IB 
Union Calendar No. 180 
117TH CONGRESS 
2D SESSION 
H. R. 5891 
[Report No. 117–250, Part I] 
To improve and enhance retirement savings, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 5, 2021 
Mr. SCOTT of Virginia (for himself, Ms. FOXX, Mr. DESAULNIER, and Mr. 
ALLEN) introduced the following bill; which was referred to the Com-
mittee on Education and Labor, and in addition to the Committee on 
Ways and Means, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
FEBRUARY 25, 2022 
Reported from the Committee on Education and Labor with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
FEBRUARY 25, 2022 
Committee on Ways and Means discharged; committed to the Committee of 
the Whole House on the State of the Union and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on November 5, 2021] 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Re-
tirement Improvement and Savings Enhancement Act of 
2021’’ or the ‘‘RISE Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Retirement savings lost and found. 
Sec. 3. Retirement plan modernization act. 
Sec. 4. Multiple employer 403(b) plans. 
Sec. 5. Small immediate financial incentives for contributing to a plan. 
Sec. 6. Performance benchmarks for asset allocation funds. 
Sec. 7. Pooled employer plans modification. 
Sec. 8. Review of pension risk transfer interpretive bulletin. 
Sec. 9. Review and report to congress relating to reporting and disclosure require-
ments. 
Sec. 10. Eliminating unnecessary plan requirements related to unenrolled par-
ticipants. 
Sec. 11. Recovery of retirement plan overpayments. 
Sec. 12. Improving coverage for part-time workers. 
SEC. 2. RETIREMENT SAVINGS LOST AND FOUND. 
(a) ESTABLISHMENT OF RETIREMENT SAVINGS LOST 
AND FOUND.—Part 5 of title I of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1341 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 523. RETIREMENT SAVINGS LOST AND FOUND. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN GENERAL.—Not later than 2 years after 
the date of the enactment of this section, the Secretary 
of Labor, in consultation with the Secretary of the 
Treasury, shall establish an online searchable data-
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base (to be managed by the Department of Labor in 
accordance with this section) to be known as the ‘Re-
tirement Savings Lost and Found’. The Retirement 
Savings Lost and Found shall— 
‘‘(A) allow an individual to search for in-
formation that enables the individual to locate 
the administrator of any plan described in para-
graph (2) with respect to which the individual is 
or was a participant or beneficiary, and provide 
contact information for the administrator of any 
such plan; 
‘‘(B) allow the Department of Labor to as-
sist such an individual in locating any such 
plan of the individual; and 
‘‘(C) allow the Department of Labor to 
make any necessary changes to contact informa-
tion on record for the administrator based on 
any changes to the plan due to merger or con-
solidation of the plan with any other plan, divi-
sion of the plan into two or more plans, bank-
ruptcy, termination, change in name of the plan, 
change in name or address of the administrator, 
or other causes. 
The Retirement Savings Lost and Found established 
under this paragraph shall include information re-
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ported under this section and other relevant informa-
tion obtained by the Department of Labor. 
‘‘(2) PLANS DESCRIBED.—A plan described in 
this paragraph is a plan to which the vesting stand-
ards of section 203 apply. 
‘‘(b) ADMINISTRATION.—The Retirement Savings Lost 
and Found established under subsection (a) shall provide 
individuals described in subsection (a)(1) only with the 
ability to search for information that enables the individual 
to locate the administrator and contact information for the 
administrator of any plan with respect to which the indi-
vidual is or was a participant or beneficiary, sufficient to 
allow the individual to locate the individual’s plan in order 
to recover any benefit owing to the individual under the 
plan. 
‘‘(c) SAFEGUARDING PARTICIPANT PRIVACY AND SE-
CURITY.—In establishing the Retirement Savings Lost and 
Found under subsection (a), the Department of Labor shall 
take all necessary and proper precautions to ensure that 
individuals’ plan information maintained by the Retire-
ment Savings Lost and Found is protected. 
‘‘(d) DEFINITION OF ADMINISTRATOR.—For purposes 
of this section and section 523, the term ‘administrator’ has 
the meaning given such term in section 3(16)(A). 
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‘‘(e) INFORMATION COLLECTION FROM PLANS.—Effec-
tive with respect to plan years beginning after the second 
December 31 occurring after the date of the enactment of 
this subsection, the administrator of a plan to which the 
vesting standards of section 203 apply shall submit to the 
Department of Labor, at such time and in such form and 
manner as is prescribed in regulations— 
‘‘(1) the information described in paragraphs (1) 
through (4) of section 6057(b) of the Internal Revenue 
Code of 1986; 
‘‘(2) the information described in subparagraphs 
(A), (B), (E), and (F) of section 6057(a)(2) of the In-
ternal Revenue Code of 1986; and 
‘‘(3) such other information as the Secretary of 
Labor may require. 
‘‘(f) INFORMATION
COLLECTION
FROM
FEDERAL 
AGENCIES.—The Secretary of Labor is authorized to access 
and receive information collected by other Federal agencies 
that may be necessary to perform work related to the Retire-
ment Savings Lost and Found. Such necessary and appro-
priate information, which shall be furnished to the Sec-
retary of Labor on request, includes information covered by 
section 6103 of the Internal Revenue Code of 1986 and sec-
tion 205(r) of the Social Security Act. 
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‘‘(g) PROGRAM INTEGRITY AUDIT.—On an annual 
basis for each of the first 5 years beginning one year after 
the establishment of the database in subsection (a)(1) and 
every 5 years thereafter, the Inspector General of the De-
partment of Labor shall conduct an audit of the adminis-
tration of the Retirement Savings Lost and Found.’’. 
(b) CONFORMING AMENDMENT.—The table of contents 
for the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1001 et seq.) is amended by inserting after the 
matter relating to section 521 the following: 
‘‘Sec. 523.Retirement Savings Lost and Found.’’. 
SEC. 3. RETIREMENT PLAN MODERNIZATION ACT. 
Section 203(e)(1) of the Employee Retirement Income 
Security Act of 1974 and sections 401(a)(31)(B)(ii) and 
411(a)(11)(A) of the Internal Revenue Code of 1986 and 
are each amended by striking ‘‘$5,000’’ and inserting 
‘‘$7,000’’. 
SEC. 4. MULTIPLE EMPLOYER 403(b) PLANS. 
(a) IN GENERAL.—Section 403(b) of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new paragraph: 
‘‘(15) MULTIPLE EMPLOYER PLANS.— 
‘‘(A) IN GENERAL.—Except in the case of a 
church plan, this subsection shall not be treated 
as failing to apply to an annuity contract solely 
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by reason of such contract being purchased under 
a plan maintained by more than 1 employer. 
‘‘(B) TREATMENT OF EMPLOYERS FAILING 
TO MEET REQUIREMENTS OF PLAN.— 
‘‘(i) IN GENERAL.—In the case of a 
plan maintained by more than 1 employer, 
this subsection shall not be treated as fail-
ing to apply to an annuity contract held 
under such plan merely because of one or 
more employers failing to meet the require-
ments of this subsection if such plan satis-
fies rules similar to the rules of section 
413(e)(2) with respect to any such employer 
failure. 
‘‘(ii) ADDITIONAL
REQUIREMENTS
IN 
CASE
OF
NON-GOVERNMENTAL
PLANS.—A 
plan shall not be treated as meeting the re-
quirements of this subparagraph unless the 
plan meets the requirements of subpara-
graph (A) or (B) of section 413(e)(1), except 
in the case of a multiple employer plan 
maintained solely by any of the following: 
A State, a political subdivision of a State, 
or an agency or instrumentality of any one 
or more of the foregoing.’’. 
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(d) AMENDMENTS
TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.— 
(1) IN GENERAL.—Section 3(43)(A) of the Em-
ployee Retirement Income Security Act of 1974 is 
amended— 
(A) in clause (ii), by striking ‘‘section 
501(a) of such Code or’’ and inserting ‘‘section 
501(a) of such Code, a plan that consists of con-
tracts described in section 403(b) of such Code, 
or’’; and 
(B) in the flush text at the end, by striking 
‘‘the plan.’’ and inserting ‘‘the plan, but such 
term shall include any program (other than a 
governmental plan) maintained for the benefit of 
the employees of more than 1 employer that con-
sists of contracts described in section 403(b) of 
such Code and that meets the requirements of 
subparagraph (A) or (B) of section 413(e)(1) of 
such Code.’’. 
(2) 
CONFORMING
AMENDMENTS.—Sections 
3(43)(B)(v)(II) and 3(44)(A)(i)(I) of the Employee 
Retirement Income Security Act of 1974 are each 
amended by striking ‘‘section 401(a) of such Code or’’ 
and inserting ‘‘section 401(a) of such Code, a plan 
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that consists of contracts described in section 403(b) 
of such Code, or’’. 
(e) REGULATIONS
RELATING
TO
PLAN
TERMI-
NATION.—The Secretary of the Treasury (or the Secretary’s 
designee) shall prescribe such regulations as may be nec-
essary to clarify the treatment of a plan termination by 
an employer in the case of plans to which section 403(b)(15) 
of the Internal Revenue Code of 1986 applies. 
(f) MODIFICATION
OF
MODEL
PLAN
LANGUAGE, 
ETC.— 
(1) PLAN NOTIFICATIONS.—The Secretary of the 
Treasury (or the Secretary’s designee) shall modify 
the model plan language published under section 
413(e)(5) of the Internal Revenue Code of 1986 to in-
clude language that notifies participating employers 
described in section 501(c)(3), and which are exempt 
from tax under section 501(a), that the plan is subject 
to the Employee Retirement Income Security Act of 
1974 and that such employer is a plan sponsor with 
respect to its employees participating in the multiple 
employer plan and, as such, has certain fiduciary du-
ties with respect to the plan and to its employees. 
(2) MODEL
PLANS
FOR
MULTIPLE
EMPLOYER 
403(b) NON-GOVERNMENTAL
PLANS.—For plans to 
which section 403(b)(15)(A) of the Internal Revenue 
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Code of 1986 applies (other than a plan maintained 
for its employees by a State, a political subdivision 
of a State, or an agency or instrumentality of any 
one or more of the foregoing), the Secretary of the 
Treasury shall publish model plan language similar 
to model plan language published under section 
413(e)(5) of such Code. 
(3) EDUCATIONAL OUTREACH TO EMPLOYERS EX-
EMPT
FROM
TAX.—The Secretary of the Treasury 
shall provide education and outreach to increase 
awareness to employers described in section 501(c)(3) 
of the Internal Revenue Code of 1986, and which are 
exempt from tax under section 501(a) of such Code, 
that multiple employer plans are subject to the Em-
ployee Retirement Income Security Act of 1974 and 
that such employer is a plan sponsor with respect to 
its employees participating in the multiple employer 
plan and, as such, has certain fiduciary duties with 
respect to the plan and to its employees. 
(g) NO INFERENCE WITH RESPECT
TO CHURCH 
PLANS.—Regarding any application of section 403(b) of the 
Internal Revenue Code of 1986 to an annuity contract pur-
chased under a church plan (as defined in section 414(e) 
of such Code) maintained by more than 1 employer, or to 
any application of rules similar to section 413(e) of such 
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Code to such a plan, no inference shall be made from section 
403(b)(15)(A) of such Code (as added by this Act) not ap-
plying to such plans. 
(h) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments made by 
this section shall apply to plan years beginning after 
December 31, 2021. 
(2) RULE OF CONSTRUCTION.—Nothing in the 
amendments made by subsection (a) shall be con-
strued as limiting the authority of the Secretary of 
the Treasury or the Secretary’s delegate (determined 
without regard to such amendment) to provide for the 
proper treatment of a failure to meet any requirement 
applicable under the Internal Revenue Code of 1986 
with respect to one employer (and its employees) in 
the case of a plan to which section 403(b)(15) of the 
Internal Revenue Code of 1986 applies. 
SEC. 5. SMALL IMMEDIATE FINANCIAL INCENTIVES FOR 
CONTRIBUTING TO A PLAN. 
(a) IN
GENERAL.—Subparagraph (A) of section 
401(k)(4) of the Internal Revenue Code of 1986 is amended 
by inserting ‘‘(other than a de minimis financial incen-
tive)’’ after ‘‘any other benefit’’. 
(b) SECTION 403(b) PLANS.—Subparagraph (A) of sec-
tion 403(b)(12) of the Internal Revenue Code of 1986, is 
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further amended by adding at the end the following: ‘‘A 
plan shall not fail to satisfy clause (ii) solely by reason 
of offering a de minimis financial incentive to employees 
to elect to have the employer make contributions pursuant 
to a salary reduction agreement.’’. 
(c) EXEMPTION FROM PROHIBITED TRANSACTION 
RULES.—Subsection (d) of section 4975 of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘or’’ at the end 
of paragraph (22), by striking the period at the end of para-
graph (23) and inserting ‘‘, or’’, and by adding at the end 
the following new paragraph: 
‘‘(24) the provision of a de minimis financial in-
centive 
described 
in 
section 
401(k)(4)(A) 
or 
403(b)(12)(A).’’. 
(d) AMENDMENT OF EMPLOYEE RETIREMENT INCOME 
SECURITY ACT OF 1974.—Subsection (b) of section 408 of 
the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1108(b)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(21) The provision of a de minimis financial 
incentive described in section 401(k)(4)(A) or section 
403(b)(12)(A) of the Internal Revenue Code of 1986.’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply with respect to plan years beginning 
after the date of enactment of this Act. 
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SEC. 6. PERFORMANCE BENCHMARKS FOR ASSET ALLOCA-
TION FUNDS. 
(a) IN GENERAL.—Not later than 1 year after the date 
of enactment of this Act, the Secretary of Labor shall pro-
vide that, in the case of a designated investment alternative 
that contains a mix of asset classes, the administrator of 
a plan may, but is not required to, use a benchmark that 
is a blend of different broad-based securities market indices 
if— 
(1) the blend is reasonably representative of the 
asset class holdings of the designated investment alter-
native; 
(2) for purposes of determining the blend’s re-
turns for 1-, 5-, and 10-calendar-year periods (or for 
the life of the alternative, if shorter), the blend is 
modified at least once per year to reflect changes in 
the asset class holdings of the designated investment 
alternative; 
(3) the blend is furnished to participants and 
beneficiaries in a manner that is reasonably designed 
to be understandable; and 
(4) each securities market index that is used for 
an associated asset class would separately satisfy the 
requirements of such regulation for such asset class. 
(b) STUDY.—Not later than 3 years after the date of 
enactment of this Act, the Secretary of Labor shall deliver 
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a report to the Committees on Finance and Health, Edu-
cation, Labor, and Pensions of the Senate and the Commit-
tees on Ways and Means and Education and Labor of the 
House of Representatives regarding the utilization, effective-
ness, and participants’ understanding of the benchmarking 
requirements under this section. 
SEC. 7. POOLED EMPLOYER PLANS MODIFICATION. 
Section 3(43)(B)(ii) of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C. 1002(43)(B)(ii)) is 
amended to read as follows: 
‘‘(ii) designate a named fiduciary 
(other than an employer in the plan) to be 
responsible for collecting contributions to 
the plan and require such fiduciary to im-
plement written contribution collection pro-
cedures that are reasonable, diligent, and 
systematic;’’. 
SEC. 8. REVIEW OF PENSION RISK TRANSFER INTERPRE-
TIVE BULLETIN. 
Not later than 1 year after the date of enactment of 
this Act, the Secretary of Labor shall— 
(1) review section 2509.95–1 of title 29, Code of 
Federal Regulations (relating to the fiduciary stand-
ards under the Employee Retirement Income Security 
Act of 1974 when selecting an annuity provider for 
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a defined benefit pension plan) to determine whether 
amendments to such section are warranted; and 
(2) report to Congress on the findings of such re-
view, including an assessment of any risk to partici-
pants. 
SEC. 9. REVIEW AND REPORT TO CONGRESS RELATING TO 
REPORTING 
AND 
DISCLOSURE 
REQUIRE-
MENTS. 
(a) STUDY.—As soon as practicable after the date of 
enactment of this Act, the Secretary of Labor, the Secretary 
of the Treasury, and the Director of the Pension Benefit 
Guaranty Corporation shall review the reporting and dis-
closure requirements as applicable to each such agency 
head, of— 
(1) the Employee Retirement Income Security 
Act of 1974 applicable to pension plans (as defined 
in section 3(2) of such Act (29 U.S.C. 1002(2)); and 
(2) the Internal Revenue Code of 1986 applicable 
to qualified retirement plans (as defined in section 
4974(c) of such Code, without regard to paragraphs 
(4) and (5) of such section). 
(b) REPORT.— 
(1) IN GENERAL.—Not later than 2 years after 
the date of enactment of this Act, the Secretary of 
Labor, the Secretary of the Treasury, and the Direc-
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tor of the Pension Benefit Guaranty Corporation, 
jointly, and after consultation with a balanced group 
of participant and employer representatives, shall 
with respect to plans referenced in subsection (a) re-
port on the effectiveness of the applicable reporting 
and disclosure requirements and make such rec-
ommendations as may be appropriate to the Com-
mittee on Education and Labor and the Committee 
on Ways and Means of the House of Representatives 
and the Committee on Health, Education, Labor, and 
Pensions and the Committee on Finance of the Senate 
to consolidate, simplify, standardize, and improve 
such requirements so as to simplify reporting for such 
plans and ensure that plans can furnish and partici-
pants and beneficiaries timely receive and better un-
derstand the information they need to monitor their 
plans, plan for retirement, and obtain the benefits 
they have earned. 
(2) ANALYSIS OF EFFECTIVENESS.—To assess the 
effectiveness of the applicable reporting and disclosure 
requirements, the report shall include an analysis, 
based on plan data, of how participants and bene-
ficiaries are providing preferred contact information, 
the methods by which plan sponsors and plans are 
furnishing disclosures, and the rate at which partici-
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pants and beneficiaries (grouped by key demo-
graphics) are receiving, accessing, understanding, and 
retaining disclosures. 
(3) COLLECTION OF INFORMATION.—The agencies 
shall conduct appropriate surveys and data collection 
to obtain any needed information. 
SEC. 10. ELIMINATING UNNECESSARY PLAN REQUIRE-
MENTS RELATED TO UNENROLLED PARTICI-
PANTS. 
(a) AMENDMENT OF EMPLOYEE RETIREMENT INCOME 
SECURITY ACT OF 1974.— 
(1) IN GENERAL.—Part 1 of subtitle B of sub-
chapter I of the Employee Retirement Income Secu-
rity Act of 1974 is amended by redesignating section 
111 as section 112 and by inserting after section 110 
the following new section: 
‘‘SEC. 111. ELIMINATING UNNECESSARY PLAN REQUIRE-
MENTS RELATED TO UNENROLLED PARTICI-
PANTS. 
‘‘(a) IN GENERAL.—Notwithstanding any other provi-
sion of this title, with respect to any individual account 
plan, no disclosure, notice, or other plan document (other 
than the notices and documents described in paragraphs (1) 
and (2)) shall be required to be furnished under this title 
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to any unenrolled participant if the unenrolled participant 
receives— 
‘‘(1) an annual reminder notice of such partici-
pant’s eligibility to participate in such plan and any 
applicable election deadlines under the plan; and 
‘‘(2) any document requested by such participant 
that the participant would be entitled to receive not-
withstanding this section. 
‘‘(b) UNENROLLED PARTICIPANT.—For purposes of 
this section, the term ‘unenrolled participant’ means an em-
ployee who— 
‘‘(1) is eligible to participate in an individual 
account plan; 
‘‘(2) has received the summary plan description 
pursuant to section 104(b) and any other eligibility 
notices required to be furnished under this title in 
connection with such participant’s initial eligibility 
to participate in such plan; 
‘‘(3) is not participating in such plan; 
‘‘(4) does not have a balance in the plan; and 
‘‘(5) satisfies such other criteria as the Secretary 
of Labor may determine appropriate, as prescribed in 
guidance issued in consultation with the Secretary of 
Treasury. 
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For purposes of this section, any eligibility to participate 
in the plan following any period for which such employee 
was not eligible to participate shall be treated as initial 
eligibility. 
‘‘(c) ANNUAL REMINDER NOTICE.—For purposes of 
this section, the term ‘annual reminder notice’ means a no-
tice provided in accordance with section 2520.104b–1 of 
title 29, Code of Federal Regulations (or any successor regu-
lation), which— 
‘‘(1) is furnished in connection with the annual 
open season election period with respect to the plan 
or, if there is no such period, is furnished within a 
reasonable period prior to the beginning of each plan 
year; 
‘‘(2) notifies the unenrolled participant of— 
‘‘(A) the unenrolled participant’s eligibility 
to participate in the plan; and 
‘‘(B) the key benefits and rights under the 
plan, with a focus on employer contributions 
and vesting provisions; and 
‘‘(3) provides such information in a prominent 
manner calculated to be understood by the average 
participant.’’. 
(2) CLERICAL AMENDMENT.—The table of con-
tents in section 1 of the Employee Retirement Income 
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Security Act of 1974 is amended by striking the item 
relating to section 111 and by inserting after the item 
relating to section 110 the following new items: 
‘‘Sec. 111. Eliminating unnecessary plan requirements related to unenrolled par-
ticipants. 
‘‘Sec. 112. Repeal and effective date.’’. 
(b) AMENDMENT OF INTERNAL REVENUE CODE OF 
1986.—Section 414 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new sub-
section: 
‘‘(aa) ELIMINATING UNNECESSARY PLAN REQUIRE-
MENTS RELATED TO UNENROLLED PARTICIPANTS.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this title, with respect to any defined 
contribution plan, no disclosure, notice, or other plan 
document (other than the notices and documents de-
scribed in subparagraphs (A) and (B)) shall be re-
quired to be furnished under this title to any 
unenrolled participant if the unenrolled participant 
receives— 
‘‘(A) an annual reminder notice of such 
participant’s eligibility to participate in such 
plan and any applicable election deadlines under 
the plan, and 
‘‘(B) any document requested by such par-
ticipant that the participant would be entitled to 
receive notwithstanding this subsection. 
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‘‘(2) UNENROLLED PARTICIPANT.—For purposes 
of this subsection, the term ‘unenrolled participant’ 
means an employee who— 
‘‘(A) is eligible to participate in a defined 
contribution plan, 
‘‘(B) has received the summary plan de-
scription pursuant to section 104(b) of the Em-
ployee Retirement Income Security Act of 1974 
and any other eligibility notices in connection 
with such participant’s initial eligibility to par-
ticipate in such plan, 
‘‘(C) is not participating in such plan, 
‘‘(D) does not have a balance in the plan, 
and 
‘‘(E) satisfies such other criteria as the Sec-
retary of the Treasury may determine appro-
priate, as prescribed in guidance issued in con-
sultation with the Secretary of Labor. 
For purposes of this subsection, any eligibility to par-
ticipate in the plan following any period for which 
such employee was not eligible to participate shall be 
treated as initial eligibility. 
‘‘(3) ANNUAL REMINDER NOTICE.—For purposes 
of this subsection, the term ‘annual reminder notice’ 
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means the notice described in section 111(c) of the 
Employee Retirement Income Security Act of 1974.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2021. 
SEC. 11. RECOVERY OF RETIREMENT PLAN OVERPAYMENTS. 
(a) OVERPAYMENTS UNDER ERISA.—Section 206 of 
the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1056) is amended by adding at the end the following 
new subsection: 
‘‘(h) SPECIAL RULES APPLICABLE TO BENEFIT OVER-
PAYMENTS.— 
‘‘(1) GENERAL RULE.—In the case of an inad-
vertent benefit overpayment by any pension plan, the 
responsible plan fiduciary shall not be considered to 
have failed to comply with the requirements of this 
title merely because such fiduciary determines, in the 
exercise of its fiduciary discretion, not to seek recov-
ery of all or part of such overpayment from— 
‘‘(A) any participant or beneficiary, 
‘‘(B) any plan sponsor of, or contributing 
employer to— 
‘‘(i) an individual account plan, pro-
vided that the amount needed to prevent or 
restore any impermissible forfeiture from 
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any participant’s or beneficiary’s account 
arising in connection with the overpayment 
is, separately from and independently of the 
overpayment, allocated to such account pur-
suant to the nonforfeitability requirements 
of section 203 (for example, out of the plan’s 
forfeiture account, additional employer con-
tributions, or recoveries from those respon-
sible for the overpayment), or 
‘‘(ii) a defined benefit pension plan 
subject to the funding rules in part 3 of this 
subtitle B, unless the responsible plan fidu-
ciary determines, in the exercise of its fidu-
ciary discretion, that failure to recover all 
or part of the overpayment faster than re-
quired under such funding rules would ma-
terially affect the plan’s ability to pay bene-
fits due to other participants and bene-
ficiaries, or 
‘‘(C) any fiduciary of the plan, other than 
a fiduciary (including a plan sponsor or contrib-
uting employer acting in a fiduciary capacity) 
whose breach of its fiduciary duties resulted in 
such overpayment, provided that if the plan has 
established prudent procedures to prevent and 
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minimize overpayment of benefits and the rel-
evant plan fiduciaries have followed such proce-
dures, an inadvertent benefit overpayment will 
not give rise to a breach of fiduciary duty. 
‘‘(2) REDUCTION IN FUTURE BENEFIT PAYMENTS 
AND RECOVERY FROM RESPONSIBLE PARTY.—Para-
graph (1) shall not fail to apply with respect to any 
inadvertent benefit overpayment merely because, after 
discovering such overpayment, the responsible plan fi-
duciary— 
‘‘(A) reduces future benefit payments to the 
correct amount provided for under the terms of 
the plan, or 
‘‘(B) seeks recovery from the person or per-
sons responsible for the overpayment. 
‘‘(3) EMPLOYER FUNDING OBLIGATIONS.—Noth-
ing in this subsection shall relieve an employer of any 
obligation imposed on it to make contributions to a 
plan to meet the minimum funding standards under 
part 3 of this subtitle B or to prevent or restore an 
impermissible forfeiture in accordance with section 
203. 
‘‘(4) RECOUPMENT
FROM
PARTICIPANTS
AND 
BENEFICIARIES.—If the responsible plan fiduciary, in 
the exercise of its fiduciary discretion, decides to seek 
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recoupment from a participant or beneficiary of all 
or part of an inadvertent benefit overpayment made 
by the plan to such participant or beneficiary, it may 
do so, subject to the following conditions: 
‘‘(A) No interest or other additional 
amounts (such as collection costs or fees) are 
sought on overpaid amounts for any period be-
fore or after the date of correction of such over-
payment. 
‘‘(B) If the plan seeks to recoup past over-
payments of a non-decreasing periodic benefit by 
reducing future benefit payments— 
‘‘(i) the reduction ceases after the plan 
has recovered the full dollar amount of the 
overpayment, 
‘‘(ii) the amount recouped each cal-
endar year does not exceed 10 percent of the 
full dollar amount of the overpayment, and 
‘‘(iii) future benefit payments are not 
reduced to below 90 percent of the periodic 
amount otherwise payable under the terms 
of the plan. 
Alternatively, if the plan seeks to recoup past 
overpayments of a non-decreasing periodic ben-
efit through one or more installment payments, 
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the sum of such installment payments in any 
calendar year does not exceed the sum of the re-
ductions that would be permitted in such year 
under the preceding sentence. 
‘‘(C) If the plan seeks to recoup past over-
payments of a benefit other than a non-decreas-
ing periodic benefit, the plan satisfies require-
ments developed by the Secretary for purposes of 
this subparagraph. 
‘‘(D) Efforts to recoup overpayments are— 
‘‘(i) not accompanied by threats of liti-
gation, unless the responsible plan fiduciary 
reasonably believes it could prevail in a 
civil action brought in Federal or State 
court to recoup the overpayments, and 
‘‘(ii) not made through a collection 
agency or similar third party, unless the 
participant or beneficiary ignores or rejects 
efforts to recoup the overpayment following 
either a final judgment in Federal or State 
court or a settlement between the partici-
pant or beneficiary and the plan, in either 
case authorizing such recoupment. 
‘‘(E) Recoupment of past overpayments to a 
participant is not sought from any beneficiary of 
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the participant, including a spouse, surviving 
spouse, former spouse, or other beneficiary. 
‘‘(F) Recoupment may not be sought if the 
first overpayment occurred more than 3 years be-
fore the participant or beneficiary is first noti-
fied in writing of the error. 
‘‘(G) A participant or beneficiary from 
whom recoupment is sought is entitled to contest 
all or part of the recoupment pursuant to the 
plan’s claims procedures. 
‘‘(H) 
In 
determining 
the 
amount 
of 
recoupment to seek, the responsible plan fidu-
ciary may take into account the hardship that 
recoupment likely would impose on the partici-
pant or beneficiary. 
‘‘(5) EFFECT OF CULPABILITY.—Subparagraphs 
(A) through (F) of paragraph (4) shall not apply to 
protect a participant or beneficiary who is culpable. 
For purposes of this paragraph, a participant or ben-
eficiary is culpable if the individual bears responsi-
bility for the overpayment (such as through misrepre-
sentations or omissions that led to the overpayment), 
or if the individual knew, or had good reason to know 
under the circumstances, that the benefit payment or 
payments were materially in excess of the correct 
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amount. Notwithstanding the preceding sentence, an 
individual is not culpable merely because the indi-
vidual believed the benefit payment or payments were 
or might be in excess of the correct amount, if the in-
dividual raised that question with an authorized plan 
representative and was told the payment or payments 
were not in excess of the correct amount. With respect 
to a culpable participant or beneficiary, efforts to re-
coup overpayments shall not be made through threats 
of litigation, unless a lawyer for the plan could make 
the representations required under Rule 11 of the Fed-
eral Rules of Civil Procedure if the litigation were 
brought in Federal court.’’. 
(b) OVERPAYMENTS UNDER INTERNAL REVENUE CODE 
OF 1986.— 
(1) 
QUALIFICATION
REQUIREMENTS.—Section 
414 of the Internal Revenue Code of 1986, is further 
amended by adding at the end the following new sub-
section: 
‘‘(bb) SPECIAL
RULES
APPLICABLE
TO
BENEFIT 
OVERPAYMENTS.— 
‘‘(1) IN GENERAL.—A plan shall not fail to be 
treated as described in clause (i), (ii), (iii), or (iv) of 
section 219(g)(5)(A) (and shall not fail to be treated 
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pamtmann on DSKBC07HB2PROD with BILLS
as satisfying the requirements of section 401(a) or 
403) merely because— 
‘‘(A) the plan fails to obtain payment from 
any participant, beneficiary, employer, plan 
sponsor, fiduciary, or other party on account of 
any inadvertent benefit overpayment made by 
the plan, or 
‘‘(B) the plan sponsor amends the plan to 
reduce past or future benefit payments to affected 
participants and beneficiaries in order to adjust 
for prior inadvertent benefit overpayments. 
‘‘(2) REDUCTION IN FUTURE BENEFIT PAYMENTS 
AND RECOVERY FROM RESPONSIBLE PARTY.—Para-
graph (1) shall not fail to apply to a plan merely be-
cause, after discovering a benefit overpayment, such 
plan— 
‘‘(A) reduces future benefit payments to the 
correct amount provided for under the terms of 
the plan, or 
‘‘(B) seeks recovery from the person or per-
sons responsible for such overpayment. 
‘‘(3) EMPLOYER FUNDING OBLIGATIONS.—Noth-
ing in this subsection shall relieve an employer of any 
obligation imposed on it to make contributions to a 
plan to meet the minimum funding standards under 
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pamtmann on DSKBC07HB2PROD with BILLS
sections 412 and 430 or to prevent or restore an im-
permissible forfeiture in accordance with section 411. 
‘‘(4) OBSERVANCE OF BENEFIT LIMITATIONS.— 
Notwithstanding paragraph (1), a plan to which 
paragraph (1) applies shall observe any limitations 
imposed on it by section 401(a)(17) or 415. The plan 
may enforce such limitations using any method ap-
proved by the Secretary of the Treasury for recouping 
benefits previously paid or allocations previously 
made in excess of such limitations. 
‘‘(5) COORDINATION WITH OTHER QUALIFICATION 
REQUIREMENTS.—The Secretary of the Treasury may 
issue regulations or other guidance of general applica-
bility specifying how benefit overpayments and their 
recoupment or non-recoupment from a participant or 
beneficiary shall be taken into account for purposes of 
satisfying any requirement applicable to a plan to 
which paragraph (1) applies.’’. 
(2) ROLLOVERS.—Section 402(c) of such Code is 
amended by adding at the end the following new 
paragraph: 
‘‘(12) In the case of an inadvertent benefit over-
payment from a plan to which section 414(bb)(1) ap-
plies that is transferred to an eligible retirement plan 
by or on behalf of a participant or beneficiary— 
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(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply as of the date of the enactment of this 
Act. 
(d) CERTAIN ACTIONS BEFORE DATE
OF ENACT-
MENT.—Plans, fiduciaries, employers, and plan sponsors 
are entitled to rely on— 
(1) a good faith interpretation of then existing 
administrative guidance for inadvertent benefit over-
payment recoupments and recoveries that commenced 
before the date of enactment of this Act, and 
(2) determinations made before the date of enact-
ment of this Act by the responsible plan fiduciary, in 
the exercise of its fiduciary discretion, not to seek 
recoupment or recovery of all or part of an inad-
vertent benefit overpayment. 
In the case of a benefit overpayment that occurred prior 
to the date of enactment of this Act, any installment pay-
ments by the participant or beneficiary to the plan or any 
reduction in periodic benefit payments to the participant 
or beneficiary, which were made in recoupment of such 
overpayment and which commenced prior to such date, may 
continue after such date. Nothing in this subsection shall 
relieve a fiduciary from responsibility for an overpayment 
that resulted from a breach of its fiduciary duties. 
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SEC. 12. IMPROVING COVERAGE FOR PART-TIME WORKERS. 
(a) AMENDMENT OF EMPLOYEE RETIREMENT INCOME 
SECURITY ACT OF 1974.— 
(1) IN GENERAL.—Section 202 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1052) is amended by adding at the end the following 
new subsection: 
‘‘(c) SPECIAL RULE FOR CERTAIN PART-TIME EM-
PLOYEES.— 
‘‘(1) IN GENERAL.—A pension plan that includes 
either a qualified cash or deferred arrangement (as 
defined in section 401(k) of the Internal Revenue 
Code of 1986) or a salary reduction agreement (as de-
scribed in section 403(b) of such Code) shall not re-
quire, as a condition of participation in the arrange-
ment or agreement, that an employee complete a pe-
riod of service with the employer (or employers) 
maintaining the plan extending beyond the close of 
the earlier of— 
‘‘(A) the period permitted under subsection 
(a)(1) (determined without regard to subpara-
graph (B)(i) thereof); or 
‘‘(B) the first 24-month period— 
‘‘(i) consisting of 2 consecutive 12- 
month periods during each of which the em-
ployee has at least 500 hours of service; and 
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‘‘(ii) by the close of which the employee 
has attained the age of 21. 
‘‘(2) EXCEPTION.—Paragraph (1)(B) shall not 
apply to any employee described in section 410(b)(3) 
of the Internal Revenue Code of 1986. 
‘‘(3) COORDINATION WITH OTHER RULES.— 
‘‘(A) IN GENERAL.—In the case of employees 
who are eligible to participate in the arrange-
ment or agreement solely by reason of paragraph 
(1)(B): 
‘‘(i) EXCLUSIONS.—An employer may 
elect to exclude such employees from the ap-
plication 
of 
subsections 
(a)(4), 
(k)(3), 
(k)(12), 
(k)(13), 
(k)(15)(B)(i)(I), 
and 
(m)(2) of section 401 of the Internal Rev-
enue Code of 1986 and section 410(b) of 
such Code. 
‘‘(ii) TIME
OF
PARTICIPATION.—The 
rules of subsection (a)(4) shall apply to such 
employees. 
‘‘(B) TOP-HEAVY
RULES.—An employer 
may elect to exclude all employees who are eligi-
ble to participate in a plan maintained by the 
employer solely by reason of paragraph (1)(B) 
from the application of the vesting and benefit 
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requirements under subsections (b) and (c) of 
section 416 of the Internal Revenue Code of 
1986. 
‘‘(4) 12-MONTH PERIOD.—For purposes of this 
subsection, 12-month periods shall be determined in 
the same manner as under the last sentence of sub-
section (a)(3)(A), except that 12-month periods begin-
ning before January 1, 2021, shall not be taken into 
account.’’ 
(2) VESTING.—Section 203(b) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1053(a)) is amended by redesignating paragraph (4) 
as paragraph (5) and by inserting after paragraph 
(3) the following new paragraph: 
‘‘(4) PART-TIME EMPLOYEES.—For purposes of 
determining whether an employee who is eligible to 
participate in a qualified cash or deferred arrange-
ment or a salary reduction agreement under a plan 
solely by reason of section 202(c)(1)(B) has a non-
forfeitable right to employer contributions— 
‘‘(A) except as provided in subparagraph 
(B), each 12-month period for which the em-
ployee has at least 500 hours of service shall be 
treated as a year of service; 
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‘‘(B) paragraph (3) shall be applied by sub-
stituting ‘at least 500 hours of service’ for ‘more 
than 500 hours of service’ in subparagraph (A) 
thereof; and 
‘‘(C) 12-month periods occurring before the 
24-month 
period 
described 
in 
section 
202(c)(1)(B) shall not be treated as years of serv-
ice. 
For purposes of this paragraph, 12-month periods 
shall be determined in the same manner as under the 
last sentence of section 202(a)(3)(A), except that 12- 
month periods beginning before January 1, 2021, 
shall not be taken into account.’’. 
(3) PRE-2021
SERVICE.—Section 112(b) of the 
Setting Every Community Up for Retirement En-
hancement Act of 2019 (26 U.S.C. 401 note) is 
amended by striking ‘‘section 401(k)(2)(D)(ii)’’ and 
inserting ‘‘paragraphs (2)(D)(ii) and (15)(B)(iii) of 
section 401(k)’’. 
(b) CONFORMING AMENDMENTS TO INTERNAL REV-
ENUE CODE OF 1986.— 
(1) IN GENERAL.—Section 410(a) of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following new paragraph: 
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‘‘(6) SPECIAL
RULE
FOR
CERTAIN
PART-TIME 
EMPLOYEES.— 
‘‘(A) IN GENERAL.—In the case of a plan 
that includes either a qualified cash or deferred 
arrangement (as defined in section 401(k)), a 
trust of which such plan is a part shall not con-
stitute a qualified trust under section 401(a) if 
the plan requires, as a condition of participation 
in the plan or arrangement, that an employee 
complete a period of service with the employer 
(or employers) maintaining the plan extending 
beyond the close of the earlier of— 
‘‘(i) the period permitted under para-
graph (1) (determined without regard to 
subparagraph (B)(i) thereof), or 
‘‘(ii) the first 24-month period— 
‘‘(I) consisting of 2 consecutive 
12-month periods during each of which 
the employee has at least 500 hours of 
service, and 
‘‘(II) by the close of which the em-
ployee has attained the age of 21. 
‘‘(B) EXCEPTION.—Subparagraph (A)(ii) 
shall not apply to any employee described in sec-
tion 410(b)(3). 
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‘‘(C) COORDINATION WITH OTHER RULES.— 
‘‘(i) IN GENERAL.—In the case of em-
ployees who are eligible to participate in the 
arrangement or agreement solely by reason 
of subparagraph (A)(ii)— 
‘‘(I) EXCLUSIONS.—An employer 
may elect to exclude such employees 
from the application of subsection (b) 
and 
of 
subsections 
(a)(4), 
(k)(3), 
(k)(12), (k)(13), (k)(15)(B)(i)(I), and 
(m)(2) of section 401. 
‘‘(II) TIME OF PARTICIPATION.— 
The rules of paragraph (4) shall apply 
to such employees. 
‘‘(ii) TOP-HEAVY
RULES.—An em-
ployer may elect to exclude all employees 
who are eligible to participate in a plan 
maintained by the employer solely by rea-
son of subparagraph (A)(ii) from the appli-
cation of the vesting and benefit require-
ments under subsections (b) and (c) of sec-
tion 416. 
‘‘(D) 12-MONTH PERIOD.—For purposes of 
this paragraph, 12-month periods shall be deter-
mined in the same manner as under the last sen-
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tence of paragraph (3)(A), except that 12-month 
periods beginning before January 1, 2021, shall 
not be taken into account.’’. 
(2) VESTING.—Section 410(a) of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following: 
‘‘(7) PART-TIME EMPLOYEES.—For purposes of 
determining whether an employee who is eligible to 
participate in a qualified cash or deferred arrange-
ment or a salary reduction agreement under a plan 
solely by reason of paragraph (6)(A)(ii) has a non-
forfeitable right to employer contributions— 
‘‘(A) except as provided in subparagraph 
(B), each 12-month period for which the em-
ployee has at least 500 hours of service shall be 
treated as a year of service, 
‘‘(B) section 411(a)(6) shall be applied by 
substituting ‘at least 500 hours of service’ for 
‘more than 500 hours of service’ in subparagraph 
(A) thereof, and 
‘‘(C) 12-month periods occurring before the 
24-month 
period 
described 
in 
paragraph 
(6)(A)(ii) shall not be treated as years of service. 
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For purposes of this paragraph, 12-month periods 
shall be determined in the same manner as under 
paragraph (6)(D).’’. 
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Union Calendar No. 180 
117TH CONGRESS 
2D SESSION 
H. R. 5891 
[Report No. 117–250, Part I] 
A BILL 
To improve and enhance retirement savings, and 
for other purposes. 
FEBRUARY 25, 2022 
Reported from the Committee on Education and Labor 
with an amendment 
FEBRUARY 25, 2022 
Committee on Ways and Means discharged; committed to 
the Committee of the Whole House on the State of the 
Union and ordered to be printed 
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