119-s1831

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1831 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1831

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

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 May 21, 2025

Mr. Kaine (for himself and Mr. Cassidy) introduced the following bill; 
 which was read twice and referred to the Committee on Health, 
 Education, Labor, and Pensions

_______________________________________________________________________

 A BILL

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

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

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Auto Reenroll Act of 2025''.

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

    (a) Qualified Automatic Contribution Arrangements.--

    (1) In general.--

Section 401

    (k)

    (13)
            (C) of the Internal 
 Revenue Code of 1986 is amended by adding at the end the 
 following new clause:
 ``
            (v) Periodic automatic deferral 
 permitted.--A qualified automatic contribution 
 arrangement shall not fail to be treated as 
 meeting the requirements of this subparagraph 
 solely by reason of the fact that, under the 
 arrangement--
 ``
            (I) an election by an employee 
 under clause
            (ii) 
            (I) terminates after 
 not more than 3 years (but not less 
 than 1 year), and
 ``
            (II) such employee is treated as 
 having made an election under clause
            (i) after such termination unless such 
 employee makes a new affirmative 
 election under clause
            (ii) .
 A termination described in subclause
            (I) may be 
 made at one time for a plan year for all 
 employees who have made an election described 
 in such subclause.''.

    (2) Coordination with rule for current employees.--
        (A) In general.--Clause
            (iv) of 

section 401

    (k)

    (13)
            (C) of such Code is amended by striking 
 ``either to participate in the arrangement or not to 
 participate in the arrangement'' and inserting ``to 
 participate in the arrangement''.
        (B) Special rule for previously disregarded 
 employees.--
            (i) In general.--For purposes of applying 
 

section 401

    (k)

    (13)
            (C) 
            (v) of the Internal 
 Revenue Code of 1986 (as added by paragraph

    (1) ), a previously disregarded employee may be 
 treated as an employee who has made an election 
 under 

section 401

    (k)

    (13)
            (C) 
            (ii) 
            (I) of such 
 Code.
            (ii) Previously disregarded employee.--For 
 purposes of this subparagraph, the term 
 ``previously disregarded employee'' means any 
 employee who was not taken into account under 
 

section 401

    (k)

    (13)
            (C) 
            (i) of the Internal 
 Revenue Code of 1986 by reason of an election 
 described in 

section 401

    (k)

    (13)
            (C) 
            (iv) 
            (II) of 
 such Code (as in effect for plan years 
 beginning on or before the date of the 
 enactment of this Act) to not participate in an 
 arrangement described in 

section 401

    (k)

    (13)
            (C) 
            (iv) 
            (I) of such Code.

    (b) Eligible Automatic Contribution Arrangements.--

Section 414

    (w)

    (3) of the Internal Revenue Code of 1986 is amended--

    (1) by redesignating subparagraphs
        (A) through
            (C) as 
 clauses
            (i) through
            (iii) , respectively, and moving the margins 
 of such clauses 2 ems to the right;

    (2) by striking ``arrangement.--For purposes of'' and 
 inserting the following: ``arrangement.--
 ``
        (A) In general.--For purposes of''; and

    (3) by adding at the end the following new subparagraph:
 ``
        (B) Periodic automatic deferral permitted.--An 
 arrangement shall not fail to be treated as an eligible 
 automatic contribution arrangement under this 
 subsection solely by reason of the fact that, under the 
 arrangement--
 ``
            (i) an election by a participant under 
 subparagraph
        (A)
            (ii) not to have contributions 
 made terminates after not more than 3 years 
 (but not less than 1 year), and
 ``
            (ii) such participant is treated as 
 having made an election under subparagraph
        (A)
            (ii) to make contributions at the uniform 
 percentage level described in such subparagraph 
 after such termination unless such participant 
 makes a new election not to so make such 
 contributions.
 A termination described in clause
            (i) may be made at 
 one time for a plan year for all participants who have 
 made an election described in such clause.''.
            (c) Conforming Amendment.--

Section 514

    (e)

    (2) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1144

    (e)

    (2) ) is 
amended--

    (1) by redesignating subparagraphs
        (A) through
            (C) as 
 clauses
            (i) through
            (iii) , respectively;

    (2) by striking ``

    (2) For purposes of'' and inserting 
 ``

    (2)
        (A) For purposes of''; and

    (3) by adding at the end the following:
 ``
        (B) An arrangement shall not fail to be treated as an automatic 
contribution arrangement under this subsection solely by reason of the 
fact that under the arrangement--
 ``
            (i) an election by a participant under 
 subparagraph
        (A)
            (ii) not to have contributions made 
 terminates after not more than 3 years (but not less 
 than 1 year), and
 ``
            (ii) such participant is treated as having made 
 an election under subparagraph
        (A)
            (ii) to make 
 contributions at the uniform percentage level described 
 in such subparagraph after such termination unless such 
 participant makes a new election not to so make such 
 contributions.
 A termination described in clause
            (i) may be made at one time 
 for a plan year for all participants who have made an election 
 described in such clause, regardless of individual participant 
 dates of enrollment.''.
            (d) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after the date of the enactment of this 
Act.

    (e) No Inference.--The amendments made by this section shall not be 
construed to create any inference with respect to--

    (1) the application of 

section 401

    (k)

    (13)
            (C) of the 
 Internal Revenue Code of 1986, 

section 414

    (w)

    (3) of such Code, 
 or 

section 514

    (e)

    (2) of the Employee Retirement Income Security 
 Act of 1974 to plan years beginning before the date of the 
 enactment of this Act, or

    (2) the application of 

section 401

    (k)

    (13)
            (C) 
            (v) of the 
 Internal Revenue Code of 1986 (as added by subsection

    (a) ), 
 

section 414

    (w)

    (3)
        (B) of such Code (as amended by subsection

    (b) ), or 

section 514

    (e)

    (2)
        (B) of the Employee Retirement Income 
 Security Act of 1974 (as amended by subsection
            (c) ) to 
 arrangements terminating elections not to have contributions 
 made after more than 3 years.
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