessing, under3 standing, and retaining disclosures. 

4 (3) COLLECTION OF INFORMATION.—The agen5 cies shall conduct appropriate surveys and data col6 lection to obtain any needed information. 

7 SEC. 107. ELIMINATING UNNECESSARY PLAN REQUIRE8 MENTS RELATED TO UNENROLLED PARTICI9 PANTS. 

10 (a) AMENDMENT OF EMPLOYEE RETIREMENT IN11 COME SECURITY ACT OF 1974.— 

12 (1) IN GENERAL.—Part 1 of subtitle B of title 

13 I of the Employee Retirement Income Security Act 

14 of 1974 (29 U.S.C. 1021 et seq.) is amended by re15 designating section 111 as section 112 and by in16 serting after section 110 the following new section: 

17 ‘‘SEC. 111. ELIMINATING UNNECESSARY PLAN REQUIRE18 MENTS RELATED TO UNENROLLED PARTICI19 PANTS. 

20 ‘‘(a) IN GENERAL.—Notwithstanding any other pro21 vision of this title, with respect to any individual account 

22 plan, no disclosure, notice, or other plan document (other 

23 than the notices and documents described in paragraphs 

24 (1) and (2)) shall be required to be furnished under this 


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1 title to any unenrolled participant if the unenrolled partici2 pant is furnished— 

3 ‘‘(1) an annual reminder notice of such partici4 pant’s eligibility to participate in such plan and any 

5 applicable election deadlines under the plan; and 

6 ‘‘(2) any document requested by such partici7 pant that the participant would be entitled to receive 

8 notwithstanding this section. 

9 ‘‘(b) UNENROLLED PARTICIPANT.—For purposes of 

10 this section, the term ‘unenrolled participant’ means an 

11 employee who— 

12 ‘‘(1) is eligible to participate in an individual 

13 account plan; 

14 ‘‘(2) has been furnished— 

15 ‘‘(A) the summary plan description pursu16 ant to section 104(b), and 

17 ‘‘(B) any other notices related to eligibility 

18 under the plan required to be furnished under 

19 this title, or the Internal Revenue Code of 

20 1986, in connection with such participant’s ini21 tial eligibility to participate in such plan; 

22 ‘‘(3) does not have an account balance in the 

23 plan; and 

24 ‘‘(4) satisfies such other criteria as the Sec25 retary of Labor may determine appropriate, as preVerDate Sep 11 2014 02:17 Jun 22, 2022 Jkt 029200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S4353.RS S4353

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1 scribed in guidance issued in consultation with the 

2 Secretary of Treasury. 

3 For purposes of this section, any eligibility to participate 

4 in the plan following any period for which such employee 

5 was not eligible to participate shall be treated as initial 

6 eligibility. 

7 ‘‘(c) ANNUAL REMINDER NOTICE.—For purposes of 

8 this section, the term ‘annual reminder notice’ means a 

9 notice provided in accordance with section 2520.104b–1 

10 of title 29, Code of Federal Regulations (or any successor 

11 regulation), which— 

12 ‘‘(1) is furnished in connection with the annual 

13 open season election period with respect to the plan 

14 or, if there is no such period, is furnished within a 

15 reasonable period prior to the beginning of each plan 

16 year; 

17 ‘‘(2) notifies the unenrolled participant of— 

18 ‘‘(A) the unenrolled participant’s eligibility 

19 to participate in the plan; and 

20 ‘‘(B) the key benefits and rights under the 

21 plan, with a focus on employer contributions 

22 and vesting provisions; and 

23 ‘‘(3) provides such information in a prominent 

24 manner and calculated to be understood by the aver25 age participant.’’. 


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1 (2) CLERICAL AMENDMENT.—The table of con2 tents in section 1 of the Employee Retirement In3 come Security Act of 1974 is amended by striking 

4 the item relating to section 111 and by inserting 

5 after the item relating to section 110 the following 

6 new items: 

‘‘Sec. 111. Eliminating unnecessary plan requirements related to unenrolled 

participants. 

‘‘Sec. 112. Repeal and effective date.’’. 

7 (b) AMENDMENT OF INTERNAL REVENUE CODE OF

8 1986.—Section 414 of the Internal Revenue Code of 1986 

9 is amended by adding at the end the following new sub10 section: 

11 ‘‘(aa) ELIMINATING UNNECESSARY PLAN REQUIRE12 MENTS RELATED TO UNENROLLED PARTICIPANTS.— 

13 ‘‘(1) IN GENERAL.—Notwithstanding any other 

14 provision of this title, with respect to any defined 

15 contribution plan, no disclosure, notice, or other plan 

16 document (other than the notices and documents de17 scribed in subparagraphs (A) and (B)) shall be re18 quired to be furnished under this title to any 

19 unenrolled participant if the unenrolled participant 

20 is furnished— 

21 ‘‘(A) an annual reminder notice of such 

22 participant’s eligibility to participate in such 

23 plan and any applicable election deadlines under 

24 the plan, and 


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1 ‘‘(B) any document requested by such par2 ticipant that the participant would be entitled 

3 to receive notwithstanding this subsection. 

4 ‘‘(2) UNENROLLED PARTICIPANT.—For pur5 poses of this subsection, the term ‘unenrolled partici6 pant’ means an employee who— 

7 ‘‘(A) is eligible to participate in a defined 

8 contribution plan, 

9 ‘‘(B) has been furnished— 

10 ‘‘(i) the summary plan description 

11 pursuant to section 104(b) of the Em12 ployee Retirement Income Security Act of 

13 1974, and 

14 ‘‘(ii) any other notices related to eligi15 bility under the plan and required to be 

16 furnished under this title, or the Employee 

17 Retirement Income Security Act of 1974, 

18 in connection with such participant’s initial 

19 eligibility to participate in such plan, 

20 ‘‘(C) does not have an account balance in 

21 the plan, and 

22 ‘‘(D) satisfies such other criteria as the 

23 Secretary of the Treasury may determine ap24 propriate, as prescribed in guidance issued in 

25 consultation with the Secretary of Labor. 


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1 For purposes of this subsection, any eligibility to 

2 participate in the plan following any period for 

3 which such employee was not eligible to participate 

4 shall be treated as initial eligibility. 

5 ‘‘(3) ANNUAL REMINDER NOTICE.—For pur6 poses of this subsection, the term ‘annual reminder 

7 notice’ means the notice described in section 111(c) 

8 of the Employee Retirement Income Security Act of 

9 1974.’’. 

10 (c) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to plan years beginning after De12 cember 31, 2022. 

13 SEC. 108. RECOVERY OF RETIREMENT PLAN OVERPAY14 MENTS. 

15 (a) OVERPAYMENTS UNDER ERISA.—Section 206 of 

16 the Employee Retirement Income Security Act of 1974 

17 (29 U.S.C. 1056) is amended by adding at the end the 

18 following new subsection: 

19 ‘‘(h) SPECIAL RULES APPLICABLE TO BENEFIT

20 OVERPAYMENTS.— 

21 ‘‘(1) GENERAL RULE.—In the case of an inad22 vertent benefit overpayment by any pension plan, the 

23 responsible plan fiduciary shall not be considered to 

24 have failed to comply with the requirements of this 

25 title merely because such fiduciary determines, in 


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1 the exercise of its fiduciary discretion, not to seek 

2 recovery of all or part of such overpayment from— 

3 ‘‘(A) any participant or beneficiary, 

4 ‘‘(B) any plan sponsor of, or contributing 

5 employer to— 

6 ‘‘(i) an individual account plan, pro7 vided that the amount needed to prevent or 

8 restore any impermissible forfeiture from 

9 any participant’s or beneficiary’s account 

10 arising in connection with the overpayment 

11 is, separately from and independently of 

12 the overpayment, allocated to such account 

13 pursuant to the nonforfeitability require14 ments of section 203 (for example, out of 

15 the plan’s forfeiture account, additional 

16 employer contributions, or recoveries from 

17 those responsible for the overpayment), or 

18 ‘‘(ii) a defined benefit pension plan 

19 subject to the funding rules in part 3 of 

20 this subtitle B, unless the responsible plan 

21 fiduciary determines, in the exercise of its 

22 fiduciary discretion, that failure to recover 

23 all or part of the overpayment faster than 

24 required under such funding rules would 

25 materially affect the plan’s ability to pay 


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1 benefits due to other participants and 

2 beneficiaries, or 

3 ‘‘(C) any fiduciary of the plan, other than 

4 a fiduciary (including a plan sponsor or contrib5 uting employer acting in a fiduciary capacity) 

6 whose breach of its fiduciary duties resulted in 

7 such overpayment, provided that if the plan has 

8 established prudent procedures to prevent and 

9 minimize overpayment of benefits and the rel10 evant plan fiduciaries have followed such proce11 dures, an inadvertent benefit overpayment will 

12 not give rise to a breach of fiduciary duty. 

13 ‘‘(2) REDUCTION IN FUTURE BENEFIT PAY14 MENTS AND RECOVERY FROM RESPONSIBLE

15 PARTY.—Paragraph (1) shall not fail to apply with 

16 respect to any inadvertent benefit overpayment 

17 merely because, after discovering such overpayment, 

18 the responsible plan fiduciary— 

19 ‘‘(A) reduces future benefit payments to 

20 the correct amount provided for under the 

21 terms of the plan, or 

22 ‘‘(B) seeks recovery from the person or 

23 persons responsible for the overpayment. 

24 ‘‘(3) EMPLOYER FUNDING OBLIGATIONS.— 

25 Nothing in this subsection shall relieve an employer 


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1 of any obligation imposed on it to make contribu2 tions to a plan to meet the minimum funding stand3 ards under part 3 of this subtitle B or to prevent 

4 or restore an impermissible forfeiture in accordance 

5 with section 203. 

6 ‘‘(4) RECOUPMENT FROM PARTICIPANTS AND

7 BENEFICIARIES.—If the responsible plan fiduciary, 

8 in the exercise of its fiduciary discretion, decides to 

9 seek recoupment from a participant or beneficiary of 

10 all or part of an inadvertent benefit overpayment 

11 made by the plan to such participant or beneficiary, 

12 it may do so, subject to the following conditions: 

13 ‘‘(A) No interest or other additional 

14 amounts (such as collection costs or fees) are 

15 sought on overpaid amounts for any period. 

16 ‘‘(B) If the plan seeks to recoup past over17 payments of a non-decreasing periodic benefit 

18 by reducing future benefit payments— 

19 ‘‘(i) the reduction ceases after the 

20 plan has recovered the full dollar amount 

21 of the overpayment, 

22 ‘‘(ii) the amount recouped each cal23 endar year does not exceed 10 percent of 

24 the full dollar amount of the overpayment, 

25 and 


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1 ‘‘(iii) future benefit payments are not 

2 reduced to below 90 percent of the periodic 

3 amount otherwise payable under the terms 

4 of the plan. 

5 Alternatively, if the plan seeks to recoup past 

6 overpayments of a non-decreasing periodic ben7 efit through one or more installment payments, 

8 the sum of such installment payments in any 

9 calendar year does not exceed the sum of the 

10 reductions that would be permitted in such year 

11 under the preceding sentence. 

12 ‘‘(C) If the plan seeks to recoup past over13 payments of a benefit other than a non-decreas14 ing periodic benefit, the plan satisfies require15 ments developed by the Secretary for purposes 

16 of this subparagraph. 

17 ‘‘(D) Efforts to recoup overpayments are— 

18 ‘‘(i) not accompanied by threats of 

19 litigation, unless the responsible plan fidu20 ciary reasonably believes it could prevail in 

21 a civil action brought in Federal or State 

22 court to recoup the overpayments, and 

23 ‘‘(ii) not made through a collection 

24 agency or similar third party, unless the 

25 participant or beneficiary ignores or rejects 


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1 efforts to recoup the overpayment following 

2 either a final judgment in Federal or State 

3 court or a settlement between the partici4 pant or beneficiary and the plan, in either 

5 case authorizing such recoupment. 

6 ‘‘(E) Recoupment of past overpayments to 

7 a participant is not sought from any beneficiary 

8 of the participant, including a spouse, surviving 

9 spouse, former spouse, or other beneficiary. 

10 ‘‘(F) Recoupment may not be sought if the 

11 first overpayment occurred more than 3 years 

12 before the participant or beneficiary is first no13 tified in writing of the error. 

14 ‘‘(G) A participant or beneficiary from 

15 whom recoupment is sought is entitled to con16 test all or part of the recoupment pursuant to 

17 the plan’s claims procedures. 

18 ‘‘(H) In determining the amount of 

19 recoupment to seek, the responsible plan fidu20 ciary shall take into account the hardship that 

21 recoupment likely would impose on the partici22 pant or beneficiary. 

23 ‘‘(5) EFFECT OF CULPABILITY.—Subpara24 graphs (A) through (F) of paragraph (4) shall not 

25 apply to protect a participant or beneficiary who is 


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1 culpable. For purposes of this paragraph, a partici2 pant or beneficiary is culpable if the individual bears 

3 responsibility for the overpayment (such as through 

4 misrepresentations or omissions that led to the over5 payment), or if the individual knew, or had good 

6 reason to know under the circumstances, that the 

7 benefit payment or payments were materially in ex8 cess of the correct amount. Notwithstanding the pre9 ceding sentence, an individual is not culpable merely 

10 because the individual believed the benefit payment 

11 or payments were or might be in excess of the cor12 rect amount, if the individual raised that question 

13 with an authorized plan representative and was told 

14 the payment or payments were not in excess of the 

15 correct amount. With respect to a culpable partici16 pant or beneficiary, efforts to recoup overpayments 

17 shall not be made through threats of litigation, un18 less a lawyer for the plan makes a determination 

19 that there is a reasonable likelihood of success to re20 cover an amount that would be greater than the cost 

21 of recovery.’’. 

22 (b) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply as of the date of enactment of this 

24 Act. 


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1 (c) CERTAIN ACTIONS BEFORE DATE OF ENACT2 MENT.—Plans, fiduciaries, employers, and plan sponsors 

3 are entitled to rely on— 

4 (1) a good faith interpretation of then existing 

5 administrative guidance for inadvertent benefit over6 payment recoupments and recoveries that com7 menced before the date of enactment of this Act, 

8 and 

9 (2) determinations made before the date of en10 actment of this Act by the responsible plan fidu11 ciary, in the exercise of its fiduciary discretion, not 

12 to seek recoupment or recovery of all or part of an 

13 inadvertent benefit overpayment. 

14 In the case of a benefit overpayment that occurred prior 

15 to the date of enactment of this Act, any installment pay16 ments by the participant or beneficiary to the plan or any 

17 reduction in periodic benefit payments to the participant 

18 or beneficiary, which were made in recoupment of such 

19 overpayment and which commenced prior to such date, 

20 may continue after such date. Nothing in this subsection 

21 shall relieve a fiduciary from responsibility for an overpay22 ment that resulted from a breach of its fiduciary duties. 


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1 SEC. 109. IMPROVING COVERAGE FOR PART-TIME WORK2 ERS. 

3 (a) IN GENERAL.—Section 202 of the Employee Re4 tirement Income Security Act of 1974 (29 U.S.C. 1052) 

5 is amended by adding at the end the following new sub6 section: 

7 ‘‘(c) SPECIAL RULE FOR CERTAIN PART-TIME EM8 PLOYEES.— 

9 ‘‘(1) IN GENERAL.—A pension plan that in10 cludes either a qualified cash or deferred arrange11 ment (as defined in section 401(k) of the Internal 

12 Revenue Code of 1986) or a salary reduction agree13 ment (as described in section 403(b) of such Code) 

14 shall not require, as a condition of participation in 

15 the arrangement or agreement, that an employee 

16 complete a period of service with the employer (or 

17 employers) maintaining the plan extending beyond 

18 the close of the earlier of— 

19 ‘‘(A) the period permitted under subsection 

20 (a)(1) (determined without regard to subpara21 graph (B)(i) thereof); or 

22 ‘‘(B) the first 24-month period— 

23 ‘‘(i) consisting of 2 consecutive 12- 

24 month periods during each of which the 

25 employee has at least 500 hours of service; 

26 and 


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1 ‘‘(ii) by the close of which the em2 ployee has attained the age of 21. 

3 ‘‘(2) EXCEPTION.—Paragraph (1)(B) shall not 

4 apply to any employee described in section 410(b)(3) 

5 of the Internal Revenue Code of 1986. 

6 ‘‘(3) COORDINATION WITH OTHER RULES.— 

7 ‘‘(A) IN GENERAL.—In the case of employ8 ees who are eligible to participate in the ar9 rangement or agreement solely by reason of 

10 paragraph (1)(B): 

11 ‘‘(i) EXCLUSIONS.—An employer may 

12 elect to exclude such employees from the 

13 application of subsections (a)(4), (k)(3), 

14 (k)(12), (k)(13), and (m)(2) of section 401 

15 of the Internal Revenue Code of 1986 and 

16 section 410(b) of such Code. 

17 ‘‘(ii) NONDISCRIMINATION RULES.— 

18 Notwithstanding paragraph (1), section 

19 401(k)(15)(B)(i)(I) of such Code shall 

20 apply. 

21 ‘‘(iii) TIME OF PARTICIPATION.—The 

22 rules of subsection (a)(4) shall apply to 

23 such employees. 

24 ‘‘(B) TOP-HEAVY RULES.—An employer 

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1 ble to participate in a plan maintained by the 

2 employer solely by reason of paragraph (1)(B) 

3 from the application of the vesting and benefit 

4 requirements under subsections (b) and (c) of 

5 section 416 of the Internal Revenue Code of 

6 1986. 

7 ‘‘(4) 12-MONTH PERIOD.—For purposes of this 

8 subsection, 12-month periods shall be determined in 

9 the same manner as under the last sentence of sub10 section (a)(3)(A), except that 12-month periods be11 ginning before January 1, 2022, shall not be taken 

12 into account.’’. 

13 (b) VESTING.—Section 203(b) of the Employee Re14 tirement Income Security Act of 1974 (29 U.S.C. 

15 1053(b)) is amended by redesignating paragraph (4) as 

16 paragraph (5) and by inserting after paragraph (3) the 

17 following new paragraph: 

18 ‘‘(4) PART-TIME EMPLOYEES.—For purposes of 

19 determining whether an employee who is eligible to 

20 participate in a qualified cash or deferred arrange21 ment or a salary reduction agreement under a plan 

22 solely by reason of section 202(c)(1)(B) has a non23 forfeitable right to employer contributions— 

24 ‘‘(A) except as provided in subparagraph 

25 (B), each 12-month period for which the emVerDate Sep 11 2014 02:17 Jun 22, 2022 Jkt 029200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S4353.RS S4353

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1 ployee has at least 500 hours of service shall be 

2 treated as a year of service; and 

3 ‘‘(B) paragraph (3) shall be applied by 

4 substituting ‘at least 500 hours of service’ for 

5 ‘more than 500 hours of service’ in subpara6 graph (A) thereof. 

7 For purposes of this paragraph, 12-month periods 

8 shall be determined in the same manner as under 

9 the last sentence of section 202(a)(3)(A), except that 

10 12-month periods beginning before January 1, 2022, 

11 shall not be taken into account.’’. 

12 (c) EFFECTIVE DATES.—Except as provided in para13 graph (2), the amendments made by this section shall 

14 apply to plan years beginning at least 1 year after final 

15 regulations implementing this section are promulgated. 

16 SEC. 110. RECOGNITION OF TRIBAL GOVERNMENT DOMES17 TIC RELATIONS ORDERS. 

18 (a) AMENDMENT OF INTERNAL REVENUE CODE OF

19 1986.— 

20 (1) IN GENERAL.—Clause (ii) of section 

21 414(p)(1)(B) of the Internal Revenue Code of 1986 is 

22 amended by inserting ‘‘or Tribal’’ after ‘‘State’’. 

23 (2) CONFORMING AMENDMENT.—Subparagraph 

24 (B) of section 414(p)(1) of such Code is amended by 

25 adding at the end the following flush sentence: 


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1 ‘‘For purposes of clause (ii), the term ‘Tribal’ 

2 with respect to a domestic relations law means 

3 such a law which is issued by or under the laws 

4 of an Indian tribal government.’’. 

5 (b) AMENDMENT OF EMPLOYEE RETIREMENT INCOME

6 SECURITY ACT OF 1974.— 

7 (1) IN GENERAL.—Section 206(d)(3)(B)(ii)(II) 

8 of the Employee Retirement Income Security Act of 

9 1974 (29 U.S.C. 1056(d)(3)(B)(ii)(II)) is amended by 

10 inserting ‘‘or Tribal’’ after ‘‘State’’. 

11 (2) CONFORMING AMENDMENT.—Section 

12 206(d)(3)(B) of such Act is amended by adding at the 

13 end the following flush sentence: 

14 ‘‘For purposes of clause (ii)(II), the term ‘Tribal’ 

15 with respect to a domestic relations law means 

16 such a law which is issued by or under the laws 

17 of an Indian tribal government (as defined in 

18 section 7701(a)(40) of the Internal Revenue Code 

19 of 1986).’’. 

20 (c) EFFECTIVE DATE.—The amendments made by this 

21 section shall apply to domestic relations orders received by 

22 plan administrators after December 31, 2022, including 

23 any such order which is submitted for reconsideration after 

24 such date. 


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1 TITLE II—EMERGENCY SAVINGS 

2 ACT OF 2022 

3 SEC. 201. SHORT TITLE. 

4 This title may be cited as the ‘‘Emergency Savings 

5 Act of 2022’’. 

6 SEC. 202. EMERGENCY SAVINGS ACCOUNTS LINKED TO DE7 FINED CONTRIBUTION PLANS. 

8 (a) EMPLOYEE PENSION BENEFIT PLANS.—Section 

9 3 of the Employee Retirement Income Security Act (29 

10 U.S.C. 1002) is amended— 

11 (1) in paragraph (2)(A), by inserting after the 

12 first sentence the following: ‘‘A pension plan may in13 clude a pension-linked emergency savings account.’’ 

14 and 

15 (2) by adding at the end the following: 

16 ‘‘(45) PENSION-LINKED EMERGENCY SAVINGS

17 ACCOUNT.—The term ‘pension-linked emergency sav18 ings account’ means an account established or main19 tained by a sponsor of a defined contribution plan 

20 for purposes of offering or providing a participant of 

21 such plan the opportunity to maintain a short-term 

22 savings account that— 

23 ‘‘(A) is offered as part of such defined con24 tribution plan; 

25 ‘‘(B) accepts only— 


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1 ‘‘(i) participant contributions which 

2 are treated in the same manner as Roth 

3 contributions for purposes of inclusion in 

4 gross income; and 

5 ‘‘(ii) employer contributions which are 

6 includible in gross income of the partici7 pant for purposes of the Internal Revenue 

8 Code of 1986; and 

9 ‘‘(C) meets the requirements of part 8 of 

10 subtitle B.’’. 

11 (b) PENSION-LINKED EMERGENCY SAVINGS AC12 COUNTS.— 

13 (1) IN GENERAL.—Subtitle B of title I of the 

14 Employee Retirement Income Security Act (29 

15 U.S.C. 1021 et seq.) is amended by adding at the 

16 end the following: 

17 ‘‘PART 8—PENSION-LINKED EMERGENCY 

18 SAVINGS ACCOUNTS 

19 ‘‘SEC. 801. PENSION-LINKED EMERGENCY SAVINGS AC20 COUNTS. 

21 ‘‘(a) IN GENERAL.—A plan sponsor of a defined con22 tribution plan may make available to participants of such 

23 pension plan a pension-linked emergency savings account. 

24 A plan sponsor that offers participants a pension-linked 

25 emergency savings account may deduct amounts from 


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1 each participating employee’s compensation in accordance 

2 with subsection (c) and deposit such amounts, and any 

3 employer contributions under such subsection, to an ac4 count that meets the requirements of subsection (b). 

5 ‘‘(b) ACCOUNT REQUIREMENTS.— 

6 ‘‘(1) IN GENERAL.—A pension-linked emer7 gency savings account offered in accordance with 

8 subsection (a) shall— 

9 ‘‘(A) not have a minimum account balance 

10 requirement; 

11 ‘‘(B) allow for withdrawal by the partici12 pant of the account balance, in whole or in part 

13 at the discretion of the participant, at least 

14 once per calendar month and for distribution of 

15 such withdrawal to the participant as soon as 

16 practicable but, other than in exceptional cir17 cumstances, not later than 1 week from the 

18 date on which the participant elects to make 

19 such withdrawal; 

20 ‘‘(C) be held as cash, in an interest-bearing 

21 deposit account, or in an investment or insur22 ance product designed to preserve principal and 

23 provide a reasonable rate of return, whether or 

24 not such return is guaranteed, consistent with 

25 liquidity; and 


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1 ‘‘(D) not be subject to— 

2 ‘‘(i) any unreasonable fees, restric3 tions, expenses, or charges in connection 

4 with such pension-linked emergency sav5 ings account; and 

6 ‘‘(ii) any fees in connection with the 

7 withdrawal of funds from such pension8 linked emergency savings account other 

9 than reasonable reimbursement fees im10 posed for paper mailings and the handling 

11 of paper checks related to such pension12 linked emergency savings account. 

13 ‘‘(2) ESTABLISHMENT AND TERMINATION OF

14 ACCOUNT.— 

15 ‘‘(A) ESTABLISHMENT OF ACCOUNT.—The 

16 establishment of a pension-linked emergency 

17 savings account shall be included in the defined 

18 contribution plan document of the associated 

19 defined contribution plan. 

20 ‘‘(B) TERMINATION OF ACCOUNT.—A plan 

21 sponsor may terminate the pension-linked emer22 gency savings account feature of an associated 

23 defined contribution plan at any time. Such ter24 mination shall be treated as if a termination of 

25 employment had occurred in accordance with 


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1 subsection (d), except the reasonable time de2 scribed in such subsection shall be as soon as 

3 practicable not later than 60 days after the 

4 date of such termination of the pension-linked 

5 emergency savings account feature of such asso6 ciated defined contribution plan. 

7 ‘‘(c) ACCOUNT CONTRIBUTIONS.— 

8 ‘‘(1) EMPLOYER CONTRIBUTIONS.— 

9 ‘‘(A) IN GENERAL.—Subject to the max10 imum account balance under paragraph (3), a 

11 plan sponsor may, without regard to any elec12 tion otherwise by a participant, deposit to the 

13 pension-linked emergency savings account of 

14 the participant an amount in addition to the 

15 amount contributed by the participant under 

16 paragraph (2). 

17 ‘‘(B) EMPLOYER CONTRIBUTIONS.—Em18 ployer contributions shall be included in the 

19 gross income of a participant for purposes of 

20 the Internal Revenue Code of 1986. 

21 ‘‘(2) PARTICIPANT CONTRIBUTIONS.— 

22 ‘‘(A) IN GENERAL.—Subject to the max23 imum account balance under paragraph (3)— 

24 ‘‘(i) a plan sponsor may automatically 

25 enroll a participant in the pension-linked 


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1 emergency savings account at a participant 

2 contribution rate selected by the plan spon3 sor, which, unless the participant affirma4 tively elects a different percentage of the 

5 compensation of the participant to be con6 tributed to the pension-linked emergency 

7 savings account, may not exceed 3 percent 

8 of the compensation of the participant; or 

9 ‘‘(ii) a participant may enroll in the 

10 pension-linked emergency savings account 

11 at a participant contribution rate selected 

12 by the participant. 

13 ‘‘(B) CONTROL OF TRANSFER.—A partici14 pant, at any time (subject to such reasonable 

15 advance notice as is required by the plan ad16 ministrator), may— 

17 ‘‘(i) adjust the participant contribu18 tion rate under subparagraph (A) to the 

19 pension-linked emergency savings account 

20 of the participant; or 

21 ‘‘(ii) opt out of or pause for a speci22 fied period of time such contributions. 

23 ‘‘(C) ADJUSTMENT OF PARTICIPANT CON24 TRIBUTION RATE BY PLAN SPONSOR.—A plan 

25 sponsor may adjust the participant contribution 


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1 rate selected by such plan sponsor described in 

2 subparagraph (A)(i) not more than once annu3 ally. 

4 ‘‘(3) ACCOUNT LIMITS.— 

5 ‘‘(A) IN GENERAL.—Subject to subpara6 graph (B), no contributions under paragraphs 

7 (1) and (2) shall be accepted to the extent such 

8 contributions would cause the balance of the 

9 pension-linked emergency savings account to ex10 ceed the lesser of— 

11 ‘‘(i) $2,500; or 

12 ‘‘(ii) an amount determined by the 

13 plan sponsor of the pension-linked emer14 gency savings account. 

15 In the case of contributions made in taxable 

16 years beginning after December 1, 2023, the 

17 Secretary shall adjust the amount under clause 

18 (i) at the same time and in the same manner 

19 as the adjustment made by the Secretary of the 

20 Treasury under section 415(d) of the Internal 

21 Revenue Code of 1986, except that the base pe22 riod shall be the calendar quarter beginning 

23 July 1, 2022. Any increase under the preceding 

24 sentence which is not a multiple of $100 shall 

25 be rounded to the next lowest multiple of $100. 


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1 ‘‘(B) EXCESS CONTRIBUTIONS DIRECTED

2 TO PLAN.—To the extent any elected contribu3 tions under paragraphs (1) and (2) to the pen4 sion-linked emergency savings account of a par5 ticipant for a taxable year would cause the bal6 ance of the pension-linked emergency savings 

7 account to exceed the maximum account bal8 ance described in subparagraph (A)— 

9 ‘‘(i) the participant may be treated as 

10 having elected to increase the participant’s 

11 contributions to the associated defined con12 tribution plan by an amount not more than 

13 the rate at which contributions were being 

14 made to the pension-linked emergency sav15 ings account, and 

16 ‘‘(ii) any such contributions shall be 

17 treated as elective deferrals (as such term 

18 is defined in section 402(g)(3) of the Inter19 nal Revenue Code of 1986) under such 

20 plan and shall be contributed to the plan 

21 on behalf of the participant instead of to 

22 the pension-linked emergency savings ac23 count. 

24 ‘‘(4) DISCLOSURE BY PLAN SPONSOR OF

25 TRANSFER.— 


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1 ‘‘(A) IN GENERAL.—Not less than 15 days 

2 prior to the date on which the first transfer 

3 under this subsection occurs, the percentage of 

4 compensation and amount of the participant’s 

5 compensation transferred under paragraph (1) 

6 is adjusted, or the plan sponsor adjusts the per7 centage of compensation of the automatic par8 ticipant contribution under paragraph (2)(A)(i), 

9 the plan sponsor shall provide to the participant 

10 notice of— 

11 ‘‘(i) the purpose of the account being 

12 for short-term, emergency savings; 

13 ‘‘(ii) the amount of the intended con14 tribution or the change in the percentage 

15 of the compensation of the participant of 

16 such contribution; 

17 ‘‘(iii) in accordance with paragraph 

18 (2)(B), the instructions on how to— 

19 ‘‘(I) adjust the participant con20 tribution rate under paragraph (2)(A) 

21 to the pension-linked emergency sav22 ings account of the participant; or 

23 ‘‘(II) opt out of or pause for a 

24 specified period of time such contribu25 tions; 


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1 ‘‘(iv) how such contributions will be 

2 invested; 

3 ‘‘(v) the limits on, and tax treatment 

4 of, such contributions; 

5 ‘‘(vi) any fees, expenses, or charges 

6 associated with such pension-linked emer7 gency savings account; 

8 ‘‘(vii) procedures for participant with9 drawals from such pension-linked emer10 gency savings account, including any limits 

11 on frequency. 

12 ‘‘(B) CONSOLIDATED NOTICES.—The re13 quired notices under subparagraph (A) may be 

14 included with any other notice under this Act, 

15 including under section 404(c)(5)(B) or 

16 514(e)(3), or under section 401(k)(13)(E) or 

17 414(w)(4) of the Internal Revenue Code of 

18 1986, if such other notice is provided to the 

19 participant not less than 15 days prior to the 

20 date described in such subparagraph and not 

21 more than 60 days prior to the date on which 

22 the first transfer under this subsection occurs. 

23 ‘‘(5) EMPLOYER MATCHING CONTRIBUTIONS TO

24 A DEFINED CONTRIBUTION PLAN FOR EMPLOYEE


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1 CONTRIBUTIONS TO A PENSION-LINKED EMERGENCY

2 SAVINGS ACCOUNT.— 

3 ‘‘(A) IN GENERAL.—If an employer makes 

4 any matching contributions to a defined con5 tribution plan of which a pension-linked emer6 gency savings account is part— 

7 ‘‘(i) any contribution under paragraph 

8 (2) to a pension-linked emergency savings 

9 account of the participant shall be treated 

10 as an elective deferral for purposes of 

11 matching contributions by such employer 

12 to such defined contribution plan; and 

13 ‘‘(ii) such employer shall make match14 ing contributions on behalf of such partici15 pant to the associated defined contribution 

16 plan on account of such contributions 

17 under paragraph (2) at the same rate as 

18 any other matching contribution on ac19 count of an elective deferral by such par20 ticipant. 

21 To the extent any such matching contribution 

22 exceeds the maximum account balance under 

23 paragraph (3)(A), such contributions shall be 

24 contributed to the plan as provided in para25 graph (3)(B). 


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1 ‘‘(B) DEFINITIONS.—For purposes of sub2 paragraph (A), the terms ‘matching contribu3 tion’ and ‘elective deferral’ shall have the mean4 ings given such terms in section 401(m)(4) of 

5 the Internal Revenue Code of 1986. 

6 ‘‘(d) ACCOUNT BALANCE AFTER TERMINATION OF

7 EMPLOYMENT.—Upon termination of employment of the 

8 participant, the pension-linked emergency savings account 

9 of such participant shall— 

10 ‘‘(1) allow, as relevant, for transfer by the par11 ticipant of the account balance of such account, in 

12 whole or in part, into the designated Roth account 

13 (within the meaning of section 402A of the Internal 

14 Revenue Code of 1986) of the participant under the 

15 associated defined contribution plan; and 

16 ‘‘(2) for any amounts in such account not 

17 transferred under paragraph (1), make such 

18 amounts available within a reasonable time not later 

19 than the earlier of the date on which the employer 

20 contributing to the plan makes the final compensa21 tion payment related to such employment or 60 days 

22 after the date of such termination— 

23 ‘‘(A) to the participant or the beneficiary; 

24 or 


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1 ‘‘(B) as a direct rollover to a Roth IRA (as 

2 defined in section 408A(b) of the Internal Rev3 enue Code of 1986) of such participant. 

4 ‘‘(e) COORDINATION WITH PLAN HARDSHIP

5 RULES.—Under the terms of the plan of which a pension6 linked emergency savings account is a part, a participant 

7 shall be required to withdraw all amounts in a pension8 linked emergency savings account of the participant before 

9 receiving any plan distribution which is based on financial 

10 hardship or any loan from the plan. 

11 ‘‘SEC. 802. ANNUAL NOTICE FOR PENSION-LINKED EMER12 GENCY SAVINGS ACCOUNT. 

13 ‘‘(a) IN GENERAL.—At least annually, the plan spon14 sor of a pension-linked emergency savings account shall 

15 provide to the pension-linked emergency savings account 

16 participant a notice containing such information as the 

17 Secretary may require, including a description of— 

18 ‘‘(1) the purpose and tax treatment of the pen19 sion-linked emergency savings account and contribu20 tions; 

21 ‘‘(2) procedures for opting out of the pension22 linked emergency savings account, changing partici23 pant contribution rates for such account, and mak24 ing withdrawals from such account, and limits on 

25 contributions and withdrawals; 


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1 ‘‘(3) designated investment options for amounts 

2 contributed to the pension-linked emergency savings 

3 account; 

4 ‘‘(4) the options under section 801(d) for the 

5 account balance of the pension-linked emergency 

6 savings account after termination of the employment 

7 of the participant; 

8 ‘‘(5) any fees, expenses, or charges associated 

9 with such pension-linked emergency savings account; 

10 and 

11 ‘‘(6) the amount that a participant has contrib12 uted to the pension-linked emergency savings ac13 count and the amount the plan sponsor has contrib14 uted to such pension-linked emergency savings ac15 count for the plan year, and the account balance. 

16 ‘‘(b) CONSOLIDATED NOTICES.—The required notice 

17 under subparagraph (A) may be included with any other 

18 notice under this Act if such other notice is provided to 

19 the participant at least annually. 

20 ‘‘SEC. 803. PREEMPTION OF STATE ANTI-GARNISHMENT 

21 LAWS. 

22 ‘‘Notwithstanding any other provision of law, this 

23 part shall supersede any law of a State which would di24 rectly or indirectly prohibit or restrict the use of an auto25 matic contribution arrangement, in accordance with secVerDate Sep 11 2014 02:17 Jun 22, 2022 Jkt 029200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\S4353.RS S4353

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1 tion 801(c)(2), for a pension-linked emergency savings ac2 count. The Secretary may promulgate regulations to es3 tablish minimum standards that such an arrangement 

4 would be required to satisfy in order for this subsection 

5 to apply with respect to such an account. 

6 ‘‘SEC. 804. REPORTING AND DISCLOSURE REQUIREMENTS. 

7 ‘‘The Secretary shall prescribe such regulations as 

8 may be necessary to address reporting and disclosure re9 quirements for pension-linked emergency savings accounts 

10 in order to prevent unnecessary reporting and disclosure 

11 for such accounts under this Act, including for purposes 

12 of any reporting or disclosure related to pension plans re13 quired by this title or title IV or under the Internal Rev14 enue Code of 1986. 

15 ‘‘SEC. 805. REPORT TO CONGRESS ON MAXIMUM ACCOUNT 

16 BALANCE LIMITS. 

17 ‘‘The Secretary of Labor and the Secretary of the 

18 Treasury shall— 

19 ‘‘(1) conduct a study on the use of emergency 

20 savings from a pension-linked emergency savings ac21 count regarding— 

22 ‘‘(A) whether the maximum account bal23 ance under section 801(c)(3) is sufficient; 


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1 ‘‘(B) whether the limitation on contribu2 tions under sections 801(c)(2)(A)(i) are appro3 priate; and 

4 ‘‘(C) the participation rate of such ac5 counts by plan sponsors and participants and 

6 the resulting impact on participant retirement 

7 savings, including the impact on retirement sav8 ings leakage and the effect of such accounts on 

9 retirement plan participation by low- and mod10 erate-income households; and 

11 ‘‘(2) not later than 7 years after the date of en12 actment of the RISE & SHINE Act, submit to Con13 gress a report on the findings of the study under 

14 paragraph (1).’’. 

15 (2) CLERICAL AMENDMENT.—The table of con16 tents in section 1 of the Employee Retirement In17 come Security Act of 1974 (29 U.S.C. 1001 note) is 

18 amended by inserting after the item relating to sec19 tion 734 the following new items: 

‘‘PART 8. PENSION-LINKED EMERGENCY SAVINGS ACCOUNTS

‘‘801. Pension-linked emergency savings accounts. 

‘‘802. Annual notice for pension-linked emergency savings account. 

‘‘803. Preemption of State anti-garnishment laws. 

‘‘804. Reporting and disclosure requirements. 

‘‘805. Report to Congress on maximum account balance limits.’’. 

20 (c) REPORTING FOR A PENSION-LINKED EMERGENCY

21 SAVINGS ACCOUNT.— 


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1 (1) ALTERNATIVE METHODS OF COMPLI2 ANCE.—Section 110(a) of the Employee Retirement 

3 Income Security Act (29 U.S.C. 1030(a)) is amend4 ed by inserting ‘‘(including pension-linked emergency 

5 savings accounts offered in conjunction with a pen6 sion plan)’’ after ‘‘class of pension plans’’. 

7 (2) MINIMIZED REPORTING BURDEN FOR PEN8 SION-LINKED EMERGENCY SAVINGS ACCOUNTS.— 

9 Section 101 of such Act (29 U.S.C. 1021) is amend10 ed— 

11 (A) by redesignating subsection (n) as sub12 section (o); and 

13 (B) by inserting after subsection (m) the 

14 following: 

15 ‘‘(n) PENSION-LINKED EMERGENCY SAVINGS AC16 COUNTS.— 

17 ‘‘(1) IN GENERAL.—The requirements of sub18 section (a) shall not apply to a pension-linked emer19 gency savings account made available under section 

20 801. 

21 ‘‘(2) SIMPLIFIED REPORTING.—Nothing in this 

22 subsection shall preclude the Secretary from pro23 viding, by regulations or otherwise, simplified report24 ing procedures or requirements for such a pension25 linked emergency savings account.’’. 


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1 (d) FIDUCIARY DUTY.—Section 404(c) of the Em2 ployee Retirement Income Security Act (29 U.S.C. 

3 1104(c)) is amended by adding at the end the following: 

4 ‘‘(6) DEFAULT INVESTMENT ARRANGEMENTS

5 FOR A PENSION-LINKED EMERGENCY SAVINGS AC6 COUNT.—For purposes of paragraph (1), a partici7 pant in a pension-linked emergency savings account 

8 shall be treated as exercising control over the assets 

9 in the account with respect to the amount of con10 tributions and earnings which are invested in accord11 ance with section 801(b)(1)(C).’’. 

12 (e) JOINT REGULATORY AUTHORITY.—The Sec13 retary of Labor and the Secretary of the Treasury (or a 

14 delegate of either such Secretary) shall have authority to 

15 issue joint regulations or other guidance, or to coordinate 

16 in developing regulations or other guidance, to carry out 

17 the purposes of this title, including adjustment of the max18 imum benefit under section 801(c)(3) of the Employee Re19 tirement Income Security Act, as added by this title, to 

20 account for inflation, as well as expansion of corrections 

21 programs, if necessary. 


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1 TITLE III—NOTICE AND 

2 DISCLOSURE 

3 SEC. 301. DEFINED CONTRIBUTION PLAN FEE DISCLOSURE 

4 IMPROVEMENTS. 

5 Not later than 3 years after the date of enactment 

6 of this Act, the Secretary of Labor shall— 

7 (1) review section 2550.404a–5 of title 29, 

8 Code of Federal Regulations (relating to fiduciary 

9 requirements for disclosure in participant-directed 

10 individual account plans); 

11 (2) explore, through a public request for infor12 mation or otherwise, how the contents and design of 

13 the disclosures described in such section may be im14 proved to enhance participants’ understanding of 

15 fees and expenses related to a defined contribution 

16 plan (as defined in section 3 of the Employee Retire17 ment Income Security Act of 1974 (29 U.S.C. 

18 1002)) as well as the cumulative effect of such fees 

19 and expenses on retirement savings over time; and 

20 (3) report to the Committee on Health, Edu21 cation, Labor, and Pensions of the Senate and the 

22 Committee on Education and Labor of the House of 

23 Representatives on the findings of the exploration 

24 described in paragraph (2), including beneficial edu25 cation for consumers on financial literacy concepts 


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1 as related to retirement plan fees and recommenda2 tions for legislative changes needed to address such 

3 findings. 

4 SEC. 302. CONSOLIDATION OF DEFINED CONTRIBUTION 

5 PLAN NOTICES. 

6 Not later than 2 years after the date of enactment 

7 of this Act, the Secretary of Labor and the Secretary of 

8 the Treasury (or such Secretaries’ delegates) shall adopt 

9 regulations providing that a plan (as defined in section 

10 3 of the Employee Retirement Income Security Act of 

11 1974 (29 U.S.C. 1002)) may, but is not required to, con12 solidate 2 or more of the notices required under sections 

13 404(c)(5)(B) and 514(e)(3) of the Employee Retirement 

14 Income Security Act of 1974 (29 U.S.C. 1104(c)(5)(B) 

15 and 29 U.S.C. 1144(e)(3)) and sections 401(k)(12)(D), 

16 401(k)(13)(E), and 414(w)(4) of the Internal Revenue 

17 Code of 1986 into a single notice so long as the combined 

18 notice— 

19 (1) includes the required content; 

20 (2) clearly identifies the issues addressed there21 in; 

22 (3) is furnished at the time and with the fre23 quency required for each such notice; and 

24 (4) is presented in a manner that is reasonably 

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1 ticipant and that does not obscure or fail to high2 light the primary information required for each no3 tice. 

4 SEC. 303. INFORMATION NEEDED FOR FINANCIAL OPTIONS 

5 RISK MITIGATION ACT. 

6 (a) SHORT TITLE.—This section may be cited as the 

7 ‘‘Information Needed for Financial Options Risk Mitiga8 tion Act’’ or the ‘‘INFORM Act’’. 

9 (b) IN GENERAL.—Part 1 of subtitle B of title I of 

10 the Employee Retirement Income Security Act of 1974 

11 (29 U.S.C. 1021 et seq.), as amended by section 107, is 

12 amended by adding at the end the following: 

13 ‘‘SEC. 113. NOTICE AND DISCLOSURE REQUIREMENTS WITH 

14 RESPECT TO LUMP SUM WINDOWS. 

15 ‘‘(a) IN GENERAL.—A plan administrator of a pen16 sion plan that amends the plan to provide a period of time 

17 during which a participant or beneficiary may elect to re18 ceive a lump sum under clause (i) of section 401(a)(9)(A) 

19 of the Internal Revenue Code of 1986, instead of future 

20 monthly payments under clause (ii) of such section, shall 

21 furnish notice— 

22 ‘‘(1) to each participant or beneficiary offered 

23 such lump sum amount, in the manner in which the 

24 participant and beneficiary receives the lump sum 

25 offer from the plan sponsor, not later than 90 days 


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1 prior to the first day on which the participant or 

2 beneficiary may make an election with respect to 

3 such lump sum; and 

4 ‘‘(2) to the Secretary and the Pension Benefit 

5 Guaranty Corporation, not later than 30 days prior 

6 to the first day on which participants and bene7 ficiaries may make an election with respect to such 

8 lump sum. 

9 ‘‘(b) NOTICE TO PARTICIPANTS AND BENE10 FICIARIES.— 

11 ‘‘(1) CONTENT.—The notice required under 

12 subsection (a)(1) shall include the following: 

13 ‘‘(A) Available benefit options, including 

14 the estimated monthly benefit that the partici15 pant or beneficiary would receive at normal re16 tirement age (if not already in pay status), 

17 whether there is a subsidized early retirement 

18 option or qualified joint and survivor annuity 

19 that is fully subsidized (in accordance with sec20 tion 417(a)(5) of the Internal Revenue Code of 

21 1986, the monthly benefit amount if payments 

22 begin immediately, and the lump sum amount 

23 available if the participant or beneficiary takes 

24 the option. 


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1 ‘‘(B) An explanation of how the lump sum 

2 was calculated, including the interest rate, mor3 tality assumptions, and whether any additional 

4 plan benefits were included in the lump sum, 

5 such as early retirement subsidies. 

6 ‘‘(C) In a manner consistent with the man7 ner in which a written explanation is required 

8 to be given under 417(a)(3) of the Internal 

9 Revenue Code of 1986, the relative value of the 

10 lump sum option for a terminated vested partic11 ipant compared to the value of— 

12 ‘‘(i) the single life annuity, (or other 

13 standard form of benefit); and 

14 ‘‘(ii) the qualified joint and survivor 

15 annuity (as defined in section 205(d)(1)); 

16 ‘‘(D) Whether it would be reasonably likely 

17 to replicate the plan’s stream of payments by 

18 purchasing a comparable retail annuity using 

19 the lump sum. 

20 ‘‘(E) The potential ramifications of accept21 ing the lump sum, including longevity risks, loss 

22 of protections guaranteed by the Pension Ben23 efit Guaranty Corporation (with an explanation 

24 of the monthly benefit amount that would be 

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1 poration if the plan is terminated with insuffi2 cient assets to pay benefits), loss of protection 

3 from creditors, loss of spousal protections, and 

4 other protections under this Act that would be 

5 lost. 

6 ‘‘(F) General tax rules related to accepting 

7 a lump sum, including rollover options and 

8 early distribution penalties with a disclaimer 

9 that the plan does not provide tax, legal, or ac10 counting advice, and a suggestion that partici11 pants and beneficiaries consult with their own 

12 tax, legal, and accounting advisors before deter13 mining whether to accept the offer. 

14 ‘‘(G) How to accept or reject the offer, the 

15 deadline for response, and whether a spouse is 

16 required to consent to the election. 

17 ‘‘(H) Contact information for the point of 

18 contact at the plan administrator for partici19 pants and beneficiaries to get more information 

20 or ask questions about the options. 

21 ‘‘(2) PLAIN LANGUAGE.—The notice under this 

22 subsection shall be written in a manner calculated to 

23 be understood by the average plan participant. 

24 ‘‘(3) MODEL NOTICE.—The Secretary shall 

25 issue a model notice for purposes of the notice under 


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1 subsection (a)(1), including for information required 

2 under subparagraphs (C) through (F) of paragraph 

3 (1). 

4 ‘‘(c) NOTICE TO THE SECRETARY AND PENSION

5 BENEFIT GUARANTY CORPORATION.—The notice required 

6 under subsection (a)(2) shall include the following: 

7 ‘‘(1) The total number of participants and 

8 beneficiaries eligible for such lump sum option. 

9 ‘‘(2) The length of the limited period during 

10 which the lump sum is offered. 

11 ‘‘(3) An explanation of how the lump sum was 

12 calculated, including the interest rate, mortality as13 sumptions, and whether any additional plan benefits 

14 were included in the lump sum, such as early retire15 ment subsidies. 

16 ‘‘(4) A sample of the notice provided to partici17 pants and beneficiaries under subsection (a)(1). 

18 ‘‘(d) POST-OFFER REPORT TO THE SECRETARY AND

19 PENSION BENEFIT GUARANTY CORPORATION.—Not later 

20 than 90 days after the conclusion of the limited period 

21 during which participants and beneficiaries in a plan may 

22 accept a plan’s offer to convert their annuity into a lump 

23 sum as generally permitted under section 401(a)(9) of the 

24 Internal Revenue Code of 1986, a plan sponsor shall sub25 mit a report to the Secretary and the Director of the PenVerDate Sep 11 2014 02:17 Jun 22, 2022 Jkt 029200 PO 00000 Frm 00051 Fmt 6652 Sfmt 6201 E:\BILLS\S4353.RS S4353

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1 sion Benefit Guaranty Corporation that includes the num2 ber of participants and beneficiaries who accepted the 

3 lump sum offer and such other information as the Sec4 retary may require. 

5 ‘‘(e) PUBLIC AVAILABILITY.—The Secretary shall 

6 make the information provided in the notice to the Sec7 retary required under subsection (a)(2) and in the post8 offer reports submitted under subsection (d) publicly avail9 able in a form that protects the confidentiality of the infor10 mation provided. 

11 ‘‘(f) BIANNUAL REPORT.—Not later than 6 months 

12 after the date of enactment of this section and every 6 

13 months thereafter, so long as the Secretary has received 

14 notices and post-offer reports under subsections (c) and 

15 (d), the Secretary shall submit to Congress a report that 

16 summarizes such notices and post-offer reports during the 

17 applicable reporting period.’’. 

18 (c) CLERICAL AMENDMENT.—The table of contents 

19 in section 1 of the Employee Retirement Income Security 

20 Act of 1974, as amended by section 107(a)(2), is further 

21 amended by inserting after the item relating to section 

22 112 the following new item: 

Sec. 113. Notice and disclosure requirements with respect to lump sum windows. 


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1 (d) ENFORCEMENT.—Section 502 of the Employee 

2 Retirement Income Security Act of 1974 (29 U.S.C. 1132) 

3 is amended— 

4 (1) in subsection (c)(1), by striking ‘‘or section 

5 105(a)’’ and inserting ‘‘, section 105(a), or section 

6 112(a)’’; and 

7 (2) in subsection (a)(4), by striking ‘‘105(c)’’ 

8 and inserting ‘‘section 105(c) or 112(a)’’. 

9 (e) APPLICATION.—The requirements of section 113 

10 of the ERISA, as added by subsection (b), shall apply be11 ginning on the applicable effective date specified in the 

12 final regulations promulgated pursuant to subsection (f). 

13 (f) REGULATORY AUTHORITY.—Not earlier than 1 

14 year after the date of enactment of this Act, the Secretary 

15 of Labor and the Secretary of the Treasury shall jointly 

16 issue regulations to implement section 113 of the Em17 ployee Retirement Income Security Act of 1974, as added 

18 by subsection (a). Such regulations shall require plan 

19 sponsors to comply in good faith with the regulations be20 ginning not later than 1 year after issuance of a final rule 

21 with respect to subsections (a)(1) and (b) of such section 

22 113, and beginning not later than 6 months after issuance 

23 of a final rule with respect to subsections (a)(2), (c), (d), 

24 and (e) of such section 113. 


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1 SEC. 304. DEFINED BENEFIT ANNUAL FUNDING NOTICES. 

2 (a) IN GENERAL.—Section 101(f)(2)(B) of the Em3 ployee Retirement Income Security Act of 1974 (29 

4 U.S.C. 1021(f)(2)(B)) is amended— 

5 (1) in clause (i)(I), by striking ‘‘funding target 

6 attainment percentage (as defined in section 

7 303(d)(2))’’ and inserting ‘‘percentage of plan liabil8 ities funded (as described in clause (ii)(I)(bb))’’; 

9 (2) in clause (ii)(I)— 

10 (A) by striking ‘‘, a statement of’’; 

11 (B) by striking item (aa); 

12 (C) by redesignating item (bb) as item 

13 (aa); 

14 (D) in item (aa), as so redesignated— 

15 (i) by inserting ‘‘a statement of’’ be16 fore ‘‘the value’’ and 

17 (ii) by striking ‘‘and’’ at the end; and 

18 (E) by adding at the end the following: 

19 ‘‘(bb) a statement of the 

20 percentage of plan liabilities 

21 funded, calculated as the ratio 

22 between the value of the plan’s 

23 assets and liabilities, as deter24 mined under item (aa), for the 

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1 lates and for the 2 preceding 

2 plan years, and 

3 ‘‘(cc) if the information in 

4 (aa) and (bb) is presented in tab5 ular form, a statement that de6 scribes that in the event of a plan 

7 termination the corporation’s cal8 culation of plan liabilities may be 

9 greater and that references the 

10 section of the notice with the in11 formation required under clause 

12 (x), and’’; 

13 (3) in clause (iii), in the matter preceding sub14 clause (I), by inserting ‘‘for the plan year to which 

15 the notice relates as of the last day of such plan 

16 year and the preceding 2 plan years, in tabular for17 mat,’’ after ‘‘participants’’; 

18 (4) in clause (iv)— 

19 (A) by striking ‘‘plan and the asset’’ and 

20 inserting ‘‘plan, the asset’’; and 

21 (B) by inserting ‘‘, and the average return 

22 on assets for the plan year,’’ after ‘‘assets)’’; 

23 (5) by redesignating clauses (ix) through (xi) as 

24 clause (x) through (xii), respectively; 

25 (6) by inserting after clause (viii) the following: 


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1 ‘‘(ix) in the case of a single-employer 

2 plan, a statement as to whether the plan’s 

3 funded status, based on the plan’s liabil4 ities described under subclause (II) for the 

5 plan year to which the notice relates, and 

6 for the 2 preceding plan years, is at least 

7 100 percent (and, if not, the actual per8 centages), that includes— 

9 ‘‘(I) the plan’s assets, as of the 

10 last day of the plan year and for the 

11 2 preceding plan years, as determined 

12 under clause (ii)(I)(aa), 

13 ‘‘(II) the plan’s liabilities, as of 

14 the last day of the plan year and for 

15 the 2 preceding plan years, as deter16 mined under clause (ii)(1)(aa), and 

17 ‘‘(III) the funded status of the 

18 plan, determined as the ratio of the 

19 plan’s assets and liabilities calculated 

20 under subclauses (I) and (II), for the 

21 plan year to which the notice relates, 

22 and for the 2 preceding plan years,’’; 

23 and 

24 (7) in clause (x), as so redesignated, by striking 

25 the comma at the end and inserting the following: 


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1 ‘‘and a statement that, in the case of a single-em2 ployer plan— 

3 ‘‘(I) if plan assets are sufficient 

4 to pay vested benefits that are not 

5 guaranteed by the Pension Benefit 

6 Guaranty Corporation, participants 

7 and beneficiaries may receive benefits 

8 in excess of the guaranteed amount, 

9 and 

10 ‘‘(II) in determining valuation of 

11 guaranteed benefits, the Pension Ben12 efit Guaranty Corporation uses, as of 

13 the date of enactment of the RISE & 

14 SHINE Act, a valuation methodology 

15 that— 

16 ‘‘(aa) places a higher value 

17 on the future cost of benefits 

18 than any valuation methodology 

19 required under Federal statute, 

20 and 

21 ‘‘(bb) makes it less likely 

22 that participants and bene23 ficiaries will receive amounts in 

24 excess of the guaranteed amount 

25 under Federal law,’’. 


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1 (b) EFFECTIVE DATE.—The amendments made by 

2 subsection (a) shall apply with respect to plan years begin3 ning after December 31, 2023. 

4 TITLE IV—MODERNIZATION 

5 SEC. 401. AUTOMATIC REENROLLMENT UNDER QUALIFIED 

6 AUTOMATIC CONTRIBUTION ARRANGEMENTS 

7 AND ELIGIBLE AUTOMATIC CONTRIBUTION 

8 ARRANGEMENTS. 

9 (a) ELIGIBLE AUTOMATIC CONTRIBUTION ARRANGE10 MENTS.—Section 514(e)(2) of the Employee Retirement 

11 Income Security Act of 1974 (29 U.S.C. 1144(e)(2)) is 

12 amended— 

13 (1) by redesignating subparagraphs (A) through 

14 (C) as clauses (i) through (iii), respectively, and by 

15 moving such clauses 2 ems to the right; 

16 (2) by striking ‘‘(2) For purposes of’’ and in17 serting ‘‘(2)(A) For purposes of’’; and 

18 (3) by adding at the end the following: 

19 ‘‘(B) In the case of an automatic contribution 

20 arrangement taking effect after December 31, 2024, 

21 the requirements of subparagraph (A)(ii) shall be 

22 treated as met only if, under the arrangement, at 

23 least every 3 plan years but not more than once an24 nually each employee— 


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1 ‘‘(i) who is eligible to participate in the ar2 rangement; and 

3 ‘‘(ii) who, at the time of the determination, 

4 has in effect an affirmative election pursuant to 

5 subparagraph (A)(ii) not to have any contribu6 tions described in such subparagraph made; 

7 is treated as having made the election at the uni8 form percentage of compensation described in sub9 paragraph (A)(ii) unless the employee makes a new 

10 election under such subparagraph. Such determina11 tion may be made at one time for all employees de12 scribed in the preceding sentence for a plan year, re13 gardless of individual employee dates of enroll14 ment.’’. 

15 (b) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to arrangements taking effect after 

17 December 31, 2024. 

18 SEC. 402. INCIDENTAL PLAN EXPENSES. 

19 (a) FINDINGS.—Congress finds the following: 

20 (1) Retirement plan sponsors engage advisors 

21 to assist in administering their retirement plans. 

22 Such advisors and other service providers are paid 

23 via monthly or annual retainers to advise on plan 

24 administration or the investment fund lineup. Such 

25 retainers are charged to the retirement plan. 


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1 (2) Other, incidental expenses incurred related 

2 to plan design, may not be charged to the plan be3 cause they are deemed settlor functions. For exam4 ple, if a plan sponsor were to inquire about a bene5 ficial plan design feature, such as automatic enroll6 ment and reenrollment or automatic escalation, the 

7 advisor or other service provider would bill the em8 ployer a separate amount that could not be charged 

9 back to the plan. Because these inquiries result in 

10 additional costs, many employers, especially small 

11 employers, choose to forego these incidental plan de12 sign features, even when they might generate tre13 mendous benefits for their employees. 

14 (3) According to the 2021 Plan Sponsor Coun15 cil of America’s Annual Survey of Profit Sharing 

16 and 401(k) Plans, only 30.5 percent of employers 

17 with fewer than 50 workers have an automatic en18 rollment feature in their retirement plan, compared 

19 to over 77 percent of employers with more than 

20 1,000 workers. Small employers need additional re21 sources to improve their retirement plan design. 

22 (b) FACILITATING THE IMPLEMENTATION OF BENE23 FICIAL PLAN FEATURES.— 

24 (1) PLAN ASSETS.—Section 403(c)(1) of the 

25 Employee Retirement Income Security Act of 1974 


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1 (29 U.S.C. 1103(c)(1)) is amended by inserting 

2 ‘‘(including incidental expenses solely for the benefit 

3 of the participants and their beneficiaries)’’ before 

4 the period. 

5 (2) FIDUCIARY STANDARD OF CARE.—Section 

6 404(a)(1)(A)(ii) of the Employee Retirement Income 

7 Security Act of 1974 (29 U.S.C. 1104(a)(1)(A)(ii)) 

8 is amended by inserting ‘‘(including incidental ex9 penses solely for the benefit of the participants and 

10 their beneficiaries)’’ before the semicolon. 

11 TITLE V—AMENDMENTS TO 

12 PLANS OFFERED BY MUL13 TIPLE EMPLOYERS 

14 SEC. 501. REPORT ON POOLED EMPLOYER PLANS. 

15 The Secretary of Labor shall— 

16 (1) conduct a study on the pooled employer 

17 plan (as such term is defined in section 3(43) of the 

18 Employee Retirement Income Security Act of 1974 

19 (29 U.S.C. 1002(43))) industry, including on— 

20 (A) the legal name and number of pooled 

21 employer plans; 

22 (B) the number of participants in such 

23 plans; 

24 (C) the range of investment options pro25 vided in such plans; 


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1 (D) the fees assessed in such plans; 

2 (E) the manner in which employers select 

3 and monitor such plans; 

4 (F) the disclosures provided to participants 

5 in such plans; 

6 (G) the number and nature of any enforce7 ment actions by the Secretary of Labor on such 

8 plans; 

9 (H) the extent to which such plans have 

10 increased retirement savings coverage in the 

11 United States; and 

12 (I) any additional information as the Sec13 retary determines is necessary; and 

14 (2) not later than 5 years after the date of en15 actment of this Act, and every 5 years thereafter, 

16 submit to Congress and make available on a publicly 

17 accessible website of the Department of Labor, a re18 port on the findings of the study under paragraph 

19 (1), including recommendations on how pooled em20 ployer plans can be improved, through legislation, to 

21 serve and protect retirement plan participants. 

22 SEC. 502. ANNUAL AUDITS FOR GROUP OF PLANS. 

23 Section 202(a) of the Setting Every Community Up 

24 for Retirement Enhancement Act of 2019 (Public Law 

25 116–94; 26 U.S.C. 6058 note) is amended— 


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1 (1) by striking ‘‘so that all members’’ and in2 serting the following: ‘‘so that— 

3 ‘‘(1) all members’’; 

4 (2) by striking the period and inserting ‘‘; 

5 and’’; and 

6 (3) by adding at the end the following: 

7 ‘‘(2) any opinions required by section 103(a)(3) 

8 of the Employee Retirement Income Security Act of 

9 1974 (29 U.S.C. 1023(a)(3)) shall relate only to 

10 each individual plan which would otherwise be sub11 ject to the requirements of such section 103(a)(3).’’. 

12 TITLE VI—DEFINED BENEFIT 

13 PLAN PROVISIONS 

14 SEC. 601. CASH BALANCE. 

15 (a) AMENDMENT OF INTERNAL REVENUE CODE OF

16 1986.—Section 414 of the Internal Revenue Code of 

17 1986, as amended by the preceding sections of this Act, 

18 is further amended by adding at the end the following new 

19 subsection: 

20 ‘‘(bb) PROJECTED INTEREST CREDITING RATE.— 

21 For purposes of this part, in the case of an applicable de22 fined benefit plan (as defined in section 411(a)(13)(B)) 

23 which provides variable interest crediting rates, the inter24 est crediting rate which is treated as in effect and as the 

25 projected interest crediting rate shall be a reasonable proVerDate Sep 11 2014 02:17 Jun 22, 2022 Jkt 029200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\S4353.RS S4353

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1 jection of such variable interest crediting rate, not to ex2 ceed 6 percent.’’. 

3 (b) AMENDMENT OF EMPLOYEE RETIREMENT IN4 COME SECURITY ACT OF 1974.—Section 210 of the Em5 ployee Retirement Income Security Act of 1974 (29 

6 U.S.C. 1060) is amended by adding at the end the fol7 lowing new subsection: 

8 ‘‘(g) PROJECTED INTEREST CREDITING RATE.—For 

9 purposes of this title, in the case of an applicable defined 

10 benefit plan (within the meaning of section 203(f)(3)) 

11 which provides variable interest crediting rates, the inter12 est crediting rate which is treated as in effect and as the 

13 projected interest crediting rate shall be a reasonable pro14 jection of such variable interest crediting rate, not to ex15 ceed 6 percent.’’. 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply with respect to years beginning 

18 after the date of enactment of this Act. 

19 SEC. 602. TERMINATION OF VARIABLE RATE PREMIUM IN20 DEXING. 

21 (a) IN GENERAL.—Paragraph (8) of 4006(a) of the 

22 Employee Retirement Income Security Act of 1974 (29 

23 U.S.C. 1306(a)) is amended by— 

24 (1) in subparagraph (A)— 

25 (A) in clause (vi), by striking ‘‘and’’; 


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1 (B) in clause (vii), by striking the period 

2 at the end and inserting ‘‘; and’’; and 

3 (C) by adding at the end the following: 

4 ‘‘(viii) for plan years beginning after 

5 calendar year 2022, $48.’’; 

6 (2) in subparagraph (B), in the matter pre7 ceding clause (i), by inserting ‘‘and before 2023’’ 

8 after ‘‘2012’’ ; and 

9 (3) in subparagraph (D)(vii), by inserting ‘‘and 

10 before 2023’’ after ‘‘2019’’. 

11 (b) TECHNICAL AMENDMENT.—Clause (i) of section 

12 4006(a)(3)(E) of the Employee Retirement Income Secu13 rity Act of 1974 (29 U.S.C. 1306(a)(3)(E)) is amended 

14 by striking ‘‘subparagraph (H)’’ and inserting ‘‘subpara15 graph (I)’’. 

16 SEC. 603. ENHANCING RETIREE HEALTH BENEFITS IN PEN17 SION PLANS. 

18 (a) EXTENSION OF TRANSFERS OF EXCESS PENSION

19 ASSETS TO RETIREE HEALTH ACCOUNTS UNDER THE IN20 TERNAL REVENUE CODE OF 1986.—Paragraph (4) of sec21 tion 420(b) of the Internal Revenue Code of 1986 is 

22 amended by striking ‘‘December 31, 2025’’ and inserting 

23 ‘‘December 31, 2032’’. 

24 (b) EXTENSION OF TRANSFERS OF EXCESS PENSION

25 ASSETS TO RETIREE HEALTH ACCOUNTS UNDER THE


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1 EMPLOYEE RETIREMENT INCOME SECURITY ACT OF

2 1974.— 

3 (1) DEFINITIONS.—Section 101(e)(3) of the 

4 Employee Retirement Income Security Act of 1974 

5 (29 U.S.C. 1021(e)(3)) is amended by striking ‘‘(as 

6 in effect on the date of the enactment of the Surface 

7 Transportation and Veterans Health Care Choice 

8 Improvement Act of 2015)’’ and inserting ‘‘(as in ef9 fect on the date of enactment of the RISE & 

10 SHINE Act)’’. 

11 (2) USE OF ASSETS.—Section 403(c)(1) of the 

12 Employee Retirement Income Security Act of 1974 

13 (29 U.S.C. 1103(c)(1)) is amended by striking ‘‘(as 

14 in effect on the date of the enactment of the Surface 

15 Transportation and Veterans Health Care Choice 

16 Improvement Act of 2015)’’ and inserting ‘‘(as in ef17 fect on the date of enactment of the RISE & 

18 SHINE Act)’’. 

19 (3) EXEMPTION.—Section 408(b)(13) of the 

20 Employee Retirement Income Security Act of 1974 

21 (29 U.S.C. 1108(b)(13)) is amended— 

22 (A) by striking ‘‘January 1, 2026’’ and in23 serting ‘‘January 1, 2033’’; and 

24 (B) by striking ‘‘(as in effect on the date 

25 of the enactment of the Surface Transportation 


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1 and Veterans Health Care Choice Improvement 

2 Act of 2015)’’ and inserting ‘‘(as in effect on 

3 the date of enactment of the RISE & SHINE 

4 Act)’’. 

5 (c) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to transfers made after the date 

7 of enactment of this Act. 

8 TITLE VII—ADDITIONAL 

9 RETIREMENT ENHANCEMENTS 

10 SEC. 701. PROVISIONS RELATING TO PLAN AMENDMENTS. 

11 (a) IN GENERAL.—Part 2 of subtitle B of title I of 

12 the Employee Retirement Income Security Act of 1974 

13 (29 U.S.C. 1021 et seq.) is amended— 

14 (1) by redesignating section 211 as section 212; 

15 and 

16 (2) by inserting after section 210 the following 

17 new section: 

18 ‘‘SEC. 211. PLAN AMENDMENTS DUE TO THE RISE & SHINE 

19 ACT. 

20 ‘‘(a) IN GENERAL.—If this section applies to any re21 tirement plan or contract amendment— 

22 ‘‘(1) such retirement plan or contract shall be 

23 treated as being operated in accordance with the 

24 terms of the plan during the period described in sub25 section (b)(2)(A); and 


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1 ‘‘(2) except as provided by the Secretary of the 

2 Treasury (or the Secretary’s delegate) and the Sec3 retary of Labor (or the Secretary’s delegate), such 

4 retirement plan shall not fail to meet the require5 ments of section 411(d)(6) of the Internal Revenue 

6 Code of 1986 and section 204(g) of this Act by rea7 son of such amendment. 

8 ‘‘(b) AMENDMENTS TO WHICH SECTION APPLIES.— 

9 ‘‘(1) IN GENERAL.—This section shall apply to 

10 any amendment to any retirement plan or annuity 

11 contract which is made— 

12 ‘‘(A) pursuant to any amendment made by 

13 the RISE & SHINE Act or pursuant to any 

14 regulation issued by the Secretary of the Treas15 ury or the Secretary of Labor (or a delegate of 

16 either such Secretary) under the RISE & 

17 SHINE Act; and 

18 ‘‘(B) on or before the last day of the first 

19 plan year beginning on or after January 1, 

20 2025. 

21 ‘‘(2) CONDITIONS.—This section shall not apply 

22 to any amendment unless— 

23 ‘‘(A) during the period— 

24 ‘‘(i) beginning on the date the legisla25 tive or regulatory amendment described in 


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1 paragraph (1)(A) takes effect (or in the 

2 case of a plan or contract amendment not 

3 required by such legislative or regulatory 

4 amendment, the effective date specified by 

5 the plan); and 

6 ‘‘(ii) ending on the date described in 

7 paragraph (1)(B) (or, if earlier, the date 

8 the plan or contract amendment is adopt9 ed), 

10 the plan or contract is operated as if such plan 

11 or contract amendment were in effect; and 

12 ‘‘(B) such plan or contract amendment ap13 plies retroactively for such period.’’. 

14 (b) CLERICAL AMENDMENT.—The table of contents 

15 in section 1 of the Employee Retirement Income Security 

16 Act of 1974 is amended by striking the item relating to 

17 section 211 and by inserting after the item relating to sec18 tion 210 the following new items: 

‘‘Sec. 211. Plan amendments due to the RISE & SHINE Act. 

‘‘Sec. 212. Effective dates.’’. 

19 SEC. 702. WORKER OWNERSHIP, READINESS, AND KNOWL20 EDGE (WORK) ACT. 

21 (a) SHORT TITLE.—This section may be cited as the 

22 ‘‘Worker Ownership, Readiness, and Knowledge Act’’ or 

23 the ‘‘WORK Act’’. 

24 (b) DEFINITIONS.—In this section: 


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1 (1) EXISTING PROGRAM.—The term ‘‘existing 

2 program’’ means a program, designed to promote 

3 employee ownership, that exists on the date on 

4 which the Secretary is carrying out a responsibility 

5 authorized under this section. 

6 (2) INITIATIVE.—The term ‘‘Initiative’’ means 

7 the Employee Ownership Initiative established under 

8 subsection (c). 

9 (3) NEW PROGRAM.—The term ‘‘new program’’ 

10 means a program, designed to promote employee 

11 ownership, that does not exist on the date on which 

12 the Secretary is carrying out a responsibility author13 ized under this section. 

14 (4) SECRETARY.—The term ‘‘Secretary’’ means 

15 the Secretary of Labor. 

16 (5) STATE.—The term ‘‘State’’ has the mean17 ing given the term under section 3 of the Workforce 

18 Innovation and Opportunity Act (29 U.S.C. 3102). 

19 (c) EMPLOYEE OWNERSHIP INITIATIVE.— 

20 (1) ESTABLISHMENT.—The Secretary shall es21 tablish within the Department of Labor an Em22 ployee Ownership Initiative to promote employee 

23 ownership. 

24 (2) FUNCTIONS.—In carrying out the Initiative, 

25 the Secretary shall— 


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1 (A) support within the States existing pro2 grams designed to promote employee ownership; 

3 and 

4 (B) facilitate within the States the forma5 tion of new programs designed to promote em6 ployee ownership. 

7 (3) DUTIES.—To carry out the functions enu8 merated in paragraph (2), the Secretary shall— 

9 (A) support new programs and existing 

10 programs by— 

11 (i) making Federal grants authorized 

12 under subsection (e); and 

13 (ii)(I) acting as a clearinghouse on 

14 techniques employed by new programs and 

15 existing programs within the States, and 

16 disseminating information relating to those 

17 techniques to the programs; or 

18 (II) funding projects for information 

19 gathering on those techniques, and dis20 semination of that information to the pro21 grams, by groups outside the Department 

22 of Labor; and 

23 (B) facilitate the formation of new pro24 grams, in ways that include holding or funding 

25 an annual conference of representatives from 


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1 States with existing programs, representatives 

2 from States developing new programs, and rep3 resentatives from States without existing pro4 grams. 

5 (d) PROGRAMS REGARDING EMPLOYEE OWNER6 SHIP.— 

7 (1) ESTABLISHMENT OF PROGRAM.—Not later 

8 than 180 days after the date of enactment of this 

9 Act, the Secretary shall establish a program to en10 courage new programs and existing programs within 

11 the States to foster employee ownership throughout 

12 the United States. 

13 (2) PURPOSE OF PROGRAM.—The purpose of 

14 the program established under paragraph (1) is to 

15 encourage new and existing programs within the 

16 States that focus on— 

17 (A) providing education and outreach to 

18 inform employees and employers about the pos19 sibilities and benefits of employee ownership 

20 and business ownership succession planning, in21 cluding providing information about financial 

22 education, employee teams, open-book manage23 ment, and other tools that enable employees to 

24 share ideas and information about how their 

25 businesses can succeed; 


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1 (B) providing technical assistance to assist 

2 employee efforts to become business owners, to 

3 enable employers and employees to explore and 

4 assess the feasibility of transferring full or par5 tial ownership to employees, and to encourage 

6 employees and employers to start new em7 ployee-owned businesses; 

8 (C) training employees and employers with 

9 respect to methods of employee participation in 

10 open-book management, work teams, commit11 tees, and other approaches for seeking greater 

12 employee input; and 

13 (D) training other entities to apply for 

14 funding under this subsection, to establish new 

15 programs, and to carry out program activities. 

16 (3) PROGRAM DETAILS.—The Secretary may in17 clude, in the program established under paragraph 

18 (1), provisions that— 

19 (A) in the case of activities described in 

20 paragraph (2)(A)— 

21 (i) target key groups, such as retiring 

22 business owners, senior managers, labor 

23 organizations, trade associations, commu24 nity organizations, and economic develop25 ment organizations; 


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1 (ii) encourage cooperation in the orga2 nization of workshops and conferences; and 

3 (iii) prepare and distribute materials 

4 concerning employee ownership, and busi5 ness ownership succession planning; 

6 (B) in the case of activities described in 

7 paragraph (2)(B)— 

8 (i) provide preliminary technical as9 sistance to employee groups, managers, 

10 and retiring owners exploring the possi11 bility of employee ownership; 

12 (ii) provide for the performance of 

13 preliminary feasibility assessments; 

14 (iii) assist in the funding of objective 

15 third-party feasibility studies and prelimi16 nary business valuations, and in selecting 

17 and monitoring professionals qualified to 

18 conduct such studies; and 

19 (iv) provide a data bank to help em20 ployees find legal, financial, and technical 

21 advice in connection with business owner22 ship; 

23 (C) in the case of activities described in 

24 paragraph (2)(C)— 


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1 (i) provide for courses on employee 

2 participation; and 

3 (ii) provide for the development and 

4 fostering of networks of employee-owned 

5 companies to spread the use of successful 

6 participation techniques; and 

7 (D) in the case of training described in 

8 paragraph (2)(D)— 

9 (i) provide for visits to existing pro10 grams by staff from new programs receiv11 ing funding under this section; and 

12 (ii) provide materials to be used for 

13 such training. 

14 (4) GUIDANCE.—The Secretary shall issue for15 mal guidance, for— 

16 (A) recipients of grants awarded under 

17 subsection (e) and one-stop partners (as defined 

18 in section 3 of the Workforce Innovation and 

19 Opportunity Act (29 U.S.C. 3102)) affiliated 

20 with the workforce development systems (as so 

21 defined) of the States, proposing that programs 

22 and other activities funded under this section 

23 be— 


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1 (i) proactive in encouraging actions 

2 and activities that promote employee own3 ership of businesses; and 

4 (ii) comprehensive in emphasizing 

5 both employee ownership of businesses so 

6 as to increase productivity and broaden 

7 capital ownership; and 

8 (B) acceptable standards and procedures 

9 to establish good faith fair market value for 

10 shares of a business to be acquired by an em11 ployee stock ownership plan (as defined in sec12 tion 407(d)(6) of the Employee Retirement In13 come Security Act of 1974 (29 U.S.C. 

14 1107(d)(6))). 

15 (e) GRANTS.— 

16 (1) IN GENERAL.—In carrying out the program 

17 established under subsection (d), the Secretary may 

18 make grants for use in connection with new pro19 grams and existing programs within a State for any 

20 of the following activities: 

21 (A) Education and outreach as provided in 

22 subsection (d)(2)(A). 

23 (B) Technical assistance as provided in 

24 subsection (d)(2)(B). 


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1 (C) Training activities for employees and 

2 employers as provided in subsection (d)(2)(C). 

3 (D) Activities facilitating cooperation 

4 among employee-owned firms. 

5 (E) Training as provided in subsection 

6 (d)(2)(D) for new programs provided by partici7 pants in existing programs dedicated to the ob8 jectives of this section, except that, for each fis9 cal year, the amount of the grants made for 

10 such training shall not exceed 10 percent of the 

11 total amount of the grants made under this sec12 tion. 

13 (2) AMOUNTS AND CONDITIONS.—The Sec14 retary shall determine the amount and any condi15 tions for a grant made under this subsection. The 

16 amount of the grant shall be subject to paragraph 

17 (6), and shall reflect the capacity of the applicant 

18 for the grant. 

19 (3) APPLICATIONS.—Each entity desiring a 

20 grant under this subsection shall submit an applica21 tion to the Secretary at such time, in such manner, 

22 and accompanied by such information as the Sec23 retary may reasonably require. 

24 (4) STATE APPLICATIONS.—Each State may 

25 sponsor and submit an application under paragraph 


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1 (3) on behalf of any local entity consisting of a unit 

2 of State or local government, State-supported insti3 tution of higher education, or nonprofit organization, 

4 meeting the requirements of this section. 

5 (5) APPLICATIONS BY ENTITIES.— 

6 (A) ENTITY APPLICATIONS.—If a State 

7 fails to support or establish a program pursu8 ant to this section during any fiscal year, the 

9 Secretary shall, in the subsequent fiscal years, 

10 allow local entities described in paragraph (4) 

11 from that State to make applications for grants 

12 under paragraph (3) on their own initiative. 

13 (B) APPLICATION SCREENING.—Any State 

14 failing to support or establish a program pursu15 ant to this section during any fiscal year may 

16 submit applications under paragraph (3) in the 

17 subsequent fiscal years but may not screen ap18 plications by local entities described in para19 graph (4) before submitting the applications to 

20 the Secretary. 

21 (6) LIMITATIONS.—A recipient of a grant made 

22 under this subsection shall not receive, during a fis23 cal year, in the aggregate, more than the following 

24 amounts: 

25 (A) For fiscal year 2024, $300,000. 


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1 (B) For fiscal year 2025, $330,000. 

2 (C) For fiscal year 2026, $363,000. 

3 (D) For fiscal year 2027, $399,300. 

4 (E) For fiscal year 2028, $439,200. 

5 (7) ANNUAL REPORT.—For each year, each re6 cipient of a grant under this subsection shall submit 

7 to the Secretary a report describing how grant funds 

8 allocated pursuant to this subsection were expended 

9 during the 12-month period preceding the date of 

10 the submission of the report. 

11 (f) EVALUATIONS.—The Secretary is authorized to 

12 reserve not more than 10 percent of the funds appro13 priated for a fiscal year to carry out this section, for the 

14 purposes of conducting evaluations of the grant programs 

15 identified in subsection (e) and to provide related technical 

16 assistance. 

17 (g) REPORTING.—Not later than the expiration of the 

18 36-month period following the date of enactment of this 

19 Act, the Secretary shall prepare and submit to Congress 

20 a report— 

21 (1) on progress related to employee ownership 

22 in businesses in the United States; and 

23 (2) containing an analysis of critical costs and 

24 benefits of activities carried out under this section. 

25 (h) AUTHORIZATIONS OF APPROPRIATIONS.— 


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1 (1) IN GENERAL.—There are authorized to be 

2 appropriated for the purpose of making grants pur3 suant to subsection (e) the following: 

4 (A) For fiscal year 2024, $4,000,000. 

5 (B) For fiscal year 2025, $7,000,000. 

6 (C) For fiscal year 2026, $10,000,000. 

7 (D) For fiscal year 2027, $13,000,000. 

8 (E) For fiscal year 2028, $16,000,000. 

9 (2) ADMINISTRATIVE EXPENSES.—There are 

10 authorized to be appropriated for the purpose of 

11 funding the administrative expenses related to the 

12 Initiative, for each of fiscal years 2022 through 

13 2026, an amount not in excess of the lesser of— 

14 (A) $350,000; or 

15 (B) 5.0 percent of the maximum amount 

16 available under paragraph (1) for that fiscal 

17 year. 

18 SEC. 703. REPORT BY THE SECRETARY OF LABOR ON THE 

19 IMPACT OF INFLATION ON RETIREMENT SAV20 INGS. 

21 The Secretary of Labor, in consultation with the Sec22 retary of the Treasury, shall— 

23 (1) conduct a study on the impact of inflation 

24 on retirement savings; and 


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1 (2) not later than 90 days after the date of en2 actment of this Act, submit to Congress a report on 

3 the findings of the study. 


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Calendar No. 426 

117TH CONGRESS 

2D SESSION S. 4353 

A BILL 

To amend the Employee Retirement Income Secuand for other purposes. of 1986 to improve retirement plan provisions, rity Act of 1974 and the Internal Revenue Code 

JUNE 21, 2022 

Reported with amendments 


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