Sec. 305. Eliminating unnecessary plan requirements related to unenrolled participants
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Section 414 of the Internal Revenue Code of 1986, as amended by the preceding provisions of this Act, is further amended by adding at the end the following new subsection: Notwithstanding any other provision of this title, with respect to any defined contribution plan, no disclosure, notice, or other plan document (other than the notices and documents described in subparagraphs
(A)and (B)) shall be required to be furnished under this title to any unenrolled participant if the unenrolled participant receives— an annual reminder notice (in paper format, or in any electronic format consented to by the participant) of such participant’s eligibility to participate in such plan and any applicable election deadlines under the plan, and any document requested by such participant which the participant would be entitled to receive without regard to this subsection. For purposes of this subsection, the term unenrolled participant means an employee who— is eligible to participate in a defined contribution plan, has received all required notices, disclosures, and other plan documents required to be furnished under this title and the summary plan description as provided in section 104(b) of the Employee Retirement Income Security Act of 1974 in connection with such participant’s initial eligibility to participate in such plan, is not participating in such plan, and does not have a balance in the plan. 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. 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. . Part 1 of subtitle B of subchapter I of the Employee Retirement Income Security Act of 1974 is amended by redesignating section 111 as section 112 and by inserting after section 110 the following new section: Notwithstanding any other provision of this title, with respect to any individual account plan, no disclosure, notice, or other plan document (other than the notices and documents described in paragraphs
(1)and (2)) shall be required to be furnished under this title to any unenrolled participant if the unenrolled participant receives— an annual reminder notice of such participant’s eligibility to participate in such plan and any applicable election deadlines under the plan; and any document requested by such participant which the participant would be entitled to receive without regard to this section. For purposes of this section, the term unenrolled participant means an employee who— is eligible to participate in an individual account plan; has received all required notices, disclosures, and other plan documents, including the summary plan description, required to be furnished under this title in connection with such participant’s initial eligibility to participate in such plan; is not participating in such plan; and does not have a balance in the plan. 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. 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— 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; notifies the unenrolled participant of— the unenrolled participant’s eligibility to participate in the plan; and the key benefits under the plan and the key rights and features under the plan affecting such benefits; and provides such information in a prominent manner calculated to be understood by the average participant. . 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. . The amendments made by this section shall apply to plan years beginning after December 31, 2021.