Congressional Record, House, March 29, 2022 — House
Summary
This is H3925 of the Congressional Record, House, March 29, 2022, with interleaved columns. Under the heading Securing a Strong Retirement Act of 2022, Mr. Neal moves to suspend the rules and pass H.R. 2954, to increase retirement savings and simplify and clarify retirement plan rules, as amended, and the page prints the bill's table of contents with titles on expanding coverage and increasing retirement savings and technical amendments. The page also contains remarks on the Don Young Coast Guard Authorization Act, in which Mrs. Luria expresses concerns about crewing language, and the question on H.R. 6865, as amended, which the Chair announces as two-thirds in the affirmative.
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“Congressional Record, House, March 29, 2022 — House.”
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March 29, 2022 CONGRESSIONAL RECORD — HOUSE H3925
Requiring installation of better bilge pumps The SPEAKER pro tempore. Is there Sec. 302. Reduction in excise tax on certain
and alarms, objection to the request of the gen- accumulations in qualified re-
Installing underwater LED lights that activate tleman from Massachusetts? tirement plans.
Sec. 303. Performance benchmarks for asset
automatically in emergencies, and There was no objection. allocation funds.
Complying with other Coast Guard boating f Sec. 304. Review and report to Congress re-
safety requirements. lating to reporting and disclo-
These basic safety requirements will help SECURING A STRONG RETIREMENT
sure requirements.
save lives and prevent future tragedies. ACT OF 2022 Sec. 305. Eliminating unnecessary plan re-
I hope my colleagues will join me in sup- Mr. NEAL. Madam Speaker, I move quirements related to
porting today’s bill to make commonsense cor- to suspend the rules and pass the bill unenrolled participants.
rections to the persistent safety problems fac- Sec. 306. Retirement savings lost and found.
(H.R. 2954) to increase retirement sav- Sec. 307. Updating dollar limit for manda-
ing duck boats. If we act today, we can help ings, simplify and clarify retirement tory distributions.
ensure that no other family has to suffer the plan rules, and for other purposes, as Sec. 308. Expansion of Employee Plans Com-
kind of tragedy faced by my constituents on amended. pliance Resolution System.
Table Rock Lake. I urge the House to support The Clerk read the title of the bill. Sec. 309. Eliminate the ‘‘first day of the
this bill. The text of the bill is as follows: month’’ requirement for gov-
Mrs. LURIA. Madam Speaker, I come from H.R. 2954 ernmental section 457(b) plans.
a coastal district in Virginia, and the respon- Sec. 310. One-time election for qualified
Be it enacted by the Senate and House of Rep- charitable distribution to split-
sibilities and duties of the Coast Guard are in- resentatives of the United States of America in interest entity; increase in
tegral to our everyday activities. Congress assembled, qualified charitable distribu-
While I will vote to support the Don Young SECTION 1. SHORT TITLE; TABLE OF CONTENTS. tion limitation.
Coast Guard Authorization Act for all these (a) SHORT TITLE.—This Act may be cited as Sec. 311. Distributions to firefighters.
reasons, I must express my concerns with lan- the ‘‘Securing a Strong Retirement Act of Sec. 312. Exclusion of certain disability-re-
guage that was added to the bill in committee 2022’’. lated first responder retirement
that makes significant modifications to crewing (b) TABLE OF CONTENTS.—The table of con- payments.
aboard the important and unique vessels that tents for this Act is as follows: Sec. 313. Individual retirement plan statute
Sec. 1. Short title; table of contents. of limitations for excise tax on
do the work lifting turbines on our growing and excess contributions and cer-
important offshore wind farms including a new TITLE I—EXPANDING COVERAGE AND
INCREASING RETIREMENT SAVINGS tain accumulations.
project in development off the coast of Vir- Sec. 314. Requirement to provide paper
ginia. Sec. 101. Expanding automatic enrollment statements in certain cases.
This provision assumes that the United in retirement plans. Sec. 315. Separate application of top heavy
Sec. 102. Modification of credit for small em- rules to defined contribution
States presently has a sufficient number of
ployer pension plan startup plans covering excludible em-
vessels and mariners to perform this work. But costs.
as a recent report from DoE just states, we ployees.
Sec. 103. Promotion of Saver’s Credit. Sec. 316. Repayment of qualified birth or
need 3–5 of these vessels and hundreds of Sec. 104. Enhancement of Saver’s Credit. adoption distribution limited to
skilled workers but unfortunately we currently Sec. 105. Enhancement of 403(b) plans. 3 years.
lack them. Sec. 106. Increase in age for required begin- Sec. 317. Employer may rely on employee
The proposed crewing changes—which go ning date for mandatory dis- certifying that deemed hard-
into effect immediately—would block the tributions. ship distribution conditions are
Sec. 107. Indexing IRA catch-up limit. met.
progress Virginia and other states along the Sec. 108. Higher catch-up limit to apply at
Atlantic coast are making to produce clean en- Sec. 318. Penalty-free withdrawals from re-
age 62, 63, and 64. tirement plans for individuals
ergy and reduce the negative impacts of cli- Sec. 109. Pooled employer plans modifica- in case of domestic abuse.
mate change. tion. Sec. 319. Reform of family attribution rules.
I’m willing to continue working with the Sec. 110. Multiple employer 403(b) plans. Sec. 320. Amendments to increase benefit
Members of the Transportation and Infrastruc- Sec. 111. Treatment of student loan pay- accruals under plan for pre-
ture Committee on a reliable crewing scheme ments as elective deferrals for vious plan year allowed until
that protects our national interests while en- purposes of matching contribu- employer tax return due date.
tions. Sec. 321. Retroactive first year elective de-
suring that vital energy work can be done. Sec. 112. Application of credit for small em- ferrals for sole proprietors.
This is not the right time to make this imme- ployer pension plan startup Sec. 322. Limiting cessation of IRA treat-
diate and drastic change in the law. costs to employers which join ment to portion of account in-
The SPEAKER pro tempore. The an existing plan. volved in a prohibited trans-
question is on the motion offered by Sec. 113. Military spouse retirement plan action.
the gentleman from Oregon (Mr. DEFA- eligibility credit for small em- Sec. 323. Review of pension risk transfer in-
ZIO) that the House suspend the rules ployers. terpretive bulletin.
and pass the bill, H.R. 6865, as amend- Sec. 114. Small immediate financial incen- TITLE IV—TECHNICAL AMENDMENTS
tives for contributing to a plan.
ed. Sec. 115. Safe harbor for corrections of em-
Sec. 401. Amendments relating to Setting
The question was taken. ployee elective deferral fail-
Every Community Up for Re-
The SPEAKER pro tempore. In the tirement Enhancement Act of
ures.
opinion of the Chair, two-thirds being 2019.
Sec. 116. Improving coverage for part-time
in the affirmative, the ayes have it. workers. TITLE V—ADMINISTRATIVE PROVISIONS
Mr. ROY. Madam Speaker, on that I Sec. 117. Deferral of tax for certain sales of Sec. 501. Provisions relating to plan amend-
demand the yeas and nays. employer stock to employee ments.
The SPEAKER pro tempore. Pursu- stock ownership plan sponsored TITLE VI—REVENUE PROVISIONS
ant to section 3(s) of House Resolution by S corporation. Sec. 601. Simple and SEP Roth IRAs.
8, the yeas and nays are ordered. Sec. 118. Certain securities treated as pub- Sec. 602. Hardship withdrawal rules for
licly traded in case of employee 403(b) plans.
Pursuant to clause 8 of rule XX, fur-
stock ownership plans. Sec. 603. Elective deferrals generally limited
ther proceedings on this motion are
TITLE II—PRESERVATION OF INCOME to regular contribution limit.
postponed. Sec. 604. Optional treatment of employer
Sec. 201. Remove required minimum dis-
f matching contributions as Roth
tribution barriers for life annu-
PERMISSION TO EXTEND DEBATE ities. contributions.
TIME ON H.R. 2954, SECURING A Sec. 202. Qualifying longevity annuity con- TITLE VII—BUDGETARY EFFECTS
STRONG RETIREMENT ACT OF tracts. Sec. 701. Determination of budgetary ef-
Sec. 203. Insurance-dedicated exchange-trad- fects.
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2022 ed funds. TITLE I—EXPANDING COVERAGE AND
Mr. NEAL. Madam Speaker, I ask TITLE III—SIMPLIFICATION AND CLARI- INCREASING RETIREMENT SAVINGS
unanimous consent at the outset that FICATION OF RETIREMENT PLAN SEC. 101. EXPANDING AUTOMATIC ENROLLMENT
debate under clause 1(c) of rule XV on RULES IN RETIREMENT PLANS.
a motion to suspend the rules relating Sec. 301. Recovery of retirement plan over- (a) IN GENERAL.—Subpart B of part I of
to H.R. 2954 be extended to 80 minutes. payments. subchapter D of chapter 1 of the Internal
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H3926 CONGRESSIONAL RECORD — HOUSE March 29, 2022
Revenue Code of 1986 is amended by inserting ‘‘(B) POST-ENACTMENT ADOPTION OF MUL- ‘‘(B) CREDIT PHASE-IN.—In the case of any
after section 414 the following new section: TIPLE EMPLOYER PLAN.—Subparagraph (A) eligible employer which had for the pre-
‘‘SEC. 414A. REQUIREMENTS RELATED TO AUTO- shall not apply in the case of an employer ceding taxable year more than 50 employees,
MATIC ENROLLMENT. adopting after such date of enactment a plan the amount determined under paragraph (1)
‘‘(a) IN GENERAL.—Except as otherwise pro- maintained by more than one employer, and (without regard to this subparagraph) shall
vided in this section— subsection (a) shall apply with respect to be reduced by an amount equal to the prod-
‘‘(1) an arrangement shall not be treated as such employer as if such plan were a single uct of—
a qualified cash or deferred arrangement de- plan. ‘‘(i) the amount otherwise so determined
scribed in section 401(k) unless such arrange- ‘‘(3) EXCEPTION FOR GOVERNMENTAL AND under paragraph (1), multiplied by
ment meets the automatic enrollment re- CHURCH PLANS.—Subsection (a) shall not ‘‘(ii) a percentage equal to 2 percentage
quirements of subsection (b), and apply to any governmental plan (within the points for each employee of the employer for
‘‘(2) an annuity contract otherwise de- meaning of section 414(d)) or any church plan the preceding taxable year in excess of 50
scribed in section 403(b)(1) which is pur- (within the meaning of section 414(e)). employees.
chased under a salary reduction agreement ‘‘(4) EXCEPTION FOR NEW AND SMALL BUSI- ‘‘(3) APPLICABLE PERCENTAGE.—For pur-
shall not be treated as described in such sec- NESSES.— poses of this section, the applicable percent-
tion unless such agreement meets the auto- ‘‘(A) NEW BUSINESS.—Subsection (a) shall age for the taxable year during which the eli-
matic enrollment requirements of subsection not apply to any qualified cash or deferred gible employer plan is established with re-
(b). arrangement, or any annuity contract pur- spect to the eligible employer shall be 100
‘‘(b) AUTOMATIC ENROLLMENT REQUIRE- chased under a plan, while the employer percent, and for taxable years thereafter
MENTS.—
maintaining such plan (and any predecessor shall be determined under the following
‘‘(1) IN GENERAL.—An arrangement or employer) has been in existence for less than table:
agreement meets the requirements of this 3 years. ‘‘In the case of the fol- The applicable percent-
subsection if such arrangement or agreement ‘‘(B) SMALL BUSINESSES.—Subsection (a) lowing taxable year age shall be:
is an eligible automatic contribution ar- shall not apply to any qualified cash or de- beginning after the
ferred arrangement, or any annuity contract taxable year during
rangement (as defined in section 414(w)(3)) which plan is estab-
which meets the requirements of paragraphs purchased under a plan, earlier than the date
lished with respect to
(2) through (4). that is 1 year after the close of the first tax-
the eligible employer:
‘‘(2) ALLOWANCE OF PERMISSIBLE WITH- able year with respect to which the employer 1st ............................................. 100%
DRAWALS.—An eligible automatic contribu-
maintaining the plan normally employed 2nd ............................................ 75%
tion arrangement meets the requirements of more than 10 employees. 3rd ............................................. 50%
this paragraph if such arrangement allows ‘‘(C) TREATMENT OF MULTIPLE EMPLOYER 4th ............................................. 25%
PLANS.—In the case of a plan maintained by Any taxable year thereafter ..... 0%
employees to make permissible withdrawals
(as defined in section 414(w)(2)). more than 1 employer, subparagraphs (A) ‘‘(4) DETERMINATION OF ELIGIBLE EMPLOYER;
‘‘(3) MINIMUM CONTRIBUTION PERCENTAGE.— and (B) shall be applied separately with re- NUMBER OF EMPLOYEES.—For purposes of this
‘‘(A) IN GENERAL.—An eligible automatic spect to each such employer, and all such subsection, whether an employer is an eligi-
contribution arrangement meets the require- employers to which subsection (a) applies ble employer and the number of employees of
ments of this paragraph if— (after the application of this paragraph) an employer shall be determined under the
‘‘(i) the uniform percentage of compensa- shall be treated as maintaining a separate rules of subsection (c), except that paragraph
tion contributed by the participant under plan for purposes of this section.’’. (2) thereof shall only apply to the taxable
(b) CLERICAL AMENDMENT.—The table of
such arrangement during the first year of year during which the eligible employer plan
sections for subpart B of part I of subchapter
participation is not less than 3 percent and to which this section applies is established
D of chapter 1 of such Code is amended by in-
not more than 10 percent (unless the partici- with respect to the eligible employer.’’.
serting after the item relating to section 414
pant specifically elects not to have such con- (c) DISALLOWANCE OF DEDUCTION.—Section
the following new item:
tributions made or to have such contribu- 45E(e)(2) of such Code is amended to read as
tions made at a different percentage), and ‘‘Sec. 414A. Requirements related to auto- follows:
‘‘(ii) effective for the first day of each plan matic enrollment.’’. ‘‘(2) DISALLOWANCE OF DEDUCTION.—No de-
year starting after each completed year of (c) EFFECTIVE DATE.—The amendments duction shall be allowed—
participation under such arrangement such made by this section shall apply to plan ‘‘(A) for that portion of the qualified start-
uniform percentage is increased by 1 per- years beginning after December 31, 2023. up costs paid or incurred for the taxable year
centage point (to at least 10 percent, but not SEC. 102. MODIFICATION OF CREDIT FOR SMALL which is equal to so much of the portion of
EMPLOYER PENSION PLAN STARTUP
more than 15 percent) unless the participant the credit determined under subsection (a) as
COSTS.
specifically elects not to have such contribu- is properly allocable to such costs, and
(a) INCREASE IN CREDIT PERCENTAGE FOR
tions made or to have such contributions ‘‘(B) for that portion of the employer con-
SMALLER EMPLOYERS.—Section 45E(e) of the
made at a different percentage. tributions by the employer for the taxable
Internal Revenue Code of 1986 is amended by
‘‘(B) INITIAL REDUCED CEILING FOR CERTAIN adding at the end the following new para- year which is equal to so much of the credit
PLANS.—In the case of any eligible automatic
graph: increase determined under subsection (f) as
contribution arrangement (other than an ar- ‘‘(4) INCREASED CREDIT FOR CERTAIN SMALL is properly allocable to such contributions.’’.
rangement that meets the requirements of (d) EFFECTIVE DATE.—The amendments
EMPLOYERS.—In the case of an employer
paragraph (12) or (13) of section 401(k)), for made by this section shall apply to taxable
which would be an eligible employer under
plan years ending before January 1, 2025, sub- years beginning after December 31, 2022.
subsection (c) if section 408(p)(2)(C)(i) was ap-
paragraph (A)(ii) shall be applied by sub- plied by substituting ‘50 employees’ for ‘100 SEC. 103. PROMOTION OF SAVER’S CREDIT.
stituting ‘10 percent’ for ‘15 percent’. employees’, subsection (a) shall be applied by (a) IN GENERAL.—The Secretary of the
‘‘(4) INVESTMENT REQUIREMENTS.—An eligi- substituting ‘100 percent’ for ‘50 percent’.’’. Treasury shall take such steps as the Sec-
ble automatic contribution arrangement (b) ADDITIONAL CREDIT FOR EMPLOYER CON- retary determines are necessary and appro-
meets the requirements of this paragraph if TRIBUTIONS BY CERTAIN SMALL EMPLOYERS.— priate to increase public awareness of the
amounts contributed pursuant to such ar- Section 45E of such Code, as amended by sub- credit provided under section 25B of the In-
rangement, and for which no investment is section (a), is amended by adding at the end ternal Revenue Code of 1986.
elected by the participant, are invested in the following new subsection: (b) REPORT TO CONGRESS.—
accordance with the requirements of section ‘‘(f) ADDITIONAL CREDIT FOR EMPLOYER CON- (1) IN GENERAL.—Not later than 90 days
2550.404c-5 of title 29, Code of Federal Regula- TRIBUTIONS BY CERTAIN ELIGIBLE EMPLOY- after the date of the enactment of this Act,
tions (or any successor regulations). ERS.— the Secretary shall provide a report to Con-
‘‘(c) EXCEPTIONS.—For purposes of this sec- ‘‘(1) IN GENERAL.—In the case of an eligible gress to summarize the anticipated pro-
tion— employer, the credit allowed for the taxable motion efforts of the Treasury under sub-
‘‘(1) SIMPLE PLANS.—Subsection (a) shall year under subsection (a) (determined with- section (a).
not apply to any simple plan (within the out regard to this subsection) shall be in- (2) CONTENTS.—Such report shall include—
meaning of section 401(k)(11)). creased by an amount equal to the applicable (A) a description of plans for—
‘‘(2) EXCEPTION FOR PLANS OR ARRANGE- percentage of employer contributions (other (i) the development and distribution of dig-
MENTS ESTABLISHED BEFORE ENACTMENT OF than any elective deferrals (as defined in sec- ital and print materials, including the dis-
SECTION.— tion 402(g)(3)) by the employer to an eligible tribution of such materials to States for par-
‘‘(A) IN GENERAL.—Subsection (a) shall not employer plan (other than a defined benefit ticipants in State facilitated retirement sav-
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apply to— plan (as defined in section 414(j))). ings programs, and
‘‘(i) any qualified cash or deferred arrange- ‘‘(2) LIMITATIONS.— (ii) the translation of such materials into
ment established before the date of the en- ‘‘(A) DOLLAR LIMITATION.—The amount de- the 10 most commonly spoken languages in
actment of this section, or termined under paragraph (1) (before the ap- the United States after English (as deter-
‘‘(ii) any annuity contract purchased under plication of subparagraph (B)) with respect mined by reference to the most recent Amer-
a plan established before the date of the en- to any employee of the employer shall not ican Community Survey of the Bureau of the
actment of this section. exceed $1,000. Census), and
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March 29, 2022 CONGRESSIONAL RECORD — HOUSE H3927
(B) such other information as the Sec- amended by striking ‘‘age 72’’ and inserting SEC. 109. POOLED EMPLOYER PLANS MODIFICA-
retary determines is necessary ‘‘the applicable age’’. TION.
SEC. 104. ENHANCEMENT OF SAVER’S CREDIT. (b) SPOUSE BENEFICIARIES; SPECIAL RULE (a) IN GENERAL.—Section 3(43)(B)(ii) of the
(a) 50 PERCENT CREDIT RATE.—Section FOR OWNERS.—Subparagraphs (B)(iv)(I) and Employee Retirement Income Security Act
25B(a) of the Internal Revenue Code of 1986 is (C)(ii)(I) of section 401(a)(9) of such Code are of 1974 (29 U.S.C. 1002(43)(B)(ii)) is amended to
amended by striking ‘‘the applicable per- each amended by striking ‘‘age 72’’ and in- read as follows:
centage’’ and inserting ‘‘50 percent’’. serting ‘‘the applicable age’’. ‘‘(ii) designate a named fiduciary (other
(b) ADJUSTED GROSS INCOME PHASEOUTS.— (c) APPLICABLE AGE.—Section 401(a)(9)(C) than an employer in the plan) to be respon-
Section 25B(b) of such Code is amended to of such Code is amended by adding at the end sible for collecting contributions to the plan
read as follows: the following new clause: and require such fiduciary to implement
‘‘(b) LIMITATION.—For purposes of this sec- ‘‘(v) APPLICABLE AGE.— written contribution collection procedures
tion— ‘‘(I) In the case of an individual who at- that are reasonable, diligent, and system-
‘‘(1) IN GENERAL.—The amount of credit al- tains age 72 after December 31, 2022, and age atic;’’.
lowable under subsection (a) (determined 73 before January 1, 2030, the applicable age (b) EFFECTIVE DATE.—The amendments
without regard to this subsection) shall be is 73. made by this section shall apply to plan
reduced (but not below zero) by an amount ‘‘(II) In the case of an individual who at- years beginning after December 31, 2022.
which bears the same ratio to the credit oth- tains age 73 after December 31, 2029, and age SEC. 110. MULTIPLE EMPLOYER 403(b) PLANS.
erwise so allowable as— 74 before January 1, 2033, the applicable age (a) IN GENERAL.—Section 403(b) of the In-
‘‘(A) the excess (if any) of— is 74. ternal Revenue Code of 1986 is amended by
‘‘(i) adjusted gross income of the taxpayer, ‘‘(III) In the case of an individual who at- adding at the end the following new para-
over tains age 74 after December 31, 2032, the ap- graph:
‘‘(ii) the threshold amount, bears to plicable age is 75.’’. ‘‘(15) MULTIPLE EMPLOYER PLANS.—
‘‘(B) the phaseout amount. (d) CONFORMING AMENDMENTS.—The last ‘‘(A) IN GENERAL.—Except in the case of a
‘‘(2) THRESHOLD AMOUNT.—The term sentence of section 408(b) of such Code is church plan, this subsection shall not be
‘threshold amount’ means— amended by striking ‘‘age 72’’ and inserting treated as failing to apply to an annuity con-
‘‘(A) in the case of a joint return or a sur- ‘‘the applicable age (determined under sec- tract solely by reason of such contract being
viving spouse (as defined in section 2(a)), tion 401(a)(9)(C)(v) for the calendar year in purchased under a plan maintained by more
$48,000, which such taxable year begins)’’. than 1 employer.
‘‘(B) in the case of a head of household, 75 (e) EFFECTIVE DATE.—The amendments ‘‘(B) TREATMENT OF EMPLOYERS FAILING TO
percent of the amount in effect for the tax- made by this section shall apply to distribu- MEET REQUIREMENTS OF PLAN.—
able year under subparagraph (A), and tions required to be made after December 31, ‘‘(i) IN GENERAL.—In the case of a plan
‘‘(C) in the case of any other individual, 50 2022, with respect to individuals who attain maintained by more than 1 employer, this
percent of the amount in effect for the tax- age 72 after such date. subsection shall not be treated as failing to
able year under subparagraph (A). SEC. 107. INDEXING IRA CATCH-UP LIMIT. apply to an annuity contract held under such
‘‘(3) PHASEOUT AMOUNT.—The term ‘phase- (a) IN GENERAL.—Subparagraph (C) of sec- plan merely because of one or more employ-
out amount’ means— tion 219(b)(5) of the Internal Revenue Code of ers failing to meet the requirements of this
‘‘(A) in the case of a joint return or a sur- 1986 is amended by adding at the end the fol- subsection if such plan satisfies rules similar
viving spouse (as defined in 2(a)), $35,000, lowing new clause: to the rules of section 413(e)(2) with respect
‘‘(B) in the case of a head of household (as ‘‘(iii) INDEXING OF CATCH-UP LIMITATION.—In to any such employer failure.
defined in section 2(b)), 75 percent of the the case of any taxable year beginning in a ‘‘(ii) ADDITIONAL REQUIREMENTS IN CASE OF
amount in effect for the taxable year under calendar year after 2023, the $1,000 amount NON-GOVERNMENTAL PLANS.—A plan shall not
subparagraph (A), and under subparagraph (B)(ii) shall be increased be treated as meeting the requirements of
‘‘(C) in the case of any other individual, 50 by an amount equal to— this subparagraph unless the plan satisfies
percent of the amount in effect for the tax- ‘‘(I) such dollar amount, multiplied by rules similar to the rules of subparagraph (A)
able year under subparagraph (A). ‘‘(II) the cost-of-living adjustment deter- or (B) of section 413(e)(1), except in the case
‘‘(4) INFLATION ADJUSTMENT.— mined under section 1(f)(3) for the calendar of a multiple employer plan maintained sole-
‘‘(A) IN GENERAL.—In the case of any tax- year in which the taxable year begins, deter- ly by any of the following: A State, a polit-
able year beginning in a calendar year after mined by substituting ‘calendar year 2022’ ical subdivision of a State, or an agency or
2026, the $48,000 dollar amount in paragraph for ‘calendar year 2016’ in subparagraph instrumentality of any one or more of the
(2) and the $35,000 in paragraph (3) shall each (A)(ii) thereof. foregoing.’’.
be increased by an amount equal to— If any amount after adjustment under the (b) ANNUAL REGISTRATION FOR 403(b) MUL-
‘‘(i) such dollar amount, multiplied by preceding sentence is not a multiple of $100, TIPLE EMPLOYER PLAN.—Section 6057 of such
‘‘(ii) the cost-of-living adjustment deter- such amount shall be rounded to the next Code is amended by redesignating subsection
mined under section 1(f)(3) for the calendar lower multiple of $100.’’. (g) as subsection (h) and by inserting after
year in which the taxable year begins, deter- (b) EFFECTIVE DATE.—The amendments subsection (f) the following new subsection:
mined by substituting ‘calendar year 2022’ made by this section shall apply to taxable ‘‘(g) 403(b) MULTIPLE EMPLOYER PLANS
for ‘calendar year 2016’ in subparagraph years beginning after December 31, 2023. TREATED AS ONE PLAN.—In the case of annu-
(A)(ii) thereof. SEC. 108. HIGHER CATCH-UP LIMIT TO APPLY AT ity contracts to which this section applies
AGE 62, 63, AND 64. and to which section 403(b) applies by reason
‘‘(B) ROUNDING.—Any increase determined
under subparagraph (A) that is not a mul- (a) IN GENERAL.— of the plan under which such contracts are
tiple of $500 shall be rounded to the nearest (1) PLANS OTHER THAN SIMPLE PLANS.—Sec- purchased meeting the requirements of para-
multiple of $500.’’. tion 414(v)(2)(B)(i) of the Internal Revenue graph (15) thereof, such plan shall be treated
(c) EFFECTIVE DATE.—The amendments Code of 1986 is amended by inserting the fol- as a single plan for purposes of this sec-
made by this section shall apply to taxable lowing before the period: ‘‘($10,000, in the tion.’’.
years beginning after December 31, 2026. case of an eligible participant who would at- (c) ANNUAL INFORMATION RETURNS FOR
SEC. 105. ENHANCEMENT OF 403(b) PLANS. tain age 62, but not age 65, before the close 403(b) MULTIPLE EMPLOYER PLAN.—Section
(a) IN GENERAL.—Section 403(b)(7)(A) of the of the taxable year)’’. 6058 of such Code is amended by redesig-
Internal Revenue Code of 1986 is amended by (2) SIMPLE PLANS.—Section 414(v)(2)(B)(ii) nating subsection (f) as subsection (g) and by
striking ‘‘if the amounts are to be invested of such Code is amended by inserting the fol- inserting after subsection (e) the following
in regulated investment company stock to be lowing before the period: ‘‘($5,000, in the case new subsection:
held in that custodial account’’ and inserting of an eligible participant who would attain ‘‘(f) 403(b) MULTIPLE EMPLOYER PLANS
‘‘if the amounts are to be held in that custo- age 62, but not age 65, before the close of the TREATED AS ONE PLAN.—In the case of annu-
dial account and invested in regulated in- taxable year)’’. ity contracts to which this section applies
vestment company stock or a group trust in- (b) COST-OF-LIVING ADJUSTMENTS.—Sub- and to which section 403(b) applies by reason
tended to satisfy the requirements of Inter- paragraph (C) of section 414(v)(2) of such of the plan under which such contracts are
nal Revenue Service Revenue Ruling 81–100 Code is amended by adding at the end the purchased meeting the requirements of para-
(or any successor guidance)’’. following: ‘‘In the case of a year beginning graph (15) thereof, such plan shall be treated
(b) CONFORMING AMENDMENT.—The heading after December 31, 2023, the Secretary shall as a single plan for purposes of this sec-
of paragraph (7) of section 403(b) of such Code adjust annually the $10,000 amount in sub- tion.’’.
is amended by striking ‘‘FOR REGULATED IN- paragraph (B)(i) and the $5,000 amount in (d) AMENDMENTS TO EMPLOYEE RETIREMENT
VESTMENT COMPANY STOCK’’. subparagraph (B)(ii) for increases in the cost- INCOME SECURITY ACT OF 1974.—
(c) EFFECTIVE DATE.—The amendments of-living at the same time and in the same (1) IN GENERAL.—Section 3(43)(A) of the
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made by this section shall apply to amounts manner as adjustments under the preceding Employee Retirement Income Security Act
invested after December 31, 2022. sentence; except that the base period taken of 1974 is amended—
SEC. 106. INCREASE IN AGE FOR REQUIRED BE- into account shall be the calendar quarter (A) in clause (ii), by striking ‘‘section
GINNING DATE FOR MANDATORY beginning July 1, 2022.’’. 501(a) of such Code or’’ and inserting ‘‘sec-
DISTRIBUTIONS. (c) EFFECTIVE DATE.—The amendments tion 501(a) of such Code, a plan that consists
(a) IN GENERAL.—Section 401(a)(9)(C)(i)(I) made by this section shall apply to taxable of contracts described in section 403(b) of
of the Internal Revenue Code of 1986 is years beginning after December 31, 2023. such Code, or’’; and
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H3928 CONGRESSIONAL RECORD — HOUSE March 29, 2022
(B) in the flush text at the end, by striking construed as limiting the authority of the matching contributions on account of elec-
‘‘the plan.’’ and inserting ‘‘the plan, but such Secretary of the Treasury or the Secretary’s tive deferrals.
term shall include any program (other than delegate (determined without regard to such ‘‘(B) TREATMENT FOR PURPOSES OF NON-
a governmental plan) maintained for the amendment) to provide for the proper treat- DISCRIMINATION RULES, ETC.—
benefit of the employees of more than 1 em- ment of a failure to meet any requirement ‘‘(i) NONDISCRIMINATION RULES.—For pur-
ployer that consists of contracts described in applicable under the Internal Revenue Code poses of subparagraph (A)(iii), subsection
section 403(b) of such Code and that meets of 1986 with respect to one employer (and its (a)(4), and section 410(b), matching contribu-
the requirements of subparagraph (A) or (B) employees) in the case of a plan to which tions described in paragraph (4)(A)(iii) shall
of section 413(e)(1) of such Code.’’. section 403(b)(15) of the Internal Revenue not fail to be treated as available to an em-
(2) CONFORMING AMENDMENTS.—Sections Code of 1986 applies. ployee solely because such employee does
3(43)(B)(v)(II) and 3(44)(A)(i)(I) of the Em- SEC. 111. TREATMENT OF STUDENT LOAN PAY- not have debt incurred under a qualified edu-
ployee Retirement Income Security Act of MENTS AS ELECTIVE DEFERRALS cation loan (as defined in section 221(d)(1)).
1974 are each amended by striking ‘‘section FOR PURPOSES OF MATCHING CON- ‘‘(ii) STUDENT LOAN PAYMENTS NOT TREATED
401(a) of such Code or’’ and inserting ‘‘sec- TRIBUTIONS. AS PLAN CONTRIBUTION.—Except as provided
tion 401(a) of such Code, a plan that consists (a) IN GENERAL.—Section 401(m)(4)(A) of in clause (iii), a qualified student loan pay-
of contracts described in section 403(b) of the Internal Revenue Code of 1986 is amended ment shall not be treated as a contribution
such Code, or’’. by striking ‘‘and’’ at the end of clause (i), by to a plan under this title.
(e) REGULATIONS RELATING TO EMPLOYER striking the period at the end of clause (ii) ‘‘(iii) MATCHING CONTRIBUTION RULES.—
FAILURE TO MEET MULTIPLE EMPLOYER PLAN and inserting ‘‘, and’’, and by adding at the Solely for purposes of meeting the require-
REQUIREMENTS.—The Secretary of the Treas- end the following new clause:
ments of paragraph (11)(B) or (12) of this sub-
ury (or the Secretary’s delegate) shall pre- ‘‘(iii) subject to the requirements of para-
section, or paragraph (11)(B)(i)(II), (12)(B), or
scribe such regulations as may be necessary graph (13), any employer contribution made
(13)(D) of subsection (k), a plan may treat a
to clarify, in the case of plans to which sec- to a defined contribution plan on behalf of an
qualified student loan payment as an elec-
tion 403(b)(15) of the Internal Revenue Code employee on account of a qualified student
tive deferral or an elective contribution,
of 1986 applies, the treatment of an employer loan payment.’’.
whichever is applicable.
departing such plan in connection with such (b) QUALIFIED STUDENT LOAN PAYMENT.—
Section 401(m)(4) of such Code is amended by ‘‘(iv) ACTUAL DEFERRAL PERCENTAGE TEST-
employer’s failure to meet multiple em- ING.—In determining whether a plan meets
ployer plan requirements. adding at the end the following new subpara-
graph: the requirements of subsection (k)(3)(A)(ii)
(f) MODIFICATION OF MODEL PLAN LAN- for a plan year, the plan may apply the re-
GUAGE, ETC.— ‘‘(D) QUALIFIED STUDENT LOAN PAYMENT.—
The term ‘qualified student loan payment’ quirements of such subsection separately
(1) PLAN NOTIFICATIONS.—The Secretary of with respect to all employees who receive
the Treasury (or the Secretary’s delegate) means a payment made by an employee in
repayment of a qualified education loan (as matching contributions described in para-
shall modify the model plan language pub- graph (4)(A)(iii) for the plan year.
lished under section 413(e)(5) of the Internal defined section 221(d)(1)) incurred by the em-
ployee to pay qualified higher education ex- ‘‘(C) EMPLOYER MAY RELY ON EMPLOYEE
Revenue Code of 1986 to include language CERTIFICATION.—The employer may rely on
that notifies participating employers de- penses, but only—
‘‘(i) to the extent such payments in the ag- an employee certification of payment under
scribed in section 501(c)(3), and which are ex- paragraph (4)(D)(ii).’’.
empt from tax under section 501(a), that the gregate for the year do not exceed an
plan is subject to the Employee Retirement amount equal to— (d) SIMPLE RETIREMENT ACCOUNTS.—Sec-
Income Security Act of 1974 and that such ‘‘(I) the limitation applicable under section tion 408(p)(2) of such Code is amended by add-
employer is a plan sponsor with respect to 402(g) for the year (or, if lesser, the employ- ing at the end the following new subpara-
its employees participating in the multiple ee’s compensation (as defined in section graph:
employer plan and, as such, has certain fidu- 415(c)(3)) for the year), reduced by ‘‘(F) MATCHING CONTRIBUTIONS FOR QUALI-
ciary duties with respect to the plan and to ‘‘(II) the elective deferrals made by the em- FIED STUDENT LOAN PAYMENTS.—
its employees. ployee for such year, and ‘‘(i) IN GENERAL.—Subject to the rules of
(2) MODEL PLANS FOR MULTIPLE EMPLOYER ‘‘(ii) if the employee certifies to the em- clause (iii), an arrangement shall not fail to
403(b) NON-GOVERNMENTAL PLANS.—For plans ployer making the matching contribution be treated as meeting the requirements of
to which section 403(b)(15)(A) of the Internal under this paragraph that such payment has subparagraph (A)(iii) solely because under
Revenue Code of 1986 applies (other than a been made on such loan. the arrangement, solely for purposes of such
plan maintained for its employees by a For purposes of this subparagraph, the term subparagraph, qualified student loan pay-
State, a political subdivision of a State, or ‘qualified higher education expenses’ means ments are treated as amounts elected by the
an agency or instrumentality of any one or the cost of attendance (as defined in section employee under subparagraph (A)(i)(I) to the
more of the foregoing), the Secretary of the 472 of the Higher Education Act of 1965, as in extent such payments do not exceed—
Treasury shall publish model plan language effect on the day before the date of the en- ‘‘(I) the applicable dollar amount under
similar to model plan language published actment of the Taxpayer Relief Act of 1997) subparagraph (E) (after application of sec-
under section 413(e)(5) of such Code. at an eligible educational institution (as de- tion 414(v)) for the year (or, if lesser, the em-
(3) EDUCATIONAL OUTREACH TO EMPLOYERS fined in section 221(d)(2)).’’. ployee’s compensation (as defined in section
EXEMPT FROM TAX.—The Secretary of the (c) MATCHING CONTRIBUTIONS FOR QUALI- 415(c)(3)) for the year), reduced by
Treasury (or the Secretary’s delegate) shall FIED STUDENT LOAN PAYMENTS.—Section ‘‘(II) any other amounts elected by the em-
provide education and outreach to increase 401(m) of such Code is amended by redesig- ployee under subparagraph (A)(i)(I) for the
awareness to employers described in section nating paragraph (13) as paragraph (14), and year.
501(c)(3) of the Internal Revenue Code of 1986, by inserting after paragraph (12) the fol- ‘‘(ii) QUALIFIED STUDENT LOAN PAYMENT.—
and which are exempt from tax under section lowing new paragraph: For purposes of this subparagraph—
501(a) of such Code, that multiple employer ‘‘(13) MATCHING CONTRIBUTIONS FOR QUALI- ‘‘(I) IN GENERAL.—The term ‘qualified stu-
plans are subject to the Employee Retire- FIED STUDENT LOAN PAYMENTS.— dent loan payment’ means a payment made
ment Income Security Act of 1974 and that ‘‘(A) IN GENERAL.—For purposes of para- by an employee in repayment of a qualified
such employer is a plan sponsor with respect graph (4)(A)(iii), an employer contribution education loan (as defined in section
to its employees participating in the mul- made to a defined contribution plan on ac- 221(d)(1)) incurred by the employee to pay
tiple employer plan and, as such, has certain count of a qualified student loan payment qualified higher education expenses, but only
fiduciary duties with respect to the plan and shall be treated as a matching contribution if the employee certifies to the employer
to its employees. for purposes of this title if— making the matching contribution that such
(g) NO INFERENCE WITH RESPECT TO CHURCH ‘‘(i) the plan provides matching contribu- payment has been made on such a loan.
PLANS.—Regarding any application of sec- tions on account of elective deferrals at the ‘‘(II) QUALIFIED HIGHER EDUCATION EX-
tion 403(b) of the Internal Revenue Code of same rate as contributions on account of PENSES.—The term ‘qualified higher edu-
1986 to an annuity contract purchased under qualified student loan payments, cation expenses’ has the same meaning as
a church plan (as defined in section 414(e) of ‘‘(ii) the plan provides matching contribu- when used in section 401(m)(4)(D).
such Code) maintained by more than 1 em- tions on account of qualified student loan ‘‘(iii) APPLICABLE RULES.—Clause (i) shall
ployer, or to any application of rules similar payments only on behalf of employees other- apply to an arrangement only if, under the
to section 413(e) of such Code to such a plan, wise eligible to receive matching contribu- arrangement—
no inference shall be made from section tions on account of elective deferrals, ‘‘(I) matching contributions on account of
403(b)(15)(A) of such Code (as added by this ‘‘(iii) under the plan, all employees eligible qualified student loan payments are provided
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Act) not applying to such plans. to receive matching contributions on ac- only on behalf of employees otherwise eligi-
(h) EFFECTIVE DATE.— count of elective deferrals are eligible to re- ble to elect contributions under subpara-
(1) IN GENERAL.—The amendments made by ceive matching contributions on account of graph (A)(i)(I), and
this section shall apply to plan years begin- qualified student loan payments, and ‘‘(II) all employees otherwise eligible to
ning after December 31, 2022. ‘‘(iv) the plan provides that matching con- participate in the arrangement are eligible
(2) RULE OF CONSTRUCTION.—Nothing in the tributions on account of qualified student to receive matching contributions on ac-
amendments made by subsection (a) shall be loan payments vest in the same manner as count of qualified student loan payments.’’.
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March 29, 2022 CONGRESSIONAL RECORD — HOUSE H3929
(e) 403(b) PLANS.—Section 403(b)(12)(A) of to such employee during such taxable year paragraph (E) the following new subpara-
such Code is amended by adding at the end as do not exceed $250. graph:
the following: ‘‘The fact that the employer ‘‘(b) LIMITATION.—An individual shall only ‘‘(F) section 45U (military spouse retire-
offers matching contributions on account of be taken into account as a military spouse ment plan eligibility credit),’’.
qualified student loan payments as described under subsection (a) for the taxable year (d) CLERICAL AMENDMENT.—The table of
in section 401(m)(13) shall not be taken into which includes the date on which such indi- sections for subpart D of part IV of sub-
account in determining whether the arrange- vidual began participating in the eligible de- chapter A of chapter 1 of such Code is
ment satisfies the requirements of clause (ii) fined contribution plan of the employer and amended by adding at the end the following
(and any regulation thereunder).’’. the 2 succeeding taxable years. new item:
(f) 457(b) PLANS.—Section 457(b) of such ‘‘(c) ELIGIBLE SMALL EMPLOYER.—For pur- ‘‘Sec. 45U. Military spouse retirement plan
Code is amended by adding at the end the poses of this section— eligibility credit for small em-
following: ‘‘A plan which is established and ‘‘(1) IN GENERAL.—The term ‘eligible small ployers.’’.
maintained by an employer which is de- employer’ means an eligible employer (as de- (e) EFFECTIVE DATE.—The amendments
scribed in subsection (e)(1)(A) shall not be fined in section 408(p)(2)(C)(i)(I)). made by this section shall apply to taxable
treated as failing to meet the requirements ‘‘(2) APPLICATION OF 2-YEAR GRACE PERIOD.— years beginning after the date of the enact-
of this subsection solely because the plan, or A rule similar to the rule of section ment of this Act.
another plan maintained by the employer 408(p)(2)(C)(i)(II) shall apply for purposes of SEC. 114. SMALL IMMEDIATE FINANCIAL INCEN-
which meets the requirements of section this section. TIVES FOR CONTRIBUTING TO A
401(a) or 403(b), provides for matching con- ‘‘(d) MILITARY SPOUSE.—For purposes of PLAN.
tributions on account of qualified student this section— (a) IN GENERAL.—Subparagraph (A) of sec-
loan payments as described in section ‘‘(1) IN GENERAL.—The term ‘military tion 401(k)(4) of the Internal Revenue Code of
401(m)(13).’’. spouse’ means, with respect to any employer, 1986 is amended by inserting ‘‘(other than a
(g) REGULATORY AUTHORITY.—The Sec- any individual who is married (within the de minimis financial incentive)’’ after ‘‘any
retary shall prescribe regulations for pur- meaning of section 7703 as of the first date other benefit’’.
poses of implementing the amendments that the employee is employed by the em- (b) SECTION 403(b) PLANS.—Subparagraph
made by this section, including regulations— ployer) to an individual who is a member of (A) of section 403(b)(12) of such Code, as
(1) permitting a plan to make matching the uniformed services (as defined section amended by the preceding provisions of this
contributions for qualified student loan pay- 101(a)(5) of title 10, United States Code). For Act, is amended by adding at the end the fol-
ments, as defined in sections 401(m)(4)(D) and purposes of this section, an employer may lowing: ‘‘A plan shall not fail to satisfy
408(p)(2)(F) of the Internal Revenue Code of rely on an employee’s certification that such clause (ii) solely by reason of offering a de
1986, as added by this section, at a different employee’s spouse is a member of the uni- minimis financial incentive to employees to
frequency than matching contributions are formed services if such certification provides elect to have the employer make contribu-
otherwise made under the plan, provided the name, rank, and service branch of such tions pursuant to a salary reduction agree-
that the frequency is not less than annually; spouse. ment.’’.
(2) permitting employers to establish rea- ‘‘(2) EXCLUSION OF HIGHLY COMPENSATED EM- (c) EXEMPTION FROM PROHIBITED TRANS-
sonable procedures to claim matching con- PLOYEES.—With respect to any employer, the ACTION RULES.—Subsection (d) of section 4975
tributions for such qualified student loan term ‘military spouse’ shall not include any of such Code is amended by striking ‘‘or’’ at
payments under the plan, including an an- individual if such individual is a highly com- the end of paragraph (22), by striking the pe-
nual deadline (not earlier than 3 months pensated employee of such employer (within riod at the end of paragraph (23) and insert-
after the close of each plan year) by which a the meaning of section 414(q)). ing ‘‘, or’’, and by adding at the end the fol-
claim must be made; and ‘‘(e) ELIGIBLE DEFINED CONTRIBUTION lowing new paragraph:
(3) promulgating model amendments which PLAN.—For purposes of this section, the ‘‘(24) the provision of a de minimis finan-
plans may adopt to implement matching term ‘eligible defined contribution plan’ cial incentive described in section
contributions on such qualified student loan means, with respect to any eligible small 401(k)(4)(A).’’.
payments for purposes of sections 401(m), employer, any defined contribution plan (as (d) AMENDMENT OF EMPLOYEE RETIREMENT
408(p), 403(b), and 457(b) of the Internal Rev- defined in section 414(i)) of such employer if, INCOME SECURITY ACT OF 1974.—Subsection
enue Code of 1986. under the terms of such plan— (b) of section 408 of the Employee Retire-
(h) EFFECTIVE DATE.—The amendments ‘‘(1) military spouses employed by such ment Income Security Act of 1974 (29 U.S.C.
made by this section shall apply to contribu- employer are eligible to participate in such 1108(b)) is amended by adding at the end the
tions made for plan years beginning after De- plan not later than the date which is 2 following new paragraph:
cember 31, 2022. months after the date on which such indi- ‘‘(21) The provision of a de minimis finan-
SEC. 112. APPLICATION OF CREDIT FOR SMALL vidual begins employment with such em- cial incentive described in section
EMPLOYER PENSION PLAN STARTUP ployer, and 401(k)(4)(A) or section 403(b)(12)(A) of the In-
COSTS TO EMPLOYERS WHICH JOIN ‘‘(2) military spouses who are eligible to ternal Revenue Code of 1986.’’.
AN EXISTING PLAN. participate in such plan— (e) EFFECTIVE DATE.—The amendments
(a) IN GENERAL.—Section 45E(d)(3)(A) of ‘‘(A) are immediately eligible to receive an made by this section shall apply with respect
the Internal Revenue Code of 1986 is amended amount of employer contributions under to plan years beginning after the date of en-
by striking ‘‘effective’’ and inserting ‘‘effec- such plan which is not less the amount of actment of this Act.
tive with respect to the eligible employer’’. such contributions that a similarly situated SEC. 115. SAFE HARBOR FOR CORRECTIONS OF
(b) EFFECTIVE DATE.—The amendment participant who is not a military spouse EMPLOYEE ELECTIVE DEFERRAL
made by this section shall take effect as if would be eligible to receive under such plan FAILURES.
included in the enactment of section 104 of after 2 years of service, and (a) IN GENERAL.—Section 414 of the Inter-
the Setting Every Community Up for Retire- ‘‘(B) immediately have a nonforfeitable nal Revenue Code of 1986 is amended by add-
ment Enhancement Act of 2019. right to the employee’s accrued benefit de- ing at the end the following new subsection:
SEC. 113. MILITARY SPOUSE RETIREMENT PLAN rived from employer contributions under ‘‘(aa) CORRECTING AUTOMATIC CONTRIBUTION
ELIGIBILITY CREDIT FOR SMALL EM- such plan. ERRORS.—
PLOYERS. ‘‘(f) AGGREGATION RULE.—All persons treat- ‘‘(1) IN GENERAL.—Any plan or arrangement
(a) IN GENERAL.—Subpart D of part IV of ed as a single employer under subsection (b), shall not fail to be treated as a plan de-
subchapter A of chapter 1 of the Internal (c), (m), or (o) of section 414 shall be treated scribed in sections 401(a), 403(b), 408, or
Revenue Code of 1986 is amended by adding as one employer for purposes of this sec- 457(b), as applicable, solely by reason of a
at the end the following new section: tion.’’. corrected error.
‘‘SEC. 45U. MILITARY SPOUSE RETIREMENT PLAN (b) CREDIT ALLOWED AS PART OF GENERAL ‘‘(2) CORRECTED ERROR DEFINED.—For pur-
ELIGIBILITY CREDIT FOR SMALL EM- BUSINESS CREDIT.—Section 38(b) of such Code poses of this subsection, the term ‘corrected
PLOYERS. is amended by striking ‘‘plus’’ at the end of error’ means a reasonable administrative
‘‘(a) IN GENERAL.—For purposes of section paragraph (32), by striking the period at the error in implementing an automatic enroll-
38, in the case of any eligible small em- end of paragraph (33) and inserting ‘‘, plus’’, ment or automatic escalation feature in ac-
ployer, the military spouse retirement plan and by adding at the end the following new cordance with the terms of an eligible auto-
eligibility credit determined under this sec- paragraph: matic contribution arrangement (as defined
tion for any taxable year is an amount equal ‘‘(34) in the case of an eligible small em- under subsection (w)(3)), provided that such
to the sum of— ployer (as defined in section 45U(c)), the implementation error—
‘‘(1) $250 with respect to each military military spouse retirement plan eligibility ‘‘(A) is corrected by the date that is 91⁄2
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spouse who is an employee of such employer credit determined under section 45U(a).’’. months after the end of the plan year during
and who is eligible to participate in an eligi- (c) SPECIFIED CREDIT FOR PURPOSES OF CER- which the error occurred,
ble defined contribution plan of such em- TIFIED PROFESSIONAL EMPLOYER ORGANIZA- ‘‘(B) is corrected in a manner that is favor-
ployer at any time during such taxable year, TIONS.—Section 3511(d)(2) of such Code is able to the participant, and
plus amended by redesignating subparagraphs (F), ‘‘(C) is of a type which is so corrected for
‘‘(2) so much of the contributions made by (G), and (H) as subparagraphs (G), (H), and all similarly situated participants in a non-
such employer to all such plans with respect (I), respectively, and by inserting after sub- discriminatory manner.
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H3930 CONGRESSIONAL RECORD — HOUSE March 29, 2022
Such correction may occur before or after deferred arrangement or a salary reduction Act of 1934) which has made the request de-
the participant has terminated employment agreement under a plan solely by reason of scribed in section 6(j) of such Act to be treat-
and may occur without regard to whether section 202(c)(1)(B) has a nonforfeitable right ed as an alternative trading system,
the error is identified by the Secretary. to employer contributions— ‘‘(ii) the security is not a penny stock (as
‘‘(3) REGULATIONS AND GUIDANCE FOR FAVOR- ‘‘(A) except as provided in subparagraph defined by section 3(a)(51) of such Act),
ABLE CORRECTION METHODS.—The Secretary (B), each 12-month period for which the em- ‘‘(iii) the security is issued by a corpora-
shall, by regulations or other guidance of ployee has at least 500 hours of service shall tion which is not a shell company (as such
general applicability, specify the correction be treated as a year of service; and term is used in section 4(d)(6) of the Securi-
methods that are in a manner favorable to ‘‘(B) paragraph (3) shall be applied by sub- ties Act of 1933), a blank check company (as
the participant for purposes of paragraph stituting ‘at least 500 hours of service’ for defined in section 7(b)(3) of such Act), or sub-
(2)(B).’’. ‘more than 500 hours of service’ in subpara- ject to bankruptcy proceedings,
(b) EFFECTIVE DATE.—The amendment graph (A) thereof. ‘‘(iv) the security has a public float (as
made by this section shall apply with respect For purposes of this paragraph, 12-month pe- such term is used in section 240.12b-2 of title
to any errors with respect to which the date riods shall be determined in the same man- 17, Code of Federal Regulations) which has a
referred to in section 414(aa) (as added by ner as under the last sentence of section fair market value of at least $1,000,000 and
this section) is after the date of enactment 202(a)(3)(A), except that 12-month periods be- constitutes at least 10 percent of the total
of this Act. ginning before January 1, 2021, shall not be shares issued and outstanding.
SEC. 116. IMPROVING COVERAGE FOR PART-TIME taken into account.’’. ‘‘(v) in the case of a security issued by a
WORKERS. (c) REDUCTION IN PERIOD SERVICE REQUIRE- domestic corporation, the issuer publishes,
(a) IN GENERAL.—Section 202 of the Em- MENT FOR QUALIFIED CASH AND DEFERRED AR- not less frequently than annually, financial
ployee Retirement Income Security Act of RANGEMENTS.—Section 401(k)(2)(D)(ii) of the statements audited by an independent audi-
1974 (29 U.S.C. 1052) is amended by adding at Internal Revenue Code of 1986 is amended by tor registered with the Public Company Ac-
the end the following new subsection: striking ‘‘3’’ and inserting ‘‘2’’. counting Oversight Board established under
‘‘(c) SPECIAL RULE FOR CERTAIN PART-TIME (d) PRE-2021 SERVICE.—Section 112(b) of the the Sarbanes-Oxley Act of 2002, and
EMPLOYEES.— Setting Every Community Up for Retire- ‘‘(vi) in the case of a security issued by a
‘‘(1) IN GENERAL.—A pension plan that in- ment Enhancement Act of 2019 (26 U.S.C. 401 foreign corporation, the security is rep-
cludes either a qualified cash or deferred ar- note) is amended by striking ‘‘section resented by a depositary share (as defined
rangement (as defined in section 401(k) of the 401(k)(2)(D)(ii)’’ and inserting ‘‘paragraphs under section 240.12b-2 of title 17, Code of
Internal Revenue Code of 1986) or a salary re- (2)(D)(ii) and (15)(B)(iii) of section 401(k)’’. Federal Regulations), or is issued by a for-
duction agreement (as described in section (e) EFFECTIVE DATES.— eign corporation incorporated in Canada and
403(b) of such Code) shall not require, as a (1) IN GENERAL.—Except as provided in readily tradeable on an established securi-
condition of participation in the arrange- paragraph (2), the amendments made by this ties market in Canada, and the issuer—
ment or agreement, that an employee com- section shall apply to plan years beginning ‘‘(I) is subject to, and in compliance with,
plete a period of service with the employer after December 31, 2022. the reporting requirements of section 13 or
(or employers) maintaining the plan extend- (2) SUBSECTION (d).—The amendment made 15(d) of the Securities Exchange Act of 1934
ing beyond the close of the earlier of— by subsection (d) shall take effect as if in- (15 U.S.C. 78m or 78o(d)),
‘‘(A) the period permitted under subsection cluded in the enactment of section 112 of the ‘‘(II) is subject to, and in compliance with,
(a)(1) (determined without regard to subpara- Setting Every Community Up for Retire- the reporting requirements of section 230.257
graph (B)(i) thereof); or ment Enhancement Act of 2019. of title 17, Code of Federal Regulations, or
‘‘(B) the first 24-month period— SEC. 117. DEFERRAL OF TAX FOR CERTAIN SALES ‘‘(III) is exempt from such requirements
‘‘(i) consisting of 2 consecutive 12-month OF EMPLOYER STOCK TO EMPLOYEE under section 240.12g3–2(b) of title 17, Code of
periods during each of which the employee STOCK OWNERSHIP PLAN SPON-
Federal Regulations.’’.
has at least 500 hours of service; and SORED BY S CORPORATION.
(b) EFFECTIVE DATE.—The amendments
‘‘(ii) by the close of which the employee (a) IN GENERAL.—Section 1042(c)(1)(A) of made by this section shall apply to plan
has attained the age of 21. the Internal Revenue Code of 1986 is amended years beginning after December 31, 2027.
‘‘(2) EXCEPTION.—Paragraph (1)(B) shall not by striking ‘‘domestic C corporation’’ and in-
apply to any employee described in section serting ‘‘domestic corporation’’. TITLE II—PRESERVATION OF INCOME
410(b)(3) of the Internal Revenue Code of 1986. (b) 10 PERCENT LIMITATION ON APPLICATION SEC. 201. REMOVE REQUIRED MINIMUM DIS-
‘‘(3) COORDINATION WITH OTHER RULES.— OF GAIN ON SALE OF S CORPORATION STOCK.— TRIBUTION BARRIERS FOR LIFE AN-
‘‘(A) IN GENERAL.—In the case of employees Section 1042 of such Code is amended by add- NUITIES.
who are eligible to participate in the ar- ing at the end the following new subsection: (a) IN GENERAL.—Section 401(a)(9) of the In-
rangement or agreement solely by reason of ‘‘(h) APPLICATION OF SECTION TO SALE OF ternal Revenue Code of 1986 is amended by
paragraph (1)(B): STOCK IN S CORPORATION.—In the case of the adding at the end the following new subpara-
‘‘(i) EXCLUSIONS.—An employer may elect sale of qualified securities of an S corpora- graph:
to exclude such employees from the applica- tion, the election under subsection (a) may ‘‘(J) CERTAIN INCREASES IN PAYMENTS
tion of subsections (a)(4), (k)(3), (k)(12), be made with respect to not more than 10 UNDER A COMMERCIAL ANNUITY.—Nothing in
(k)(13), and (m)(2) of section 401 of the Inter- percent of the amount realized on such sale this section shall prohibit a commercial an-
nal Revenue Code of 1986 and section 410(b) of for purposes of determining the amount of nuity (within the meaning of section
such Code. gain not recognized and the extent to which 3405(e)(6)) that is issued in connection with
‘‘(ii) NONDISCRIMINATION RULES.—Notwith- (if at all) the amount realized on such sale any eligible retirement plan (within the
standing paragraph (1), section exceeds the cost of qualified replacement meaning of section 402(c)(8)(B), other than a
401(k)(15)(B)(i)(I) of such Code shall apply. property. The portion of adjusted basis that defined benefit plan) from providing one or
‘‘(iii) TIME OF PARTICIPATION.—The rules of is properly allocable to the portion of the more of the following types of payments on
subsection (a)(4) shall apply to such employ- amount realized with respect to which the or after the annuity starting date:
ees. election is made under this subsection shall ‘‘(i) annuity payments that increase by a
‘‘(B) TOP-HEAVY RULES.—An employer may be taken into account for purposes of the constant percentage, applied not less fre-
elect to exclude all employees who are eligi- preceding sentence.’’. quently than annually, at a rate that is less
ble to participate in a plan maintained by (c) EFFECTIVE DATE.—The amendments than 5 percent per year,
the employer solely by reason of paragraph made by this section shall apply to sales ‘‘(ii) a lump sum payment that—
(1)(B) from the application of the vesting and after December 31, 2027. ‘‘(I) results in a shortening of the payment
benefit requirements under subsections (b) SEC. 118. CERTAIN SECURITIES TREATED AS PUB- period with respect to an annuity or a full or
and (c) of section 416 of the Internal Revenue LICLY TRADED IN CASE OF EM- partial commutation of the future annuity
Code of 1986. PLOYEE STOCK OWNERSHIP PLANS. payments, provided that such lump sum is
‘‘(4) 12-MONTH PERIOD.—For purposes of this (a) IN GENERAL.—Section 401(a)(35) of the determined using reasonable actuarial meth-
subsection, 12-month periods shall be deter- Internal Revenue Code of 1986 is amended by ods and assumptions, as determined in good
mined in the same manner as under the last adding at the end the following new subpara- faith by the issuer of the contract, or
sentence of subsection (a)(3)(A), except that graph: ‘‘(II) accelerates the receipt of annuity
12-month periods beginning before January 1, ‘‘(I) ESOP RULES RELATING TO PUBLICLY payments that are scheduled to be received
2021, shall not be taken into account.’’ TRADED SECURITIES.—In the case of an appli- within the ensuing 12 months, regardless of
(b) VESTING.—Section 203(b) of the Em- cable defined contribution plan which is an whether such acceleration shortens the pay-
ployee Retirement Income Security Act of employee stock ownership plan, an employer ment period with respect to the annuity, re-
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1974 (29 U.S.C. 1053(a)) is amended by redesig- security shall be treated as described in sub- duces the dollar amount of benefits to be
nating paragraph (4) as paragraph (5) and by paragraph (G)(v) if— paid under the contract, or results in a sus-
inserting after paragraph (3) the following ‘‘(i) the security is the subject of priced pension of annuity payments during the pe-
new paragraph: quotations by at least 4 dealers, published riod being accelerated,
‘‘(4) PART-TIME EMPLOYEES.—For purposes and made continuously available on an inter- ‘‘(iii) an amount which is in the nature of
of determining whether an employee who is dealer quotation system (as such term is a dividend or similar distribution, provided
eligible to participate in a qualified cash or used in section 13 of the Securities Exchange that the issuer of the contract determines
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March 29, 2022 CONGRESSIONAL RECORD — HOUSE H3931
such amount based on a reasonable compari- (2) a written separation agreement, or to purchase and redeem shares directly from
son of the actuarial factors assumed when (3) a decree (not described in paragraph (1)) the fund and to sell such shares to third par-
calculating the initial annuity payments and requiring a spouse to make payments for the ties, but only if the contractual arrangement
the issuer’s experience with respect to those support or maintenance of the other spouse. or applicable law precludes the financial in-
factors, or (c) EFFECTIVE DATES, ENFORCEMENT, AND stitution from—
‘‘(iv) a final payment upon death that does INTERPRETATIONS.— (A) purchasing the shares for its own in-
not exceed the excess of the total amount of (1) EFFECTIVE DATES.— vestment purposes rather than for the exclu-
the consideration paid for the annuity pay- (A) Paragraph (1) of subsection (a) shall be sive purpose of creating and redeeming such
ments, less the aggregate amount of prior effective with respect to contracts purchased shares on behalf of third parties; and
distributions or payments from or under the or received in an exchange on or after the (B) selling the shares to third parties who
contract.’’. date of the enactment of this Act. are not market makers or otherwise de-
(b) EFFECTIVE DATE.—This section shall (B) Paragraphs (2) and (3) of subsection (a) scribed in paragraphs (2) and (3) of Treasury
apply to calendar years ending after the date shall be effective with respect to contracts Regulation section 1.817–5(f).
of the enactment of this Act. purchased or received in an exchange on or (3) MARKET MAKER.—The term ‘‘market
SEC. 202. QUALIFYING LONGEVITY ANNUITY CON- after July 2, 2014. maker’’ means a financial institution that is
TRACTS. (2) ENFORCEMENT AND INTERPRETATIONS.— a registered broker or dealer under section
(a) IN GENERAL.—Not later than the date Prior to the date on which the Secretary 15(b) of the Securities Exchange Act of 1934
which is 1 year after the date of the enact- issues final regulations pursuant to sub- that maintains liquidity for an exchange-
ment of this Act, the Secretary of the Treas- section (a)— traded fund on a national stock exchange by
ury or the Secretary’s delegate (hereafter in (A) the Secretary (or delegate) shall ad- being always ready to buy and sell shares of
this section referred to as the ‘‘Secretary’’) minister and enforce the law in accordance such fund on the market, but only if the fi-
shall amend the regulation issued by the De- with subsection (a) and the effective dates in nancial institution is contractually or le-
partment of the Treasury relating to ‘‘Lon- paragraph (1) of this subsection; and gally precluded from selling or buying such
gevity Annuity Contracts’’ (79 Fed. Reg. (B) taxpayers may rely upon their reason- shares to or from persons who are not au-
37633 (July 2, 2014)), as follows: thorized participants or otherwise described
able good faith interpretations of subsection
(1) REPEAL 25-PERCENT PREMIUM LIMIT.—The in paragraphs (2) and (3) of Treasury Regula-
(a).
Secretary shall amend Q&A–17(b)(3) of Treas- (d) REGULATORY SUCCESSOR PROVISION.— tions section 1.817–5(f).
ury Regulation section 1.401(a)(9)–6 and Any reference to a regulation under this sec- (d) EFFECTIVE DATE.—Subsections (b) and
Q&A–12(b)(3) of Treasury Regulation section tion shall be treated as including a reference (c) shall apply to segregated asset account
1.408–8 to eliminate the requirement that to any successor regulation thereto. investments made on or after the date that
premiums for qualifying longevity annuity SEC. 203. INSURANCE-DEDICATED EXCHANGE- is 7 years after the date of the enactment of
contracts be limited to a percentage of an in- TRADED FUNDS. this Act.
dividual’s account balance, and to make such (a) IN GENERAL.—Not later than the date TITLE III—SIMPLIFICATION AND CLARI-
corresponding changes to the regulations which is 7 years after the date of the enact- FICATION OF RETIREMENT PLAN RULES
and related forms as are necessary to reflect ment of this Act, the Secretary of the Treas- SEC. 301.
RECOVERY OF RETIREMENT PLAN
the elimination of this requirement. ury (or the Secretary’s delegate) shall amend OVERPAYMENTS.
(2) FACILITATE JOINT AND SURVIVOR BENE- the regulation issued by the Department of (a) OVERPAYMENTS UNDER ERISA.—Section
FITS.—The Secretary shall amend Q&A–17(c) the Treasury relating to ‘‘Income Tax; Di- 206 of the Employee Retirement Income Se-
of Treasury Regulation section 1.401(a)(9)–6, versification Requirements for Variable An- curity Act of 1974 (29 U.S.C. 1056) is amended
and make such corresponding changes to the nuity, Endowment, and Life Insurance Con- by adding at the end the following new sub-
regulations and related forms as are nec- tracts’’, 54 Fed. Reg. 8728 (March 2, 1989), and section:
essary, to provide that, in the case of a make any necessary corresponding amend- ‘‘(h) SPECIAL RULES APPLICABLE TO BEN-
qualifying longevity annuity contract which ments to other regulations, in order to facili- EFIT OVERPAYMENTS.—
was purchased with joint and survivor annu- tate the use of exchange-traded funds as in- ‘‘(1) GENERAL RULE.—In the case of an inad-
ity benefits for the individual and the indi- vestment options under variable contracts vertent benefit overpayment by any pension
vidual’s spouse which were permissible under within the meaning of section 817(d) of the plan, the responsible plan fiduciary shall not
the regulations at the time the contract was Internal Revenue Code of 1986, in accordance be considered to have failed to comply with
originally purchased, a divorce occurring with subsections (b) and (c) of this section. the requirements of this title merely because
after the original purchase and before the (b) DESIGNATE CERTAIN AUTHORIZED PAR- such fiduciary determines, in the exercise of
annuity payments commence under the con- TICIPANTS AND MARKET MAKERS AS ELIGIBLE its fiduciary discretion, not to seek recovery
tract will not affect the permissibility of the INVESTORS.—The Secretary of the Treasury of all or part of such overpayment from—
joint and survivor annuity benefits or other (or the Secretary’s delegate) shall amend ‘‘(A) any participant or beneficiary,
benefits under the contract, or require any Treasury Regulation section 1.817–5(f)(3) to ‘‘(B) any plan sponsor of, or contributing
adjustment to the amount or duration of provide that satisfaction of the requirements employer to—
benefits payable under the contract, pro- in Treasury Regulation section 1.817–5(f)(2)(i) ‘‘(i) an individual account plan, provided
vided that any qualified domestic relations with respect to an exchange-traded fund that the amount needed to prevent or restore
order (within the meaning of section 414(p) of shall not be prevented by reason of beneficial any impermissible forfeiture from any par-
the Internal Revenue Code of 1986) or, in the interests in such a fund being held by 1 or ticipant’s or beneficiary’s account arising in
case of an arrangement not subject to sec- more authorized participants or market connection with the overpayment is, sepa-
tion 414(p) of such Code or section 206(d) of makers. rately from and independently of the over-
the Employee Retirement Income Security (c) DEFINE RELEVANT TERMS.—In amending payment, allocated to such account pursuant
Act of 1974 (29 U.S.C. 1056(d)), any divorce or Treasury Regulation section 1.817–5(f)(3) in to the nonforfeitability requirements of sec-
separation instrument (as defined in sub- accordance with subsections (b) of this sec- tion 203 (for example, out of the plan’s for-
section (b))— tion, the Secretary of the Treasury (or the feiture account, additional employer con-
(A) provides that the former spouse is enti- Secretary’s delegate) shall provide defini- tributions, or recoveries from those respon-
tled to the survivor benefits under the con- tions consistent with the following: sible for the overpayment), or
tract; (1) EXCHANGE-TRADED FUND.—The term ‘‘(ii) a defined benefit pension plan subject
(B) does not modify the treatment of the ‘‘exchange-traded fund’’ means a regulated to the funding rules in part 3 of this subtitle
former spouse as the beneficiary under the investment company, partnership, or trust— B, unless the responsible plan fiduciary de-
contract who is entitled to the survivor ben- (A) that is registered with the Securities termines, in the exercise of its fiduciary dis-
efits; or and Exchange Commission as an open-end in- cretion, that failure to recover all or part of
(C) does not modify the treatment of the vestment company or a unit investment the overpayment faster than required under
former spouse as the measuring life for the trust; such funding rules would materially affect
survivor benefits under the contract. (B) the shares of which can be purchased or the plan’s ability to pay benefits due to
(3) PERMIT SHORT FREE LOOK PERIOD.—The redeemed directly from the fund only by an other participants and beneficiaries, or
Secretary shall amend Q&A–17(a)(4) of Treas- authorized participant; and ‘‘(C) any fiduciary of the plan, other than
ury Regulation section 1.401(a)(9)–6 to ensure (C) the shares of which are traded through- a fiduciary (including a plan sponsor or con-
that such Q&A does not preclude a contract out the day on a national stock exchange at tributing employer acting in a fiduciary ca-
from including a provision under which an market prices that may or may not be the pacity) whose breach of its fiduciary duties
employee may rescind the purchase of the same as the net asset value of the shares. resulted in such overpayment, provided that
contract within a period not exceeding 90 (2) AUTHORIZED PARTICIPANT.—The term if the plan has established prudent proce-
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days from the date of purchase. ‘‘authorized participant’’ means a financial dures to prevent and minimize overpayment
(b) DIVORCE OR SEPARATION INSTRUMENT.— institution that is a member or participant of benefits and the relevant plan fiduciaries
For purposes of subsection (a)(2), the term of a clearing agency registered under section have followed such procedures, an inad-
‘‘divorce or separation instrument’’ means— 17A(b) of the Securities Exchange Act of 1934 vertent benefit overpayment will not give
(1) a decree of divorce or separate mainte- that enters into a contractual relationship rise to a breach of fiduciary duty.
nance or a written instrument incident to with an exchange-traded fund pursuant to ‘‘(2) REDUCTION IN FUTURE BENEFIT PAY-
such a decree, which the financial institution is permitted MENTS AND RECOVERY FROM RESPONSIBLE
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H3932 CONGRESSIONAL RECORD — HOUSE March 29, 2022
PARTY.—Paragraph (1) shall not fail to apply ‘‘(5) EFFECT OF CULPABILITY.—Subpara- quirement applicable to a plan to which
with respect to any inadvertent benefit over- graphs (A) through (F) of paragraph (4) shall paragraph (1) applies.’’.
payment merely because, after discovering not apply to protect a participant or bene- (2) ROLLOVERS.—Section 402(c) of such Code
such overpayment, the responsible plan fidu- ficiary who is culpable. For purposes of this is amended by adding at the end the fol-
ciary— paragraph, a participant or beneficiary is lowing new paragraph:
‘‘(A) reduces future benefit payments to culpable if the individual bears responsi- ‘‘(12) In the case of an inadvertent benefit
the correct amount provided for under the bility for the overpayment (such as through overpayment from a plan to which section
terms of the plan, or misrepresentations or omissions that led to 414(bb)(1) applies that is transferred to an el-
‘‘(B) seeks recovery from the person or per- the overpayment), or if the individual knew, igible retirement plan by or on behalf of a
sons responsible for the overpayment. or had good reason to know under the cir- participant or beneficiary—
‘‘(3) EMPLOYER FUNDING OBLIGATIONS.— cumstances, that the benefit payment or ‘‘(A) the portion of such overpayment with
Nothing in this subsection shall relieve an payments were materially in excess of the respect to which recoupment is not sought
employer of any obligation imposed on it to correct amount. Notwithstanding the pre- on behalf of the plan shall be treated as hav-
make contributions to a plan to meet the ceding sentence, an individual is not cul- ing been paid in an eligible rollover distribu-
minimum funding standards under part 3 of pable merely because the individual believed tion if the payment would have been an eligi-
this subtitle B or to prevent or restore an the benefit payment or payments were or ble rollover distribution but for being an
impermissible forfeiture in accordance with might be in excess of the correct amount, if overpayment, and
section 203. the individual raised that question with an ‘‘(B) the portion of such overpayment with
‘‘(4) RECOUPMENT FROM PARTICIPANTS AND authorized plan representative and was told respect to which recoupment is sought on be-
BENEFICIARIES.—If the responsible plan fidu- the payment or payments were not in excess half of the plan shall be permitted to be re-
ciary, in the exercise of its fiduciary discre- of the correct amount. With respect to a cul- turned to such plan and in such case shall be
tion, decides to seek recoupment from a par- pable participant or beneficiary, efforts to treated as an eligible rollover distribution
ticipant or beneficiary of all or part of an in- recoup overpayments shall not be made transferred to such plan by the participant
advertent benefit overpayment made by the through threats of litigation, unless a lawyer or beneficiary who received such overpay-
plan to such participant or beneficiary, it for the plan could make the representations ment (and the plans making and receiving
may do so, subject to the following condi- required under Rule 11 of the Federal Rules such transfer shall be treated as permitting
tions: of Civil Procedure if the litigation were such transfer).
‘‘(A) No interest or other additional brought in Federal court.’’. In any case in which recoupment is sought
amounts (such as collection costs or fees) are (b) OVERPAYMENTS UNDER INTERNAL REV- on behalf of the plan but is disputed by the
sought on overpaid amounts for any period. ENUE CODE OF 1986.—
participant or beneficiary who received such
‘‘(B) If the plan seeks to recoup past over- (1) QUALIFICATION REQUIREMENTS.—Section
overpayment, such dispute shall be subject
payments of a non-decreasing periodic ben- 414 of the Internal Revenue Code of 1986, as
to the claims procedures of the plan that
efit by reducing future benefit payments— amended by this preceding provisions of this
made such overpayment, such plan shall no-
‘‘(i) the reduction ceases after the plan has Act, is amended by adding at the end the fol-
tify the plan receiving the rollover of such
recovered the full dollar amount of the over- lowing new subsection:
‘‘(bb) SPECIAL RULES APPLICABLE TO BEN- dispute, and the plan receiving the rollover
payment,
EFIT OVERPAYMENTS.— shall retain such overpayment on behalf of
‘‘(ii) the amount recouped each calendar
‘‘(1) IN GENERAL.—A plan shall not fail to the participant or beneficiary (and shall be
year does not exceed 10 percent of the full
be treated as described in clause (i), (ii), (iii), entitled to treat such overpayment as plan
dollar amount of the overpayment, and
or (iv) of section 219(g)(5)(A) (and shall not assets) pending the outcome of such proce-
‘‘(iii) future benefit payments are not re-
fail to be treated as satisfying the require- dures.’’.
duced to below 90 percent of the periodic
ments of section 401(a) or 403) merely be- (c) EFFECTIVE DATE.—The amendments
amount otherwise payable under the terms
cause— made by this section shall apply as of the
of the plan.
Alternatively, if the plan seeks to recoup ‘‘(A) the plan fails to obtain payment from date of the enactment of this Act.
past overpayments of a non-decreasing peri- any participant, beneficiary, employer, plan (d) CERTAIN ACTIONS BEFORE DATE OF EN-
sponsor, fiduciary, or other party on account ACTMENT.—Plans, fiduciaries, employers, and
odic benefit through one or more installment
payments, the sum of such installment pay- of any inadvertent benefit overpayment plan sponsors are entitled to rely on—
ments in any calendar year does not exceed made by the plan, or (1) a good faith interpretation of then ex-
the sum of the reductions that would be per- ‘‘(B) the plan sponsor amends the plan to isting administrative guidance for inad-
mitted in such year under the preceding sen- increase past or future benefit payments to vertent benefit overpayment recoupments
tence. affected participants and beneficiaries in and recoveries that commenced before the
‘‘(C) If the plan seeks to recoup past over- order to adjust for prior inadvertent benefit date of enactment of this Act, and
payments of a benefit other than a non-de- overpayments. (2) determinations made before the date of
creasing periodic benefit, the plan satisfies ‘‘(2) REDUCTION IN FUTURE BENEFIT PAY- enactment of this Act by the responsible
requirements developed by the Secretary for MENTS AND RECOVERY FROM RESPONSIBLE plan fiduciary, in the exercise of its fidu-
purposes of this subparagraph. PARTY.—Paragraph (1) shall not fail to apply ciary discretion, not to seek recoupment or
‘‘(D) Efforts to recoup overpayments are— to a plan merely because, after discovering a recovery of all or part of an inadvertent ben-
‘‘(i) not accompanied by threats of litiga- benefit overpayment, such plan— efit overpayment.
tion, unless the responsible plan fiduciary ‘‘(A) reduces future benefit payments to In the case of a benefit overpayment that oc-
reasonably believes it could prevail in a civil the correct amount provided for under the curred prior to the date of enactment of this
action brought in Federal or State court to terms of the plan, or Act, any installment payments by the par-
recoup the overpayments, and ‘‘(B) seeks recovery from the person or per- ticipant or beneficiary to the plan or any re-
‘‘(ii) not made through a collection agency sons responsible for such overpayment. duction in periodic benefit payments to the
or similar third party, unless the participant ‘‘(3) EMPLOYER FUNDING OBLIGATIONS.— participant or beneficiary, which were made
or beneficiary ignores or rejects efforts to re- Nothing in this subsection shall relieve an in recoupment of such overpayment and
coup the overpayment following either a employer of any obligation imposed on it to which commenced prior to such date, may
final judgment in Federal or State court or make contributions to a plan to meet the continue after such date. Nothing in this
a settlement between the participant or ben- minimum funding standards under sections subsection shall relieve a fiduciary from re-
eficiary and the plan, in either case author- 412 and 430 or to prevent or restore an imper- sponsibility for an overpayment that re-
izing such recoupment. missible forfeiture in accordance with sec- sulted from a breach of its fiduciary duties.
‘‘(E) Recoupment of past overpayments to tion 411. SEC. 302. REDUCTION IN EXCISE TAX ON CER-
a participant is not sought from any bene- ‘‘(4) OBSERVANCE OF BENEFIT LIMITATIONS.— TAIN ACCUMULATIONS IN QUALI-
ficiary of the participant, including a spouse, Notwithstanding paragraph (1), a plan to FIED RETIREMENT PLANS.
surviving spouse, former spouse, or other which paragraph (1) applies shall observe any (a) IN GENERAL.—Section 4974(a) of the In-
beneficiary. limitations imposed on it by section ternal Revenue Code of 1986 is amended by
‘‘(F) Recoupment may not be sought if the 401(a)(17) or 415. The plan may enforce such striking ‘‘50 percent’’ and inserting ‘‘25 per-
first overpayment occurred more than 3 limitations using any method approved by cent’’.
years before the participant or beneficiary is the Secretary of the Treasury for recouping (b) REDUCTION IN EXCISE TAX ON FAILURES
first notified in writing of the error. benefits previously paid or allocations pre- TO TAKE REQUIRED MINIMUM DISTRIBUTIONS.—
‘‘(G) A participant or beneficiary from viously made in excess of such limitations. Section 4974 of such Code is amended by add-
whom recoupment is sought is entitled to ‘‘(5) COORDINATION WITH OTHER QUALIFICA- ing at the end the following new subsection:
dlhill on DSK120RN23PROD with HOUSE
contest all or part of the recoupment pursu- TION REQUIREMENTS.—The Secretary of the ‘‘(e) REDUCTION OF TAX IN CERTAIN CASES.—
ant to the plan’s claims procedures. Treasury may issue regulations or other ‘‘(1) REDUCTION.—In the case of a taxpayer
‘‘(H) In determining the amount of guidance of general applicability specifying who—
recoupment to seek, the responsible plan fi- how benefit overpayments and their ‘‘(A) corrects, during the correction win-
duciary may take into account the hardship recoupment or non-recoupment from a par- dow, a shortfall of distributions from an in-
that recoupment likely would impose on the ticipant or beneficiary shall be taken into dividual retirement plan which resulted in
participant or beneficiary. account for purposes of satisfying any re- imposition of a tax under subsection (a), and
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March 29, 2022 CONGRESSIONAL RECORD — HOUSE H3933
‘‘(B) submits a return, during the correc- after consultation with a balanced group of riod for which such employee was not eligi-
tion window, reflecting such tax (as modified participant and employer representatives, ble to participate shall be treated as initial
by this subsection), shall with respect to plans referenced in sub- eligibility.
the first sentence of subsection (a) shall be section (a) report on the effectiveness of the ‘‘(c) ANNUAL REMINDER NOTICE.—For pur-
applied by substituting ‘10 percent’ for ‘25 applicable reporting and disclosure require- poses of this section, the term ‘annual re-
percent’. ments and make such recommendations as minder notice’ means a notice provided in
‘‘(2) CORRECTION WINDOW.—For purposes of may be appropriate to the Committee on accordance with section 2520.104b–1 of title
this subsection, the term ‘correction win- Education and Labor and the Committee on 29, Code of Federal Regulations (or any suc-
dow’ means the period of time beginning on Ways and Means of the House of Representa- cessor regulation), which—
the date on which the tax under subsection tives and the Committee on Health, Edu- ‘‘(1) is furnished in connection with the an-
(a) is imposed with respect to a shortfall of cation, Labor, and Pensions and the Com- nual open season election period with respect
distributions from an individual retirement mittee on Finance of the Senate to consoli- to the plan or, if there is no such period, is
plan, and ending on the earlier of— date, simplify, standardize, and improve such furnished within a reasonable period prior to
‘‘(A) the date on which the Secretary initi- requirements so as to simplify reporting for the beginning of each plan year;
ates an audit, or otherwise demands pay- such plans and ensure that plans can furnish ‘‘(2) notifies the unenrolled participant of—
ment, with respect to the shortfall of dis- and participants and beneficiaries timely re- ‘‘(A) the unenrolled participant’s eligi-
tributions, or ceive and better understand the information bility to participate in the plan; and
‘‘(B) the last day of the second taxable they need to monitor their plans, plan for re- ‘‘(B) the key benefits and rights under the
year that begins after the end of the taxable tirement, and obtain the benefits they have plan, with a focus on employer contributions
year in which the tax under subsection (a) is earned. and vesting provisions; and
imposed.’’. (2) ANALYSIS OF EFFECTIVENESS.—To assess
‘‘(3) provides such information in a promi-
(c) EFFECTIVE DATE.—The amendments the effectiveness of the applicable reporting
nent manner calculated to be understood by
made by this section shall apply to taxable and disclosure requirements, the report shall
the average participant.’’.
years beginning after December 31, 2022. include an analysis, based on plan data, of
(2) CLERICAL AMENDMENT.—The table of
SEC. 303.
PERFORMANCE BENCHMARKS FOR how participants and beneficiaries are pro-
contents in section 1 of the Employee Retire-
ASSET ALLOCATION FUNDS. viding preferred contact information, the
ment Income Security Act of 1974 is amended
(a) IN GENERAL.—Not later than 1 year methods by which plan sponsors and plans
by striking the item relating to section 111
after the date of enactment of this Act, the are furnishing disclosures, and the rate at
and by inserting after the item relating to
Secretary of Labor shall provide that, in the which participants and beneficiaries
section 110 the following new items:
case of a designated investment alternative (grouped by key demographics) are receiv-
that contains a mix of asset classes, the ad- ing, accessing, understanding, and retaining ‘‘Sec. 111. Eliminating unnecessary plan re-
ministrator of a plan may, but is not re- disclosures. quirements related to
quired to, use a benchmark that is a blend of (3) COLLECTION OF INFORMATION.—The agen- unenrolled participants.
different broad-based securities market indi- cies shall conduct appropriate surveys and ‘‘Sec. 112. Repeal and effective date.’’.
ces if— data collection to obtain any needed infor-
(b) AMENDMENT OF INTERNAL REVENUE CODE
(1) the blend is reasonably representative mation.
OF 1986.—Section 414 of the Internal Revenue
of the asset class holdings of the designated SEC. 305. ELIMINATING UNNECESSARY PLAN RE-
QUIREMENTS RELATED TO
Code of 1986, as amended by the preceding
investment alternative; provisions of this Act, is amended by adding
UNENROLLED PARTICIPANTS.
(2) for purposes of determining the blend’s at the end the following new subsection:
returns for 1-, 5-, and 10-calendar-year peri- (a) AMENDMENT OF EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974.— ‘‘(cc) ELIMINATING UNNECESSARY PLAN RE-
ods (or for the life of the alternative, if
(1) IN GENERAL.—Part 1 of subtitle B of sub- QUIREMENTS RELATED TO UNENROLLED PAR-
shorter), the blend is modified at least once
chapter I of the Employee Retirement In- TICIPANTS.—
per year to reflect changes in the asset class
come Security Act of 1974 is amended by re- ‘‘(1) IN GENERAL.—Notwithstanding any
holdings of the designated investment alter-
designating section 111 as section 112 and by other provision of this title, with respect to
native;
inserting after section 110 the following new any defined contribution plan, no disclosure,
(3) the blend is furnished to participants
section: notice, or other plan document (other than
and beneficiaries in a manner that is reason-
‘‘SEC. 111. ELIMINATING UNNECESSARY PLAN RE- the notices and documents described in sub-
ably designed to be understandable; and QUIREMENTS RELATED TO paragraphs (A) and (B)) shall be required to
(4) each securities market index that is UNENROLLED PARTICIPANTS. be furnished under this title to any
used for an associated asset class would sepa- ‘‘(a) IN GENERAL.—Notwithstanding any unenrolled participant if the unenrolled par-
rately satisfy the requirements of such regu- other provision of this title, with respect to ticipant receives—
lation for such asset class. any individual account plan, no disclosure,
(b) STUDY.—Not later than 3 years after the ‘‘(A) an annual reminder notice of such
notice, or other plan document (other than participant’s eligibility to participate in
date of enactment of this Act, the Secretary the notices and documents described in para-
of Labor shall deliver a report to the Com- such plan and any applicable election dead-
graphs (1) and (2)) shall be required to be fur- lines under the plan, and
mittees on Finance and Health, Education, nished under this title to any unenrolled par-
Labor, and Pensions of the Senate and the ‘‘(B) any document requested by such par-
ticipant if the unenrolled participant re- ticipant that the participant would be enti-
Committees on Ways and Means and Edu- ceives—
cation and Labor of the House of Representa- tled to receive notwithstanding this sub-
‘‘(1) an annual reminder notice of such par-
tives regarding the utilization, effectiveness, section.
ticipant’s eligibility to participate in such
and participants’ understanding of the ‘‘(2) UNENROLLED PARTICIPANT.—For pur-
plan and any applicable election deadlines
benchmarking requirements under this sec- poses of this subsection, the term
under the plan; and
tion. ‘unenrolled participant’ means an employee
‘‘(2) any document requested by such par-
SEC. 304. REVIEW AND REPORT TO CONGRESS who—
ticipant that the participant would be enti-
RELATING TO REPORTING AND DIS- ‘‘(A) is eligible to participate in a defined
tled to receive notwithstanding this section.
CLOSURE REQUIREMENTS. ‘‘(b) UNENROLLED PARTICIPANT.—For pur- contribution plan,
(a) STUDY.—As soon as practicable after poses of this section, the term ‘unenrolled ‘‘(B) has received—
the date of enactment of this Act, the Sec- participant’ means an employee who— ‘‘(i) the summary plan description pursu-
retary of Labor, the Secretary of the Treas- ‘‘(1) is eligible to participate in an indi- ant to section 104(b) of the Employee Retire-
ury, and the Director of the Pension Benefit vidual account plan; ment Income Security Act of 1974, and
Guaranty Corporation shall review the re- ‘‘(2) has received— ‘‘(ii) any other notices related to eligi-
porting and disclosure requirements as appli- ‘‘(A) the summary plan description pursu- bility under the plan and required to be fur-
cable to each such agency head, of— ant to section 104(b), and nished under this title, or the Employee Re-
(1) the Employee Retirement Income Secu- ‘‘(B) any other notices related to eligi- tirement Income Security Act of 1974, in con-
rity Act of 1974 applicable to pension plans bility under the plan required to be furnished nection with such participant’s initial eligi-
(as defined in section 3(2) of such Act (29 under this title, or the Internal Revenue bility to participate in such plan,
U.S.C. 1002(2)); and Code of 1986, in connection with such partici- ‘‘(C) is not participating in such plan,
(2) the Internal Revenue Code of 1986 appli- pant’s initial eligibility to participate in ‘‘(D) does not have an account balance in
cable to qualified retirement plans (as de- such plan; the plan, and
fined in section 4974(c) of such Code, without ‘‘(3) is not participating in such plan; ‘‘(E) satisfies such other criteria as the
regard to paragraphs (4) and (5) of such sec- ‘‘(4) does not have an account balance in Secretary of the Treasury may determine ap-
dlhill on DSK120RN23PROD with HOUSE
tion). the plan; and propriate, as prescribed in guidance issued in
(b) REPORT.— ‘‘(5) satisfies such other criteria as the Sec- consultation with the Secretary of Labor.
(1) IN GENERAL.—Not later than 2 years retary of Labor may determine appropriate, For purposes of this subsection, any eligi-
after the date of enactment of this Act, the as prescribed in guidance issued in consulta- bility to participate in the plan following
Secretary of Labor, the Secretary of the tion with the Secretary of Treasury. any period for which such employee was not
Treasury, and the Director of the Pension For purposes of this section, any eligibility eligible to participate shall be treated as ini-
Benefit Guaranty Corporation, jointly, and to participate in the plan following any pe- tial eligibility.
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H3934 CONGRESSIONAL RECORD — HOUSE March 29, 2022
‘‘(3) ANNUAL REMINDER NOTICE.—For pur- to which the vesting standards of section 203 or any successor guidance, and hereafter in
poses of this subsection, the term ‘annual re- apply shall submit to the Department of this section referred to as the ‘‘EPCRS’’), ex-
minder notice’ means the notice described in Labor, at such time and in such form and cept to the extent that such failure was iden-
section 111(c) of the Employee Retirement manner as is prescribed in regulations— tified by the Secretary prior to any actions
Income Security Act of 1974.’’. ‘‘(1) the information described in para- which demonstrate a commitment to imple-
(c) EFFECTIVE DATE.—The amendments graphs (1) through (4) of section 6057(b) of the ment a self-correction. Revenue Procedure
made by this section shall apply to plan Internal Revenue Code of 1986; 2021–30 is deemed amended as of the date of
years beginning after December 31, 2022. ‘‘(2) the information described in subpara- the enactment of this Act to provide that
SEC. 306.
RETIREMENT SAVINGS LOST AND graphs (A) and (B) of section 6057(a)(2) of the correction period under section 9.02 of
FOUND. such Code; such Revenue Procedure (or any successor
(a) IN GENERAL.— ‘‘(3) the name and taxpayer identifying guidance) for an eligible inadvertent failure,
(1) ESTABLISHMENT OF RETIREMENT SAVINGS number of each participant or former partic- except as otherwise provided under such
LOST AND FOUND.—Part 5 of title I of the Em- ipant in the plan— Code or in regulations prescribed by the Sec-
ployee Retirement Income Security Act of ‘‘(A) who, during the current plan year or retary, is indefinite and has no last day,
1974 (29 U.S.C. 1341 et seq.) is amended by any previous plan year, was reported under other than with respect to failures identified
adding at the end the following: section 6057(a)(2)(C) of such Code, and with by the Secretary prior to any self-correction
‘‘SEC. 523.
RETIREMENT SAVINGS LOST AND respect to whom the benefits described in as described in the preceding sentence.
FOUND. clause (ii) thereof were fully paid during the (b) LOAN ERRORS.—In the case of an eligi-
‘‘(a) ESTABLISHMENT.— plan year; ble inadvertent failure relating to a loan
‘‘(1) IN GENERAL.—Not later than 2 years ‘‘(B) with respect to whom any amount was from a plan to a participant—
after the date of the enactment of this sec- distributed under section 401(a)(31)(B) of such (1) such failure may be self-corrected under
tion, the Secretary of Labor, in consultation Code during the plan year; or subsection (a) according to the rules of sec-
with the Secretary of the Treasury, shall es- ‘‘(C) with respect to whom a deferred annu- tion 6.07 of Revenue Procedure 2021–30 (or
tablish an online searchable database (to be ity contract was distributed during the plan any successor guidance), including the provi-
managed by the Department of Labor in ac- year; sions related to whether a deemed distribu-
cordance with this section) to be known as ‘‘(4) in the case of a participant or former tion must be reported on Form 1099–R, and
the ‘Retirement Savings Lost and Found’. participant to whom paragraph (3) applies— (2) the Secretary of Labor shall treat any
The Retirement Savings Lost and Found ‘‘(A) in the case of a participant described such failure which is so self-corrected under
shall— in subparagraph (B) thereof, the name and subsection (a) as meeting the requirements
‘‘(A) allow an individual to search for in- address of the designated trustee or issuer of the Voluntary Fiduciary Correction Pro-
formation that enables the individual to lo- described in section 401(a)(31)(B)(i) of such gram of the Department of Labor if, with re-
cate the administrator of any plan described Code and the account number of the indi- spect to the violation of the fiduciary stand-
in paragraph (2) with respect to which the in- vidual retirement plan to which the amount ards of the Employee Retirement Income Se-
dividual is or was a participant or bene- was distributed; and curity Act of 1974, there is a similar loan
ficiary, and provide contact information for ‘‘(B) in the case of a participant described error eligible for correction under EPCRS
the administrator of any such plan; in subparagraph (C) thereof, the name and and the loan error is corrected in such man-
‘‘(B) allow the Department of Labor to as- address of the issuer of such annuity con- ner.
sist such an individual in locating any such tract and the contract or certificate number; (c) EPCRS FOR IRAS.—The Secretary shall
plan of the individual; and and expand the EPCRS to allow custodians of in-
‘‘(C) allow the Department of Labor to ‘‘(5) such other information as the Sec- dividual retirement plans (as defined in sec-
make any necessary changes to contact in- retary of Labor may require. tion 7701(a)(37) of the Internal Revenue Code
formation on record for the administrator ‘‘(f) INFORMATION COLLECTION FROM FED- of 1986) to address eligible inadvertent fail-
based on any changes to the plan due to ERAL AGENCIES.—On request, the Secretary ures with respect to an individual retirement
merger or consolidation of the plan with any of Labor may access and receive such infor- plan (as so defined), including (but not lim-
other plan, division of the plan into two or mation collected by other Federal agencies ited to)—
more plans, bankruptcy, termination, as may be necessary and appropriate to per- (1) waivers of the excise tax which would
change in name of the plan, change in name form work related to the Retirement Savings otherwise apply under section 4974 of the In-
or address of the administrator, or other Lost and Found. ternal Revenue Code of 1986,
causes. ‘‘(g) PROGRAM INTEGRITY AUDIT.—On an an- (2) under the self-correction component of
The Retirement Savings Lost and Found es- nual basis for each of the first 5 years begin- the EPCRS, waivers of the 60-day deadline
tablished under this paragraph shall include ning one year after the establishment of the for a rollover where the deadline is missed
information reported under this section and database in subsection (a)(1) and every 5 for reasons beyond the reasonable control of
other relevant information obtained by the years thereafter, the Inspector General of the account owner, and
Department of Labor. the Department of Labor shall conduct an (3) rules permitting a nonspouse bene-
‘‘(2) PLANS DESCRIBED.—A plan described in audit of the administration of the Retire- ficiary to return distributions to an inher-
this paragraph is a plan to which the vesting ment Savings Lost and Found.’’. ited individual retirement plan described in
standards of section 203 apply. (3) CONFORMING AMENDMENT.—The table of section 408(d)(3)(C) of the Internal Revenue
‘‘(b) ADMINISTRATION.—The Retirement contents for the Employee Retirement In- Code of 1986 in a case where, due to an inad-
Savings Lost and Found established under come Security Act of 1974 (29 U.S.C. 1001 et vertent error by a service provider, the bene-
subsection (a) shall provide individuals de- seq.) is amended by inserting after the item ficiary had reason to believe that the dis-
scribed in subsection (a)(1) only with the relating to section 522 the following: tribution could be rolled over without inclu-
ability to search for information that en- ‘‘Sec. 523.Retirement Savings Lost and sion in income of any part of the distributed
ables the individual to locate the adminis- Found.’’. amount.
trator and contact information for the ad- SEC. 307. UPDATING DOLLAR LIMIT FOR MANDA- (d) ADDITIONAL SAFE HARBORS.—The Sec-
ministrator of any plan with respect to TORY DISTRIBUTIONS. retary shall expand the EPCRS to provide
which the individual is or was a participant (a) IN GENERAL.—Section 203(e)(1) of the additional safe harbor means of correcting
or beneficiary, sufficient to allow the indi- Employee Retirement Income Security Act eligible inadvertent failures described in sub-
vidual to locate the individual’s plan in of 1974 and sections 401(a)(31)(B)(ii) and section (a), including safe harbor means of
order to recover any benefit owing to the in- 411(a)(11)(A) of the Internal Revenue Code of calculating the earnings which must be re-
dividual under the plan. 1986 are each amended by striking ‘‘$5,000’’ stored to a plan in cases where plan assets
‘‘(c) SAFEGUARDING PARTICIPANT PRIVACY and inserting ‘‘$7,000’’. have been depleted by reason of an eligible
AND SECURITY.—In establishing the Retire- (b) EFFECTIVE DATE.—The amendments inadvertent failure.
ment Savings Lost and Found under sub- made by this section shall apply to distribu- (e) ELIGIBLE INADVERTENT FAILURE.—For
section (a), the Department of Labor shall tions made after December 31, 2022. purposes of this section—
take all necessary and proper precautions to SEC. 308. EXPANSION OF EMPLOYEE PLANS COM- (1) IN GENERAL.—Except as provided in
ensure that individuals’ plan information PLIANCE RESOLUTION SYSTEM. paragraph (2), the term ‘‘eligible inadvertent
maintained by the Retirement Savings Lost (a) IN GENERAL.—Except as otherwise pro- failure’’ means a failure that occurs despite
and Found is protected. vided in the Internal Revenue Code of 1986 or the existence of practices and procedures
‘‘(d) DEFINITION OF ADMINISTRATOR.—For regulations prescribed by the Secretary of which—
purposes of this section, the term ‘adminis- the Treasury or the Secretary’s delegate (re- (A) satisfy the standards set forth in sec-
dlhill on DSK120RN23PROD with HOUSE
trator’ has the meaning given such term in ferred to in this section as the ‘‘Secretary’’), tion 4.04 of Revenue Procedure 2021–30 (or
section 3(16)(A). any eligible inadvertent failure to comply any successor guidance), or
‘‘(e) INFORMATION COLLECTION FROM with the rules applicable under section (B) satisfy similar standards in the case of
PLANS.—Effective with respect to plan years 401(a), 403(a), 403(b), 408(p), or 408(k) of such an individual retirement plan.
beginning after the second December 31 oc- Code may be self-corrected under the Em- (2) EXCEPTION.—The term ‘‘eligible inad-
curring after the date of the enactment of ployee Plans Compliance Resolution System vertent failure’’ shall not include any failure
this subsection, the administrator of a plan (as described in Revenue Procedure 2021–30, which is egregious, relates to the diversion
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March 29, 2022 CONGRESSIONAL RECORD — HOUSE H3935
or misuse of plan assets, or is directly or in- distribution for the benefit of a specified retirement payments for any taxable year,
directly related to an abusive tax avoidance charitable organization would be allowable gross income shall not include so much of
transaction. under section 170 (determined without regard such payments as do not exceed the
(f) APPLICATION OF CERTAIN REQUIREMENTS to subsection (b) thereof and this paragraph), annualized excludable disability amount
FOR CORRECTING ERRORS.—This section shall and with respect to such individual.
not apply to any failure unless the correc- ‘‘(II) in the case of a charitable gift annu- ‘‘(b) QUALIFIED FIRST RESPONDER RETIRE-
tion of such failure under this section is ity, a deduction in an amount equal to the MENT PAYMENTS.—For purposes of this sec-
made in conformity with the general prin- amount of the distribution reduced by the tion, the term ‘qualified first responder re-
ciples that apply to corrections of such fail- value of the annuity described in section tirement payments’ means, with respect to
ures under the Internal Revenue Code of 1986, 501(m)(5)(B) would be allowable under section any taxable year, any pension or annuity
including regulations or other guidance 170 (determined without regard to subsection which but for this section would be includ-
issued thereunder and including those prin- (b) thereof and this paragraph). ible in gross income for such taxable year
ciples and corrections set forth in Revenue ‘‘(iv) LIMITATION ON INCOME INTERESTS.—A and which is received—
Procedure 2021–30 (or any successor guid- distribution meets the requirements of this ‘‘(1) from a plan described in clause (iii),
ance).’’ clause only if— (iv), (v), or (vi) of section 402(c)(8)(B), and
SEC. 309. ELIMINATE THE ‘‘FIRST DAY OF THE ‘‘(I) no person holds an income interest in ‘‘(2) in connection with such individual’s
MONTH’’ REQUIREMENT FOR GOV- the split-interest entity other than the indi- qualified first responder service.
ERNMENTAL SECTION 457(b) PLANS. vidual for whose benefit such account is ‘‘(c) ANNUALIZED EXCLUDABLE DISABILITY
(a) IN GENERAL.—Section 457(b)(4) of the In- maintained, the spouse of such individual, or AMOUNT.—For purposes of this section—
ternal Revenue Code of 1986 is amended to both, and ‘‘(1) IN GENERAL.—The term ‘annualized ex-
read as follows: ‘‘(II) the income interest in the split-inter- cludable disability amount’ means, with re-
‘‘(4) which provides that compensation— est entity is nonassignable. spect to any individual, the service-con-
‘‘(A) in the case of an eligible employer de- ‘‘(v) SPECIAL RULES.— nected excludable disability amounts which
scribed in subsection (e)(1)(A), will be de- ‘‘(I) CHARITABLE REMAINDER TRUSTS.—Not- are properly attributable to the 12-month pe-
ferred only if an agreement providing for withstanding section 664(b), distributions riod immediately preceding the date on
such deferral has been entered into before made from a trust described in subclause (I) which such individual attains retirement
the compensation is currently available to or (II) of clause (ii) shall be treated as ordi- age.
the individual, and nary income in the hands of the beneficiary ‘‘(2) SERVICE-CONNECTED EXCLUDABLE DIS-
‘‘(B) in any other case, will be deferred for to whom the annuity described in section ABILITY AMOUNT.—The term ‘service-con-
any calendar month only if an agreement 664(d)(1)(A) or the payment described in sec- nected excludable disability amount’ means
providing for such deferral has been entered tion 664(d)(2)(A) is paid. periodic payments received by an individual
into before the beginning of such month,’’. ‘‘(II) CHARITABLE GIFT ANNUITIES.—Quali- which—
(b) EFFECTIVE DATE.—The amendment fied charitable distributions made to fund a ‘‘(A) are not includible in such individual’s
made by this section shall apply to taxable charitable gift annuity shall not be treated gross income under section 104(a)(1),
years beginning after the date of the enact- as an investment in the contract for pur- ‘‘(B) are received in connection with such
ment of this Act. poses of section 72(c).’’. individual’s qualified first responder service,
SEC. 310. ONE-TIME ELECTION FOR QUALIFIED (b) INFLATION ADJUSTMENT.—Section and
CHARITABLE DISTRIBUTION TO 408(d)(8) of such Code, as amended by sub- ‘‘(C) terminate when such individual at-
SPLIT-INTEREST ENTITY; INCREASE tains retirement age.
IN QUALIFIED CHARITABLE DIS-
section (a), is amended by adding at the end
the following new subparagraph: ‘‘(3) SPECIAL RULE FOR PARTIAL-YEAR PAY-
TRIBUTION LIMITATION.
‘‘(G) INFLATION ADJUSTMENT.— MENTS.—In the case of an individual who
(a) ONE-TIME ELECTION FOR QUALIFIED only receives service-connected excludable
CHARITABLE DISTRIBUTION TO SPLIT-INTEREST ‘‘(i) IN GENERAL.—In the case of any tax-
able year beginning after 2022, each of the disability amounts properly attributable to a
ENTITY.—Section 408(d)(8) of the Internal portion of the 12-month period described in
Revenue Code of 1986 is amended by adding dollar amounts in subparagraphs (A) and (F)
shall be increased by an amount equal to— paragraph (1), such paragraph shall be ap-
at the end the following new subparagraph: plied by multiplying such amounts by the
‘‘(F) ONE-TIME ELECTION FOR QUALIFIED ‘‘(I) such dollar amount, multiplied by
‘‘(II) the cost-of-living adjustment deter- ratio of 365 to the number of days in such pe-
CHARITABLE DISTRIBUTION TO SPLIT-INTEREST
mined under section 1(f)(3) for the calendar riod to which such amounts were properly
ENTITY.—
year in which the taxable year begins, deter- attributable.
‘‘(i) IN GENERAL.—A taxpayer may for a ‘‘(d) QUALIFIED FIRST RESPONDER SERV-
taxable year elect under this subparagraph mined by substituting ‘calendar year 2021’
ICE.—For purposes of this section, the term
to treat as meeting the requirement of sub- for ‘calendar year 2016’ in subparagraph
(A)(ii) thereof. ‘qualified first responder service’ means
paragraph (B)(i) any distribution from an in- service as a law enforcement officer, fire-
dividual retirement account which is made ‘‘(ii) ROUNDING.—If any dollar amount in-
creased under clause (i) is not a multiple of fighter, paramedic, or emergency medical
directly by the trustee to a split-interest en- technician.’’.
tity, but only if— $1,000, such dollar amount shall be rounded
(b) CLERICAL AMENDMENT.—The table of
‘‘(I) an election is not in effect under this to the nearest multiple of $1,000.’’.
(c) EFFECTIVE DATE.—The amendment sections for part III of subchapter B of chap-
subparagraph for a preceding taxable year, ter 1 of such Code is amended by inserting
made by this section shall apply to distribu-
‘‘(II) the aggregate amount of distributions after the item relating to section 139B the
tions made in taxable years ending after the
of the taxpayer with respect to which an following new item:
date of the enactment of this Act.
election under this subparagraph is made ‘‘Sec. 139C. Certain disability-related first
SEC. 311. DISTRIBUTIONS TO FIREFIGHTERS.
does not exceed $50,000, and responder retirement pay-
‘‘(III) such distribution meets the require- (a) IN GENERAL.—Subparagraph (A) of sec-
tion 72(t)(10) of the Internal Revenue Code of ments.’’.
ments of clauses (iii) and (iv). (c) EFFECTIVE DATE.—The amendments
‘‘(ii) SPLIT-INTEREST ENTITY.—For purposes 1986 is amended by striking ‘‘414(d))’’ and in-
serting ‘‘414(d)) or a distribution from a plan made by this section shall apply to amounts
of this subparagraph, the term ‘split-interest received with respect to taxable years begin-
entity’ means— described in clause (iii), (iv), or (vi) of sec-
tion 402(c)(8)(B) to an employee who provides ning after December 31, 2027.
‘‘(I) a charitable remainder annuity trust SEC. 313. INDIVIDUAL RETIREMENT PLAN STAT-
(as defined in section 664(d)(1)), but only if firefighting services’’.
(b) CONFORMING AMENDMENT.—The heading UTE OF LIMITATIONS FOR EXCISE
such trust is funded exclusively by qualified TAX ON EXCESS CONTRIBUTIONS
of paragraph (10) of section 72(t) of such Code
charitable distributions, AND CERTAIN ACCUMULATIONS.
is amended by striking ‘‘IN GOVERNMENTAL
‘‘(II) a charitable remainder unitrust (as Section 6501(l) of the Internal Revenue
PLANS’’ and inserting ‘‘AND PRIVATE SECTOR
defined in section 664(d)(2)), but only if such Code of 1986 is amended by adding at the end
FIREFIGHTERS’’
unitrust is funded exclusively by qualified (c) EFFECTIVE DATE.—The amendments the following new paragraph:
charitable distributions, or made by this section shall apply to distribu- ‘‘(4) INDIVIDUAL RETIREMENT PLANS.—
‘‘(III) a charitable gift annuity (as defined tions made after December 31, 2022. ‘‘(A) IN GENERAL.—For purposes of any tax
in section 501(m)(5)), but only if such annuity SEC. 312. EXCLUSION OF CERTAIN DISABILITY-
imposed by section 4973 or 4974 in connection
is funded exclusively by qualified charitable RELATED FIRST RESPONDER RE- with an individual retirement plan, the re-
distributions and commences fixed payments TIREMENT PAYMENTS. turn referred to in this section shall be the
of 5 percent or greater not later than 1 year (a) IN GENERAL.—Part III of subchapter B income tax return filed by the person on
from the date of funding. of chapter 1 of the Internal Revenue Code of whom the tax under such section is imposed
dlhill on DSK120RN23PROD with HOUSE
‘‘(iii) CONTRIBUTIONS MUST BE OTHERWISE 1986 is amended by inserting after section for the year in which the act (or failure to
DEDUCTIBLE.—A distribution meets the re- 139B the following new section: act) giving rise to the liability for such tax
quirement of this clause only if— ‘‘SEC. 139C. CERTAIN DISABILITY-RELATED FIRST occurred.
‘‘(I) in the case of a distribution to a chari- RESPONDER RETIREMENT PAY- ‘‘(B) RULE IN CASE OF INDIVIDUALS NOT RE-
table remainder annuity trust or a chari- MENTS. QUIRED TO FILE RETURN.—In the case of a per-
table remainder unitrust, a deduction for the ‘‘(a) IN GENERAL.—In the case of an indi- son who is not required to file an income tax
entire value of the remainder interest in the vidual who receives qualified first responder return for such year—
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H3936 CONGRESSIONAL RECORD — HOUSE March 29, 2022
‘‘(i) the return referred to in this section (i) an explanation of how to request that (1) CUSTODIAL ACCOUNTS.—Section 403(b)(7)
shall be the income tax return that such per- all such statements, and any other document of such Code is amended by adding at the end
son would have been required to file but for required to be disclosed under title I of the the following new subparagraph:
the fact that such person was not required to Employee Retirement Income Security Act ‘‘(D) EMPLOYEE CERTIFICATION.—In deter-
file such return, and of 1974, be furnished by electronic delivery; mining whether a distribution is upon the fi-
‘‘(ii) the 3-year period referred to in sub- and nancial hardship of an employee, the admin-
section (a) with respect to the return shall (ii) contact information for the plan spon- istrator of the plan may rely on a certifi-
be deemed to begin on the date by which the sor, including a telephone number; cation by the employee that the distribution
return would have been required to be filed (C) the plan may not charge any fee to a is on account of a financial need of a type
(excluding any extension thereof).’’. participant or beneficiary for the delivery of that is deemed in regulations prescribed by
SEC. 314. REQUIREMENT TO PROVIDE PAPER any paper statements; the Secretary to be an immediate and heavy
STATEMENTS IN CERTAIN CASES. (D) each paper pension benefit statement financial need and that such distribution is
(a) IN GENERAL.—Section 105(a)(2) of the shall identify each plan document required not in excess of the amount required to sat-
Employee Retirement Income Security Act to be disclosed and shall include information isfy such financial need.’’.
of 1974 (29 U.S.C. 1025(a)(2)) is amended— about how a participant or beneficiary may (2) ANNUITY CONTRACTS.—Section 403(b)(11)
(1) in subparagraph (A)(iv), by inserting access each such document; of such Code is amended by adding at the end
‘‘subject to subparagraph (E),’’ before ‘‘may (E) each document required to be disclosed the following: ‘‘In determining whether a
be delivered’’; and that is furnished by electronic delivery distribution is upon hardship of an employee,
(2) by adding at the end the following: under such a plan shall include an expla- the administrator of the plan may rely on a
‘‘(E) PROVISION OF PAPER STATEMENTS.— nation of how to request that all such docu- certification by the employee that the dis-
With respect to at least 1 pension benefit ments be furnished on paper in written form; tribution is on account of a financial need of
statement furnished for a calendar year with and a type that is deemed in regulations pre-
respect to an individual account plan under (F) a plan is permitted to furnish a dupli- scribed by the Secretary to be an immediate
paragraph (1)(A), and with respect to at least cate electronic statement in any case in and heavy financial need and that such dis-
1 pension benefit statement furnished every 3 which the plan furnishes a paper pension tribution is not in excess of the amount re-
calendar years with respect to a defined ben- benefit statement. quired to satisfy such financial need.’’.
efit plan under paragraph (1)(B), such state- (c) 457(b) PLAN.—Section 457(d) of such
(c) EFFECTIVE DATE.—The amendment
ment shall be furnished on paper in written Code is amended by adding at the end the
made by subsection (a) shall apply with re-
form except— following new paragraph:
spect to plan years beginning after December
‘‘(i) in the case of a plan that furnishes ‘‘(4) PARTICIPANT CERTIFICATION.—In deter-
31, 2023.
such statement in accordance with section mining whether a distribution to a partici-
2520.104b-1(c) of title 29, Code of Federal Reg- SEC. 315. SEPARATE APPLICATION OF TOP HEAVY
RULES TO DEFINED CONTRIBUTION
pant is made when the participant is faced
ulations; or with an unforeseeable emergency, the ad-
PLANS COVERING EXCLUDIBLE EM-
‘‘(ii) in the case of a plan that permits a PLOYEES. ministrator of a plan maintained by an eligi-
participant or beneficiary to request that ble employer described in subsection (e)(1)(A)
(a) IN GENERAL.—Section 416(c)(2) of the In-
the statements referred to in the matter pre- may rely on a certification by the partici-
ternal Revenue Code of 1986 is amended by
ceding clause (i) be furnished by electronic pant that the distribution is made when the
adding at the end the following:
delivery, if the participant or beneficiary re- participant is faced with unforeseeable emer-
quests that such statements be delivered ‘‘(C) SEPARATE APPLICATION TO EMPLOYEES
NOT MEETING AGE AND SERVICE REQUIRE- gency of a type that is described in regula-
electronically and the statements are so de- tions prescribed by the Secretary as an un-
MENTS.—If employees not meeting the age or
livered.’’. foreseeable emergency and that the distribu-
(b) IMPLEMENTATION.— service requirements of section 410(a)(1)
(without regard to subparagraph (B) thereof) tion is not in excess of the amount reason-
(1) IN GENERAL.—The Secretary of Labor ably necessary to satisfy the emergency
shall, not later than December 31, 2022, up- are covered under a plan of the employer
which meets the requirements of subpara- need.’’.
date section 2520.104b-1(c) of title 29, Code of (d) EFFECTIVE DATE.—The amendments
Federal Regulations, to provide that a plan graphs (A) and (B) separately with respect to
made by this section shall apply to plan
may furnish the statements referred to in such employees, such employees may be ex-
years beginning after December 31, 2022.
subparagraph (E) of section 105(a)(2) by elec- cluded from consideration in determining
SEC. 318. PENALTY-FREE WITHDRAWALS FROM
tronic delivery only if, in addition to meet- whether any plan of the employer meets the RETIREMENT PLANS FOR INDIVID-
ing the other requirements under the regula- requirements of subparagraphs (A) and (B).’’. UALS IN CASE OF DOMESTIC ABUSE.
tions— (b) EFFECTIVE DATE.—The amendment (a) IN GENERAL.—Section 72(t)(2) of the In-
(A) such plan furnishes each participant or made by subsection (a) shall apply to plan ternal Revenue Code of 1986 is amended by
beneficiary, including participants described years beginning after the date of the enact- adding at the end the following new subpara-
in subparagraph (B), a one-time initial no- ment of this Act. graph:
tice on paper in written form, prior to the SEC. 316. REPAYMENT OF QUALIFIED BIRTH OR ‘‘(I) DISTRIBUTIONS FROM RETIREMENT PLANS
electronic delivery of any pension benefit ADOPTION DISTRIBUTION LIMITED IN CASE OF DOMESTIC ABUSE.—
statement, of their right to request that all TO 3 YEARS. ‘‘(i) IN GENERAL.—Any eligible distribution
documents required to be disclosed under (a) IN GENERAL.—Section 72(t)(2)(H)(v)(I) of to a domestic abuse victim.
title I of the Employee Retirement Income the Internal Revenue Code of 1986 is amended ‘‘(ii) LIMITATION.—The aggregate amount
Security Act of 1974 be furnished on paper in by striking ‘‘may make’’ and inserting which may be treated as an eligible distribu-
written form; and ‘‘may, at any time during the 3-year period tion to a domestic abuse victim by any indi-
(B) such plan furnishes each participant beginning on the day after the date on which vidual shall not exceed an amount equal to
who is separated from service with at least 1 such distribution was received, make’’. the lesser of—
pension benefit statement on paper in writ- (b) EFFECTIVE DATE.—The amendment ‘‘(I) $10,000, or
ten form for each calendar year, unless, on made by this section shall take effect as if ‘‘(II) 50 percent of the present value of the
election of the participant, the participant included in the enactment of section 113 of nonforfeitable accrued benefit of the em-
receives such statements electronically. the Setting Every Community Up for Retire- ployee under the plan.
(2) OTHER GUIDANCE.—In implementing the ment Enhancement Act of 2019. ‘‘(iii) ELIGIBLE DISTRIBUTION TO A DOMESTIC
amendment made by subsection (a) with re- SEC. 317. EMPLOYER MAY RELY ON EMPLOYEE ABUSE VICTIM.—For purposes of this subpara-
spect to a plan that discloses required docu- CERTIFYING THAT DEEMED HARD- graph—
ments or statements electronically, in ac- SHIP DISTRIBUTION CONDITIONS ‘‘(I) IN GENERAL.—A distribution shall be
cordance with applicable guidance governing ARE MET. treated as an eligible distribution to a do-
electronic disclosure by the Department of (a) CASH OR DEFERRED ARRANGEMENTS.— mestic abuse victim if such distribution is
Labor (with the exception of section Section 401(k)(14) of the Internal Revenue from an applicable eligible retirement plan
2520.104b-1(c) of title 29, Code of Federal Reg- Code of 1986 is amended by adding at the end to an individual and made during the 1-year
ulations), the Secretary of Labor shall, not the following new subparagraph: period beginning on any date on which the
later than December 31, 2022, update such ‘‘(C) EMPLOYEE CERTIFICATION.—In deter- individual is a victim of domestic abuse by a
guidance to the extent necessary to ensure mining whether a distribution is upon the spouse or domestic partner.
that— hardship of an employee, the administrator ‘‘(II) DOMESTIC ABUSE.—The term ‘domestic
(A) a participant or beneficiary under such of the plan may rely on a certification by the abuse’ means physical, psychological, sexual,
a plan is permitted the opportunity to re- employee that the distribution is on account emotional, or economic abuse, including ef-
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quest that any disclosure required to be de- of a financial need of a type that is deemed forts to control, isolate, humiliate, or in-
livered on paper under applicable guidance in regulations prescribed by the Secretary to timidate the victim, or to undermine the
by the Department of Labor shall be fur- be an immediate and heavy financial need victim’s ability to reason independently, in-
nished by electronic delivery; and that such distribution is not in excess of cluding by means of abuse of the victim’s
(B) each paper statement furnished under the amount required to satisfy such financial child or another family member living in the
such a plan pursuant to the amendment shall need.’’. household.
include— (b) 403(b) PLANS.— ‘‘(iv) TREATMENT OF PLAN DISTRIBUTIONS.—
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March 29, 2022 CONGRESSIONAL RECORD — HOUSE H3937
‘‘(I) IN GENERAL.—If a distribution to an in- not be treated as an eligible rollover dis- to be an affiliated service group, or to no
dividual would (without regard to clause (ii)) tribution. longer be in an affiliated service group, such
be an eligible distribution to a domestic ‘‘(III) DISTRIBUTIONS TREATED AS MEETING change shall be treated as a transaction to
abuse victim , a plan shall not be treated as PLAN DISTRIBUTION REQUIREMENTS; SELF-CER- which section 410(b)(6)(C) applies.’’.
failing to meet any requirement of this title TIFICATION.—Any distribution which the em- (c) EFFECTIVE DATE.—The amendments
merely because the plan treats the distribu- ployee or participant certifies as being an el- made by this section shall apply to plan
tion as an eligible distribution to a domestic igible distribution to a domestic abuse vic- years beginning on or after the date of the
abuse victim, unless the aggregate amount tim shall be treated as meeting the require- enactment of this Act.
of such distributions from all plans main- ments of sections 401(k)(2)(B)(i), SEC. 320. AMENDMENTS TO INCREASE BENEFIT
tained by the employer (and any member of 403(b)(7)(A)(i), 403(b)(11), and 457(d)(1)(A).’’. ACCRUALS UNDER PLAN FOR PRE-
any controlled group which includes the em- (b) EFFECTIVE DATE.—The amendments VIOUS PLAN YEAR ALLOWED UNTIL
ployer) to such individual exceeds the limi- made by this section shall apply to distribu- EMPLOYER TAX RETURN DUE DATE.
tation under clause (ii). tions made after the date of the enactment (a) IN GENERAL.—Section 401(b) of the In-
‘‘(II) CONTROLLED GROUP.—For purposes of of this Act. ternal Revenue Code of 1986 is amended by
subclause (I), the term ‘controlled group’ SEC. 319. REFORM OF FAMILY ATTRIBUTION adding at the end the following new para-
means any group treated as a single em- RULES. graph:
ployer under subsection (b), (c), (m), or (o) of (a) CONTROLLED GROUPS.—Section 414(b) of ‘‘(3) RETROACTIVE PLAN AMENDMENTS THAT
section 414. the Internal Revenue Code of 1986 is amend- INCREASE BENEFIT ACCRUALS.—If—
‘‘(v) AMOUNT DISTRIBUTED MAY BE REPAID.— ed— ‘‘(A) an employer amends a stock bonus,
‘‘(I) IN GENERAL.—Any individual who re- (1) by striking ‘‘For purposes of’’ and in- pension, profit-sharing, or annuity plan to
ceives a distribution described in clause (i) serting the following: increase benefits accrued under the plan ef-
may, at any time during the 3-year period ‘‘(1) IN GENERAL.—For purposes of’’, and fective for the preceding plan year (other
beginning on the day after the date on which (2) by adding at the end the following new than increasing the amount of matching con-
such distribution was received, make one or paragraphs: tributions (as defined in subsection
more contributions in an aggregate amount ‘‘(2) SPECIAL RULES FOR APPLYING FAMILY (m)(4)(A))),
not to exceed the amount of such distribu- ATTRIBUTION.—For purposes of applying the ‘‘(B) such amendment would not otherwise
tion to an applicable eligible retirement plan attribution rules under section 1563 with re- cause the plan to fail to meet any of the re-
of which such individual is a beneficiary and spect to paragraph (1), the following rules quirements of this subchapter, and
to which a rollover contribution of such dis- apply: ‘‘(C) such amendment is adopted before the
tribution could be made under section 402(c), ‘‘(A) Community property laws shall be time prescribed by law for filing the return
403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), as disregarded for purposes of determining own- of the employer for a taxable year (including
the case may be. ership. extensions thereof) during which such
‘‘(II) LIMITATION ON CONTRIBUTIONS TO AP- ‘‘(B) Except as provided by the Secretary, amendment is effective,
PLICABLE ELIGIBLE RETIREMENT PLANS OTHER stock of an individual not attributed under the employer may elect to treat such amend-
THAN IRAs.—The aggregate amount of con- section 1563(e)(5) to such individual’s spouse ment as having been adopted as of the last
tributions made by an individual under sub- shall not be attributed to such spouse by rea- day of the plan year in which the amend-
clause (I) to any applicable eligible retire- son of section 1563(e)(6)(A). ment is effective.’’.
ment plan which is not an individual retire- ‘‘(C) Except as provided by the Secretary, (b) EFFECTIVE DATE.—The amendments
ment plan shall not exceed the aggregate in the case of stock in different corporations made by this section shall apply to plan
amount of eligible distributions to a domes- that is attributed to a child under section years beginning after December 31, 2023.
tic abuse victim which are made from such 1563(e)(6)(A) from each parent, and is not at- SEC. 321. RETROACTIVE FIRST YEAR ELECTIVE
plan to such individual. Subclause (I) shall tributed to such parents as spouses under DEFERRALS FOR SOLE PROPRI-
not apply to contributions to any applicable section 1563(e)(5), such attribution to the ETORS.
eligible retirement plan which is not an indi- child shall not by itself result in such cor- (a) IN GENERAL.—Section 401(b)(2) of the In-
vidual retirement plan unless the individual porations being members of the same con- ternal Revenue Code of 1986 is amended by
is eligible to make contributions (other than trolled group. adding at the end the following: ‘‘In the case
those described in subclause (I)) to such ap- ‘‘(3) PLAN SHALL NOT FAIL TO BE TREATED AS of an individual who owns the entire interest
plicable eligible retirement plan. SATISFYING THIS SECTION.—If the application in an unincorporated trade or business, and
‘‘(III) TREATMENT OF REPAYMENTS OF DIS- of paragraph (2) causes two or more entities who is the only employee of such trade or
TRIBUTIONS FROM APPLICABLE ELIGIBLE RE- to be a controlled group, or to no longer be business, any elective deferrals (as defined in
TIREMENT PLANS OTHER THAN IRAS.—If a con- in a controlled group, such change shall be section 402(g)(3)) under a qualified cash or
tribution is made under subclause (I) with treated as a transaction to which section deferred arrangement to which the preceding
respect to an eligible distribution to a do- 410(b)(6)(C) applies.’’. sentence applies, which are made by such in-
mestic abuse victim from an applicable eligi- (b) AFFILIATED SERVICE GROUPS.—Section dividual before the time for filing the return
ble retirement plan other than an individual 414(m)(6)(B) of such Code is amended— of such individual for the taxable year (de-
retirement plan, then the taxpayer shall, to (1) by striking ‘‘OWNERSHIP.—In deter- termined without regard to any extensions)
the extent of the amount of the contribu- mining’’ and inserting the following: ‘‘OWN- ending after or with the end of the plan’s
tion, be treated as having received such dis- ERSHIP.— first plan year, shall be treated as having
tribution in an eligible rollover distribution ‘‘(i) IN GENERAL.—In determining’’, and been made before the end of such first plan
(as defined in section 402(c)(4)) and as having (2) by adding at the end the following new year.’’.
transferred the amount to the applicable eli- clauses: (b) EFFECTIVE DATE.—The amendment
gible retirement plan in a direct trustee to ‘‘(ii) SPECIAL RULES FOR APPLYING FAMILY made by this section shall apply to plan
trustee transfer within 60 days of the dis- ATTRIBUTION.—For purposes of applying the years beginning after the date of the enact-
tribution. attribution rules under section 318 with re- ment of this Act.
‘‘(IV) TREATMENT OF REPAYMENTS FOR DIS- spect to clause (i), the following rules apply: SEC. 322. LIMITING CESSATION OF IRA TREAT-
TRIBUTIONS FROM IRAS.—If a contribution is ‘‘(I) Community property laws shall be dis- MENT TO PORTION OF ACCOUNT IN-
made under subclause (I) with respect to an regarded for purposes of determining owner- VOLVED IN A PROHIBITED TRANS-
eligible distribution to a domestic abuse vic- ship. ACTION.
tim from an individual retirement plan, ‘‘(II) Except as provided by the Secretary, (a) IN GENERAL.—Section 408(e)(2)(A) of the
then, to the extent of the amount of the con- stock of an individual not attributed under Internal Revenue Code of 1986 is amended by
tribution, such distribution shall be treated section 318(a)(1)(A)(i) to such individual’s striking ‘‘such account ceases to be an indi-
as a distribution described in section spouse shall not be attributed by reason of vidual retirement account’’ and inserting the
408(d)(3) and as having been transferred to section 318(a)(1)(A)(ii) to such spouse from a following: ‘‘the amount involved (as defined
the applicable eligible retirement plan in a child who has not attained the age of 21 in section 4975(f)(4)) in such transaction shall
direct trustee to trustee transfer within 60 years. be treated as distributed to the individual’’.
days of the distribution. ‘‘(III) Except as provided by the Secretary, (b) CONFORMING AMENDMENTS.—
‘‘(vi) DEFINITION AND SPECIAL RULES.—For in the case of stock in different corporations (1) Section 408(e)(2)(B) of such Code is
purposes of this subparagraph: that is attributed under section amended to read as follows:
‘‘(I) APPLICABLE ELIGIBLE RETIREMENT 318(a)(1)(A)(ii) to a child who has not at- ‘‘(B) ACCOUNT TREATED AS DISTRIBUTING PO-
PLAN.—The term ‘applicable eligible retire- tained the age of 21 years from each parent, TION OF ASSETS USED IN PROHIBITED TRANS-
ment plan’ means an eligible retirement plan and is not attributed to such parents as ACTION.—In any case in which a portion of an
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(as defined in section 402(c)(8)(B)) other than spouses under section 318(a)(1)(A)(i), such at- individual retirement account is treated as
a defined benefit plan. tribution to the child shall not by itself re- distributed under subparagraph (A) as of the
‘‘(II) EXEMPTION OF DISTRIBUTIONS FROM sult in such corporations being members of first day of any taxable year, paragraph (1)
TRUSTEE TO TRUSTEE TRANSFER AND WITH- the same affiliated service group. of subsection (d) applies as if there were a
HOLDING RULES.—For purposes of sections ‘‘(iii) PLAN SHALL NOT FAIL TO BE TREATED distribution on such first day in an amount
401(a)(31), 402(f), and 3405, an eligible dis- AS SATISFYING THIS SECTION.—If the applica- equal to the fair market value of such por-
tribution to a domestic abuse victim shall tion of clause (ii) causes two or more entities tion, determined as of the date on which the
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H3938 CONGRESSIONAL RECORD — HOUSE March 29, 2022
transaction prohibited by section 4975 oc- (b) CLERICAL AMENDMENTS.— TIREMENT PLANS AND ACCOUNTS.—Section
curs.’’. (1) Section 408(o)(5)(A) of such Code is 2203(c)(2)(B)(i) of the CARES Act is amend-
(A) by striking ‘‘ALL ITS ASSETS.—In any amended by striking ‘‘subsection (b)’’ and in- ed—
case’’ and all that follows through ‘‘by rea- serting ‘‘section 219(b)’’. (i) by striking ‘‘January 1, 2022’’ in sub-
son of subparagraph (A)’’ and inserting the (2) Section 72(t)(2)(H)(vi)(IV) of such Code clause (II) and inserting ‘‘January 1, 2024’’,
following: ‘‘PORTION OF ASSETS USED IN PRO- is amended by striking ‘‘403(b)(7)(A)(ii)’’ and and
HIBITED TRANSACTION.—In any case in which inserting ‘‘ 403(b)(7)(A)(i)’’. (ii) by striking ‘‘substituting ‘2024’ for
a portion of an individual retirement ac- TITLE V—ADMINISTRATIVE PROVISIONS ‘2022’.’’ in the flush matter at the end and in-
count is treated as distributed under sub- SEC. 501. PROVISIONS RELATING TO PLAN serting ‘‘substituting ‘2026’ for ‘2024’.’’.
paragraph (A)’’, and AMENDMENTS. (C) TAXPAYER CERTAINTY AND DISASTER TAX
(B) by striking ‘‘all assets in the account’’ (a) IN GENERAL.—If this section applies to RELIEF ACT OF 2020.—Section 302(d)(2)(A) of
and inserting ‘‘such portion’’. any retirement plan or contract amend- the Taxpayer Certainty and Disaster Tax Re-
(2) Section 4975(c)(3) of such Code is amend- ment— lief Act of 2020 is amended by striking ‘‘Jan-
ed by striking ‘‘the account ceases’’ and all (1) such retirement plan or contract shall uary 1, 2022’’ in clause (ii) and inserting
that follows and inserting the following: be treated as being operated in accordance ‘‘January 1, 2024’’.
‘‘the portion of the account used in the with the terms of the plan during the period TITLE VI—REVENUE PROVISIONS
transaction is treated as distributed under described in subsection (b)(2)(A); and SEC. 601. SIMPLE AND SEP ROTH IRAS.
paragraph (2)(A) or (4) of section 408(e).’’. (2) except as provided by the Secretary of
(c) EFFECTIVE DATE.—The amendments (a) IN GENERAL.—Section 408A of the Inter-
the Treasury (or the Secretary’s delegate),
made by this section shall apply to taxable nal Revenue Code of 1986 is amended by
such retirement plan shall not fail to meet
years beginning after the date of the enact- striking subsection (f).
the requirements of section 411(d)(6) of the (b) RULES RELATING TO SIMPLIFIED EM-
ment of this Act. Internal Revenue Code of 1986 and section
SEC. 323. REVIEW OF PENSION RISK TRANSFER PLOYEE PENSIONS.—
204(g) of the Employee Retirement Income (1) CONTRIBUTIONS.—Section 402(h)(1) of
INTERPRETIVE BULLETIN.
Security Act of 1974 by reason of such
Not later than 1 year after the date of en- such Code is amended by striking ‘‘and’’ at
amendment.
actment of this Act, the Secretary of Labor the end of subparagraph (A), by striking the
(b) AMENDMENTS TO WHICH SECTION AP-
shall— PLIES.—
period at the end of subparagraph (B) and in-
(1) review section 2509.95–1 of title 29, Code (1) IN GENERAL.—This section shall apply to serting ‘‘, and’’, and by adding at the end the
of Federal Regulations (relating to the fidu- any amendment to any retirement plan or following new subparagraph:
ciary standards under the Employee Retire- annuity contract which is made— ‘‘(C) in the case of any contributions pur-
ment Income Security Act of 1974 when se- (A) pursuant to any amendment made by suant to a simplified employer pension
lecting an annuity provider for a defined this Act or pursuant to any regulation issued which are made to an individual retirement
benefit pension plan) to determine whether by the Secretary of the Treasury or the Sec- plan designated as a Roth IRA, such con-
amendments to such section are warranted; retary of Labor (or a delegate of either such tribution shall not be excludable from gross
and Secretary) under this Act; and income.’’.
(2) report to Congress on the findings of (B) on or before the last day of the first (2) DISTRIBUTIONS.—Section 402(h)(3) of
such review, including an assessment of any plan year beginning on or after January 1, such Code is amended by inserting ‘‘, or sec-
risk to participants. 2024, or such later date as the Secretary of tion 408A(d) in the case of an individual re-
TITLE IV—TECHNICAL AMENDMENTS the Treasury may prescribe. tirement plan designated as a Roth IRA’’ be-
SEC. 401. AMENDMENTS RELATING TO SETTING In the case of a governmental plan (as de- fore the period at the end.
EVERY COMMUNITY UP FOR RETIRE- fined in section 414(d) of the Internal Rev- (3) ELECTION REQUIRED.—Section 408(k) of
MENT ENHANCEMENT ACT OF 2019. enue Code of 1986), or an applicable collec- such Code is amended by redesignating para-
(a) TECHNICAL AMENDMENTS.— tively bargained plan, this paragraph shall graphs (7), (8), and (9) as paragraphs (8), (9),
(1) AMENDMENTS RELATING TO SECTION 103.— be applied by substituting ‘‘2026’’ for ‘‘2024’’. and (10), respectively, and by inserting the
(A) Section 401(k)(12)(G) of the Internal For purposes of the preceding sentence, the after paragraph (6) the following new para-
Revenue Code of 1986 is amended by striking term ‘‘applicable collectively bargained graph:
‘‘the requirements under subparagraph plan’’ means a plan maintained pursuant to ‘‘(7) ROTH CONTRIBUTION ELECTION.—An in-
(A)(i)’’ and inserting ‘‘the contribution re- 1 or more collective bargaining agreements dividual retirement plan which is designated
quirements under subparagraph (B) or (C)’’. between employee representatives and 1 or as a Roth IRA shall not be treated as a sim-
(B) Section 401(k)(13)(D)(iv) of such Code is more employers ratified before the date of plified employee pension under this sub-
amended by striking ‘‘and (F)’’ and inserting enactment of this Act. section unless the employee elects for such
‘‘and (G)’’. (2) CONDITIONS.—This section shall not plan to be so treated (at such time and in
(C) Section 401(m)(12) of such Code is apply to any amendment unless— such manner as the Secretary may pro-
amended by striking ‘‘and’’ at the end of sub- (A) during the period— vide).’’.
paragraph (A), by redesignating subpara- (i) beginning on the date the legislative or (c) RULES RELATING TO SIMPLE RETIREMENT
graph (B) as subparagraph (C), and by insert- regulatory amendment described in para- ACCOUNTS.—
ing after subparagraph (A) (as so amended) graph (1)(A) takes effect (or in the case of a (1) ELECTION REQUIRED.—Section 408(p) of
the following new subparagraph: plan or contract amendment not required by such Code is amended by adding at the end
‘‘(B) meets the notice requirements of sub- such legislative or regulatory amendment, the following new paragraph:
section (k)(13)(E), and’’. the effective date specified by the plan); and ‘‘(11) ROTH CONTRIBUTION ELECTION.—An in-
(2) AMENDMENT RELATING TO SECTION 112.— (ii) ending on the date described in para- dividual retirement plan which is designated
Section 401(k)(15)(B)(i)(II) of such Code is graph (1)(B) (as modified by the second sen- as a Roth IRA shall not be treated as a sim-
amended by striking ‘‘subsection (m)(2)’’ and tence of paragraph (1)) (or, if earlier, the ple retirement account under this subsection
inserting ‘‘paragraphs (2), (11), and (12) of date the plan or contract amendment is unless the employee elects for such plan to
subsection (m)’’. adopted), be so treated (at such time and in such man-
(3) AMENDMENT RELATING TO SECTION 114.— the plan or contract is operated as if such ner as the Secretary may provide).’’.
Section 401(a)(9)(C)(iii) of such Code is plan or contract amendment were in effect; (2) ROLLOVERS.—Section 408A(e) of such
amended by striking ‘‘employee to whom and Code is amended by adding at the end the
clause (i)(II) applies’’ and inserting ‘‘em- (B) such plan or contract amendment ap- following new paragraph:
ployee (other than an employee to whom plies retroactively for such period. ‘‘(3) SIMPLE RETIREMENT ACCOUNTS.—In the
clause (i)(II) does not apply by reason of (c) COORDINATION WITH OTHER PROVISIONS case of any payment or distribution out of a
clause (ii))’’. RELATING TO PLAN AMENDMENTS.— simple retirement account (as defined in sec-
(4) AMENDMENT RELATING TO SECTION 116.— (1) SECURE ACT.—Section 601(b)(1) of the tion 408(p)) with respect to which an election
Section 4973(b) of such Code is amended by Setting Every Community Up for Retire- has been made under section 408(p)(11) and to
adding at the end of the flush matter the fol- ment Enhancement Act of 2019 is amended— which 72(t)(6) applies, the term ‘qualified
lowing: ‘‘Such term shall not include any (A) by striking ‘‘January 1, 2022’’ in sub- rollover contribution’ shall not include any
designated nondeductible contribution (as paragraph (B) and inserting ‘‘January 1, payment or distribution paid into an account
defined in subparagraph (C) of section 2024’’, and other than another simple retirement ac-
408(o)(2)) which does not exceed the non- (B) by striking ‘‘substituting ‘2024’ for count (as so defined).’’.
deductible limit under subparagraph (B) ‘2022’.’’ in the flush matter at the end and in- (d) COORDINATION WITH ROTH CONTRIBUTION
thereof by reason of an election under sec- serting ‘‘substituting ‘2026’ for ‘2024’.’’. LIMITATION.—Section 408A(c) of such Code is
dlhill on DSK120RN23PROD with HOUSE
tion 408(o)(5).’’. (2) CARES ACT.— amended by adding at the end the following
(5) EFFECTIVE DATE.—The amendments (A) SPECIAL RULES FOR USE OF RETIREMENT new paragraph:
made by this subsection shall take effect as FUNDS.—Section 2202(c)(2)(A) of the CARES ‘‘(7) COORDINATION WITH LIMITATION FOR
if included in the section of the Setting Act is amended by striking ‘‘January 1, 2022’’ SIMPLE RETIREMENT PLANS AND SEPS.—In the
Every Community Up for Retirement En- in clause (ii) and inserting ‘‘January 1, 2024’’. case of an individual on whose behalf con-
hancement Act of 2019 to which the amend- (B) TEMPORARY WAIVER OF REQUIRED MIN- tributions are made to a simple retirement
ment relates. IMUM DISTRIBUTIONS RULES FOR CERTAIN RE- account or a simplified employee pension,
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March 29, 2022 CONGRESSIONAL RECORD — HOUSE H3939
the amount described in paragraph (2)(A) (b) CONFORMING AMENDMENTS.— secure retirement by expanding cov-
shall be increased by an amount equal to the (1) Section 402(g)(1) of such Code is amend- erage and increasing retirement sav-
contributions made on the individual’s be- ed by striking subparagraph (C). ings, simplifying the current retire-
half to such account or pension for the tax- (2) Section 457(e)(18)(A)(ii) of such Code is
able year, but only to the extent such con-
ment system and protecting Ameri-
amended by inserting ‘‘the lesser of any des-
tributions— ignated Roth contributions made by the par- cans’ retirement accounts.
‘‘(A) in the case of a simplified retirement ticipant to the plan or’’ before ‘‘the applica- Retirement security has consistently
account— ble dollar amount’’. been one of my top priorities as chair-
‘‘(i) do not exceed the sum of the dollar (c) EFFECTIVE DATE.—The amendments man of the Committee on Ways and
amount in effect for the taxable year under made by this section shall apply to taxable Means. Too many workers in this Na-
section 408(p)(2)(A)(ii) and the employer con- years beginning after December 31, 2022. tion reach retirement age without hav-
tribution required under subparagraph SEC. 604. OPTIONAL TREATMENT OF EMPLOYER ing the savings they need. In fact—and
(A)(iii) or (B)(i), as the case may be, of sec- MATCHING CONTRIBUTIONS AS
I hope people will listen to this num-
tion 408(p)(2), and ROTH CONTRIBUTIONS.
‘‘(ii) do not cause the elective deferrals (as (a) IN GENERAL.—Section 402A(a) of the In- ber—it is estimated that up to 50 per-
defined in section 402(g)(3)) on behalf of such ternal Revenue Code of 1986 is amended by cent of the individuals in America who
individual to exceed the limitation under redesignating paragraph (2) as paragraph (3), go to work every single day do not
section 402(g)(1) (taking into account any ad- by striking ‘‘and’’ at the end of paragraph have enrollment in a qualified retire-
ditional elective deferrals permitted under (1), and by inserting after paragraph (1) the ment plan. That means those house-
section 414(v)), or following new paragraph: holds are at risk of not having enough
‘‘(B) in the case of a simplified employee ‘‘(2) any designated Roth contribution to maintain their living standards in
pension, do not exceed the limitation in ef- which is made by the employer to the pro- retirement.
fect under section 408(j).’’. gram on the employee’s behalf, and on ac-
(e) CONFORMING AMENDMENT.—Section We need to do more to encourage
count of the employee’s contribution, elec-
408A(d)(2)(B) of such Code is amended by in- tive deferral, or (subject to the requirements
workers to begin planning for retire-
serting ‘‘, or employer in the case of a simple of section 401(m)(13)) qualified student loan ment earlier and we need to make sav-
retirement account (as defined in section payment, shall be treated as a matching con- ing considerably easier.
408(p)) or simplified employee pension (as de- tribution for purposes of this chapter, except Last Congress, Mr. BRADY and I
fined in section 408(k)),’’ after ‘‘individual’s that such contribution shall not be exclud- worked together on a bipartisan basis
spouse’’. able from gross income, and’’. to do that by enacting the SECURE
(f) EFFECTIVE DATE.—The amendments (b) MATCHING INCLUDED IN QUALIFIED ROTH
made by this section shall apply to taxable
Act, one of the most significant retire-
CONTRIBUTION PROGRAM.—Section 402A(b)(1) ment bills to become law in well over a
years beginning after December 31, 2022. of such Code is amended—
SEC. 602. HARDSHIP WITHDRAWAL RULES FOR decade.
(1) by inserting ‘‘, or to have made on the
403(b) PLANS. Thanks to the SECURE Act, 4 mil-
employee’s behalf,’’ after ‘‘elect to make’’,
(a) IN GENERAL.—Section 403(b) of the In-
and
lion more Americans are now able to
ternal Revenue Code of 1986, as amended by save for retirement through their em-
(2) by inserting ‘‘, or of matching contribu-
the preceding provisions of this Act, is ployers, and as many as 700,000 new re-
tions which may otherwise be made on the
amended by adding at the end the following tirement accounts will be formed.
new paragraph: employee’s behalf,’’ after ‘‘otherwise eligible
to make’’. Last year, we built on this progress
‘‘(16) SPECIAL RULES RELATING TO HARDSHIP
(c) DESIGNATED ROTH MATCHING CONTRIBU- with the passage into law, my legisla-
WITHDRAWALS.—For purposes of paragraphs
TIONS.—Section 402A(c)(1) of such Code is tion, the Butch Lewis Act. After years
(7) and (11)—
amended by inserting ‘‘or matching con- of fighting for a solution to the multi-
‘‘(A) AMOUNTS WHICH MAY BE WITHDRAWN.—
tribution’’ after ‘‘elective deferral’’.
The following amounts may be distributed
(d) MATCHING CONTRIBUTION DEFINED.—Sec-
employer pension crisis, the Butch
upon hardship of the employee: Lewis Act saved multiemployer pen-
tion 402A(e) of such Code is amended by add-
‘‘(i) Contributions made pursuant to a sal- sion plans from insolvency and secured
ing at the end the following:
ary reduction agreement (within the mean- the financial future of over a million
‘‘(3) MATCHING CONTRIBUTION.—The term
ing of section 3121(a)(5)(D)).
‘‘(ii) Qualified nonelective contributions
‘matching contribution’ means— workers and retirees who have played
(as defined in section 401(m)(4)(C)).
‘‘(A) any matching contribution described by the rules and made responsible sav-
in section 401(m)(4)(A), and ings decisions. Think of that and cou-
‘‘(iii) Qualified matching contributions de-
scribed in section 401(k)(3)(D)(ii)(I). ‘‘(B) any contribution to an eligible de- ple it with what we are about to do
‘‘(iv) Earnings on any contributions de- ferred compensation plan (as defined in sec- today with the guarantee of Social Se-
scribed in clause (i), (ii), or (iii). tion 457(b)) by an eligible employer described
in section 457(e)(1)(A) on behalf of an em-
curity, and we will help to improve the
‘‘(B) NO REQUIREMENT TO TAKE AVAILABLE opportunity for members of American
LOAN.—A distribution shall not be treated as
ployee and on account of such employee’s
elective deferral under such plan.’’. families to have a secure retirement.
failing to be made upon the hardship of an Madam Speaker, but more work
employee solely because the employee does (e) EFFECTIVE DATE.—The amendments
not take any available loan under the plan.’’. made by this section shall apply to contribu- needs to be done. That is why I am
(b) CONFORMING AMENDMENTS.— tions made after the date of the enactment pleased the H.R. 2954, the Securing a
(1) Section 403(b)(7)(A)(i)(V) of such Code is of this Act. Strong Retirement Act of 2022, is be-
amended by striking ‘‘in the case of con- TITLE VII—BUDGETARY EFFECTS fore us today.
tributions made pursuant to a salary reduc- SEC. 701. DETERMINATION OF BUDGETARY EF- This bipartisan legislation—and by
tion agreement (within the meaning of sec- FECTS. bipartisan, let me thank Mr. BRADY
tion 3121(a)(5)(D))’’ and inserting ‘‘subject to The budgetary effects of this Act, for the again for his good work on this legisla-
the provisions of paragraph (16)’’. purpose of complying with the Statutory tion as well—will expand automatic en-
(2) Paragraph (11) of section 403(b) of such Pay-As-You-Go Act of 2010, shall be deter-
mined by reference to the latest statement
rollment in 401(k) plans by requiring
Code, as amended by the preceding provi-
sions of this Act, is amended— titled ‘‘Budgetary Effects of PAYGO Legisla- 401(k), 403(b), and SIMPLE plans to
(A) by striking ‘‘in’’ in subparagraph (B) tion’’ for this Act, submitted for printing in automatically enroll participants upon
and inserting ‘‘subject to the provisions of the Congressional Record by the Chairman of becoming eligible, with the ability for
paragraph (16), in’’, and the House Budget Committee, provided that employees to opt out of coverage—
(B) by striking the penultimate sentence. such statement has been submitted prior to which I think, by the way, is not the
(c) EFFECTIVE DATE.—The amendments the vote on passage. best idea, but we do provide that op-
made by this section shall apply to plan The SPEAKER pro tempore. Pursu- tion. Expansion of automatic enroll-
years beginning after December 31, 2022.
ant to the order of the House today, ment will significantly increase par-
SEC. 603.
ELECTIVE DEFERRALS GENERALLY
LIMITED TO REGULAR CONTRIBU- the gentleman from Massachusetts ticipation in retirement savings plans
TION LIMIT. (Mr. NEAL) and the gentleman from at work.
(a) APPLICABLE EMPLOYER PLANS.—Section Texas (Mr. BRADY) each will control 40 H.R. 2954 also enhances the start-up
414(v)(1) of the Internal Revenue Code of 1986 minutes. credit, making it easier for small busi-
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is amended by adding at the end the fol- The Chair recognizes the gentleman nesses to sponsor a retirement plan.
lowing: ‘‘Except in the case of an applicable And the legislation increases the re-
employer plan described in paragraph
from Massachusetts.
(6)(A)(iv), the preceding sentence shall only Mr. NEAL. Madam Speaker, I yield quired minimum distribution age to 75
apply if contributions are designated Roth myself such time as I may consume. and indexes the catch-up contribution
contributions (as defined in section Madam Speaker, H.R. 2954 will help limit for individual retirement ac-
402A(c)(1)).’’. all Americans successfully save for a counts. These changes will make it
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H3940 CONGRESSIONAL RECORD — HOUSE March 29, 2022
easier for American families to prepare ment system. And today, we will do selves making more at the end of their
for a financially secure retirement. even more. careers and are more open to focusing
On a related note, I think it is impor- A recent AARP survey found that ris- on retirement. Those already in retire-
tant to highlight that U.S. defined con- ing prices are taking a big toll on ment often worry about the effects of
tribution plans have created a unique workers, making it difficult to cover mandatory taxable distributions on
reservoir of capital in the innovation everyday expenses or save for the fu- their long-term financial plans.
economy. Retirement plans are invest- ture. In fact, with a 40-year high infla- Another recent study by Edward
ing in areas such as tech, financial tion, nearly a quarter of workers sur- Jones and Morning Consult found 57
services, digital commerce, and veyed reported that their financial sit- percent of Americans who prioritize
biotech. That means that workers’ re- uation is worse today than it was last paying off a student loan are now be-
tirement assets are directly tying mid- year. hind on their schedule on saving for re-
dle-class workers to our national inno- A study also found that nearly 40 per- tirement. Our bill allows employers to
vation economy. That certainly is a cent of workers said that they have no essentially match their workers’ stu-
win-win for all of us. emergency savings, with one out of five dent loan repayments with contribu-
Madam Speaker, I am really pleased reporting they have nothing saved for tions to the workers’ retirement plan.
that Ranking Member BRADY and I retirement. Nothing. This means from workers struggling
were able to come together on a bipar- b 1615 to make ends meet under crushing stu-
tisan basis to develop this important dent debt and rising prices, they are
legislation. Once again, it passed the Both groups peg rising prices of ev- able to tackle both, paying off their
Committee on Ways and Means unani- eryday goods as the biggest barrier for debt and getting help in working to-
mously. Our efforts have resulted in an planning for their financial future. ward a secure retirement.
excellent product that has broad sup- Ensuring Americans have the re- Madam Speaker, I want to thank
port from organizations representing sources they need for a prosperous re- Chairman NEAL and the members of
diverse interests, including retirees, tirement is a bipartisan priority. And the Ways and Means Committee from
charitable organizations, financial with American families’ paychecks both parties for their long-term and
services providers, police officers, falling further behind through rising diligent efforts. Together, we will en-
small businesses, and employers. The prices, it has really never been more sure more hardworking Americans are
list of specific supporters is too long to important for Congress to help workers confident in their retirement.
read but we can start with the Amer- get back on track with their retire- Madam Speaker, I reserve the bal-
ican Red Cross, AARP, and many oth- ment plans. ance of my time.
ers, which we will submit for the With this bill we build on the land- Mr. NEAL. Madam Speaker, I yield 1
RECORD. Hundreds of groups have en- mark provisions in the SECURE Act, minute to the gentleman from Cali-
dorsed this plan. enabling more workers, especially fornia (Mr. THOMPSON), a real cham-
Let’s work together to expand retire- those with low income and modest in- pion of retirement savings.
ment savings in America. come, to begin saving earlier and giv- Mr. THOMPSON of California.
Madam Speaker, I urge my col- ing them piece of mind as they plan for Madam Speaker, I thank Chairman
leagues to support this legislation, and the future. NEAL and Ranking Member BRADY for
I reserve the balance of my time. Our bill, SECURE 2.0 improves work- their hard work on this important
Mr. BRADY. Madam Speaker, I yield ers’ long-term financial wellbeing by piece of legislation.
myself such time as I may consume. helping more Americans save for re- The Securing a Strong Retirement
Madam Speaker, I am pleased to join tirement at every stage of their life. Act of 2021 is bipartisan legislation
with my friend, Chairman RICH NEAL, SECURE 2.0 contains more than 20 pro- that gives workers the tools they need
in jointly reintroducing SECURE 2.0, visions sponsored or cosponsored by to retire with the financial stability
which will help hardworking Ameri- Republicans and Democrats in stand- they deserve and worked so hard to ob-
cans approach retirement with both alone legislation. tain.
confidence and dignity. By providing flexibility, for example, Importantly, this legislation allows
For 5 years now, members of the we make it easier for local businesses individuals to pay down a student loan
Committee on Ways and Means have to tailor retirement plans to best fit instead of contributing to a 401(k) plan
worked tirelessly together to ensure the needs of their workers. These re- while still receiving an employer
Americans have the resources to save forms help Americans not only save match in their retirement plan.
for a secure retirement. A lot of hard earlier in their careers, but helps fami- I have heard from thousands of indi-
work and negotiation has gotten us to lies save longer as well. viduals in my district who are facing
this point, and I am grateful to Chair- We expand access to workplace re- an overwhelming amount of student
man NEAL for his commitment to get tirement by increasing the incentives loan debt. These are people who are
this bill across the finish line to the for businesses, especially small busi- struggling to start their careers while
President’s desk. nesses, to create new plans or join also trying to pay off their loans. The
It is important to remember how far groups of plans while sharing the cost SECURE Act provides the opportunity
we have come in our joint efforts to of administration. to make payments on their student
help Americans better prepare for their To further help small businesses loans now while also investing in their
long-term financial goals. Following shoulder the burden of creating a new future.
the historic rewrite of our Tax Code plan, our bill matches employer con- I am proud to support this legislation
with the Tax Cuts and Jobs Act, Re- tributions with the new business tax that we are hearing today, and I thank
publicans moved toward building on credit. That can help a small business you for this great bipartisan bill that
this success for years to come. match up to the first $1,000 in match- you have put before us.
That happened when the Republicans ing contributions for that work. Mr. BRADY. Madam Speaker, I yield
and Democrats worked together to de- For those Americans who are further 1 minute to the gentleman from Ne-
velop and enact the Setting Every along in their career or already in re- braska (Mr. SMITH), the Republican
Community Up for Retirement En- tirement, this bill raises the amount leader of the Trade Subcommittee.
hancement Act, known as the SECURE these workers can contribute to catch Mr. SMITH of Nebraska. Madam
Act, the most significant retirement up on their retirement savings as they Speaker, I am glad we are finally con-
legislation to become law in over a dec- near retirement, doubling it to $10,000 a sidering SECURE 2.0, which will help
ade. year. Because we want Americans to every American family save. The Sav-
We made it easier for Main Street save throughout their lifetime, to- ers Credit improvements in this bill
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businesses to offer retirement plans to gether we increase the age at which re- will help low-income families start
their workers by easing administrative tirement plan distributions become putting aside money for the future,
burdens, cutting down on unnecessary mandatory to age 75 over time from 72 certainly a key to getting out of pov-
and often costly paperwork. today. erty.
The SECURE Act made significant These changes are especially impor- The enhanced credit for small em-
improvements to our country’s retire- tant because many workers find them- ployers offering retirement plans will
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March 29, 2022 CONGRESSIONAL RECORD — HOUSE H3941
help more businesses offer plans, an the reality of what did inflation do to This bill includes two key provisions
important factor in recruiting and re- the cost of future retirement? The tax- that I was proud to work on, Retire-
taining talent. ation on, really, gain, that isn’t pur- ment Parity for Student Loans Act and
New tools—like allowing employers chasing power, but is inflation. This is the Public Service Retirement Fair-
to match workers’ student loan repay- a terrific first step and it is neat to ness Act.
ments with retirement contributions— have us do something together. The Retirement Parity for Student
eliminate the need for young workers Mr. NEAL. Madam Speaker, I yield 1 Loans Act allows workers to make stu-
to choose between paying their debt or minute to the gentleman from Wis- dent loan payments while receiving
saving for retirement. consin (Mr. KIND), another real cham- employer matching contributions into
Provisions like enhanced catch-up pion of retirement savings. their retirement plan. This will allow
contributions and delaying required Mr. KIND. Madam Speaker, I rise in individuals to pay down student loan
minimum distributions until age 75 strong support of Securing a Strong debt and save for retirement at the
will help older workers have more con- Retirement Act, or SECURE 2.0, as it is same time.
trol as they near retirement. This is a being referred to. This falls on the The Public Service Retirement Fair-
strong package for savers of all ages. heels of passage of the SECURE Act ness Act creates parity between the
Madam Speaker, I thank the chair- roughly 2 years ago, to try to make it public and private sectors, ensuring
man and the ranking member for their easier for individuals to save for their public-sector and nonprofit retirement-
efforts to get this to the floor and I retirement security, especially for saving programs have the same access
certainly urge support. small businesses to offer retirement to low-cost investments as private sec-
Mr. NEAL. Madam Speaker, I yield 1 savings plans for their employees, tor retirement plans.
minute to the gentleman from Con- which has traditionally been a big SECURE 2.0 supports workers at all
necticut (Mr. LARSON), a real champion black hole when it comes to individual stages to save for retirement, helps
of retirement savings, including all savings. small businesses create retirement
things Social Security. I am proud that a few of the provi- plan options, and builds on bipartisan
Mr. LARSON of Connecticut. Madam sions in this legislation have been success of the SECURE Act passed last
Speaker, I thank Chairman NEAL and based on legislation I have been work- Congress.
Leader BRADY—what an outstanding ing on throughout the years with my Madam Speaker, I want to thank my
example of bipartisan cooperation. But friend and colleague from Pennsyl- colleagues that worked in a bipartisan
especially as it relates to what has vania (Mr. KELLY). We offered legisla- effort for their work on this vital legis-
amounted to a financial retirement cri- tion that would extend the startup tax lation, and I urge my colleagues to
sis, this clearly will help aid in the credit to small employers that joined vote ‘‘yes’’.
work that has already been done by multiemployer plans. Mr. NEAL. Madam Speaker, I yield 1
Chairman NEAL with regard to both the Again, with Mr. KELLY, this allows minute to the gentlewoman from Cali-
SECURES Act and the Butch Lewis 403(b) plans to participate in MEPS, in- fornia (Ms. CHU), another real cham-
Act, but this even adds more flexibility cluding pooled employer plans, or pion of retirement savings.
and also provides an automatic oppor- PEPS, as they are known under the Ms. CHU. Madam Speaker, I rise in
tunity for people to put money for- SECURE Act. strong support of H.R. 2954, the Secur-
ward. Finally, there has been an anomaly ing a Strong Retirement Act. This bill
I went to the Aetna School of Insur- in the tax code that we are addressing continues the work the Ways and
ance and they said there are three legs in part trying to make it easier for S Means Committee began 2 years ago
on this table: personal savings, pen- corporations to be able to convert to with the SECURE Act to expand access
sion, and Social Security. This helps an ESOP model, or an employee share to retirement savings and enhance re-
address the pension issue as no one ownership plan. It is a very good busi- tirement readiness for millions of
can. Again, I want to commend Mr. ness model, but we are trying to bring Americans across the country.
NEAL and Mr. BRADY for their efforts, that on par with C corporations. I am especially proud of provisions
and point out that we have another leg The SPEAKER pro tempore. The drawn from my bill, the Encouraging
on that stool that is called Social Se- time of the gentleman has expired. Americans to Save Act, that strength-
curity that Congress hasn’t addressed Mr. NEAL. Madam Speaker, I yield ens the Saver’s Credit. This credit pro-
in more than 50 years. I commend the an additional 30 seconds to the gen- vides millions of low- and middle-in-
chairman as we go through the process tleman. come taxpayers with an incentive to
of markup on that as well. Mr. KIND. This has been a great bi- save for retirement each year. But cur-
Mr. BRADY. Madam Speaker, I yield partisan effort in committee. Again, I rently it is split into three tiers of 10,
1 minute to the gentleman from Ari- thank the chairman and the ranking 20, or 50 percent.
zona (Mr. SCHWEIKERT). member for creating the environment This legislation not only directs the
Mr. SCHWEIKERT. Madam Speaker, not just with today’s legislation, but IRS to promote the credit to more
it is neat to see us actually have some- the previous SECURE Act that we communities, including those with lim-
thing that we are all doing together. passed roughly 2 years ago, and the on- ited English proficiency, but also
A bit of trivia, at the end of this dec- going work that we will have. makes it both simpler and more gen-
ade, 22 percent of our population will My friend from Arizona is right, with erous by setting it at 50 percent for all
be 65 or older. Retirement security is— 70 million baby boomers beginning eligible taxpayers.
besides just the moral imperative—it is their massive retirement, we have to Madam Speaker, I urge a ‘‘yes’’ vote
going to be the financial, it is going to figure out ways to make it easier for on this bill.
be the driver of almost all sovereign individuals to save for their own retire- Mr. BRADY. Madam Speaker, I yield
debt. ment and for future generations to par- 1 minute to the gentleman from Kansas
Look, there are a couple dozen provi- ticipate and get a head start. I believe (Mr. ESTES).
sions in this legislation, and in many this legislation accomplishes that. Mr. ESTES. Madam Speaker, today I
ways they look like tinkering, but they Mr. BRADY. Madam Speaker, I yield rise in support of SECURE 2.0. Since
come together. If you happen to have a 11⁄2 minutes to the gentleman from Illi- my time as Kansas State Treasurer and
profession where you have a mandatory nois (Mr. LAHOOD). a member of the Ways and Means Com-
retirement age that might be 60, 65, the Mr. LAHOOD. Madam Speaker, I rise mittee, increased retirement security
ability to do catch-up—to be a small today in support of SECURE 2.0. As a for Americans of all ages has been a
business and knowing what you can member of the Ways and Means Com- major policy priority for me.
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contribute to your 401(k) when you are mittee, I thank Chairman NEAL and Building on our great success with
doing your taxes instead of trying to Ranking Member BRADY for their bi- the SECURE Act in 2019, SECURE 2.0
guess at the end of the year—these partisan work on this legislation that includes a number of provisions for new
things all come together. will help workers save for retirement employees and near-retirees, like my
We are also going to have to look for- at all stages of their career and protect bill to improve the required minimum
ward in the coming year and deal with American futures. distribution rules, and my bill that
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H3942 CONGRESSIONAL RECORD — HOUSE March 29, 2022
would make it easier for employees to Mr. BRADY. Madam Speaker, I am proves the lives of our veterans and
save for retirement and pay off their proud to yield 1 minute to the gen- their families.
student loans. tleman from Pennsylvania (Mr. When servicemembers change base
Employers who are part of an em- KELLY). assignments, their spouses often relo-
ployee stock ownership plan—like the Mr. KELLY of Pennsylvania. Madam cate with them, putting their own ca-
Kansas workers I have talked to at In- Speaker, I think we should mark this reers at stake and on hold. The SE-
land Truck Parts, Conco, and others— down, March 29, 2022, the day that the CURE Act prioritizes military family
benefit from the bipartisan ESOP pro- people who were elected and came to retirements by providing a tax credit
visions in SECURE 2.0. represent our folks back home actually for small employers that make more
The bill also ensures public-sector got together and did something on the benefit plans available for military
and nonprofit retirement programs House floor that was good for every- spouses.
have the same access to low-cost re- body in America. Incentivizing job creators to hire and
tirements, just like for-profit retire- We are not firing bullets back and retain military spouses is an important
ment plans. forth at each other. We are saying: Do step to strengthening military family
It allows individuals who have de- you know what? Isn’t it great, when we retirement savings.
cided to pay down a student loan in- work together, what we can get done. I am proud of the bipartisan effort by
stead of contributing to a 401(k) to still Mr. KIND and I were walking over to- the Ways and Means Committee to lead
receive an employee match for their re- gether, and he said: MIKE, I am really the charge to support our military
tirement plans. happy this happened because there is a families, who so often face many uphill
These commonsense retirement secu- lot in there that we both worked on, challenges in attaining retirement se-
rity reforms deserve to be law, and I and it looks like it is going to put a lit- curity. We must always fight for those
strongly encourage my colleagues to tle more gold in our retirees’ pockets who have given us so much to keep our
vote ‘‘yes’’ on SECURE 2.0. when they hit their golden years. safety.
But this is one thing the press will Mr. NEAL. Madam Speaker, I con-
b 1630
never cover. They will never say: My tinue to reserve the balance of my
Mr. NEAL. Madam Speaker, I am God, these Republicans and Democrats time.
pleased to yield 1 minute to the gen- got together for American workers to Mr. BRADY. Madam Speaker, first, I
tleman from California (Mr. PANETTA), make sure that they go into retirement include in the RECORD a number of let-
another real champion of Social Secu- and lay their heads on pillows at night ters and documents in support of SE-
rity and retirement. and sleep because they know they have CURE 2.0.
Mr. PANETTA. Madam Speaker, I enough to get through the rest of their Among a litany of letters advocating
rise in support of H.R. 2954, the SE- lives. for swift passage, there are four I
CURE 2.0. What a moment. What a moment. would like to include. These letters are
This bipartisan legislation would I have to tell you, I am so proud to be led by the Employee-owned S Corpora-
make it easier for something that has a part of this. I thank Mr. BRADY and tions of America, the American Bene-
been getting harder and harder, saving Mr. NEAL. fits Council, the American Retirement
for retirement for workers and working For both sides of the aisle, why don’t Association, and the Investment Com-
families. we use this as an example as we move pany Institute, all of which were in-
I commend the chairman and the forward as to what the heck we are valuable members in crafting this bi-
ranking member for their very, very supposed to do for the people who sent partisan legislation.
hard work, and I thank them for in- us here to represent them? EMPLOYEE-OWNED
cluding two of my bipartisan bills in The SPEAKER pro tempore. The S CORPORATIONS OF AMERICA,
SECURE 2.0. time of the gentleman has expired. Washington, DC, March 24, 2022.
My Public Service Retirement Fair- Mr. BRADY. Madam Speaker, I yield Hon. RICHARD NEAL,
ness Act ensures that retirement sav- an additional 30 seconds to the gen- Chairman, Committee on Ways & Means,
ings programs for nonprofits and the tleman. Washington, DC.
public sector have the same access to Mr. KELLY of Pennsylvania. Madam Hon. KEVIN BRADY,
low-cost investments as private-sector Speaker, I thank Kara Getz, from Ranking Member, Committee on Ways & Means,
plans. Washington, DC.
Chairman NEAL’s staff, and Payson DEAR CHAIRMAN NEAL AND RANKING MEM-
This bill would greatly benefit many Peabody, from Ranking Member BER BRADY: Employee-Owned S Corporations
teachers and nonprofit employees who BRADY’s staff, for working together on of America (‘‘ESCA’’) applauds your efforts
serve in my district and also have to this. They get so little credit for all to advance the bipartisan Securing a Strong
spend an inordinate amount on housing the midnight oil they burn to make Retirement Act. We are particularly sup-
by providing them access to affordable sure that we can get legislation done. I portive of the inclusion of a key provision re-
retirement plans. thank them so much, not just for me flecting themes of legislation introduced by
My Family Attribution Moderniza- but for all the retirees and future retir- Committee members Ron Kind and Jason
tion Act, which I worked on with my Smith to encourage the creation of more pri-
ees we have in this country. vate, employee-owned businesses. We thank
good friend, JODEY ARRINGTON, is also Mr. NEAL. Madam Speaker, might I you for recognizing the value of S corpora-
included in SECURE 2.0. inquire of the ranking member how tion ESOPs to worker retirement savings,
This bill would modernize outdated many more speakers he might have. and for reflecting that recognition in your
family attribution rules so that Mr. BRADY. Madam Speaker, I have important legislation.
women-owned businesses and other a few more. ESCA is the national voice for employee-
small businesses in community prop- Mr. NEAL. Madam Speaker, I reserve owned S corporations, and its exclusive mis-
erty States, like California, have more the balance of my time. sion is to preserve and promote employee-
flexibility and independence. Mr. BRADY. Madam Speaker, I am owned S corporations and the benefits pro-
vided to their employee-owners. Most S cor-
The SPEAKER pro tempore. The really proud to yield 1 minute to the poration employee stock ownership plans (‘‘S
time of the gentleman has expired. gentleman from North Carolina (Mr. ESOPS’’) are 100-percent owned by their em-
Mr. NEAL. Madam Speaker, I yield MURPHY). ployees. Our S ESOP companies engage in a
the gentleman an additional 30 sec- Mr. MURPHY of North Carolina. broad spectrum of business activities rang-
onds. Madam Speaker, I rise today in support ing from manufacturing to construction to
Mr. PANETTA. Madam Speaker, of SECURE Act 2.0. playing critical supporting roles such as re-
these bills, along with many, many When our military members pledge a tail grocery stores and other essential func-
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other provisions in this bipartisan leg- commitment to the United States, we tions to America’s infrastructure.
As you know well, S corporation ESOPs
islation, are commonsense solutions promise, in return, to care for them
were created 25 years ago with significant bi-
for the futures and the retirements of and their families. As the proud Rep- partisan support from Congress. Today S
working families. That is why, Madam resentative of close to 90,000 veterans ESOPs accomplish exactly what Congress in-
Speaker, I urge a ‘‘yes’’ vote for SE- in North Carolina, I am committed to tended: they create jobs, generate economic
CURE 2.0. supporting strong legislation that im- activity, and promote retirement savings.
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March 29, 2022 CONGRESSIONAL RECORD — HOUSE H3943
Both specifically for S ESOP employees AMERICAN RETIREMENT ASSOCIATION, to pay off student loans. The latest version
and more generally, your bill will increase Arlington, VA, March 28, 2022. of this program addresses a problem that
retirement savings opportunities at a time Re Letter of Support for the Securing a ARA identified about the impact this new re-
when more than 30 percent of Americans do Strong Retirement Act of 2022. tirement plan design feature could have with
Hon. RICHARD NEAL, the special test that applies to 401(k) plans
not have access to a workplace retirement
Chairman, Ways & Means Committee, called the average deferral percentage (ADP)
plan and 20 percent of Americans have no re- test. Since that problem has been fixed in
tirement savings at all. By contrast, we House of Representatives, Washington, DC.
Hon. BOBBY SCOTT, this bill, small businesses will now not have
note, the vast majority of S ESOP companies to worry that this benefit puts their retire-
Chairman, Education & Labor Committee,
offer their workers two retirement plans— ment plan testing at risk.
House of Representatives, Washington, DC.
typically the ESOP plus a 401(k). This focus While the SSRA has many good provisions,
Hon. KEVIN BRADY,
on retirement security is a hallmark of em- it is not perfect. The ARA remains concerned
Ranking Member, Ways & Means Committee,
ployee-owned companies. about the provision in the bill (Section 314)
House of Representatives, Washington, DC.
that would require at least one participant
A new study conducted by the National Hon. VIRGINIA FOXX,
benefit statement be mailed in a paper for-
Center for Employee Ownership found that, Ranking Member, Education & Labor Com-
mat given the impact on the environment as
mittee,
heading into and during the pandemic, em- well as plan and participant costs. ARA sup-
House of Representatives, Washington, DC.
ployees at S ESOP companies had greater ports the provision that would direct the De-
DEAR CHAIRMAN NEAL, RANKING MEMBER
job retention and retirement security, in- partment of Labor, Treasury, and the Pen-
BRADY, CHAIRMAN SCOTT, AND RANKING MEM-
cluding more than twice the average total sion Benefit Guaranty Corporation to issue a
BER FOXX: On behalf of the over 30,000 mem-
retirement savings of Americans who work report recommending ways to consolidate,
bers of the American Retirement Association
simplify, standardize, and improve the var-
at non-ESOP companies. (ARA), we hereby express our support for the
ious retirement plan disclosure require-
We appreciate you recognizing the value of Securing a Strong Retirement Act of 2022.
ments. The ARA will continue to work with
We commend you for championing this im-
having more S corporation ESOP companies Congress on ways to ensure retirement plan
portant piece of bipartisan retirement legis-
and look forward to working with you to participants are effectively accessing the re-
lation.
continue to identify more ways to enable quired disclosures.
The ARA is the coordinating entity for its But on balance the Securing a Strong Re-
more working Americans to be employee- five underlying affiliate organizations rep- tirement Act of 2022 builds upon the success
owners. resenting the full spectrum of America’s pri- of the workplace-based retirement system
Thank you for your leadership. vate retirement system—the American Soci- and is yet another example of the extensive
Sincerely, ety of Enrolled Actuaries (ASEA), the Amer- history of bipartisan legislating in this crit-
STEPHANIE SILVERMAN, ican Society of Pension Professionals and ical policy area. The ARA thanks Chairman
President and CEO. Actuaries (ASPPA), the National Associa- Neal, Ranking Member Brady, Chairman
tion of Plan Advisors (NAPA), the National Scott, and Ranking Member Foxx for your
Tax-Deferred Savings Association (NTSA), hard work and results to improve and en-
DEAR PAIGE: I am writing on behalf of the and the Plan Sponsor Council of America hance the retirement savings of the Amer-
American Benefits Council to express our (PSCA). The ARA’s members include organi- ican workforce and would urge Congress to
support for bipartisan retirement security zations of all sizes and industries across the enact this bill into law.
legislation that will soon be considered on nation who sponsor and/or support retire- Sincerely,
ment saving plans and are dedicated to ex- BRIAN H. GRAFF, Esq. APM,
the floor of the U.S. House of Representa-
panding on the success of employer-spon- Executive Director/CEO,
tives. This important legislation follows in sored plans. The ARA and its underlying af-
the tradition of the Setting Every Commu- American Retirement Association.
filiate organizations are diverse but united
nity Up for Retirement Enhancement (SE- in their common dedication to the success of INVESTMENT COMPANY INSTITUTE,
CURE) Act of 2019. America’s private retirement system. Washington, DC, March 28, 2022.
The forthcoming ‘‘SECURE 2.0’’ bill re- The Securing a Strong Retirement Act of Re. Securing a Strong Retirement Act of
flects a thoroughness and thoughtfulness 2022 (SSRA) builds upon the success of the 2022.
Setting Every Community Up for Retire-
that provides enormous value to the Amer- Hon. RICHARD NEAL,
ment Enhancement (SECURE) Act to make
ican worker by expanding access to work- it even easier for small businesses to adopt Chairman, Committee on Ways and Means,
place retirement plans and removing bar- and maintain a workplace-based retirement House of Representatives, Washington, DC.
riers to financial well-being. We have re- savings plan. The SSRA further increases Hon. KEVIN BRADY,
cently completed a study of the enormously the small employer pension plan start-up Ranking Member, Committee on Ways and
beneficial impact of the past 25 years of bi- credit to cover 100 percent of the cost to Means,
small employers to implement a 401(k) plan House of Representatives, Washington, DC.
partisan retirement legislation:
for the first three years. The SSRA creates Hon. BOBBY SCOTT,
Millions of Americans are facing short- Chairman, Committee on Education and Labor,
an additional new credit to encourage small
term challenges that need critical attention. employers to make direct contributions to House of Representatives, Washington, DC.
But it is also important to continue our their 401(k) plan for their employees, offset- Hon. VIRGINIA FOXX,
work on enhancing retirement security be- ting up to $1,000 of these employer contribu- Ranking Member, Committee on Education and
cause of the harmful effect of the pandemic tions for each participating employee. Labor
on savings and retirement programs, which The SSRA contains several policy items House of Representatives, Washington, DC.
DEAR CHAIRMEN NEAL AND SCOTT AND
were facing challenges even before the pan- championed by the American Retirement As-
RANKING MEMBERS BRADY AND FOXX: On be-
demic. As we rebuild our economy, part of sociation. The first item gives employers
half of the Investment Company Institute
that effort needs to include even greater at- more time to adopt beneficial discretionary
(ICI), I commend your leadership on the bi-
tention to the role of retirement programs retirement plan amendments up until the
partisan Securing a Strong Retirement Act
due date of the employer’s tax return. This
that have been jeopardized. We look forward of 2022 or SECURE Act 2.0, which would ex-
new deadline to adopt a beneficial discre-
to continued progress in the field of retire- pand access to retirement savings plans and
tionary amendment is consistent with the
ment security and stand ready to assist in improve Americans’ ability to save.
deadline to adopt a new retirement plan that The ICI urges the House of Representatives
those efforts. was provided for in the SECURE Act. This to pass this landmark bipartisan bill as soon
LYNN DUDLEY, provision gives employers with existing re- as possible and work with the Senate on a
Senior Vice President, tirement plans the flexibility to make their unified package of retirement-savings re-
Global Retirement 401(k) plans more generous to rank and files forms.
and Compensation workers after the end of the year. The second The ICI notes that the bill would:
Policy, American item corrects and modernizes the outdated Allow savers to keep their retirement sav-
Benefits Council. and unfair family attribution rules to ensure ings invested longer by increasing the age
DIANN HOWLAND, women business owners are not penalized if for required minimum distributions from re-
Vice President, Legis- they happen to have minor children or live tirement accounts to 75 from 72;
lative Affairs, Amer- in a community property state. A third item Ensure that workers get the same ‘‘bang
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ican Benefits Coun- would broaden the scope of the SECURE for their buck’’ for their retirement saving
cil. Act’s pooled employer plan or open multiple efforts over time by indexing individual re-
employer plan provisions to allow unrelated tirement account (IRA) catch-up contribu-
public education and other non-profit em- tion limits to inflation;
ployers to join a single 403(b) plan. Broaden the ability of employers of various
The SSRA also creates a retirement plan sizes, across different industries to band to-
matching program to encourage employees gether in a new type of multiple-employer
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H3944 CONGRESSIONAL RECORD — HOUSE March 29, 2022
retirement plan—called a ‘‘pooled employer inclusion of the Legacy IRA Act in the bipar- AARP,
plan’’ or ‘‘PEP’’—created by the original SE- tisan Securing a Strong Retirement Act March 28, 2022.
CURE Act; (H.R. 2954, section 310). The Legacy IRA Act Hon. RICHARD NEAL,
Streamline and clarify information retire- was originally introduced as H.R. 2909 by Chair, Committee on Ways and Means, Wash-
ment savers receive concerning increasingly Representatives Don Beyer (D–VA–08) and ington, DC.
popular target date funds by allowing use of Mike Kelly (R–PA–16). Hon. ROBERT SCOTT,
a single benchmark for the funds that more Chair, House Committee on Education and
appropriately tracks its asset allocation; We appreciate you placing a priority on Labor, Washington, DC.
Allow employer matching contributions families in America who are saving for re- Hon. KEVIN BRADY,
based on student loan payments; and tirement and simplifying the retirement sys- Ranking Member, Committee on Ways and
Simplify and clarify more than a dozen re- tem through the broader Securing a Strong Means, Washington, DC.
tirement plan rules. Retirement Act. Specifically, the Legacy Hon. VIRGINIA FOXX,
We hope that the legislation can be further IRA provision will encourage more chari- Ranking Member, House Committee on Edu-
improved by allowing 403(b) plans to invest table giving by enabling seniors to make tax- cation and Labor, Washington, DC.
in collective investment trusts. free contributions from their traditional DEAR CHAIRS NEAL AND SCOTT, RANKING
We wholeheartedly support these provi- MEMBERS BRADY AND FOXX:
IRAs to charities through life-income plans.
sions and believe your legislation is vitally On behalf of our 38 million members and
It is an important piece of broader efforts to
important to the country and the financial all older Americans nationwide, AARP ap-
well-being of millions of Americans. SE- increase charitable giving to enable non- preciates your leadership to improve retire-
CURE Act 2.0 would strengthen our nation’s profits to continue to provide critical serv- ment savings opportunities via the Securing
retirement-savings system by expanding cov- ices in local communities such as health re- a Strong Retirement Act of 2022. While So-
erage, further increasing savings opportuni- search and patient education, food assist- cial Security continues to be the bedrock of
ties, and streamlining administrative rules. ance, domestic violence services, childcare, retirement income for most American work-
We look forward to seeing its enactment into youth homeless shelters, and cultural and ers and their families, individuals want and
law. arts programming. need additional retirement income sources.
Sincerely, Your bipartisan legislation would make sev-
Many of our organizations are dependent
ERIC J. PAN, eral significant enhancements to current
on private philanthropy, including gift plan-
President & CEO, law.
ning. We believe the Legacy IRA provision AARP strongly supports the provision in
Investment Company Institute.
simply offers seniors another philanthropic this bill that would provide an annual paper
Mr. BRADY. Madam Speaker, I re- option and would incentivize more giving to statement of benefits to ensure families
serve the balance of my time. help charities while helping middle-income know where they stand when saving for re-
Mr. NEAL. Madam Speaker, we are seniors who need a lifetime income. tirement. As the U.S. increasingly relies on
waiting on one more speaker. If Mr. We strongly support the inclusion of the individual account-based retirement savings,
BRADY has anybody else he wants to Legacy IRA Act in the Securing a Strong Re- workers and their families must timely un-
thank, that would be great. derstand, monitor, and manage their life-
tirement Act and urge the House of Rep-
I reserve the balance of my time. time savings. Full and meaningful disclosure
resentatives to approve this measure. Amer-
Mr. BRADY. Actually, never make is critical to individual planning and pension
ica is stronger when everyone has the oppor- law generally. As such, to be effective, Con-
that offer to a sitting Member of Con- tunity to give, to get involved, and to gress needs to ensure all workers and plan
gress. strengthen their communities. participants will receive and can review im-
Madam Speaker, I yield myself such Sincerely, portant retirement plan documents in the
time as I may consume. ALS Association, Alternate ROOTS, Alz- form that most workers and families want.
This has been awfully good work on heimer’s Association, American Alliance of No document is more fundamental than an
behalf of the bipartisan Members of Museums, American Cancer Society Cancer individual’s annual benefit statement. AARP
Congress on an issue they believe in. Action Network, American Council on Gift also supports the optional delivery—and re-
But Chairman NEAL and I are both Annuities, American Heart Association, tention—of important information electroni-
blessed to have incredibly hardworking American Lung Association, American Red cally.
The Securing a Strong Retirement Act
personnel, a professional team. Cross, Americans for the Arts, Arab Commu- also takes important steps towards improv-
Madam Speaker, I thank Payson Pea- nity Center for Economic and Social Serv- ing worker access to retirement plans. Under
body and Derek Theurer, from our tax ices (ACCESS), Association of Art Museum this bill, more people who work part-time
subcommittee team, for the work that Directors, Association of Fundraising Profes- will be able to enroll in their employers’ re-
they put in, along with Chairman sionals, Big Brothers Big Sisters of America, tirement savings plans by allowing them to
NEAL’s folks, to develop this legisla- Boys & Girls Clubs of America, Catalyst of save after only two (rather than three) years
tion, fine-tune the legislation, make San Diego & Imperial Counties, Council for of employment. More than 27 million em-
adjustments as it comes to the floor, Advancement and Support of Education, ployees across the country work less than
Council for Christian Colleges & Univer- full-time. This provision will be especially
and, again, put it in the format and helpful to the many older workers who can
sities, Council on Foundations, Covenant
with the right designs that we think only find part-time work or need to work
House International, DANCE/USA, Florida
will do great things for the American Philanthropic Network, Girl Scouts of the part-time due to caregiving responsibilities.
people and American workers. USA, Girls Inc., Goodwill Industries Inter- In addition, employers with more than ten
Madam Speaker, I reserve the bal- national, Inc., Grantmakers in the Arts, employees would be required to automati-
ance of my time. Habitat for Humanity International, Hemo- cally enroll workers in new retirement sav-
Mr. NEAL. Madam Speaker, I include ings plans under this bill. This provision will
philia Federation of America.
in the RECORD a letter that has been help many employees benefit from auto-
Independent Sector, JDRF, Jewish Federa- matic savings tools.
signed by 50 different charities in sup- tions of North America, Leadership 18, For workers who are struggling to save for
port of this legislation. League of American Orchestras, Lutheran retirement, the bill expands the current
MARCH 27, 2022. Services in America, March of Dimes, Men- SAVERS tax credit to provide an enhanced
Hon. RICHARD NEAL, tal Health America, Momentum Nonprofit matching contribution to millions of addi-
Chair, Ways and Means Committee, Partners, National Alliance on Mental Ill- tional low- and moderate-income families.
House of Representatives. ness, National Association of Charitable Gift The matching contribution is both an incen-
Hon. BOBBY SCOTT, Planners, National Community Action Part- tive for individuals to save for retirement
Chair, Education & Labor Committee, while also providing additional retirement
nership, National MS Society, New York
House of Representatives. funds.
Funders Alliance, OPERA America, Per-
Hon. KEVIN BRADY, Additionally, the creation of a national re-
forming Arts Alliance, Philanthropy Ohio, tirement Lost and Found database will help
Ranking Member, Ways and Means Committee,
House of Representatives. Philanthropy Southeast, Providence, Social workers locate retirement accounts they
Hon. VIRGINIA FOXX, Current, The Nonprofit Alliance, The Salva- may have had with previous employers. This
Ranking Member, Education & Labor Com- tion Army USA, Theatre Communications is increasingly important as more and more
Group, UNICEF USA, United Philanthropy
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mittee, workers change jobs several times over the
House of Representatives. Forum, Volunteers of America, Wabash Col- course of their careers. The legislation also
DEAR CHAIRMEN NEAL AND SCOTT AND lege, YMCA of the USA, YWCA USA. establishes limitations and safeguards for re-
RANKING MEMBERS BRADY AND FOXX: On be- tirees who may have mistakenly received
half of the undersigned nonprofits, including Mr. NEAL. Madam Speaker, I also in- plan overpayments, including allowing a re-
charities and faith-based organizations, we clude in the RECORD a letter from the tirement plan to forego recouping the over-
want to express our strong support for the AARP supporting this legislation. payment. Finally, we urge the retention of
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March 29, 2022 CONGRESSIONAL RECORD — HOUSE H3945
the pretax option for catch-up contributions mittee worked together beautifully on the period of service requirement for
to help the 50+ save for retirement. this bill. I think this is an important long-term part-time workers to par-
We look forward to continuing to work one that I urge the Senate to take up ticipate in 401(k) plans. This provision
with you to help every American adequately
save for retirement in order to be inde-
and pass as well. is particularly important for women
pendent as they age. Madam Speaker, I yield the balance who tend to work part-time more fre-
Sincerely, of my time to the gentleman from quently than men.
BILL SWEENEY, Georgia (Mr. ALLEN), and I ask unani- Mr. SUOZZI contributed legislation
Senior Vice President, mous consent that he may control the that would direct Treasury to issue
Government Affairs. remainder of the time. regulations addressing a glitch with re-
Mr. NEAL. Madam Speaker, I reserve The SPEAKER pro tempore. Is there spect to insurance-dedicated exchange-
the balance of my time. objection to the request of the gen- traded funds.
Mr. BRADY. Madam Speaker, I yield tleman from Texas? Mr. BEYER’s legislation is included.
myself such time as I may consume. There was no objection. That was important to the charitable
I think one of the things I am most Mr. NEAL. Madam Speaker, I yield community and would, among other
proud of in this legislation began al- myself such time as I may consume. things, index the inflation rate for an-
most 2 years ago. After the passage of Oftentimes in this Chamber, you will nual IRA charitable distribution lim-
the SECURE Act, Chairman NEAL and I hear the phrase ‘‘transformative.’’ its.
sat down on the floor talking about Sometimes it is hyperbolic, but on this The bill includes Representative
what more we could do to help people occasion, this is transformative legis- MOORE’s legislation that would provide
save for retirement. lation. penalty-free withdrawals from retire-
What we both talked about is what We have fundamentally changed the ment plans for individuals in case of
everyone knows exists, the savings gap, opportunities for retirement for the domestic abuse.
and what little is being done to address American family, for millions and mil- We have included Representative
it. This is the gap of how many Ameri- lions of people. I want to acknowledge EVANS’ legislation directing the Labor
cans will spend their lifetime and save the work of the ranking member on Department to update its disclosure
virtually nothing. When it is time to this, Mr. BRADY, because his input has rules to allow better comparisons
retire, their retirement isn’t in their been invaluable in helping to get to amongst investments to aid partici-
hands. It is all owed to government or this moment. pant decisionmaking.
other help. We are proud of this work. We are Finally, we have included Represent-
We decided we would do the hard helping Americans prepare for a secure ative PASCRELL’s legislation that
work to try to engage millions of retirement. The catch-up provisions would allow first responders to exclude
Americans. We know who they are. alone are startling in this legislation. service-connected disability pension
They don’t make lots of money. It is Remember, there are a lot of people plans and payments from their gross
low income or moderate income. They in America who are trying to simulta- income after they reach retirement
usually work for a very small business. neously educate their children and save age. That also touches upon Represent-
They are the toughest to be able to for retirement. It is a real challenge. ative HIGGINS’ ESOP Fairness Act.
begin getting into that savings envi- The catch-up provisions here mean
that if people wish to work longer or b 1645
ronment.
We designed this bill to really focus begin to set aside more prescribed dol- Mr. BRADY noted earlier, and let me
on those who have not saved in the lars for retirement because they reinforce, the exceptional work of the
past and, unless we do something dif- couldn’t do it during certain years of Ways and Means Committee staff on
ferently, were not going to be saving paying college expenses, we provide this occasion. As I have said many
for the future. that opportunity. times before, we are blessed with
That is why so much of this bill is de- This has been meaningful for Mem- amongst the brightest, smartest, and
signed around them. That is why we bers on both sides. I have heard Mem- hardest working staff members in Con-
help small businesses set up plans. bers on the Republican side point out gress. Let me thank MaiLan Rodgers
Here is what we know, Madam their contributions to it, and they are for her work and Kara Getz, who has
Speaker. To have a secure retirement, entirely correct. been integral to the development of not
we need to make sure a business offers We, on our side, have also included only this legislation but also the SE-
a plan. Mr. DAVIS’ legislation that ensures CURE Act and the Butch Lewis Act,
Secondly, we need to make sure that workers with student loans don’t miss both of which became law.
worker is part of that plan. out on 401(k) matching contributions. The SECURE Act was one of the
Thirdly, we need to have those con- Representative MURPHY’s legislation to most significant retirement opportuni-
tributions matched. increase the required minimum dis- ties, and this legislation will become
Fourthly, you need to save more over tribution age to 75 is here as well. law, I hope, in the near future. Let’s
time as your income increases. We created a higher catch-up con- not wait another decade to enact the
This bill really takes significant tribution amount for those years just important provisions of this legisla-
steps to make sure small businesses are before retirement, a provision particu- tion. This bill goes a long way in ad-
offering those plans and get help larly important for pilots who have a dressing this country’s retirement cri-
matching those first thousand dollars. mandatory retirement age. That was a sis.
We use the saver’s credit, which is priority of Representatives Sanchez I want to point out something I said
pretty unused these days, and muscle and Pascrell. earlier. Half the people who get up and
it up, make it more available to help Mr. KIND’s bills have been included. go to work every day in America are
those with low income provide those His legislation fixing a problem with not in a qualified retirement plan. We
first dollars. startup credits and multiple employer need to continue to address that issue.
Then, we make the changes so it is plans is here as well. This is important legislation. I know
easier for small businesses to either SECURE 2.0 contains Representative it will pass. I think the last time this
start their own plan or pool with oth- CHU’s legislation that would enhance legislation came to the floor, all but
ers, as we did in the SECURE Act, all the saver’s credit, which was also a pri- four Members of this Chamber voted
of which we think are the elements to ority for Representative SEWELL. for this legislation.
close that saver’s gap and give Ameri- We have included Representative PA- I thank Mr. BRADY, again, for his
cans who really had no chance to save NETTA’s legislation that provides 403(b) good work and the good work of his
dlhill on DSK120RN23PROD with HOUSE
an opportunity to do that. custodial accounts that are permitted staff.
That is what, in my view, is the im- to invest in collective investment Madam Speaker, I yield the balance
portance of this legislation, why I am trusts, as well as his legislation re- of my time to the gentleman from Vir-
proud of the work. forming family attribution rules. ginia (Mr. SCOTT), and I ask unanimous
Chairman NEAL and the Republican We have included Representative SE- consent that he be permitted to control
and Democrat members of our com- WELL’s legislation to reduce by 1 year the remainder of the time.
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H3946 CONGRESSIONAL RECORD — HOUSE March 29, 2022
The SPEAKER pro tempore. Is there message to workers and retirees across ers who otherwise would be limited
objection to the request of the gen- the country that their retirement secu- from participating in the employer
tleman from Massachusetts? rity is a critical priority for every plan. Removing barriers to saving en-
There was no objection. Member of this House. sures more Americans have a secure
Mr. SCOTT of Virginia. Madam Madam Speaker, I urge my col- and self-sufficient retirement. Red tape
Speaker, I yield myself such time as I leagues to support the bill, and I re- and unnecessary barriers must not
may consume. serve the balance of my time. keep employees from building a strong
Madam Speaker, I rise in support of Mr. ALLEN. Madam Speaker, I yield retirement.
H.R. 2954, the Securing a Strong Re- myself such time as I may consume. The RISE Act and H.R. 2954 also ease
tirement Act of 2022, which incor- Madam Speaker, I rise today in sup- the burden of administering retirement
porates the bipartisan Retirement Im- port of H.R. 2954, which includes the accounts by removing unnecessary dis-
provement and Savings Enhancement text of the Education and Labor Com- closure requirements. The legislation
Act, or RISE Act, that the Committee mittee’s bipartisan Retirement Im- directs the Department of Labor, De-
on Education and Labor approved by provement and Savings Enhancement partment of the Treasury, and the Pen-
voice vote last fall. Act, the RISE Act, H.R. 5891, a bill that sion Benefit Guaranty Corporation to
I thank the gentleman from Massa- I was proud to cosponsor with the dis- simplify reporting and disclosure regu-
chusetts (Mr. NEAL) for his hard work tinguished chairman of the Education lations, streamline the collection of
in incorporating this legislation into and Labor Committee and Ranking contributions to pooled employer
SECURE 2.0. Our committee was able Member FOXX. plans, and update benchmarking guide-
to reach a bipartisan agreement on the This bipartisan legislation is a much- lines to accommodate a broader selec-
RISE Act, thanks in large part to the needed push toward modernization that tion of plan investments.
leadership of the chairman and ranking our country’s retirement system needs. Importantly, retirement profes-
member of our Subcommittee on Our economy has evolved and so have sionals themselves are in support of
Health, Employment, Labor, and Pen- the ways Americans plan for retire- the RISE Act. Organizations like the
sions, the gentleman from California ment. American Benefits Council, the Insured
(Mr. DESAULNIER) and the gentleman Neither employers nor employee ben- Retirement Institute, the American
from Georgia (Mr. ALLEN). I want to efit plans fit into the same cookie-cut- Retirement Association, and the
recognize them and thank them for ter policies they did when the Em- SPARK Institute are supportive of this
their important contributions to this ployee Retirement Income Security legislation.
bill. Act of 1974 was first enacted. The RISE Workers and plan sponsors alike can
American workers deserve a decent Act and H.R. 2954 include reforms that see that the RISE Act will make com-
wage and the ability to retire with dig- will benefit America’s workforce and monsense reforms and improve the
nity and security. Unfortunately, far job creators. lives and futures of the American
too many Americans are working later Worker access to employer-sponsored worker. The RISE Act offers creative
in their lives and still relying on the retirement plans has improved over the and practical solutions to the problems
next paycheck to cover monthly ex- last three decades, and participation in our retirement system.
penses. This legislation makes mean- has grown. Today, more workers are As legislators, we must take action
ingful improvements to our retirement saving and saving more in employer- to tackle issues that affect the daily
system, helping Americans prepare for sponsored plans. lives of our constituents. As a business-
and achieve the secure retirement that However, there remains room for im- man, I know firsthand the issues that
they deserve. provement, as too many Americans are affecting American workers that
I am particularly pleased that this still lack access to these benefits. This can be improved upon.
bill incorporates several key priorities legislation is a major step toward pro- This legislation will improve the re-
authorized by Committee on Education viding reasonable solutions to solve the tirement security for millions of Amer-
and Labor members. problems hindering Americans from icans. I urge my colleagues to join in
For example, it includes legislation being able to save for a secure future. support, and I look forward to its pas-
sponsored by the gentlewoman from Building on the SECURE Act of 2019, sage in the House and for these reforms
Oregon (Ms. BONAMICI), the chair of the the RISE Act and H.R. 2954 expand to be ultimately signed into law.
Subcommittee on Civil Rights and multiple and pooled employer plans, Madam Speaker, I reserve the bal-
Human Services, which creates an on- giving charities, educational institu- ance of my time.
line retirement lost-and-found data- tions, and nonprofit organizations the Mr. SCOTT of Virginia. Madam
base at the Department of Labor to opportunity to offer affordable retire- Speaker, I yield 3 minutes to the gen-
help workers locate their hard-earned ment plans. Expanding pooled em- tlewoman from North Carolina (Ms.
retirement savings as they move from ployer plans give small businesses ac- MANNING), a distinguished member of
job to job. According to the Govern- cess to more affordable plans by allow- the Committee on Education and
ment Accountability Office, more than ing them to band together, decreasing Labor.
25 million people who changed jobs be- the costs and burdens associated with Ms. MANNING. Madam Speaker, I
tween 2004 and 2014 left behind one or sponsoring a plan and providing more thank Chairman SCOTT for yielding me
more retirement accounts. Estab- Americans with an opportunity to this time.
lishing this kind of database at the De- save. Madam Speaker, I rise in strong sup-
partment of Labor is necessary and Allowing small businesses and non- port of the Securing a Strong Retire-
long overdue. profits the opportunity to offer com- ment Act.
The bill includes legislation spon- petitive retirement plans so they can Today, too many workers face dif-
sored by the gentlewoman from North attract workers is extremely impor- ficulty saving for retirement. Even for
Carolina (Ms. MANNING) that reduces tant, as the labor shortage has hit those who have access to retirement
barriers preventing part-time workers them the hardest. plans, it can be difficult to grow and
from participating in their employer’s Additionally, the RISE Act and H.R. protect hard-earned savings.
retirement savings plans. This simple 2954 will allow employers to offer small There are roughly 55 million Ameri-
change will benefit many part-time financial incentives to employees for cans who lack access to a retirement
workers, particularly women. participating in a retirement plan. savings plan at work, with many lack-
It also includes legislation sponsored This will help encourage employees to ing any retirement savings at all. This
by the gentleman from Indiana (Mr. start preparing for retirement earlier is particularly true for women. Ap-
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MRVAN) requiring the Department of in their careers, which is vital for em- proximately 50 percent of women ages
Labor to review and update guidance ployee contributions to earn years of 55 to 66 have no personal retirement
from the mid-1990s regarding pension compounding benefits for their retire- savings, compared to 47 percent of men,
risk transfers. ment accounts. and only 22 percent of women have
Importantly, Madam Speaker, this Finally, this bill expands access to $100,000 or more in savings, compared
bill offers an opportunity to send a retirement savings for part-time work- to 30 percent of men.
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March 29, 2022 CONGRESSIONAL RECORD — HOUSE H3947
Women are also more likely than nesses, enabling more small businesses matic distributions by plans to partici-
men to work in part-time jobs that to offer retirement benefits and ensure pants which was last updated in 1997.
don’t qualify for a retirement plan and employees are not needlessly paying It streamlines the collection of con-
are more likely than men to quit work, higher fees. tributions to pooled employer plans
transfer jobs, or interrupt their careers I thank both the Committee on Edu- and updates benchmarking guidelines
to care for family members, resulting cation and Labor and the Committee to accommodate different investment
in lower retirement savings. on Ways and Means for including text products. The bill also adds tax incen-
This is why I am proud to have my from our bill in H.R. 2954. tives for small businesses that offer
bill, the Improving Part-Time Workers Madam Speaker, the Securing a employee stock ownership plans, a
Access to Retirement Act, included in Strong Retirement Act will enhance great tool and benefit for employees to
this important legislation. This provi- opportunities for Americans to save for have a stake with their employer.
sion will make it easier for long-term retirement. I urge all Members to sup- The Employee Retirement Income
part-time workers to access retirement port it. Security Act of 1974 set a foundation
by shortening the amount of time they for today’s policies, but the measure
b 1700 needs to be updated to reflect the 21st
are required to work for their employer
in order to participate in their 401(k) Mr. SCOTT of Virginia. Madam century workforce.
plan. This will have an important im- Speaker, I yield 3 minutes to the gen- I urge my colleagues to support this
pact on the ability of women and low- tleman from Indiana (Mr. MRVAN), a important measure and look forward to
wage workers to be able to save for re- distinguished member of the Com- this legislation becoming law.
mittee on Education and Labor. Mr. SCOTT of Virginia. Madam
tirement.
Mr. MRVAN. Madam Speaker, I Speaker, I yield 3 minutes to the gen-
As a member of the House Education
thank Chairman SCOTT for allowing me tleman from Oregon (Mr. BLU-
and Labor Committee and a strong sup-
the time. MENAUER), a distinguished member of
porter of college affordability, I am
I rise today in support of H.R. 2954, the Committee on Ways and Means and
also pleased that this legislation will
the Securing a Strong Retirement Act. chair of its Subcommittee on Trade.
allow borrowers the option to pay down Mr. BLUMENAUER. Madam Speaker,
their student loans while still receiving I am grateful for the bipartisan col-
laboration to produce this legislation I appreciate the chairman’s courtesy
an employer match in their retirement for permitting me to speak on this
plan. This commonsense approach to that makes commonsense improve-
ments to our Nation’s retirement sys- issue and his leadership on an issue
retirement savings will help the nearly that concerns us all.
46 million Americans facing student tem.
We are facing a retirement crisis in
loan debt become more financially sta- There are far too many challenges
this country. Too many people do not
ble while overcoming the barriers too today that prevent workers from hav-
have adequate resources. The aging
many in our country face upon grad- ing access to secure retirement bene-
population is exploding, and we have
uating, like advancing in their career, fits and information to protect their
seen financial uncertainty in the midst
buying a home, or starting a family. hard-earned savings.
of the COVID crisis, in particular.
SECURE 2.0 will help workers save I also appreciate the inclusion of the
I am pleased that we are able to come
more longer, improve flexibility and provisions of my legislation, the Pen-
together as a Congress on a bipartisan
protections for Americans’ retirement sion Risk Transfer Accountability Act,
basis to advance this legislation.
accounts, and eliminate some of the which requires the Department of Recently, we watched people come
barriers small businesses face in pro- Labor to review existing rules on pen- together dealing with trade relations
viding comprehensive retirement op- sion risk transfers. with Russia, ratcheting up sanctions
tions to their employees. A promise made should be a promise on a bipartisan basis, and this is an-
These are bipartisan, commonsense kept for all workers and retirees. other strong signal, I think.
provisions that will better serve work- I encourage all my colleagues to sup- I also appreciate Chairman NEAL for
ers and employers across our country. I port this legislation to further ensure his leadership in spearheading the SE-
strongly urge my colleagues to vote in that workers can retire with dignity, CURE 2.0 which takes the Oregon auto-
favor of this critical legislation. security, and peace of mind. enrollment model to the Federal level
Mr. ALLEN. Madam Speaker, I yield Mr. ALLEN. Madam Speaker, I yield and provides new incentives to promote
2 minutes to the gentleman from 2 minutes to the gentleman from Penn- and expand employee stock ownership
Michigan (Mr. WALBERG), my good sylvania (Mr. KELLER), another good plans, ESOPs.
friend. friend. I have long supported ESOPs as a
Mr. WALBERG. Madam Speaker, I Mr. KELLER. Madam Speaker, I successful model that provides a com-
rise in support of the Securing a thank the gentleman from Georgia. I pany’s workers with retirement sav-
Strong Retirement Act. rise in support of the Securing a ings through their investment in their
As an entire generation moves closer Strong Retirement Act. As part of the employee stock. I have been stunned at
to retirement, we must ensure our laws Education and Labor Committee, our the stories I have heard about people
are up to date to help Americans goal is to provide employers and em- who have what one would think are
achieve their retirement goals. ployees with opportunities to access a unexceptional jobs who, through this
Last Congress, we passed the SE- safe, effective, and productive work- mechanism, have been able to retire
CURE Act, which made significant im- place. with significant savings as a result.
provements to our Nation’s retirement We also work on policy that encour- Now, by giving employees skin in the
policies. Today, we are building upon ages people to save for retirement and game, the ESOP structure produces
that success to ensure Americans can provides opportunities for their fami- employees that are more likely to set
live their golden years with dignity. lies. This bill accomplishes both by im- aside money for retirement. They can
I would like to highlight one provi- proving employer-sponsored benefits to retire earlier and worry less about re-
sion of this bill, which incorporates a help workers make good decisions that tirement income.
bipartisan policy I have long cham- will serve them well in the future. The companies that use this mecha-
pioned with my colleague, Representa- The bill increases access to retire- nism are fundamentally different. We
tive SABLAN. Our provision will reduce ment accounts, lowers the cost of ad- have seen in times of economic strife,
the administrative costs for employers ministering programs for small busi- employee ESOP-owned companies are
sponsoring retirement plans for their nesses, and provides incentives for more generous with their employees.
employees. workers to voluntarily put money to- They are slower to lay people off, they
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Businesses often cite limited finan- wards savings. bring them back, and, in fact, they are
cial resources as a key reason for not It also requires the Department of more profitable.
offering retirement benefits. The Re- Labor to review existing reporting and It is an encouraging mechanism that
tirement Plan Modernization Act disclosure requirements, making them I think epitomizes the best of the
would ease the administrative burdens easier to comply with and understand, American ingenuity and the creation of
on employers, especially small busi- updates the dollar threshold for auto- wealth.
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H3948 CONGRESSIONAL RECORD — HOUSE March 29, 2022
This is a structure that works and engage with my House and Senate col- including the creation of a retirement
one that is being expanded by this leg- leagues to find a workable solution savings lost-and-found registry which
islation. By allowing for a deferral of that simplifies and modernizes the dis- will help working families retire with
gain on a small amount of the proceeds closure requirements for retirement dignity.
of sales of employer stock to an ESOP, plans. I urge all of my colleagues to vote in
there will be even more companies Mr. SCOTT of Virginia. Will the gen- favor of passage of this important leg-
incented to sell stock to ESOPs, pro- tlewoman yield? islation.
moting and expanding this innovative Ms. FOXX. I yield to the gentleman Mr. ALLEN. Madam Speaker, I yield
model. from Virginia. myself the balance of my time.
I am honored to support this legisla- Mr. SCOTT of Virginia. Madam Madam Speaker, the goal of every
tion. I hope that we will be able to pro- Speaker, I thank the ranking member American is to retire with security and
mote greater awareness and under- for yielding to me and for her com- dignity. The RISE Act and H.R. 2954
standing of this powerful model. This is ments. will help workers do just that. This bill
an important step forward. It is my understanding that our will expand the availability of private
Mr. ALLEN. Madam Speaker, I yield staffs will continue their efforts, along retirement programs to more Ameri-
5 minutes to the gentlewoman from with their Senate counterparts, to try cans.
North Carolina (Ms. FOXX), our great to find a path forward on this issue Neither small businesses, nor non-
Republican leader. that balances the interests of plan profits and educational institutions
Ms. FOXX. Madam Speaker, I thank sponsors and the retirement plan par- should be prohibited from accessing the
my colleague from Georgia for yielding ticipants. benefits offered to larger retirement
me time. Ms. FOXX. Madam Speaker, reclaim- plans.
Building on the success of the SE-
H.R. 2954 includes the text of the ing my time, I thank the chairman for
CURE Act of 2019, this legislation cuts
RISE Act, a bill that I am proud to his willingness to continue working on
red tape, streamlines reporting and dis-
lead with Chairman SCOTT of the Edu- this issue together.
closure requirements, and provides
cation and Labor Committee. Again, I urge a ‘‘yes’’ vote on the
American workers retirement.
This bill was born out of true bipar- bill.
I thank the chairman and our Repub-
tisan collaboration, and I am pleased Mr. SCOTT of Virginia. Madam
lican leader for their commitment to
at the progress we have made with our Speaker, I yield 3 minutes to the gen-
bipartisanship and for defending the
colleagues across the aisle. tlewoman from Oregon (Ms. BONAMICI),
committee’s important jurisdiction
Hardworking Americans deserve the the chair of the Subcommittee on Civil over retirement issues in this bill.
opportunity to save for a secure future, Rights of the Education and Labor I urge my colleagues to vote in favor
yet too many workers aren’t putting Committee. of H.R. 2954, and I yield back the bal-
anything towards their retirement nest Ms. BONAMICI. Madam Speaker, I ance of my time.
egg. thank Chairman SCOTT for yielding, Mr. SCOTT of Virginia. Madam
By removing the red tape tying up and I thank him for his leadership on Speaker, I yield myself the balance of
job creators and providing incentives this and so many important issues in the time.
for workers to save more, this legisla- the Education and Labor Committee. Madam Speaker, as my colleagues
tion will strengthen and modernize I rise in strong support of the Secur- have said, the bill makes meaningful
America’s retirement system, so our ing a Strong Retirement Act of 2022 or and sensible improvements to Amer-
Nation’s workers, retirees, and employ- SECURE 2.0, which makes important ica’s retirement system. It will help
ers are better served. and bipartisan improvements that will workers, retirees, and employers.
It truly is a much-needed step in the improve enrollment in and access to re- I again congratulate my Education
right direction. Practical solutions tirement savings plans. and Labor Committee colleagues who
like the RISE Act and H.R. 2954 are a As employers have shifted from pen- have authored provisions in this bill,
win for job creators, workers, and our sion plans to retirement plans such as and I want to recognize and thank the
Nation’s economic future. 401(k)’s, workers have increasingly be- ranking member of the Committee on
I urge my colleagues to vote ‘‘yes’’. come responsible for tracking, man- Education and Labor, Dr. Foxx, and her
Madam Speaker, I would like to in- aging, and consolidating their retire- staff for their partnership and work on
quire if the distinguished chairman of ment accounts when they change jobs. this important bill with my staff which
the Education and Labor Committee There is no standard way for workers includes Kevin McDermott, Richard
would be willing to engage in a col- to consolidate their accounts, and Miller, Daniel Foster, and Eli Hovland
loquy with me about the matter of fur- many workers actually lose track of who have worked hard on this bill from
nishing paper ERISA disclosures to their hard-earned investments. start to finish.
participants and beneficiaries. According to a Government Account- Madam Speaker, I urge all Members
I yield to the chairman. ability Office report, about 25 million to support the bill, and I yield back the
Mr. SCOTT of Virginia. I would be people changed jobs between 2004 and balance of my time.
happy to enter into a colloquy with my 2014 and left one or more retirement Mr. DANNY K. DAVIS of Illinois. Madam
colleague. accounts behind. This problem is only Speaker, I strongly support the Securing a
Ms. FOXX. I thank the chairman. expected to grow as young workers Strong Retirement Act because it will strength-
Madam Speaker, the underlying bill transition between jobs at greater en the retirement coverage and savings of mil-
includes an imperfect provision requir- rates than previous generations. lions of Americans. I applaud the many provi-
ing retirement plans to provide a paper The SECURE Act 2.0 includes provi- sions included to expand retirement coverage
statement annually. sions from my Retirement Savings and savings, such as automatic enrollment in
The bill also directs the Department Lost and Found Act which will help ad- the retirement plans, modernizing the Saver’s
of Labor to revise its 2002 and 2020 safe dress the challenge of tracking retire- Credit, creating new incentives to small busi-
harbor regulations to conform with ment savings. My bill creates a na- nesses to offer retirement plans, and increas-
this requirement. tional lost-and-found registry for re- ing charitable donations permitted through an
While I support the bill, I have seri- tirement accounts housed at the De- IRA.
ous concerns about this blunt provision partment of Labor. I thank Chairman NEAL for including my bill,
which would undermine DOL’s 2002 and The lost-and-found registry will pro- the Retirement Parity for Student Loans Act,
2020 e-delivery safe harbor regulations. vide workers with a centralized way to that promotes increased retirement savings
Participants in plans have been relying track their retirement accounts, and it through an employer match for employees
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on the 2002 safe harbor regulations for will also help workers claim their making student loan payments. By allowing
nearly 20 years. hard-earned retirement funds regard- employers to contribute an employer-match
The Committee on Education and less of how often they transition from into a retirement plan based on an employee’s
Labor has dedicated considerable time job to job. student loan payment, younger workers who
to this issue. I do not consider this a I strongly support the commonsense currently cannot afford to save for their retire-
settled matter, and I will continue to improvements in the SECURE Act 2.0, ment will begin saving much sooner.
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March 29, 2022 CONGRESSIONAL RECORD — HOUSE H3949
Although over three-quarters of Americans charitable giving to the highest levels in our port. The bill has support from every stake-
have access to an employment-based retire- history. holder, from advocates for seniors to the re-
ment savings account, few Americans can We must do all we can to encourage this tirement industry, and the practical solutions
make the maximum contribution of $19,500 to impulse, particularly among middle-income contained have garnered bipartisan support.
their retirement savings. Any contribution to seniors who wish to continue giving post-re- Both things the American people are clam-
retirement savings is particularly limited for tirement. The Legacy IRA Act would enable oring for in these hyper-partisan times. Like
millennials struggling with heavy student loan seniors to make tax-free contributions from SECURE 2.0, the ABLE Employment Flexi-
debt. The average student loan balance for their traditional IRAs to charities through life- bility Act has received support from an array
2019 graduates was $32,731, and only 30 income plans. This bill is a win-win, for philan- of stakeholders from disability advocates to
percent of young workers use 401(k) pro- thropic seniors who want to continue giving, associations representing the retirement indus-
grams to save for retirement. This policy is an and for charitable organizations that benefit try.
important tool for employers to retain their from donations. I would like to thank Chairman I want to thank the Chairman, Ranking
workforce and for workers to improve retire- NEAL for his support in including this measure Member, their staffs, and the Joint Committee
ment savings and lower educational debt. in the SECURE Act and Rep. KELLY for his on Taxation for their willingness to work with
I urge passage of this bill that does so much partnership on this important legislation. myself and Mr. WENSTRUP to address tech-
to expand retirement coverage and savings to Mr. SUOZZI. Madam Speaker, I rise in sup- nical issues with the legislative text of the
improve workers’ long-term financial well- port of the Securing a Strong Retirement Act ABLE Employment Flexibility Act to achieve
being. of 2022. Everyone can agree that the Amer- the underlying policy goal—help more Ameri-
Mr. DESAULNIER. Madam Speaker, Ameri- ican Dream should be achievable for anyone cans save effectively and efficiently to live and
cans are living longer than ever before—about willing to work hard. The American Dream is retire in dignity. I look forward to our continued
30 years longer, on average, than a century the ability for families to one day own a home, efforts and hope that we can resolve out-
ago. To quote the founder of the Stanford provide an education for their children, and re- standing issues as we advance the SECURE
Center on Longevity, ‘‘longevity is . . . among tire with dignity. The SECURE Act 2.0 does Act 2.0 to the President for his signature.
the greatest opportunities we have had in several things to help make retirement security Mr. BUCHANAN. Madam Speaker, I rise
human history.’’ easier for millions of hardworking Americans. I today in strong support of H.R. 2954, the Se-
Those extra years mean more time spent rise today not only in support of the bill, but to curing a Strong Retirement Act, also known as
with family and friends and enjoying retire- advocate for the inclusion of another bipar- SECURE 2.0.
ment. tisan bill, the ABLE Employment Flexibility Act, It is a sad reality that today too many hard-
Unfortunately, while life expectancy in- as SECURE 2.0 progresses through the legis- working Americans enter retirement without
creases, Americans are falling behind on re- lative process. enough savings.
Along with my colleague Mr. WENSTRUP, I In fact, according to a recent report, only 36
tirement savings.
introduced another practical solution that will percent of working adults feel their retirement
More than 4 in 10 American adults have
allow more hardworking Americans the ability savings are on track to meet their goals and
less than $25,000 saved for retirement.
more than one-third of U.S. workers have
And the coronavirus pandemic has made it to participate in the labor force more fully by
never even had a retirement account.
worse. According to a recent study, 1 in 5 providing them access to benefits tailored to
It’s clear that millions of Americans could
Americans said they are saving less for retire- their needs. My bill permits employers to make face a financial crisis during their retirement
ment due to the pandemic’s impact on their fi- tax-exempt contributions to ABLE (Achieving years. Congress can help head off this avoid-
nances. Better Life Experience) accounts in lieu of able emergency and give individuals, families,
We need to act now to correct course to im- making contributions to existing tax-exempt and businesses more tools to boost their re-
prove retirement savings. defined contribution retirement plans. An tirement nest eggs.
The Securing a Strong Retirement Act is a ABLE account is established to pay expenses Last year, the House Ways & Means Com-
comprehensive, bipartisan bill that eliminates such as food, education, housing, transpor- mittee unanimously passed the bipartisan Se-
many of the hurdles to workers enrolling in tation, employment training and support, and curing a Strong Retirement Act of 2021, legis-
and remaining in retirement savings plans. health care expenses of a designated bene- lation providing new incentives to help improve
As a former small business owner and as ficiary who is disabled. In other words, it will the retirement financial landscape for Ameri-
the current Chair of the Health, Employment, allow millions of Americans with disabilities to cans across the country.
Labor, and Pensions Subcommittee, I have receive, and their employers the ability to pro- This bipartisan retirement savings bill seeks
seen firsthand how reforms like the ones in vide, similar tax-preferred benefits as their fel- to build on the momentum from legislation that
this bill can help people live happier lives into low employees. passed last Congress.
their retirement. The ABLE Employment Flexibility Act would Specifically, this important new legislation
Importantly, this legislation incorporates the allow ABLE-eligible workers to permit an em- would double the existing tax credit for busi-
RISE Act, which I was proud to co-author with ployer to make contributions to a 529A ac- nesses with 50 or fewer employees that start
the Chairman of the full Committee Chairman count in lieu of contributions to the employer’s a company retirement plan, expand-auto-en-
SCOTT, Ranking Member FOXX, and the Rank- defined contribution plan. The legislation is rollment, push back the withdrawal retirement
ing member of my HELP Subcommittee Mr. needed because, under current law, an em- age, and allow workers to double their catch-
ALLEN. Through that effort, we can: ployer that offers employees with a disability up contributions. This bipartisan bill also au-
Help part-time workers join an employers’ the choice to have employer contributions that thorizes new protections for people paying
retirement savings plan; would be made to the retirement plan instead down student loan debts and incentives to
Incentivize workers to participate in retire- contributed to a 529A account would jeop- America’s veterans.
ment plans with small financial incentives; and ardize the tax-qualified status of the retirement SECURE 2.0 is also completely budget neu-
Through the ‘‘Retirement Lost and Found’’ plan. tral.
database at the Department of Labor help Many defined contribution plans permit an Retirement doesn’t have to turn into another
workers locate their hard-earned retirement eligible employee to defer compensation into U.S. financial crisis. With responsible incen-
savings as they move from job to job. that defined contribution plan, with the em- tives and smart planning, we can give more
I am proud to have played a part in this sig- ployer sponsoring the plan providing for a people the peace of mind they deserve as
nificant and bipartisan effort, and will proudly matching contribution on such deferrals. The they grow older. I’m pleased to see Congress
vote in support of this legislation. plan may also have nonelective employer con- put aside partisan games and finally come to-
Mr. BEYER. Madam Speaker, I rise today to tributions that are automatically made. Unfor- gether to enact SECURE 2.0 and strengthen
speak in support of the bipartisan Securing a tunately, assets in these plans could adversely America’s retirement security.
Strong Retirement Act which includes the Leg- impact the availability of means-tested bene- Ms. JACKSON LEE. Madam Speaker, I rise
acy IRA Act. This legislation, led by my col- fits. By eliminating this barrier, employers will in strong support of H.R. 2954, the Securing
league MIKE KELLY and I, would encourage be able to provide equitable opportunities to a Strong Retirement Act of 2021, which will
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charitable giving by American seniors. Donat- their employees to save for critical services make various changes with respect to em-
ing to charity is a hallmark of American soci- while allowing them to retain critical govern- ployer-sponsored retirement plans, including
ety. We are fortunate to have one of the most ment support and services. providing for the automatic enrollment of em-
generous countries in the world. In spite of, or Through the leadership of Chairman NEAL ployees in certain plans and increasing the
possibly because of, the upheavals in recent and Ranking Member BRADY, we are passing age at which participants are required to begin
years, we have seen increases in American SECURE 2.0, a bill with overwhelming sup- receiving mandatory distributions.
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H3950 CONGRESSIONAL RECORD — HOUSE March 29, 2022
This legislation expands opportunities for their savings goals and provide more flexibility Bass Foster Lofgren
Beatty Foxx Long
Americans to increase their retirement sav- upon retirement. Bentz Frankel, Lois Lowenthal
ings, improves workers’ long-term financial Though there are many paths to retirement, Bera Franklin, C. Lucas
wellbeing, and builds on the Setting Every it’s critical to be financially prepared, espe- Bergman Scott Luetkemeyer
Community Up for Retirement Enhancement cially as people are living longer. Beyer Gallagher Luria
Bice (OK) Gallego Lynch
(SECURE) Act of 2019. For these reasons, I ask my colleagues to Bilirakis Garamendi Mace
The purpose of this legislation is to expand join me in voting for H.R. 2954 because we Bishop (GA) Garbarino Malinowski
automatic enrollment, simplify many retirement need to ensure that every American can ben- Blumenauer Garcia (CA) Malliotakis
plan rules, and strengthen small businesses’ Blunt Rochester Garcı́a (IL) Maloney,
efit from the best retirement plan for them.
Bonamici Garcia (TX) Carolyn B.
ability to offer workplace retirement plans. The SPEAKER pro tempore. The Bost Gibbs Maloney, Sean
Among other things, H.R. 2954 would: question is on the motion offered by Bourdeaux Gimenez Mann
Expand automatic enrollment of workers in the gentleman from Massachusetts Bowman Golden Manning
employer-sponsored retirement saving plans. (Mr. NEAL) that the House suspend the Boyle, Brendan Gomez Matsui
Employees would be automatically enrolled F. Gonzales, Tony McBath
rules and pass the bill, H.R. 2954, as Brady Gonzalez (OH) McCarthy
in plans such as 401(k)s and 403(b)s unless amended. Brown (MD) Gonzalez, McCaul
they opt out. The question was taken. Brown (OH) Vicente McClain
The initial automatic enrollment amount is at The SPEAKER pro tempore. In the
Brownley Gooden (TX) McCollum
least 3 percent but no more than 10 percent. Buchanan Gottheimer McEachin
opinion of the Chair, two-thirds being Bucshon Granger McGovern
And then each year that amount is increased in the affirmative, the ayes have it. Budd Graves (LA) McHenry
by 1 percent until it reaches 10 percent. Mr. ALLEN. Madam Speaker, on that Bush Graves (MO) McKinley
The age at which seniors must take re- Butterfield Green (TN) McNerney
I demand the yeas and nays. Calvert Green, Al (TX) Meeks
quired minimum distributions (RMDs) from
The SPEAKER pro tempore. Pursu- Carbajal Griffith Meijer
their retirement savings accounts would be
ant to section 3(s) of House Resolution Cárdenas Grijalva Meng
raised from 72 to 73. The bill subsequently Carey Grothman Meuser
8, the yeas and nays are ordered.
would raise the age to 74 starting in 2029 and Carl Guest Mfume
Pursuant to clause 8 of rule XX, fur- Carson Guthrie Miller (IL)
to 75 starting in 2032.
Reduce the penalty for failure to take RMDs ther proceedings on this motion are Carter (GA) Harder (CA) Miller (WV)
postponed. Carter (LA) Harris Miller-Meeks
to 25 percent from 50 percent. If this failure is Carter (TX) Harshbarger Moolenaar
corrected in a timely manner, as defined by f Cartwright Hartzler Mooney
the bill, the penalty would be further reduced Case Hayes Moore (UT)
b 1715 Casten Herrell Moore (WI)
to 10 percent. Castor (FL) Herrera Beutler Morelle
Increase the limits on so-called catch-up ANNOUNCEMENT BY THE SPEAKER Castro (TX) Higgins (NY) Moulton
contributions for employees ages 62 to 64. In PRO TEMPORE Cawthorn Hill Mrvan
2021, these workers were allowed to con- Chabot Hinson Mullin
The SPEAKER pro tempore. Pro- Cheney Hollingsworth Murphy (FL)
tribute up to $6,500 to their retirement savings Horsford
ceedings will resume on questions pre- Cherfilus- Murphy (NC)
plans beyond the otherwise applicable limits. McCormick Houlahan Nadler
viously postponed.
This bill would increase that amount to Chu Hoyer Napolitano
Votes will be taken in the following Cicilline Hudson Neal
$10,000 and index it to inflation.
The catch-up contribution limit for individual order: Clark (MA) Huizenga Neguse
Motions to suspend the rules and Clarke (NY) Issa Nehls
retirement accounts would be indexed to infla- Cleaver Jackson Newhouse
tion. Currently, savers ages 50 and up may pass the following bills: Clyburn Jackson Lee Newman
contribute an additional $1,000 annually to H.R. 6865; Cohen Jacobs (CA) Norcross
their IRAs, but that limit isn’t indexed to infla- H.R. 2954; Cole Jacobs (NY) O’Halleran
S. 2629; Comer Jayapal Obernolte
tion. Connolly Jeffries Ocasio-Cortez
Allow employers to match a worker’s stu- H.R. 3359; and Cooper Johnson (GA) Omar
dent loan payment by making an equivalent H.R. 4738. Correa Johnson (LA) Owens
The first electronic vote will be con- Costa Johnson (OH) Palazzo
contribution to that worker’s retirement savings Courtney Johnson (SD) Pallone
plan. ducted as a 15-minute vote. Pursuant Craig Johnson (TX) Panetta
This provision is intended to help workers to clause 9 of rule XX, remaining elec- Crawford Jones Pappas
who can’t afford to save for retirement be- tronic votes will be conducted as 5- Crenshaw Joyce (OH) Pascrell
minute votes. Crist Joyce (PA) Payne
cause of high student-loan debt, which causes Crow Kahele Pence
them to miss out on their employers’ matching f Cuellar Kaptur Perlmutter
contributions to retirement savings plans. Curtis Katko Peters
Today’s workplace is more generationally di- DON YOUNG COAST GUARD Davids (KS) Keating Phillips
Davis, Danny K. Keller Pingree
verse than ever. AUTHORIZATION ACT OF 2022 Davis, Rodney Kelly (IL) Pocan
Older employees are working longer, and The SPEAKER pro tempore. Pursu- Dean Kelly (MS) Porter
millennials make up roughly a third of the DeFazio Kelly (PA) Posey
ant to clause 8 of rule XX, the unfin- DeGette Khanna Pressley
American workforce. This bill helps both older ished business is the vote on the mo- DeLauro Kildee Price (NC)
and younger workers. tion to suspend the rules and pass the DelBene Kilmer Quigley
For younger workers, this can help jump bill (H.R. 6865) to authorize appropria- Delgado Kim (CA) Raskin
start the saving process earlier by making em- Demings Kim (NJ) Reed
tions for the Coast Guard, and for other DeSaulnier Kind Reschenthaler
ployer matches available for those who are purposes, as amended, on which the DesJarlais Kirkpatrick Rodgers (WA)
also paying off student loans. yeas and nays were ordered. Deutch Krishnamoorthi Rogers (AL)
For older workers nearing retirement, they The Clerk read the title of the bill. Dingell Kuster Rogers (KY)
would have more time to save, due to the in- Doggett Kustoff Rose
The SPEAKER pro tempore. The Doyle, Michael LaHood Ross
creased catch-up contribution limits and de- question is on the motion offered by F. LaMalfa Rouzer
layed required minimum distributions (RMD). the gentleman from Oregon (Mr. DEFA- Duncan Lamb Roybal-Allard
By automatically enrolling every working ZIO) that the House suspend the rules
Dunn Langevin Ruiz
person in a plan, with the option to opt out, we Ellzey Larsen (WA) Ruppersberger
and pass the bill, as amended. Emmer Larson (CT) Rush
begin to solve the biggest reasons people The vote was taken by electronic de- Escobar Latta Rutherford
don’t save for retirement. vice, and there were—yeas 378, nays 46, Eshoo LaTurner Ryan
According to the U.S. Census Bureau, the Espaillat Lawrence Salazar
not voting 7, as follows: Evans Lawson (FL) Sánchez
three biggest reasons people do not save for
dlhill on DSK120RN23PROD with HOUSE
[Roll No. 85] Fallon Lee (CA) Sarbanes
retirement are: not having a plan at work (74 Feenstra Lee (NV) Scalise
percent of non-savers), being self-employed YEAS—378 Ferguson Leger Fernandez Scanlon
(14 percent) and not being included in a work- Adams Amodei Baird Fischbach Lesko Schakowsky
Aderholt Armstrong Balderson Fitzgerald Letlow Schiff
place plan (12 percent). Aguilar Arrington Banks Fitzpatrick Levin (CA) Schneider
These proposed changes are beneficial to Allen Axne Barr Fleischmann Levin (MI) Schrader
Americans of all ages, helping them reach Allred Bacon Barragán Fletcher Lieu Schrier
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