To amend the Internal Revenue Code of 1986 to establish an exception for multiemployer plan participants to the requirements for automatic enrollment.

Plain-English Summary

This bill would make a change to federal tax law that affects how automatic enrollment works in certain workplace retirement plans. Currently, some retirement savings plans are required to automatically enroll eligible employees unless those employees actively choose to opt out. This bill would create an exception to that automatic enrollment requirement specifically for "multiemployer plans."

Multiemployer plans are retirement plans that cover workers across multiple companies in the same industry, and they are typically managed jointly by employers and labor unions. These plans are common in industries like construction, trucking, and entertainment, where workers may move between different employers but stay within the same union. The bill would mean that workers covered by these types of plans would not be subject to the automatic enrollment rules that apply to other workplace retirement plans.

The people most directly affected by this bill would be union members and workers in industries that use multiemployer pension or retirement plans. Employers who participate in these shared plans and the unions that help manage them would also be affected. Because multiemployer plans operate differently from standard single-employer plans — with contributions often negotiated through collective bargaining agreements — supporters of the bill may argue that the standard automatic enrollment rules don't fit well with how these plans are structured.

The bill has been referred to the House Committee on Ways and Means, which handles tax-related legislation, and no further legislative action has been taken yet. No official description has been provided by the bill's sponsors.