Sec. 5. Automatic reenrollment
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Section 514(e)(2) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1144(e)(2) ) is amended— by redesignating subparagraphs
(A)through
(C)as clauses
(i)through (iii), respectively, and moving the margins of such clauses 2 ems to the right, by striking
(2)For purposes of and inserting (2)(A) For purposes of , and by adding at the end the following: 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 years each employee— who is eligible to participate in the arrangement, and who, at the time of the determination, has in effect an affirmative election pursuant to subparagraph (A)(ii) not to have contributions described in such subparagraph made, is treated as having made the election at the uniform percentage of compensation described in subparagraph (A)(ii) unless the employee makes a new election under such subparagraph. Such determination may be made at one time for all employees described in the preceding sentence for a plan year, regardless of individual employee dates of enrollment. . Section 414(w)(3) of the Internal Revenue Code of 1986 is amended— by redesignating subparagraphs
(A)through
(C)as clauses
(i)through (iii), respectively, and moving the margins of such clauses 2 ems to the right; by striking For purposes of and inserting the following: For purposes of by adding at the end the following new subparagraph: In the case of an eligible automatic contribution arrangement taking effect after December 31, 2024, the requirements of this subsection shall be treated as met only if, under the arrangement, at least every 3 plan years each employee— who is eligible to participate in the arrangement, and who, at the time of the determination, has in effect an affirmative election under subparagraph (A)(ii) not to have such contributions described in such subparagraph made, is treated as having made the election at the uniform percentage level described in subparagraph (A)(ii) unless the employee makes a new election under such subparagraph. Such determination may be made at one time for all employees described in the preceding sentence for a plan year, regardless of individual employee dates of enrollment. Section 401(k)(13)(C) of the Internal Revenue Code of 1986 is amended by adding at the end the following new clause: In the case of a qualified automatic contribution arrangement which takes effect after December 31, 2024, the requirements of this subparagraph shall be treated as met only if, under the arrangement, at least every 3 plan years each employee— who is eligible to participate in the arrangement, and who, at the time of the determination, has in effect an affirmative election pursuant to clause
(ii)not to have contributions described in clause
(i)made, is treated as having made the election described in clause
(i)unless the employee makes a new affirmative election under clause (ii). Such determination may be made at one time for all employees described in the preceding sentence for a plan year, regardless of individual employee dates of enrollment. Clause
(iv)of section 401(k)(13)(C) of such Code is amended— in the heading, by inserting for pre-2025 arrangements after required ; and by striking Clause
(i)and inserting In the case of a qualified automatic contribution arrangement in effect before January 1, 2025, clause
(i). The amendments made by this section shall apply to arrangements taking effect after December 31, 2024.
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Sec. 5
Automatic reenrollment
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