S. 3615: Multiemployer Plan Relief Act

This bill, titled the Multiemployer Plan Relief Act, proposes changes to the Internal Revenue Code concerning automatic enrollment requirements for multiemployer pension plans. The key aspects of the bill are as follows:

Overview of Changes to Automatic Enrollment

The bill aims to include multiemployer plans in the existing exceptions to the automatic enrollment requirements under the Internal Revenue Code. This change would mean that:

• Multiemployer plans would no longer be subject to the same mandatory automatic enrollment rules that apply to other retirement plans.
• The current legal language will be amended to define multiemployer plans more explicitly alongside governmental and church plans.

Specific Amendments

In detail, the bill makes the following amendments to Section 414A of the Internal Revenue Code:

• The title related to “governmental and church plans” will be updated to include “governmental, church plans, and multiemployer plans”.
• The legal definitions within the section will be adjusted to include multiemployer plans, ensuring they are treated similarly to governmental and church plans regarding automatic enrollment rules.

Effective Date

The amendments proposed by this bill will take effect for taxable years starting after December 31, 2024.

Implications

By allowing multiemployer plans to be exempt from the automatic enrollment requirement, the bill potentially provides greater flexibility for those participating in such plans. This adjustment acknowledges the unique characteristics of multiemployer plans compared to other types of retirement plans.

Relevant Companies

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