summary
Introduced
06/20/2017
06/20/2017
In Committee
06/20/2017
06/20/2017
Crossed Over
Passed
Dead
12/31/2018
12/31/2018
Introduced Session
115th Congress
Bill Summary
Retirement Security Act of 2017 This bill amends the Internal Revenue Code and the Employee Retirement Income Security Act of 1974 (ERISA) to modify various requirements for employer-provided retirement plans. The bill modifies the qualification requirements for certain multiple employer plans with pooled providers. The bill applies to defined contribution plans that: (1) are sponsored by employers all of which have both a common interest other than having adopted the plan and control of the plan, or (2) have a pooled plan provider. Such a plan that meets specified requirements may not be disqualified or otherwise lose its tax-favored status because a participating employer fails to take actions required with respect to the plan. The bill also: (1) permits pooled employer plans that meet certain requirements to be treated under ERISA as a single employee pension benefit plan or single pension plan that is a multiple employer plan, and (2) modifies reporting requirements for pooled employer and multiple employer plans. With respect to 401(k) retirement plans, the bill: (1) modifies requirements related to default rates for elective deferrals under automatic enrollment plans, the election of safe harbor 401(k) status, and nondiscrimination rules; (2) allows a business-related safe harbor adoption tax credit for small employers, and (3) requires the Department of the Treasury to simplify regulations regarding the timing of participant notices. The bill also: (1) increases the limit on the amount of the credit for small employer pension plan startup costs, (2) allows a business-related tax credit for small employers who include and maintain an automatic contribution arrangement in an employer-sponsored retirement plan, and (3) requires Treasury to modify tax forms to permit individuals to claim the saver's credit on Form 1040EZ.
AI Summary
This bill makes several changes to employer-provided retirement plans:
1. It allows certain multiple employer plans with pooled providers to avoid disqualification if a participating employer fails to take required actions, as long as the plan provides for transferring the assets of that employer's employees to another plan or arrangement. The bill also establishes requirements and oversight for these "pooled plan providers."
2. It allows pooled employer plans that meet certain requirements to be treated as a single plan under ERISA, and modifies reporting requirements for such plans.
3. It removes the 10% cap on default contribution rates for 401(k) plans with automatic enrollment after the first plan year.
4. It provides more flexibility for employers to elect safe harbor status for 401(k) plans.
5. It increases the tax credit available to small employers for starting up a retirement plan.
6. It creates a new tax credit for small employers that provide an automatic enrollment retirement savings option.
7. It establishes an alternative safe harbor for "secure deferral arrangements" in 401(k) plans.
8. It requires the Treasury Department to simplify and clarify regulations around participant notices and automatic escalation of contributions.
9. It allows individuals to claim the saver's tax credit on Form 1040EZ.
Overall, the bill aims to make it easier for employers, especially small businesses, to offer and maintain retirement plans for their employees.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S3651-3652) (on 06/20/2017)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/115th-congress/senate-bill/1383/all-info |
| BillText | https://www.congress.gov/115/bills/s1383/BILLS-115s1383is.pdf |
| Bill | https://www.congress.gov/115/bills/s1383/BILLS-115s1383is.pdf.pdf |
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