To amend the Internal Revenue Code of 1986 to establish an exception for multiemployer plan participants to the requirements for automatic enrollment.
- Bill Number
- H.R. 6685
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-12-12: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-06-05T08:07:19Z
AI-Generated Summary
Purpose
This bill (H.R. 6685) aims to modify the Internal Revenue Code of 1986 to create an exception for multiemployer retirement plans from the federal rules requiring automatic enrollment in employer-sponsored retirement savings plans. Automatic enrollment means employees are automatically signed up for contributions unless they opt out. The goal is to accommodate the unique structure of multiemployer plans, which are often used in unionized industries.
Key Provisions
- Amendment to the Code: Updates Section 414A(c)(3) of the Internal Revenue Code to expand existing exceptions.
- Changes the section heading from "Governmental and church plans" to "Governmental, church plans, and multiemployer plans."
- Adds multiemployer plans (defined under Section 414(f) as plans maintained jointly by multiple employers under collective bargaining) to the list of plans exempt from automatic enrollment requirements.
- Effective Date: The changes apply to taxable years starting after December 31, 2024.
Significant Changes to Existing Law
- Previously, the law exempted only governmental plans and church plans (religious organization plans) from automatic enrollment mandates, which encourage broader participation in retirement savings.
- This bill adds multiemployer plans to these exemptions, allowing them to continue requiring employees to actively opt in rather than being automatically enrolled. This prevents conflicts with the collective bargaining agreements that govern many multiemployer plans.
Potential Impacts
- On Citizens: Employees in multiemployer plans (common in sectors like construction, transportation, and manufacturing) may have more flexibility in choosing to participate, but could face lower automatic savings rates if they do not opt in. This might reduce unintended contributions for some workers.
- On Government Agencies: Minimal direct impact, though the IRS will need to update guidance and enforcement for tax-qualified retirement plans.
- On Employers and Plans: Simplifies compliance for multiemployer plans by avoiding the need to overhaul enrollment processes tied to union contracts.
- International Relations: No apparent impact, as this is a domestic tax policy focused on U.S. retirement benefits.
Main Stakeholders Affected
- Multiemployer Plan Participants: Primarily union workers who benefit from or are covered by these jointly managed plans.
- Employers and Unions: Multiple employers (e.g., in industries with collective bargaining) and labor unions that negotiate and fund these plans, gaining administrative relief.
- Retirement Plan Administrators: Entities managing multiemployer plans, who avoid retrofitting systems for automatic enrollment.
- Federal Government: The IRS and Department of Labor (which oversees related employee benefits) for implementation and oversight.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens the tax code's flexibility for specialized retirement plans without altering their tax-qualified status, potentially reducing litigation over compliance with automatic enrollment rules. No challenges to constitutional principles like equal protection are evident.
- Constitutional: Neutral; the bill respects federal authority over tax and labor policy without infringing on state rights or individual liberties.
- Political: Introduced with bipartisan support (sponsors from both parties), suggesting broad agreement on supporting union-based retirement structures. It could influence future debates on retirement savings policies by highlighting exceptions for certain plan types.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (13)
Rep. Carey, Mike [R-OH-15], Rep. Boyle, Brendan F. [D-PA-2], Rep. Larson, John B. [D-CT-1], Rep. Fischbach, Michelle [R-MN-7], Rep. Craig, Angie [D-MN-2], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Steil, Bryan [R-WI-1], Rep. Suozzi, Thomas R. [D-NY-3], Rep. Davis, Danny K. [D-IL-7], Rep. Tenney, Claudia [R-NY-24], Rep. Malliotakis, Nicole [R-NY-11], Rep. Sánchez, Linda T. [D-CA-38], Rep. Stauber, Pete [R-MN-8]
Recent Actions
- 2025-12-12: Referred to the House Committee on Ways and Means.
- 2025-12-12: Introduced in House
- 2025-12-12: Introduced in House
Bill Versions
- To amend the Internal Revenue Code of 1986 to establish an exception for multiemployer plan participants to the requirements for automatic enrollment. — issued 2025-12-12 — PDF (2 pages)