Multiemployer Plan Relief Act
- Bill Number
- S. 3615
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-01-12: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-02-04T22:58:14Z
AI-Generated Summary
Purpose
The Multiemployer Plan Relief Act (S. 3615) aims to provide flexibility for multiemployer retirement plans by exempting them from federal requirements that mandate automatic enrollment of participants. This helps these plans, often used in unionized industries, avoid administrative burdens associated with automatic enrollment rules.
Key Provisions
- Amendment to Tax Code: The bill modifies Section 414A(c)(3) of the Internal Revenue Code of 1986.
- Updates the section heading to include "multiemployer plans" alongside governmental and church plans.
- Expands the exception language to cover multiemployer plans (defined under Section 414(f) as plans maintained under collective bargaining agreements involving multiple employers).
- Effective Date: Changes apply to taxable years beginning after December 31, 2024, meaning the exemption takes effect for plan years starting in 2025.
Significant Changes to Existing Law
- Previously, Section 414A(c)(3) only exempted governmental plans (under Section 414(d)) and church plans (under Section 414(e)) from automatic enrollment mandates, which require employers to automatically enroll eligible employees in retirement plans unless they opt out.
- The bill adds multiemployer plans to this exemption list, allowing them to opt out of automatic enrollment without facing tax penalties or compliance issues. This is a targeted expansion rather than a broad overhaul.
Potential Impacts
- On Citizens/Workers: Employees in industries with multiemployer plans (e.g., construction, transportation, or manufacturing unions) may have more choice in enrollment but could miss out on automatic savings if not actively opting in, potentially affecting retirement security.
- On Employers and Plan Administrators: Reduces administrative costs and complexity for managing multiemployer plans, which often involve multiple employers and collective bargaining.
- On Government Agencies: Minimal direct impact; the IRS will need to update guidance on tax code compliance, but no new funding or oversight burdens are created.
- On International Relations: None; this is a domestic tax policy change with no foreign implications.
Main Stakeholders Affected
- Multiemployer Plan Participants: Union workers and retirees who benefit from or participate in these shared pension plans.
- Employers: Businesses contributing to multiemployer plans, particularly in union-heavy sectors, who gain relief from enrollment mandates.
- Plan Sponsors and Administrators: Organizations managing these plans, which will face fewer regulatory hurdles.
- Unions and Collective Bargaining Groups: Key players in establishing multiemployer plans, who may see improved plan viability.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens tax incentives for multiemployer plans by aligning them with exemptions for other specialized plans, potentially reducing litigation over compliance. No conflicts with broader retirement laws like ERISA (Employee Retirement Income Security Act), as it operates within the tax code.
- Constitutional: No apparent issues; the bill is a routine congressional amendment to tax law, respecting federal authority over taxation without infringing on states or individual rights.
- Political: Bipartisan sponsorship (by Sens. Klobuchar and Moreno) suggests appeal across party lines, focusing on supporting union-based retirement systems amid concerns over pension underfunding. It could influence future debates on retirement policy by highlighting needs of multiemployer plans in a changing workforce.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2026-01-12: Read twice and referred to the Committee on Finance.
- 2026-01-12: Introduced in Senate
Bill Versions
- Multiemployer Plan Relief Act — issued 2026-01-12 — PDF (2 pages)