119-s2217

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2217 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2217

 To amend the Employee Retirement Income Security Act of 1974 and the 
 Internal Revenue Code of 1986 regarding pension plans for independent 
 workers, and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 July 9, 2025

 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 Employee Retirement Income Security Act of 1974 and the 
 Internal Revenue Code of 1986 regarding pension plans for independent 
 workers, 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 ``Independent Retirement Fairness 
Act''.

SEC. 2. POOLED EMPLOYER PLANS FOR INDEPENDENT WORKERS.

 

Section 3

    (43) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1002

    (43) ) is amended by adding at the end the 
following:
 ``
        (E) Treatment of independent workers as 
 employees.--
 ``
            (i) In general.--
 ``
            (I) Independent workers.--For 
 purposes of a pooled employer plan, an 
 independent worker may be enrolled in 
 the pooled employer plan as if the 
 independent worker were an employee of 
 an employer in the plan and shall be 
 considered a participant for purposes 
 of the plan.
 ``
            (II) Trade associations.--For 
 purposes of a pooled employer plan, a 
 trade association may be in a pooled 
 employer plan as if the trade 
 organization were an employer and may 
 enroll an independent worker in the 
 plan in accordance with subclause
            (I) .
 ``
            (ii) Data harmonization.--For purposes of 
 an independent worker who is a participant in a 
 pooled employer plan, an employer of an 
 independent worker or a trade organization that 
 enrolls an independent worker may share data 
 regarding the independent worker with any 
 person as necessary to facilitate the 
 establishment and maintenance of the pooled 
 employer plan.
 ``
            (iii) Rule of construction regarding 
 employment status.--The status of an 
 independent worker as a participant in a pooled 
 employer plan of an employer or a trade 
 association and any contributions made to such 
 a pooled employer plan by the employer on 
 behalf of an independent worker shall not be 
 construed to mean that the independent worker 
 is an employee of the employer or trade 
 association in the plan for purposes of any 
 Federal, State, or local law.
 ``
            (iv) === Definitions. ===
-For purposes of this 
 subparagraph:
 ``
            (I) Independent worker.--The term 
 `independent worker' means an 
 individual who, with respect to an 
 employer, performs work for 
 remuneration for the employer and is 
 not an employee of the employer.
 ``
            (II) Trade association.--The term 
 `trade association' includes any labor 
 organization, worker cooperative, 
 employee organization, association of 
 workers in related or unrelated 
 industries, or association of related 
 companies or contractors.''.

SEC. 3. SIMPLIFIED EMPLOYEE PENSIONS FOR INDEPENDENT WORKERS.

    (a) In General.--Subsection

    (k) of 

section 408 of the Internal 
Revenue Code of 1986 is amended by redesignating paragraph

    (10) as 
paragraph

    (11) and by inserting after paragraph

    (9) the following new 
paragraph:
 ``

    (10) Independent workers.--
 ``
        (A) In general.--At the election of the employer, 
 an independent worker may be treated for purposes of 
 this subsection in the same manner as an employee, as 
 provided in this paragraph.
 ``
        (B) Participation.--In the case of independent 
 workers--
 ``
            (i) Participation.--An employer may elect 
 to exclude such workers in applying paragraph

    (2) .
 ``
            (ii) Employees electing.--Paragraph

    (6)
        (A)
            (ii) shall not apply.
 ``
            (C) Independent workers treated separately.--For 
 purposes of applying paragraphs

    (3)
            (C) ,

    (5) , and

    (6)
        (A)
            (iii) , the employer may elect to treat 
 independent workers separately from employees.
 ``
            (D) Not counted in employer size.--Independent 
 workers shall not be taken into account as employees in 
 applying paragraph

    (6)
        (B) .
 ``
        (E) Contribution of bonuses.--Notwithstanding 
 paragraphs

    (3)
            (C) and

    (5) , in the case of any 
 independent worker who is entitled to receive a cash 
 bonus from the employer, at the election of the 
 independent worker such bonus may be contributed to the 
 account or annuity of the worker pursuant to the 
 simplified employee pension and not paid to the worker 
 in cash. Any bonus so contributed shall not be taken 
 into account in determining the percentage of 
 compensation contributed with respect to the worker.
 ``
        (F) Deposits into suspension account.--An account 
 or annuity shall not fail to be treated as a simplified 
 employee pension solely because the terms of the 
 pension allow the employer, at the election of the 
 independent worker, to deposit contributions into a 
 suspension account instead of into the account or 
 annuity, if such contributions are either--
 ``
            (i) returned to the independent worker in 
 cash, or
 ``
            (ii) contributed into the account or 
 annuity pursuant to the terms of the pension,
 within the same taxable year or not later than the last 
 date on which contributions may be made for such 
 taxable year. Amounts contributed to the account or 
 annuity pursuant to the preceding sentence shall be 
 treated for purposes of this subsection as if 
 contributed directly to such account or annuity, and 
 amounts returned to the independent worker in cash 
 shall be treated as never contributed under the 
 simplified employee pension.
 ``
        (G) === Definitions. ===
-For purposes of this 
 paragraph--
 ``
            (i) Independent worker.--The term 
 `independent worker' has the meaning given the 
 term in 

section 3

    (43)
        (E) of the Employee 
 Retirement Income Security Act of 1974.
 ``
            (ii) Suspension account.--The term 
 `suspension account' has the meaning given the 
 term in 

section 5 of the Independent Retirement 
 Fairness Act.''.

    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 4. SIMPLIFICATION OF AUDITING REQUIREMENTS FOR GROUPS OF PLANS.

 

Section 202 of the Setting Every Community Up for Retirement 
Enhancement Act of 2019 (29 U.S.C. 6058 et seq.) is amended by--

    (1) by striking ``relate only'' and inserting the 
 following:
 ``
        (A) relate only''; and

    (2) by striking the period and inserting the following: ``; 
 and
 ``
        (B) be based on the same accounting principles 
 applicable to opinions with respect to pooled employer 
 plans (as defined in 

section 3

    (43) of such Act (29 
 U.S.C. 1002

    (43) )), except that such an opinion shall 
 take into account the limitations on the use of the 
 assets of a plan to pay benefits and expenses only with 
 respect to such plan and shall take into account that 
 plans in a group of plans described in subsection
            (c) may have separate trusts.''.

SEC. 5. SIMPLIFICATION OF AUDITING FOR POOLED EMPLOYER PLANS.

    (a) In General.--

Section 3

    (43) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1002

    (43) ), as amended by 

section 2 of 
this Act, is further amended by adding at the end the following:
 ``
        (F) Audit requirement.--Any opinion required by 
 

section 103

    (a)

    (3) with respect to a pooled employer 
 plan shall relate only to the portions of such a plan 
 attributable to a participating employer for which such 
 an opinion would be required if the participating 
 employer maintained such portion as a single-employer 
 plan separate from the pooled employer plan.''.

    (b) Effective Date.--The amendment made by this section shall apply 
to plan years beginning after the date of enactment of this Act.

SEC. 6. PILOT PROGRAMS FOR THE GIG ECONOMY.

    (a) In General.--The Secretary of the Treasury and the Secretary of 
Labor shall, in cooperation and after reviewing a survey of relevant 
academic literature and consulting with relevant companies, establish 
pilot programs to encourage independent workers to save for retirement, 
including--

    (1) a program that allows an independent worker to round 
 down any compensation paid to the independent worker to the 
 nearest whole dollar amount and automatically contribute the 
 amount of compensation in excess of such whole dollar amount as 
 an elective employee contribution to a pooled employer plan in 
 which the independent worker is enrolled, a solo 401

    (k) of the 
 independent worker, or a suspension account; and

    (2) a program that allows an independent worker to 
 designate an amount that will be automatically deducted from 
 the compensation paid to the independent worker for, as 
 selected by the independent worker, each pay period or monthly, 
 quarterly, semi-annually, or annually and automatically 
 contributed as an elective employee contribution to a pooled 
 employer plan in which the independent worker is enrolled, a 
 solo 401

    (k) of the independent worker, or a suspension account.

    (b) Coordination With Safe Harbor Plan Rules.--As provided by the 
Secretary of the Treasury (or such Secretary's delegate), the pilot 
programs under subsection

    (a) may be conducted in or through the use of 
safe harbor plans, and any such plan participating in such a pilot 
program shall not be treated as failing to meet any requirement 
applicable to such plan by reason of such participation. For purposes 
of the preceding sentence, the term ``safe harbor plan'' means any 
qualified cash or deferred arrangement which meets the requirements of 
paragraph

    (11) ,

    (12) ,

    (13) , or

    (16) of 

section 401

    (k) of the Internal 
Revenue Code of 1986.
            (c) === Definitions. ===
-For purposes of this section:

    (1) Independent worker.--The term ``independent worker'' 
 has the meaning given the term in 

section 3

    (43)
        (E) of the 
 Employee Retirement Income Security Act of 1974 (29 U.S.C. 
 1002

    (43)
        (E) ).

    (2) Pooled employer plan.--The term ``pooled employer 
 plan'' has the meaning given the term in 

section 3

    (43) of the 
 Employee Retirement Income Security Act of 1974 (29 U.S.C. 
 1002

    (43) ).

    (3) Solo 401

    (k) .--The term ``solo 401

    (k) '' means a 
 qualified cash or deferred arrangement (as defined in 

section 401

    (k)

    (2) of the Internal Revenue Code of 1986) covering a 
 single participant (or a single participant and such 
 individual's spouse).

    (4) Suspension account.--The term ``suspension account'' 
 means an account that is established and maintained on behalf 
 of an independent worker that--
        (A) allows for the deposit of amounts by the 
 independent worker, including the amounts described in 
 paragraphs

    (1) and

    (2) of subsection

    (a) ;
        (B) allows for the independent worker to withdraw 
 amounts deposited in the account and--
            (i) contribute such withdrawn amounts to a 
 pooled employer plan in which the independent 
 worker is enrolled; or
            (ii) contribute such withdrawn amounts into 
 a simplified employee pension as provided under 
 

section 408

    (k)

    (10) of the Internal Revenue Code 
 of 1986; and
            (C) provides that any amount remaining in the 
 account at the end of each year, after any withdrawals 
 under subparagraph
        (B) , shall be returned to the 
 independent worker in a lump sum.
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