Auto Reenroll Act of 2022
Bill: S.3712 | Sponsor: Sen. Kaine, Tim (D-VA)
Policy area: Labor and Employment

Summary:
Auto Reenroll Act of 2022
This bill allows sponsors of automatic contribution arrangements that take effect after December 31, 2024, to reenroll their employees in such arrangements at least once every three years. The purpose of the bill is to increase employee participation in tax-exempt pension plans and other retirement arrangements.

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

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Auto Reenroll Act of 2022''.

SEC. 2. AUTOMATIC REENROLLMENT UNDER QUALIFIED AUTOMATIC CONTRIBUTION 
              ARRANGEMENTS AND ELIGIBLE AUTOMATIC CONTRIBUTION 
              ARRANGEMENTS.

    (a) Qualified Automatic Contribution Arrangements.--
            (1) In general.--Section 401(k)(13)(C) of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following new clause:
                            ``(v) Periodic automatic deferral required 
                        for post-2024 arrangements.--In the case of a 
                        qualified automatic contribution arrangement 
                        which takes effect after December 31, 2024, the 
                        requirements of this subparagraph shall be 
                        treated as met only if, under the arrangement, 
                        at least every 3 plan years each employee--
                                    ``(I) who is eligible to 
                                participate in the arrangement, and
                                    ``(II) who, at the time of the 
                                determination, has in effect an 
                                affirmative election pursuant to clause 
                                (ii) not to have contributions 
                                described in clause (i) made,
                        is treated as having made the election 
                        described in clause (i) unless the employee 
                        makes a new affirmative election under clause 
                        (ii). Such determination may be made at one 
                        time for all employees described in the 
                        preceding sentence for a plan year, regardless 
                        of individual employee dates of enrollment.''.
            (2) Conforming amendments.--Clause (iv) of section 
        401(k)(13)(C) of such Code is amended--
                    (A) in the heading, by inserting ``for pre-2025 
                arrangements'' after ``required''; and
                    (B) by striking ``Clause (i)'' and inserting ``In 
                the case of a qualified automatic contribution 
                arrangement in effect before January 1, 2025, clause 
                (i)''.
    (b) Eligible Automatic Contribution Arrangements.--Section 
414(w)(3) of the Internal Revenue Code of 1986 is amended--
            (1) by redesignating subparagraphs (A) through (C) as 
        clauses (i) through (iii), respectively, and moving the margins 
        of such clauses 2 ems to the right;
            (2) by striking ``arrangement.--For purposes of'' and 
        inserting the following: ``arrangement.--
                    ``(A) In general.--For purposes of''; and
            (3) by adding at the end the following new subparagraph:
                    ``(B) Periodic automatic deferral required.--In the 
                case of an eligible automatic contribution arrangement 
                taking effect after December 31, 2024, the requirements 
                of this subsection shall be treated as met only if, 
                under the arrangement, at least every 3 plan years each 
                employee--
                            ``(i) who is eligible to participate in the 
                        arrangement, and
                            ``(ii) who, at the time of the 
                        determination, has in effect an affirmative 
                        election pursuant to subparagraph (A)(ii) not 
                        to have contributions described in such 
                        subparagraph made,
                is treated as having made the election at the uniform 
                percentage level described in subparagraph (A)(ii) 
                unless the employee makes a new election under such 
                subparagraph. Such determination may be made at one 
                time for all employees described in the preceding 
                sentence for a plan year, regardless of individual 
                employee dates of enrollment.''.
    (c) Conforming Amendment.--Section 514(e)(2) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1144(e)(2)) is 
amended--
            (1) by redesignating subparagraphs (A) through (C) as 
        clauses (i) through (iii), respectively, and moving the margins 
        of such clauses 2 ems to the right;
            (2) by striking ``(2) For purposes of'' and inserting 
        ``(2)(A) For purposes of''; and
            (3) by adding at the end the following:
    ``(B) In the case of an eligible automatic contribution arrangement 
taking effect after December 31, 2024, the requirements of subparagraph 
(A)(ii) shall be treated as met only if, under the arrangement, at 
least every 3 plan years each employee--
            ``(i) who is eligible to participate in the arrangement; 
        and
            ``(ii) who, at the time of the determination, has in effect 
        an affirmative election pursuant to subparagraph (A)(ii) not to 
        have contributions described in such subparagraph made,
is treated as having made the election at the uniform percentage of 
compensation described in subparagraph (A)(ii) unless the employee 
makes a new election under such subparagraph. Such determination may be 
made at one time for all employees described in the preceding sentence 
for a plan year, regardless of individual employee dates of 
enrollment.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to arrangements taking effect after December 31, 2024.
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