Title: RISE & SHINE Act
Policy area: Labor and Employment

Summary:
Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg Act or the RISE & SHINE Act
This bill makes various changes with respect to employer-sponsored retirement plans.
For example, the bill allows plans sponsored by charities, educational institutions, and nonprofit organizations (i.e., 403(b) retirement plans) to participate in multiple employer plans and pooled employer plans.
The bill also revises the notice and disclosure requirements for certain retirement plans, and it permits plan sponsors to make emergency savings accounts available to participants of defined contribution plans.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4353 Introduced in Senate (IS)]

<DOC>






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

_______________________________________________________________________

                                 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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Retirement 
Improvement and Savings Enhancement to Supplement Healthy Investments 
for the Nest Egg Act'' or the ``RISE & SHINE Act''.
    (b) Table of Contents.--The table of contents for 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.
                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

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.

     TITLE I--RETIREMENT IMPROVEMENT AND SAVINGS ENHANCEMENT (RISE)

SEC. 101. UPDATING DOLLAR LIMIT FOR MANDATORY DISTRIBUTIONS.

    (a) In General.--Section 203(e)(1) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1053(e)(1)) and sections 
401(a)(31)(B)(ii) and 411(a)(11)(A) of the Internal Revenue Code of 
1986 are each amended by striking ``$5,000'' and inserting ``$7,000''.
    (b) Effective Date.--The amendments made by this section shall 
apply to distributions made after December 31, 2023.

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

    (a) In General.--Section 3(43)(A) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1002(43)(A)) is amended--
            (1) in clause (ii), by striking ``section 501(a) of such 
        Code or'' and inserting ``section 501(a) of such Code, a plan 
        that consists of contracts described in section 403(b) of such 
        Code, or''; and
            (2) in the flush text at the end, by striking ``the plan.'' 
        and inserting ``the plan, but such term shall include any 
        program (other than a governmental plan) maintained for the 
        benefit of the employees of more than 1 employer that consists 
        of contracts described in section 403(b) of such Code and that 
        meets the requirements of subparagraph (A) or (B) of section 
        413(e)(1) of such Code.''.
    (b) Conforming Amendments.--Sections 3(43)(B)(v)(II) and 
3(44)(A)(i)(I) of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1002(43)(B)(v)(II) and 1002(44)(A)(i)(I)) are each amended 
by striking ``section 401(a) of such Code or'' and inserting ``section 
401(a) of such Code, a plan that consists of contracts described in 
section 403(b) of such Code, or''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2022.

SEC. 103. PERFORMANCE BENCHMARKS FOR ASSET ALLOCATION FUNDS.

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

SEC. 104. POOLED EMPLOYER PLANS MODIFICATION.

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

SEC. 105. REVIEW OF PENSION RISK TRANSFER INTERPRETIVE BULLETIN.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary of Labor shall--
            (1) review section 2509.95-1 of title 29, Code of Federal 
        Regulations (relating to the fiduciary standards under the 
        Employee Retirement Income Security Act of 1974 when selecting 
        an annuity provider for a defined benefit pension plan) and 
        consult with the Advisory Council on Employee Welfare and 
        Pension Benefit Plans (established under section 512 of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1142)), to determine whether amendments to section 2509.95-1 of 
        title 29, Code of Federal Regulations are warranted; and
            (2) report to Congress on the findings of such review and 
        consultation, including an assessment of any risk to 
        participants.

SEC. 106. REVIEW AND REPORT TO CONGRESS RELATING TO REPORTING AND 
              DISCLOSURE REQUIREMENTS.

    (a) Study.--As soon as practicable after the date of enactment of 
this Act, the Secretary of Labor, the Secretary of the Treasury, and 
the Director of the Pension Benefit Guaranty Corporation shall review 
the reporting and disclosure requirements, as applicable to each such 
agency head, of 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))).
    (b) Report.--
            (1) In general.--Not later than 3 years after the date of 
        enactment of this Act, the Secretary of Labor, the Secretary of 
        the Treasury, and the Director of the Pension Benefit Guaranty 
        Corporation, jointly, and after consultation with a balanced 
        group of participant and employer representatives, shall with 
        respect to plans referenced in subsection (a) report on the 
        effectiveness of the applicable reporting and disclosure 
        requirements and make such recommendations as may be 
        appropriate to the Committee on Education and Labor and the 
        Committee on Ways and Means of the House of Representatives and 
        the Committee on Health, Education, Labor, and Pensions and the 
        Committee on Finance of the Senate to consolidate, simplify, 
        standardize, and improve such requirements so as to simplify 
        reporting for such plans and ensure that plans can furnish and 
        participants and beneficiaries timely receive and better 
        understand the information they need to monitor their plans, 
        plan for retirement, and obtain the benefits they have earned.
            (2) Analysis of effectiveness.--To assess the effectiveness 
        of the applicable reporting and disclosure requirements, the 
        report shall include an analysis, based on plan data, of how 
        participants and beneficiaries are providing preferred contact 
        information, the methods by which plan sponsors and plans are 
        furnishing disclosures, and the rate at which participants and 
        beneficiaries (grouped by key demographics) are receiving, 
        accessing, understanding, and retaining disclosures.
            (3) Collection of information.--The agencies shall conduct 
        appropriate surveys and data collection to obtain any needed 
        information.

SEC. 107. ELIMINATING UNNECESSARY PLAN REQUIREMENTS RELATED TO 
              UNENROLLED PARTICIPANTS.

    (a) Amendment of Employee Retirement Income Security Act of 1974.--
            (1) In general.--Part 1 of subtitle B of title I of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 1021 
        et seq.) is amended by redesignating section 111 as section 112 
        and by inserting after section 110 the following new section:

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

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

``Sec. 111. Eliminating unnecessary plan requirements related to 
                            unenrolled participants.
``Sec. 112. Repeal and effective date.''.
    (b) Amendment of Internal Revenue Code of 1986.--Section 414 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subsection:
    ``(aa) Eliminating Unnecessary Plan Requirements Related to 
Unenrolled Participants.--
            ``(1) In general.--Notwithstanding any other provision of 
        this title, with respect to any defined contribution plan, no 
        disclosure, notice, or other plan document (other than the 
        notices and documents described in subparagraphs (A) and (B)) 
        shall be required to be furnished under this title to any 
        unenrolled participant if the unenrolled participant is 
        furnished--
                    ``(A) an annual reminder notice of such 
                participant's eligibility to participate in such plan 
                and any applicable election deadlines under the plan, 
                and
                    ``(B) any document requested by such participant 
                that the participant would be entitled to receive 
                notwithstanding this subsection.
            ``(2) Unenrolled participant.--For purposes of this 
        subsection, the term `unenrolled participant' means an employee 
        who--
                    ``(A) is eligible to participate in a defined 
                contribution plan,
                    ``(B) has been furnished--
                            ``(i) the summary plan description pursuant 
                        to section 104(b) of the Employee Retirement 
                        Income Security Act of 1974, and
                            ``(ii) any other notices related to 
                        eligibility under the plan and required to be 
                        furnished under this title, or the Employee 
                        Retirement Income Security Act of 1974, in 
                        connection with such participant's initial 
                        eligibility to participate in such plan,
                    ``(C) does not have an account balance in the plan, 
                and
                    ``(D) satisfies such other criteria as the 
                Secretary of the Treasury may determine appropriate, as 
                prescribed in guidance issued in consultation with the 
                Secretary of Labor.
        For purposes of this subsection, any eligibility to participate 
        in the plan following any period for which such employee was 
        not eligible to participate shall be treated as initial 
        eligibility.
            ``(3) Annual reminder notice.--For purposes of this 
        subsection, the term `annual reminder notice' means the notice 
        described in section 111(c) of the Employee Retirement Income 
        Security Act of 1974.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2022.

SEC. 108. RECOVERY OF RETIREMENT PLAN OVERPAYMENTS.

    (a) Overpayments Under ERISA.--Section 206 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1056) is amended by 
adding at the end the following new subsection:
    ``(h) Special Rules Applicable to Benefit Overpayments.--
            ``(1) General rule.--In the case of an inadvertent benefit 
        overpayment by any pension plan, the responsible plan fiduciary 
        shall not be considered to have failed to comply with the 
        requirements of this title merely because such fiduciary 
        determines, in the exercise of its fiduciary discretion, not to 
        seek recovery of all or part of such overpayment from--
                    ``(A) any participant or beneficiary,
                    ``(B) any plan sponsor of, or contributing employer 
                to--
                            ``(i) an individual account plan, provided 
                        that the amount needed to prevent or restore 
                        any impermissible forfeiture from any 
                        participant's or beneficiary's account arising 
                        in connection with the overpayment is, 
                        separately from and independently of the 
                        overpayment, allocated to such account pursuant 
                        to the nonforfeitability requirements of 
                        section 203 (for example, out of the plan's 
                        forfeiture account, additional employer 
                        contributions, or recoveries from those 
                        responsible for the overpayment), or
                            ``(ii) a defined benefit pension plan 
                        subject to the funding rules in part 3 of this 
                        subtitle B, unless the responsible plan 
                        fiduciary determines, in the exercise of its 
                        fiduciary discretion, that failure to recover 
                        all or part of the overpayment faster than 
                        required under such funding rules would 
                        materially affect the plan's ability to pay 
                        benefits due to other participants and 
                        beneficiaries, or
                    ``(C) any fiduciary of the plan, other than a 
                fiduciary (including a plan sponsor or contributing 
                employer acting in a fiduciary capacity) whose breach 
                of its fiduciary duties resulted in such overpayment, 
                provided that if the plan has established prudent 
                procedures to prevent and minimize overpayment of 
                benefits and the relevant plan fiduciaries have 
                followed such procedures, an inadvertent benefit 
                overpayment will not give rise to a breach of fiduciary 
                duty.
            ``(2) Reduction in future benefit payments and recovery 
        from responsible party.--Paragraph (1) shall not fail to apply 
        with respect to any inadvertent benefit overpayment merely 
        because, after discovering such overpayment, the responsible 
        plan fiduciary--
                    ``(A) reduces future benefit payments to the 
                correct amount provided for under the terms of the 
                plan, or
                    ``(B) seeks recovery from the person or persons 
                responsible for the overpayment.
            ``(3) Employer funding obligations.--Nothing in this 
        subsection shall relieve an employer of any obligation imposed 
        on it to make contributions to a plan to meet the minimum 
        funding standards under part 3 of this subtitle B or to prevent 
        or restore an impermissible forfeiture in accordance with 
        section 203.
            ``(4) Recoupment from participants and beneficiaries.--If 
        the responsible plan fiduciary, in the exercise of its 
        fiduciary discretion, decides to seek recoupment from a 
        participant or beneficiary of all or part of an inadvertent 
        benefit overpayment made by the plan to such participant or 
        beneficiary, it may do so, subject to the following conditions:
                    ``(A) No interest or other additional amounts (such 
                as collection costs or fees) are sought on overpaid 
                amounts for any period.
                    ``(B) If the plan seeks to recoup past overpayments 
                of a non-decreasing periodic benefit by reducing future 
                benefit payments--
                            ``(i) the reduction ceases after the plan 
                        has recovered the full dollar amount of the 
                        overpayment,
                            ``(ii) the amount recouped each calendar 
                        year does not exceed 10 percent of the full 
                        dollar amount of the overpayment, and
                            ``(iii) future benefit payments are not 
                        reduced to below 90 percent of the periodic 
                        amount otherwise payable under the terms of the 
                        plan.
                Alternatively, if the plan seeks to recoup past 
                overpayments of a non-decreasing periodic benefit 
                through one or more installment payments, the sum of 
                such installment payments in any calendar year does not 
                exceed the sum of the reductions that would be 
                permitted in such year under the preceding sentence.
                    ``(C) If the plan seeks to recoup past overpayments 
                of a benefit other than a non-decreasing periodic 
                benefit, the plan satisfies requirements developed by 
                the Secretary for purposes of this subparagraph.
                    ``(D) Efforts to recoup overpayments are--
                            ``(i) not accompanied by threats of 
                        litigation, unless the responsible plan 
                        fiduciary reasonably believes it could prevail 
                        in a civil action brought in Federal or State 
                        court to recoup the overpayments, and
                            ``(ii) not made through a collection agency 
                        or similar third party, unless the participant 
                        or beneficiary ignores or rejects efforts to 
                        recoup the overpayment following either a final 
                        judgment in Federal or State court or a 
                        settlement between the participant or 
                        beneficiary and the plan, in either case 
                        authorizing such recoupment.
                    ``(E) Recoupment of past overpayments to a 
                participant is not sought from any beneficiary of the 
                participant, including a spouse, surviving spouse, 
                former spouse, or other beneficiary.
                    ``(F) Recoupment may not be sought if the first 
                overpayment occurred more than 3 years before the 
                participant or beneficiary is first notified in writing 
                of the error.
                    ``(G) A participant or beneficiary from whom 
                recoupment is sought is entitled to contest all or part 
                of the recoupment pursuant to the plan's claims 
                procedures.
                    ``(H) In determining the amount of recoupment to 
                seek, the responsible plan fiduciary shall take into 
                account the hardship that recoupment likely would 
                impose on the participant or beneficiary.
            ``(5) Effect of culpability.--Subparagraphs (A) through (F) 
        of paragraph (4) shall not apply to protect a participant or 
        beneficiary who is culpable. For purposes of this paragraph, a 
        participant or beneficiary is culpable if the individual bears 
        responsibility for the overpayment (such as through 
        misrepresentations or omissions that led to the overpayment), 
        or if the individual knew, or had good reason to know under the 
        circumstances, that the benefit payment or payments were 
        materially in excess of the correct amount. Notwithstanding the 
        preceding sentence, an individual is not culpable merely 
        because the individual believed the benefit payment or payments 
        were or might be in excess of the correct amount, if the 
        individual raised that question with an authorized plan 
        representative and was told the payment or payments were not in 
        excess of the correct amount. With respect to a culpable 
        participant or beneficiary, efforts to recoup overpayments 
        shall not be made through threats of litigation, unless a 
        lawyer for the plan makes a determination that there is a 
        reasonable likelihood of success to recover an amount that 
        would be greater than the cost of recovery.''.
    (b) Effective Date.--The amendments made by this section shall 
apply as of the date of enactment of this Act.
    (c) Certain Actions Before Date of Enactment.--Plans, fiduciaries, 
employers, and plan sponsors are entitled to rely on--
            (1) a good faith interpretation of then existing 
        administrative guidance for inadvertent benefit overpayment 
        recoupments and recoveries that commenced before the date of 
        enactment of this Act, and
            (2) determinations made before the date of enactment of 
        this Act by the responsible plan fiduciary, in the exercise of 
        its fiduciary discretion, not to seek recoupment or recovery of 
        all or part of an inadvertent benefit overpayment.
In the case of a benefit overpayment that occurred prior to the date of 
enactment of this Act, any installment payments by the participant or 
beneficiary to the plan or any reduction in periodic benefit payments 
to the participant or beneficiary, which were made in recoupment of 
such overpayment and which commenced prior to such date, may continue 
after such date. Nothing in this subsection shall relieve a fiduciary 
from responsibility for an overpayment that resulted from a breach of 
its fiduciary duties.

SEC. 109. IMPROVING COVERAGE FOR PART-TIME WORKERS.

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

                TITLE II--EMERGENCY SAVINGS ACT OF 2022

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Emergency Savings Act of 2022''.

SEC. 202. EMERGENCY SAVINGS ACCOUNTS LINKED TO DEFINED CONTRIBUTION 
              PLANS.

    (a) Employee Pension Benefit Plans.--Section 3 of the Employee 
Retirement Income Security Act (29 U.S.C. 1002) is amended--
            (1) in paragraph (2)(A), by inserting after the first 
        sentence the following: ``A pension plan may include a pension-
        linked emergency savings account.''; and
            (2) by adding at the end the following:
            ``(45) Pension-linked emergency savings account.--The term 
        `pension-linked emergency savings account' means an account 
        established or maintained by a sponsor of a defined 
        contribution plan for purposes of offering or providing a 
        participant of such plan the opportunity to maintain a short-
        term savings account that--
                    ``(A) is offered as part of such defined 
                contribution plan;
                    ``(B) accepts only--
                            ``(i) participant contributions which are 
                        treated in the same manner as Roth 
                        contributions for purposes of inclusion in 
                        gross income; and
                            ``(ii) employer contributions which are 
                        includible in gross income of the participant 
                        for purposes of the Internal Revenue Code of 
                        1986; and
                    ``(C) meets the requirements of part 8 of subtitle 
                B.''.
    (b) Pension-Linked Emergency Savings Accounts.--
            (1) In general.--Subtitle B of title I of the Employee 
        Retirement Income Security Act (29 U.S.C. 1021 et seq.) is 
        amended by adding at the end the following:

          ``PART 8--PENSION-LINKED EMERGENCY SAVINGS ACCOUNTS

``SEC. 801. PENSION-LINKED EMERGENCY SAVINGS ACCOUNTS.

    ``(a) In General.--A plan sponsor of a defined contribution plan 
may make available to participants of such pension plan a pension-
linked emergency savings account. A plan sponsor that offers 
participants a pension-linked emergency savings account may deduct 
amounts from each participating employee's compensation in accordance 
with subsection (c) and deposit such amounts, and any employer 
contributions under such subsection, to an account that meets the 
requirements of subsection (b).
    ``(b) Account Requirements.--
            ``(1) In general.--A pension-linked emergency savings 
        account offered in accordance with subsection (a) shall--
                    ``(A) not have a minimum account balance 
                requirement;
                    ``(B) allow for withdrawal by the participant of 
                the account balance, in whole or in part at the 
                discretion of the participant, at least once per 
                calendar month and for distribution of such withdrawal 
                to the participant as soon as practicable but, other 
                than in exceptional circumstances, not later than 1 
                week from the date on which the participant elects to 
                make such withdrawal;
                    ``(C) be held as cash, in an interest-bearing 
                deposit account, or in an investment or insurance 
                product designed to preserve principal and provide a 
                reasonable rate of return, whether or not such return 
                is guaranteed, consistent with liquidity; and
                    ``(D) not be subject to--
                            ``(i) any unreasonable fees, restrictions, 
                        expenses, or charges in connection with such 
                        pension-linked emergency savings account; and
                            ``(ii) any fees in connection with the 
                        withdrawal of funds from such pension-linked 
                        emergency savings account other than reasonable 
                        reimbursement fees imposed for paper mailings 
                        and the handling of paper checks related to 
                        such pension-linked emergency savings account.
            ``(2) Establishment and termination of account.--
                    ``(A) Establishment of account.--The establishment 
                of a pension-linked emergency savings account shall be 
                included in the defined contribution plan document of 
                the associated defined contribution plan.
                    ``(B) Termination of account.--A plan sponsor may 
                terminate the pension-linked emergency savings account 
                feature of an associated defined contribution plan at 
                any time. Such termination shall be treated as if a 
                termination of employment had occurred in accordance 
                with subsection (d), except the reasonable time 
                described in such subsection shall be as soon as 
                practicable not later than 60 days after the date of 
                such termination of the pension-linked emergency 
                savings account feature of such associated defined 
                contribution plan.
    ``(c) Account Contributions.--
            ``(1) Employer contributions.--
                    ``(A) In general.--Subject to the maximum account 
                balance under paragraph (3), a plan sponsor may, 
                without regard to any election otherwise by a 
                participant, deposit to the pension-linked emergency 
                savings account of the participant an amount in 
                addition to the amount contributed by the participant 
                under paragraph (2).
                    ``(B) Employer contributions.--Employer 
                contributions shall be included in the gross income of 
                a participant for purposes of the Internal Revenue Code 
                of 1986.
            ``(2) Participant contributions.--
                    ``(A) In general.--Subject to the maximum account 
                balance under paragraph (3)--
                            ``(i) a plan sponsor may automatically 
                        enroll a participant in the pension-linked 
                        emergency savings account at a participant 
                        contribution rate selected by the plan sponsor, 
                        which, unless the participant affirmatively 
                        elects a different percentage of the 
                        compensation of the participant to be 
                        contributed to the pension-linked emergency 
                        savings account, may not exceed 3 percent of 
                        the compensation of the participant; or
                            ``(ii) a participant may enroll in the 
                        pension-linked emergency savings account at a 
                        participant contribution rate selected by the 
                        participant.
                    ``(B) Control of transfer.--A participant, at any 
                time (subject to such reasonable advance notice as is 
                required by the plan administrator), may--
                            ``(i) adjust the participant contribution 
                        rate under subparagraph (A) to the pension-
                        linked emergency savings account of the 
                        participant; or
                            ``(ii) opt out of or pause for a specified 
                        period of time such contributions.
                    ``(C) Adjustment of participant contribution rate 
                by plan sponsor.--A plan sponsor may adjust the 
                participant contribution rate selected by such plan 
                sponsor described in subparagraph (A)(i) not more than 
                once annually.
            ``(3) Account limits.--
                    ``(A) In general.--Subject to subparagraph (B), no 
                contributions under paragraphs (1) and (2) shall be 
                accepted to the extent such contributions would cause 
                the balance of the pension-linked emergency savings 
                account to exceed the lesser of--
                            ``(i) $2,500; or
                            ``(ii) an amount determined by the plan 
                        sponsor of the pension-linked emergency savings 
                        account.
                In the case of contributions made in taxable years 
                beginning after December 1, 2023, the Secretary shall 
                adjust the amount under clause (i) at the same time and 
                in the same manner as the adjustment made by the 
                Secretary of the Treasury under section 415(d) of the 
                Internal Revenue Code of 1986, except that the base 
                period shall be the calendar quarter beginning July 1, 
                2022. Any increase under the preceding sentence which 
                is not a multiple of $100 shall be rounded to the next 
                lowest multiple of $100.
                    ``(B) Excess contributions directed to plan.--To 
                the extent any elected contributions under paragraphs 
                (1) and (2) to the pension-linked emergency savings 
                account of a participant for a taxable year would cause 
                the balance of the pension-linked emergency savings 
                account to exceed the maximum account balance described 
                in subparagraph (A)--
                            ``(i) the participant may be treated as 
                        having elected to increase the participant's 
                        contributions to the associated defined 
                        contribution plan by an amount not more than 
                        the rate at which contributions were being made 
                        to the pension-linked emergency savings 
                        account, and
                            ``(ii) any such contributions shall be 
                        treated as elective deferrals (as such term is 
                        defined in section 402(g)(3) of the Internal 
                        Revenue Code of 1986) under such plan and shall 
                        be contributed to the plan on behalf of the 
                        participant instead of to the pension-linked 
                        emergency savings account.
            ``(4) Disclosure by plan sponsor of transfer.--
                    ``(A) In general.--Not less than 15 days prior to 
                the date on which the first transfer under this 
                subsection occurs, the percentage of compensation and 
                amount of the participant's compensation transferred 
                under paragraph (1) is adjusted, or the plan sponsor 
                adjusts the percentage of compensation of the automatic 
                participant contribution under paragraph (2)(A)(i), the 
                plan sponsor shall provide to the participant notice 
                of--
                            ``(i) the purpose of the account being for 
                        short-term, emergency savings;
                            ``(ii) the amount of the intended 
                        contribution or the change in the percentage of 
                        the compensation of the participant of such 
                        contribution;
                            ``(iii) in accordance with paragraph 
                        (2)(B), the instructions on how to--
                                    ``(I) adjust the participant 
                                contribution rate under paragraph 
                                (2)(A) to the pension-linked emergency 
                                savings account of the participant; or
                                    ``(II) opt out of or pause for a 
                                specified period of time such 
                                contributions;
                            ``(iv) how such contributions will be 
                        invested;
                            ``(v) the limits on, and tax treatment of, 
                        such contributions;
                            ``(vi) any fees, expenses, or charges 
                        associated with such pension-linked emergency 
                        savings account; and
                            ``(vii) procedures for participant 
                        withdrawals from such pension-linked emergency 
                        savings account, including any limits on 
                        frequency.
                    ``(B) Consolidated notices.--The required notices 
                under subparagraph (A) may be included with any other 
                notice under this Act, including under section 
                404(c)(5)(B) or 514(e)(3), or under section 
                401(k)(13)(E) or 414(w)(4) of the Internal Revenue Code 
                of 1986, if such other notice is provided to the 
                participant not less than 15 days prior to the date 
                described in such subparagraph and not more than 60 
                days prior to the date on which the first transfer 
                under this subsection occurs.
            ``(5) Employer matching contributions to a defined 
        contribution plan for employee contributions to a pension-
        linked emergency savings account.--
                    ``(A) In general.--If an employer makes any 
                matching contributions to a defined contribution plan 
                of which a pension-linked emergency savings account is 
                part--
                            ``(i) any contribution under paragraph (2) 
                        to a pension-linked emergency savings account 
                        of the participant shall be treated as an 
                        elective deferral for purposes of matching 
                        contributions by such employer to such defined 
                        contribution plan; and
                            ``(ii) such employer shall make matching 
                        contributions on behalf of such participant to 
                        the associated defined contribution plan on 
                        account of such contributions under paragraph 
                        (2) at the same rate as any other matching 
                        contribution on account of an elective deferral 
                        by such participant.
                To the extent any such matching contribution exceeds 
                the maximum account balance under paragraph (3)(A), 
                such contributions shall be contributed to the plan as 
                provided in paragraph (3)(B).
                    ``(B) Definitions.--For purposes of subparagraph 
                (A), the terms `matching contribution' and `elective 
                deferral' shall have the meanings given such terms in 
                section 401(m)(4) of the Internal Revenue Code of 1986.
    ``(d) Account Balance After Termination of Employment.--Upon 
termination of employment of the participant, the pension-linked 
emergency savings account of such participant shall--
            ``(1) allow, as relevant, for transfer by the participant 
        of the account balance of such account, in whole or in part, 
        into the designated Roth account (within the meaning of section 
        402A of the Internal Revenue Code of 1986) of the participant 
        under the associated defined contribution plan; and
            ``(2) for any amounts in such account not transferred under 
        paragraph (1), make such amounts available within a reasonable 
        time not later than the earlier of the date on which the 
        employer contributing to the plan makes the final compensation 
        payment related to such employment or 60 days after the date of 
        such termination--
                    ``(A) to the participant or the beneficiary; or
                    ``(B) as a direct rollover to a Roth IRA (as 
                defined in section 408A(b) of the Internal Revenue Code 
                of 1986) of such participant.
    ``(e) Coordination With Plan Hardship Rules.--Under the terms of 
the plan of which a pension-linked emergency savings account is a part, 
a participant shall be required to withdraw all amounts in a pension-
linked emergency savings account of the participant before receiving 
any plan distribution which is based on financial hardship or any loan 
from the plan.

``SEC. 802. ANNUAL NOTICE FOR PENSION-LINKED EMERGENCY SAVINGS ACCOUNT.

    ``(a) In General.--At least annually, the plan sponsor of a 
pension-linked emergency savings account shall provide to the pension-
linked emergency savings account participant a notice containing such 
information as the Secretary may require, including a description of--
            ``(1) the purpose and tax treatment of the pension-linked 
        emergency savings account and contributions;
            ``(2) procedures for opting out of the pension-linked 
        emergency savings account, changing participant contribution 
        rates for such account, and making withdrawals from such 
        account, and limits on contributions and withdrawals;
            ``(3) designated investment options for amounts contributed 
        to the pension-linked emergency savings account;
            ``(4) the options under section 801(d) for the account 
        balance of the pension-linked emergency savings account after 
        termination of the employment of the participant;
            ``(5) any fees, expenses, or charges associated with such 
        pension-linked emergency savings account; and
            ``(6) the amount that a participant has contributed to the 
        pension-linked emergency savings account and the amount the 
        plan sponsor has contributed to such pension-linked emergency 
        savings account for the plan year, and the account balance.
    ``(b) Consolidated Notices.--The required notice under subparagraph 
(A) may be included with any other notice under this Act if such other 
notice is provided to the participant at least annually.

``SEC. 803. PREEMPTION OF STATE ANTI-GARNISHMENT LAWS.

    ``Notwithstanding any other provision of law, this part shall 
supersede any law of a State which would directly or indirectly 
prohibit or restrict the use of an automatic contribution arrangement, 
in accordance with section 801(c)(2), for a pension-linked emergency 
savings account. The Secretary may promulgate regulations to establish 
minimum standards that such an arrangement would be required to satisfy 
in order for this subsection to apply with respect to such an account.

``SEC. 804. REPORTING AND DISCLOSURE REQUIREMENTS.

    ``The Secretary shall prescribe such regulations as may be 
necessary to address reporting and disclosure requirements for pension-
linked emergency savings accounts in order to prevent unnecessary 
reporting and disclosure for such accounts under this Act, including 
for purposes of any reporting or disclosure related to pension plans 
required by this title or title IV or under the Internal Revenue Code 
of 1986.

``SEC. 805. REPORT TO CONGRESS ON MAXIMUM ACCOUNT BALANCE LIMITS.

    ``The Secretary of Labor and the Secretary of the Treasury shall--
            ``(1) conduct a study on the use of emergency savings from 
        a pension-linked emergency savings account regarding--
                    ``(A) whether the maximum account balance under 
                section 801(c)(3) is sufficient;
                    ``(B) whether the limitation on contributions under 
                sections 801(c)(2)(A)(i) are appropriate; and
                    ``(C) the participation rate of such accounts by 
                plan sponsors and participants and the resulting impact 
                on participant retirement savings, including the impact 
                on retirement savings leakage and the effect of such 
                accounts on retirement plan participation by low- and 
                moderate-income households; and
            ``(2) not later than 7 years after the date of enactment of 
        the RISE & SHINE Act, submit to Congress a report on the 
        findings of the study under paragraph (1).''.
            (2) Clerical amendment.--The table of contents in section 1 
        of the Employee Retirement Income Security Act of 1974 (29 
        U.S.C. 1001 note) is amended by inserting after the item 
        relating to section 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.''.
    (c) Reporting for a Pension-Linked Emergency Savings Account.--
            (1) Alternative methods of compliance.--Section 110(a) of 
        the Employee Retirement Income Security Act (29 U.S.C. 1030(a)) 
        is amended by inserting ``(including pension-linked emergency 
        savings accounts offered in conjunction with a pension plan)'' 
        after ``class of pension plans''.
            (2) Minimized reporting burden for pension-linked emergency 
        savings accounts.--Section 101 of such Act (29 U.S.C. 1021) is 
        amended--
                    (A) by redesignating subsection (n) as subsection 
                (o); and
                    (B) by inserting after subsection (m) the 
                following:
    ``(n) Pension-Linked Emergency Savings Accounts.--
            ``(1) In general.--The requirements of subsection (a) shall 
        not apply to a pension-linked emergency savings account made 
        available under section 801.
            ``(2) Simplified reporting.--Nothing in this subsection 
        shall preclude the Secretary from providing, by regulations or 
        otherwise, simplified reporting procedures or requirements for 
        such a pension-linked emergency savings account.''.
    (d) Fiduciary Duty.--Section 404(c) of the Employee Retirement 
Income Security Act (29 U.S.C. 1104(c)) is amended by adding at the end 
the following:
            ``(6) Default investment arrangements for a pension-linked 
        emergency savings account.--For purposes of paragraph (1), a 
        participant in a pension-linked emergency savings account shall 
        be treated as exercising control over the assets in the account 
        with respect to the amount of contributions and earnings which 
        are invested in accordance with section 801(b)(1)(C).''.
    (e) Joint Regulatory Authority.--The Secretary of Labor and the 
Secretary of the Treasury (or a delegate of either such Secretary) 
shall have authority to issue joint regulations or other guidance, or 
to coordinate in developing regulations or other guidance, to carry out 
the purposes of this title, including adjustment of the maximum benefit 
under section 801(c)(3) of the Employee Retirement Income Security Act, 
as added by this title, to account for inflation, as well as expansion 
of corrections programs, if necessary.

                    TITLE III--NOTICE AND DISCLOSURE

SEC. 301. DEFINED CONTRIBUTION PLAN FEE DISCLOSURE IMPROVEMENTS.

    Not later than 3 years after the date of enactment of this Act, the 
Secretary of Labor shall--
            (1) review section 2550.404a-5 of title 29, Code of Federal 
        Regulations (relating to fiduciary requirements for disclosure 
        in participant-directed individual account plans);
            (2) explore, through a public request for information or 
        otherwise, how the contents and design of the disclosures 
        described in such section may be improved to enhance 
        participants' understanding of fees and expenses related to a 
        defined contribution plan (as defined in section 3 of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1002)) as well as the cumulative effect of such fees and 
        expenses on retirement savings over time; and
            (3) report to the Committee on Health, Education, Labor, 
        and Pensions of the Senate and the Committee on Education and 
        Labor of the House of Representatives on the findings of the 
        exploration described in paragraph (2), including beneficial 
        education for consumers on financial literacy concepts as 
        related to retirement plan fees and recommendations for 
        legislative changes needed to address such findings.

SEC. 302. CONSOLIDATION OF DEFINED CONTRIBUTION PLAN NOTICES.

    Not later than 2 years after the date of enactment of this Act, the 
Secretary of Labor and the Secretary of the Treasury (or such 
Secretaries' delegates) shall adopt regulations providing that a plan 
(as defined in section 3 of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1002)) may, but is not required to, consolidate 2 or 
more of the notices required under sections 404(c)(5)(B) and 514(e)(3) 
of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1104(c)(5)(B) and 29 U.S.C. 1144(e)(3)) and sections 401(k)(12)(D), 
401(k)(13)(E), and 414(w)(4) of the Internal Revenue Code of 1986 into 
a single notice so long as the combined notice--
            (1) includes the required content;
            (2) clearly identifies the issues addressed therein;
            (3) is furnished at the time and with the frequency 
        required for each such notice; and
            (4) is presented in a manner that is reasonably calculated 
        to be understood by the average plan participant and that does 
        not obscure or fail to highlight the primary information 
        required for each notice.

SEC. 303. INFORMATION NEEDED FOR FINANCIAL OPTIONS RISK MITIGATION ACT.

    (a) Short Title.--This section may be cited as the ``Information 
Needed for Financial Options Risk Mitigation Act'' or the ``INFORM 
Act''.
    (b) In General.--Part 1 of subtitle B of title I of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1021 et seq.), as 
amended by section 107, is amended by adding at the end the following:

``SEC. 113. NOTICE AND DISCLOSURE REQUIREMENTS WITH RESPECT TO LUMP SUM 
              WINDOWS.

    ``(a) In General.--A plan administrator of a pension plan that 
amends the plan to provide a period of time during which a participant 
or beneficiary may elect to receive a lump sum under clause (i) of 
section 401(a)(9)(A) of the Internal Revenue Code of 1986, instead of 
future monthly payments under clause (ii) of such section, shall 
furnish notice--
            ``(1) to each participant or beneficiary offered such lump 
        sum amount, in the manner in which the participant and 
        beneficiary receives the lump sum offer from the plan sponsor, 
        not later than 90 days prior to the first day on which the 
        participant or beneficiary may make an election with respect to 
        such lump sum; and
            ``(2) to the Secretary and the Pension Benefit Guaranty 
        Corporation, not later than 30 days prior to the first day on 
        which participants and beneficiaries may make an election with 
        respect to such lump sum.
    ``(b) Notice to Participants and Beneficiaries.--
            ``(1) Content.--The notice required under subsection (a)(1) 
        shall include the following:
                    ``(A) Available benefit options, including the 
                estimated monthly benefit that the participant or 
                beneficiary would receive at normal retirement age (if 
                not already in pay status), whether there is a 
                subsidized early retirement option or qualified joint 
                and survivor annuity that is fully subsidized (in 
                accordance with section 417(a)(5) of the Internal 
                Revenue Code of 1986, the monthly benefit amount if 
                payments begin immediately, and the lump sum amount 
                available if the participant or beneficiary takes the 
                option.
                    ``(B) An explanation of how the lump sum was 
                calculated, including the interest rate, mortality 
                assumptions, and whether any additional plan benefits 
                were included in the lump sum, such as early retirement 
                subsidies.
                    ``(C) In a manner consistent with the manner in 
                which a written explanation is required to be given 
                under 417(a)(3) of the Internal Revenue Code of 1986, 
                the relative value of the lump sum option for a 
                terminated vested participant compared to the value 
                of--
                            ``(i) the single life annuity, (or other 
                        standard form of benefit); and
                            ``(ii) the qualified joint and survivor 
                        annuity (as defined in section 205(d)(1)).
                    ``(D) Whether it would be reasonably likely to 
                replicate the plan's stream of payments by purchasing a 
                comparable retail annuity using the lump sum.
                    ``(E) The potential ramifications of accepting the 
                lump sum, including longevity risks, loss of 
                protections guaranteed by the Pension Benefit Guaranty 
                Corporation (with an explanation of the monthly benefit 
                amount that would be protected by the Pension Benefit 
                Guaranty Corporation if the plan is terminated with 
                insufficient assets to pay benefits), loss of 
                protection from creditors, loss of spousal protections, 
                and other protections under this Act that would be 
                lost.
                    ``(F) General tax rules related to accepting a lump 
                sum, including rollover options and early distribution 
                penalties with a disclaimer that the plan does not 
                provide tax, legal, or accounting advice, and a 
                suggestion that participants and beneficiaries consult 
                with their own tax, legal, and accounting advisors 
                before determining whether to accept the offer.
                    ``(G) How to accept or reject the offer, the 
                deadline for response, and whether a spouse is required 
                to consent to the election.
                    ``(H) Contact information for the point of contact 
                at the plan administrator for participants and 
                beneficiaries to get more information or ask questions 
                about the options.
            ``(2) Plain language.--The notice under this subsection 
        shall be written in a manner calculated to be understood by the 
        average plan participant.
            ``(3) Model notice.--The Secretary shall issue a model 
        notice for purposes of the notice under subsection (a)(1), 
        including for information required under subparagraphs (C) 
        through (F) of paragraph (1).
    ``(c) Notice to the Secretary and Pension Benefit Guaranty 
Corporation.--The notice required under subsection (a)(2) shall include 
the following:
            ``(1) The total number of participants and beneficiaries 
        eligible for such lump sum option.
            ``(2) The length of the limited period during which the 
        lump sum is offered.
            ``(3) An explanation of how the lump sum was calculated, 
        including the interest rate, mortality assumptions, and whether 
        any additional plan benefits were included in the lump sum, 
        such as early retirement subsidies.
            ``(4) A sample of the notice provided to participants and 
        beneficiaries under subsection (a)(1).
    ``(d) Post-Offer Report to the Secretary and Pension Benefit 
Guaranty Corporation.--Not later than 90 days after the conclusion of 
the limited period during which participants and beneficiaries in a 
plan may accept a plan's offer to convert their annuity into a lump sum 
as generally permitted under section 401(a)(9) of the Internal Revenue 
Code of 1986, a plan sponsor shall submit a report to the Secretary and 
the Director of the Pension Benefit Guaranty Corporation that includes 
the number of participants and beneficiaries who accepted the lump sum 
offer and such other information as the Secretary may require.
    ``(e) Public Availability.--The Secretary shall make the 
information provided in the notice to the Secretary required under 
subsection (a)(2) and in the post-offer reports submitted under 
subsection (d) publicly available in a form that protects the 
confidentiality of the information provided.
    ``(f) Biannual Report.--Not later than 6 months after the date of 
enactment of this section and every 6 months thereafter, so long as the 
Secretary has received notices and post-offer reports under subsections 
(c) and (d), the Secretary shall submit to Congress a report that 
summarizes such notices and post-offer reports during the applicable 
reporting period.''.
    (c) Clerical Amendment.--The table of contents in section 1 of the 
Employee Retirement Income Security Act of 1974, as amended by section 
107(a)(2), is further amended by inserting after the item relating to 
section 112 the following new item:

``Sec. 113. Notice and disclosure requirements with respect to lump sum 
                            windows.''.
    (d) Enforcement.--Section 502 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1132) is amended--
            (1) in subsection (c)(1), by striking ``or section 105(a)'' 
        and inserting ``, section 105(a), or section 112(a)''; and
            (2) in subsection (a)(4), by striking ``105(c)'' and 
        inserting ``section 105(c) or 112(a)''.
    (e) Application.--The requirements of section 113 of the ERISA, as 
added by subsection (b), shall apply beginning on the applicable 
effective date specified in the final regulations promulgated pursuant 
to subsection (f).
    (f) Regulatory Authority.--Not earlier than 1 year after the date 
of enactment of this Act, the Secretary of Labor and the Secretary of 
the Treasury shall jointly issue regulations to implement section 113 
of the Employee Retirement Income Security Act of 1974, as added by 
subsection (a). Such regulations shall require plan sponsors to comply 
in good faith with the regulations beginning not later than 1 year 
after issuance of a final rule with respect to subsections (a)(1) and 
(b) of such section 113, and beginning not later than 6 months after 
issuance of a final rule with respect to subsections (a)(2), (c), (d), 
and (e) of such section 113.

SEC. 304. DEFINED BENEFIT ANNUAL FUNDING NOTICES.

    (a) In General.--Section 101(f)(2)(B) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1021(f)(2)(B)) is amended--
            (1) in clause (i)(I), by striking ``funding target 
        attainment percentage (as defined in section 303(d)(2))'' and 
        inserting ``percentage of plan liabilities funded (as described 
        in clause (ii)(I)(bb))'';
            (2) in clause (ii)(I)--
                    (A) by striking ``, a statement of'';
                    (B) by striking item (aa);
                    (C) by redesignating item (bb) as item (aa);
                    (D) in item (aa), as so redesignated--
                            (i) by inserting ``a statement of'' before 
                        ``the value''; and
                            (ii) by striking ``and'' at the end; and
                    (E) by adding at the end the following:
                                            ``(bb) a statement of the 
                                        percentage of plan liabilities 
                                        funded, calculated as the ratio 
                                        between the value of the plan's 
                                        assets and liabilities, as 
                                        determined under item (aa), for 
                                        the plan year to which the 
                                        notice relates and for the 2 
                                        preceding plan years, and
                                            ``(cc) if the information 
                                        in (aa) and (bb) is presented 
                                        in tabular form, a statement 
                                        that describes that in the 
                                        event of a plan termination the 
                                        corporation's calculation of 
                                        plan liabilities may be greater 
                                        and that references the section 
                                        of the notice with the 
                                        information required under 
                                        clause (x), and'';
            (3) in clause (iii), in the matter preceding subclause (I), 
        by inserting ``for the plan year to which the notice relates as 
        of the last day of such plan year and the preceding 2 plan 
        years, in tabular format,'' after ``participants'';
            (4) in clause (iv)--
                    (A) by striking ``plan and the asset'' and 
                inserting ``plan, the asset''; and
                    (B) by inserting ``, and the average return on 
                assets for the plan year,'' after ``assets)'';
            (5) by redesignating clauses (ix) through (xi) as clause 
        (x) through (xii), respectively;
            (6) by inserting after clause (viii) the following:
                            ``(ix) in the case of a single-employer 
                        plan, a statement as to whether the plan's 
                        funded status, based on the plan's liabilities 
                        described under subclause (II) for the plan 
                        year to which the notice relates, and for the 2 
                        preceding plan years, is at least 100 percent 
                        (and, if not, the actual percentages), that 
                        includes--
                                    ``(I) the plan's assets, as of the 
                                last day of the plan year and for the 2 
                                preceding plan years, as determined 
                                under clause (ii)(I)(aa),
                                    ``(II) the plan's liabilities, as 
                                of the last day of the plan year and 
                                for the 2 preceding plan years, as 
                                determined under clause (ii)(1)(aa), 
                                and
                                    ``(III) the funded status of the 
                                plan, determined as the ratio of the 
                                plan's assets and liabilities 
                                calculated under subclauses (I) and 
                                (II), for the plan year to which the 
                                notice relates, and for the 2 preceding 
                                plan years,''; and
            (7) in clause (x), as so redesignated, by striking the 
        comma at the end and inserting the following: ``and a statement 
        that, in the case of a single-employer plan--
                                    ``(I) if plan assets are sufficient 
                                to pay vested benefits that are not 
                                guaranteed by the Pension Benefit 
                                Guaranty Corporation, participants and 
                                beneficiaries may receive benefits in 
                                excess of the guaranteed amount, and
                                    ``(II) in determining valuation of 
                                guaranteed benefits, the Pension 
                                Benefit Guaranty Corporation uses, as 
                                of the date of enactment of the RISE & 
                                SHINE Act, a valuation methodology 
                                that--
                                            ``(aa) places a higher 
                                        value on the future cost of 
                                        benefits than any valuation 
                                        methodology required under 
                                        Federal statute, and
                                            ``(bb) makes it less likely 
                                        that participants and 
                                        beneficiaries will receive 
                                        amounts in excess of the 
                                        guaranteed amount under Federal 
                                        law,''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to plan years beginning after December 31, 2023.

                        TITLE IV--MODERNIZATION

SEC. 401. AUTOMATIC REENROLLMENT UNDER QUALIFIED AUTOMATIC CONTRIBUTION 
              ARRANGEMENTS AND ELIGIBLE AUTOMATIC CONTRIBUTION 
              ARRANGEMENTS.

    (a) Eligible Automatic Contribution Arrangements.--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 by moving 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 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 but not more than once 
        annually 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 any 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.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to arrangements taking effect after December 31, 2024.

SEC. 402. INCIDENTAL PLAN EXPENSES.

    (a) Findings.--Congress finds the following:
            (1) Retirement plan sponsors engage advisors to assist in 
        administering their retirement plans. Such advisors and other 
        service providers are paid via monthly or annual retainers to 
        advise on plan administration or the investment fund lineup. 
        Such retainers are charged to the retirement plan.
            (2) Other, incidental expenses incurred related to plan 
        design, may not be charged to the plan because they are deemed 
        settlor functions. For example, if a plan sponsor were to 
        inquire about a beneficial plan design feature, such as 
        automatic enrollment and reenrollment or automatic escalation, 
        the advisor or other service provider would bill the employer a 
        separate amount that could not be charged back to the plan. 
        Because these inquiries result in additional costs, many 
        employers, especially small employers, choose to forego these 
        incidental plan design features, even when they might generate 
        tremendous benefits for their employees.
            (3) According to the 2021 Plan Sponsor Council of America's 
        Annual Survey of Profit Sharing and 401(k) Plans, only 30.5 
        percent of employers with fewer than 50 workers have an 
        automatic enrollment feature in their retirement plan, compared 
        to over 77 percent of employers with more than 1,000 workers. 
        Small employers need additional resources to improve their 
        retirement plan design.
    (b) Facilitating the Implementation of Beneficial Plan Features.--
            (1) Plan assets.--Section 403(c)(1) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1103(c)(1)) 
        is amended by inserting ``(including incidental expenses solely 
        for the benefit of the participants and their beneficiaries)'' 
        before the period.
            (2) Fiduciary standard of care.--Section 404(a)(1)(A)(ii) 
        of the Employee Retirement Income Security Act of 1974 (29 
        U.S.C. 1104(a)(1)(A)(ii)) is amended by inserting ``(including 
        incidental expenses solely for the benefit of the participants 
        and their beneficiaries)'' before the semicolon.

       TITLE V--AMENDMENTS TO PLANS OFFERED BY MULTIPLE EMPLOYERS

SEC. 501. REPORT ON POOLED EMPLOYER PLANS.

    The Secretary of Labor shall--
            (1) conduct a study on the pooled employer plan (as such 
        term is defined in section 3(43) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1002(43))) industry, 
        including on--
                    (A) the legal name and number of pooled employer 
                plans;
                    (B) the number of participants in such plans;
                    (C) the range of investment options provided in 
                such plans;
                    (D) the fees assessed in such plans;
                    (E) the manner in which employers select and 
                monitor such plans;
                    (F) the disclosures provided to participants in 
                such plans;
                    (G) the number and nature of any enforcement 
                actions by the Secretary of Labor on such plans;
                    (H) the extent to which such plans have increased 
                retirement savings coverage in the United States; and
                    (I) any additional information as the Secretary 
                determines is necessary; and
            (2) not later than 5 years after the date of enactment of 
        this Act, and every 5 years thereafter, submit to Congress and 
        make available on a publicly accessible website of the 
        Department of Labor, a report on the findings of the study 
        under paragraph (1), including recommendations on how pooled 
        employer plans can be improved, through legislation, to serve 
        and protect retirement plan participants.

SEC. 502. ANNUAL AUDITS FOR GROUP OF PLANS.

    Section 202(a) of the Setting Every Community Up for Retirement 
Enhancement Act of 2019 (Public Law 116-94; 26 U.S.C. 6058 note) is 
amended--
            (1) by striking ``so that all members'' and inserting the 
        following: ``so that--
            ``(1) all members'';
            (2) by striking the period and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(2) any opinions required by section 103(a)(3) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1023(a)(3)) shall relate only to each individual plan which 
        would otherwise be subject to the requirements of such section 
        103(a)(3).''.

               TITLE VI--DEFINED BENEFIT PLAN PROVISIONS

SEC. 601. CASH BALANCE.

    (a) Amendment of Internal Revenue Code of 1986.--Section 414 of the 
Internal Revenue Code of 1986, as amended by the preceding sections of 
this Act, is further amended by adding at the end the following new 
subsection:
    ``(bb) Projected Interest Crediting Rate.--For purposes of this 
part, in the case of an applicable defined benefit plan (as defined in 
section 411(a)(13)(B)) which provides variable interest crediting 
rates, the interest crediting rate which is treated as in effect and as 
the projected interest crediting rate shall be a reasonable projection 
of such variable interest crediting rate, not to exceed 6 percent.''.
    (b) Amendment of Employee Retirement Income Security Act of 1974.--
Section 210 of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1060) is amended by adding at the end the following new 
subsection:
    ``(g) Projected Interest Crediting Rate.--For purposes of this 
title, in the case of an applicable defined benefit plan (within the 
meaning of section 203(f)(3)) which provides variable interest 
crediting rates, the interest crediting rate which is treated as in 
effect and as the projected interest crediting rate shall be a 
reasonable projection of such variable interest crediting rate, not to 
exceed 6 percent.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to years beginning after the date of enactment of 
this Act.

SEC. 602. TERMINATION OF VARIABLE RATE PREMIUM INDEXING.

    (a) In General.--Paragraph (8) of 4006(a) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1306(a)) is amended 
by--
            (1) in subparagraph (A)--
                    (A) in clause (vi), by striking ``and'';
                    (B) in clause (vii), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(viii) for plan years beginning after 
                        calendar year 2022, $48.'';
            (2) in subparagraph (B), in the matter preceding clause 
        (i), by inserting ``and before 2023'' after ``2012''; and
            (3) in subparagraph (D)(vii), by inserting ``and before 
        2023'' after ``2019''.
    (b) Technical Amendment.--Clause (i) of section 4006(a)(3)(E) of 
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1306(a)(3)(E)) is amended by striking ``subparagraph (H)'' and 
inserting ``subparagraph (I)''.

SEC. 603. ENHANCING RETIREE HEALTH BENEFITS IN PENSION PLANS.

    (a) Extension of Transfers of Excess Pension Assets to Retiree 
Health Accounts Under the Internal Revenue Code of 1986.--Paragraph (4) 
of section 420(b) of the Internal Revenue Code of 1986 is amended by 
striking ``December 31, 2025'' and inserting ``December 31, 2032''.
    (b) Extension of Transfers of Excess Pension Assets to Retiree 
Health Accounts Under the Employee Retirement Income Security Act of 
1974.--
            (1) Definitions.--Section 101(e)(3) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1021(e)(3)) 
        is amended by striking ``(as in effect on the date of the 
        enactment of the Surface Transportation and Veterans Health 
        Care Choice Improvement Act of 2015)'' and inserting ``(as in 
        effect on the date of enactment of the RISE & SHINE Act)''.
            (2) Use of assets.--Section 403(c)(1) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1103(c)(1)) 
        is amended by striking ``(as in effect on the date of the 
        enactment of the Surface Transportation and Veterans Health 
        Care Choice Improvement Act of 2015)'' and inserting ``(as in 
        effect on the date of enactment of the RISE & SHINE Act)''.
            (3) Exemption.--Section 408(b)(13) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1108(b)(13)) 
        is amended--
                    (A) by striking ``January 1, 2026'' and inserting 
                ``January 1, 2033''; and
                    (B) by striking ``(as in effect on the date of the 
                enactment of the Surface Transportation and Veterans 
                Health Care Choice Improvement Act of 2015)'' and 
                inserting ``(as in effect on the date of enactment of 
                the RISE & SHINE Act)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to transfers made after the date of enactment of this Act.

             TITLE VII--ADDITIONAL RETIREMENT ENHANCEMENTS

SEC. 701. PROVISIONS RELATING TO PLAN AMENDMENTS.

    (a) In General.--Part 2 of subtitle B of title I of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1021 et seq.) is 
amended--
            (1) by redesignating section 211 as section 212; and
            (2) by inserting after section 210 the following new 
        section:

``SEC. 211. PLAN AMENDMENTS DUE TO THE RISE & SHINE ACT.

    ``(a) In General.--If this section applies to any retirement plan 
or contract amendment--
            ``(1) such retirement plan or contract shall be treated as 
        being operated in accordance with the terms of the plan during 
        the period described in subsection (b)(2)(A); and
            ``(2) except as provided by the Secretary of the Treasury 
        (or the Secretary's delegate) and the Secretary of Labor (or 
        the Secretary's delegate), such retirement plan shall not fail 
        to meet the requirements of section 411(d)(6) of the Internal 
        Revenue Code of 1986 and section 204(g) of this Act by reason 
        of such amendment.
    ``(b) Amendments to Which Section Applies.--
            ``(1) In general.--This section shall apply to any 
        amendment to any retirement plan or annuity contract which is 
        made--
                    ``(A) pursuant to any amendment made by the RISE & 
                SHINE Act or pursuant to any regulation issued by the 
                Secretary of the Treasury or the Secretary of Labor (or 
                a delegate of either such Secretary) under the RISE & 
                SHINE Act; and
                    ``(B) on or before the last day of the first plan 
                year beginning on or after January 1, 2025.
            ``(2) Conditions.--This section shall not apply to any 
        amendment unless--
                    ``(A) during the period--
                            ``(i) beginning on the date the legislative 
                        or regulatory amendment described in paragraph 
                        (1)(A) takes effect (or in the case of a plan 
                        or contract amendment not required by such 
                        legislative or regulatory amendment, the 
                        effective date specified by the plan); and
                            ``(ii) ending on the date described in 
                        paragraph (1)(B) (or, if earlier, the date the 
                        plan or contract amendment is adopted),
                 the plan or contract is operated as if such plan or 
                contract amendment were in effect; and
                    ``(B) such plan or contract amendment applies 
                retroactively for such period.''.
    (b) Clerical Amendment.--The table of contents in section 1 of the 
Employee Retirement Income Security Act of 1974 is amended by striking 
the item relating to section 211 and by inserting after the item 
relating to section 210 the following new items:

``Sec. 211. Plan amendments due to the RISE & SHINE Act.
``Sec. 212. Effective dates.''.

SEC. 702. WORKER OWNERSHIP, READINESS, AND KNOWLEDGE (WORK) ACT.

    (a) Short Title.--This section may be cited as the ``Worker 
Ownership, Readiness, and Knowledge Act'' or the ``WORK Act''.
    (b) Definitions.--In this section:
            (1) Existing program.--The term ``existing program'' means 
        a program, designed to promote employee ownership, that exists 
        on the date on which the Secretary is carrying out a 
        responsibility authorized under this section.
            (2) Initiative.--The term ``Initiative'' means the Employee 
        Ownership Initiative established under subsection (c).
            (3) New program.--The term ``new program'' means a program, 
        designed to promote employee ownership, that does not exist on 
        the date on which the Secretary is carrying out a 
        responsibility authorized under this section.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (5) State.--The term ``State'' has the meaning given the 
        term under section 3 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3102).
    (c) Employee Ownership Initiative.--
            (1) Establishment.--The Secretary shall establish within 
        the Department of Labor an Employee Ownership Initiative to 
        promote employee ownership.
            (2) Functions.--In carrying out the Initiative, the 
        Secretary shall--
                    (A) support within the States existing programs 
                designed to promote employee ownership; and
                    (B) facilitate within the States the formation of 
                new programs designed to promote employee ownership.
            (3) Duties.--To carry out the functions enumerated in 
        paragraph (2), the Secretary shall--
                    (A) support new programs and existing programs by--
                            (i) making Federal grants authorized under 
                        subsection (e); and
                            (ii)(I) acting as a clearinghouse on 
                        techniques employed by new programs and 
                        existing programs within the States, and 
                        disseminating information relating to those 
                        techniques to the programs; or
                            (II) funding projects for information 
                        gathering on those techniques, and 
                        dissemination of that information to the 
                        programs, by groups outside the Department of 
                        Labor; and
                    (B) facilitate the formation of new programs, in 
                ways that include holding or funding an annual 
                conference of representatives from States with existing 
                programs, representatives from States developing new 
                programs, and representatives from States without 
                existing programs.
    (d) Programs Regarding Employee Ownership.--
            (1) Establishment of program.--Not later than 180 days 
        after the date of enactment of this Act, the Secretary shall 
        establish a program to encourage new programs and existing 
        programs within the States to foster employee ownership 
        throughout the United States.
            (2) Purpose of program.--The purpose of the program 
        established under paragraph (1) is to encourage new and 
        existing programs within the States that focus on--
                    (A) providing education and outreach to inform 
                employees and employers about the possibilities and 
                benefits of employee ownership and business ownership 
                succession planning, including providing information 
                about financial education, employee teams, open-book 
                management, and other tools that enable employees to 
                share ideas and information about how their businesses 
                can succeed;
                    (B) providing technical assistance to assist 
                employee efforts to become business owners, to enable 
                employers and employees to explore and assess the 
                feasibility of transferring full or partial ownership 
                to employees, and to encourage employees and employers 
                to start new employee-owned businesses;
                    (C) training employees and employers with respect 
                to methods of employee participation in open-book 
                management, work teams, committees, and other 
                approaches for seeking greater employee input; and
                    (D) training other entities to apply for funding 
                under this subsection, to establish new programs, and 
                to carry out program activities.
            (3) Program details.--The Secretary may include, in the 
        program established under paragraph (1), provisions that--
                    (A) in the case of activities described in 
                paragraph (2)(A)--
                            (i) target key groups, such as retiring 
                        business owners, senior managers, labor 
                        organizations, trade associations, community 
                        organizations, and economic development 
                        organizations;
                            (ii) encourage cooperation in the 
                        organization of workshops and conferences; and
                            (iii) prepare and distribute materials 
                        concerning employee ownership, and business 
                        ownership succession planning;
                    (B) in the case of activities described in 
                paragraph (2)(B)--
                            (i) provide preliminary technical 
                        assistance to employee groups, managers, and 
                        retiring owners exploring the possibility of 
                        employee ownership;
                            (ii) provide for the performance of 
                        preliminary feasibility assessments;
                            (iii) assist in the funding of objective 
                        third-party feasibility studies and preliminary 
                        business valuations, and in selecting and 
                        monitoring professionals qualified to conduct 
                        such studies; and
                            (iv) provide a data bank to help employees 
                        find legal, financial, and technical advice in 
                        connection with business ownership;
                    (C) in the case of activities described in 
                paragraph (2)(C)--
                            (i) provide for courses on employee 
                        participation; and
                            (ii) provide for the development and 
                        fostering of networks of employee-owned 
                        companies to spread the use of successful 
                        participation techniques; and
                    (D) in the case of training described in paragraph 
                (2)(D)--
                            (i) provide for visits to existing programs 
                        by staff from new programs receiving funding 
                        under this section; and
                            (ii) provide materials to be used for such 
                        training.
            (4) Guidance.--The Secretary shall issue formal guidance, 
        for--
                    (A) recipients of grants awarded under subsection 
                (e) and one-stop partners (as defined in section 3 of 
                the Workforce Innovation and Opportunity Act (29 U.S.C. 
                3102)) affiliated with the workforce development 
                systems (as so defined) of the States, proposing that 
                programs and other activities funded under this section 
                be--
                            (i) proactive in encouraging actions and 
                        activities that promote employee ownership of 
                        businesses; and
                            (ii) comprehensive in emphasizing both 
                        employee ownership of businesses so as to 
                        increase productivity and broaden capital 
                        ownership; and
                    (B) acceptable standards and procedures to 
                establish good faith fair market value for shares of a 
                business to be acquired by an employee stock ownership 
                plan (as defined in section 407(d)(6) of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 
                1107(d)(6))).
    (e) Grants.--
            (1) In general.--In carrying out the program established 
        under subsection (d), the Secretary may make grants for use in 
        connection with new programs and existing programs within a 
        State for any of the following activities:
                    (A) Education and outreach as provided in 
                subsection (d)(2)(A).
                    (B) Technical assistance as provided in subsection 
                (d)(2)(B).
                    (C) Training activities for employees and employers 
                as provided in subsection (d)(2)(C).
                    (D) Activities facilitating cooperation among 
                employee-owned firms.
                    (E) Training as provided in subsection (d)(2)(D) 
                for new programs provided by participants in existing 
                programs dedicated to the objectives of this section, 
                except that, for each fiscal year, the amount of the 
                grants made for such training shall not exceed 10 
                percent of the total amount of the grants made under 
                this section.
            (2) Amounts and conditions.--The Secretary shall determine 
        the amount and any conditions for a grant made under this 
        subsection. The amount of the grant shall be subject to 
        paragraph (6), and shall reflect the capacity of the applicant 
        for the grant.
            (3) Applications.--Each entity desiring a grant under this 
        subsection shall submit an application to the Secretary at such 
        time, in such manner, and accompanied by such information as 
        the Secretary may reasonably require.
            (4) State applications.--Each State may sponsor and submit 
        an application under paragraph (3) on behalf of any local 
        entity consisting of a unit of State or local government, 
        State-supported institution of higher education, or nonprofit 
        organization, meeting the requirements of this section.
            (5) Applications by entities.--
                    (A) Entity applications.--If a State fails to 
                support or establish a program pursuant to this section 
                during any fiscal year, the Secretary shall, in the 
                subsequent fiscal years, allow local entities described 
                in paragraph (4) from that State to make applications 
                for grants under paragraph (3) on their own initiative.
                    (B) Application screening.--Any State failing to 
                support or establish a program pursuant to this section 
                during any fiscal year may submit applications under 
                paragraph (3) in the subsequent fiscal years but may 
                not screen applications by local entities described in 
                paragraph (4) before submitting the applications to the 
                Secretary.
            (6) Limitations.--A recipient of a grant made under this 
        subsection shall not receive, during a fiscal year, in the 
        aggregate, more than the following amounts:
                    (A) For fiscal year 2024, $300,000.
                    (B) For fiscal year 2025, $330,000.
                    (C) For fiscal year 2026, $363,000.
                    (D) For fiscal year 2027, $399,300.
                    (E) For fiscal year 2028, $439,200.
            (7) Annual report.--For each year, each recipient of a 
        grant under this subsection shall submit to the Secretary a 
        report describing how grant funds allocated pursuant to this 
        subsection were expended during the 12-month period preceding 
        the date of the submission of the report.
    (f) Evaluations.--The Secretary is authorized to reserve not more 
than 10 percent of the funds appropriated for a fiscal year to carry 
out this section, for the purposes of conducting evaluations of the 
grant programs identified in subsection (e) and to provide related 
technical assistance.
    (g) Reporting.--Not later than the expiration of the 36-month 
period following the date of enactment of this Act, the Secretary shall 
prepare and submit to Congress a report--
            (1) on progress related to employee ownership in businesses 
        in the United States; and
            (2) containing an analysis of critical costs and benefits 
        of activities carried out under this section.
    (h) Authorizations of Appropriations.--
            (1) In general.--There are authorized to be appropriated 
        for the purpose of making grants pursuant to subsection (e) the 
        following:
                    (A) For fiscal year 2024, $4,000,000.
                    (B) For fiscal year 2025, $7,000,000.
                    (C) For fiscal year 2026, $10,000,000.
                    (D) For fiscal year 2027, $13,000,000.
                    (E) For fiscal year 2028, $16,000,000.
            (2) Administrative expenses.--There are authorized to be 
        appropriated for the purpose of funding the administrative 
        expenses related to the Initiative, for each of fiscal years 
        2022 through 2026, an amount not in excess of the lesser of--
                    (A) $350,000; or
                    (B) 5.0 percent of the maximum amount available 
                under paragraph (1) for that fiscal year.
                                 <all>