Boyle Introduces Multi-Employer Plan Auto Enrollment Relief Act

WASHINGTON, DC — Today, Congressman Brendan F. Boyle (PA-02) and Congressmen Brad Finstad (MN-01), Mike Carey (OH-15), and John Larson (CT-01) announced their introduction of the Multi-Employer Plan Auto Enrollment Relief Act, legislation which would exempt multi-employer plans from Section 101 of the SECURE 2.0 Act of 2022. Senators Klobuchar (D-MN) and Moreno (R-OH) introduced companion legislation in the U.S. Senate. 

Traditionally, under SECURE 2.0, if a company offers a 401(k), they must automatically enroll new workers at 3% of their pay, increasing annually up to or exceeding 10%. While this model is adequate for single-employer plans, it creates unique challenges for multi-employer plans. The Multi-Employer Plan Auto Enrollment Relief Act would ensure that multi-employer plans won’t be forced into automatic enrollment rules that don’t fit their structure, while still allowing them to add a 401(k) feature voluntarily. 

“This bill is a commonsense fix that protects workers’ access to hard-earned retirement benefits by cutting unnecessary red tape on multi-employer plans. I’m proud to partner across the aisle to make sure these plans can continue serving working families,” said Rep. Boyle.

“Hard-working Americans deserve to have more options for how to save for their retirements – not less,” Rep. Carey said. “By avoiding mandatory enrollment into 401(k) plans when they are offered, employees and employers maintain more choices when making retirement savings decisions. Our bipartisan legislation removes bureaucratic burdens to ensure workers in multi-employer pension plans have access to strong retirement savings and benefits.”

“At its core, this is about fairness and flexibility. Entities offering multi-employer plans shouldn’t be forced into rules that don’t work for them. This bipartisan legislation ensures workers still have access to retirement savings without putting unnecessary burdens on the plans that serve them,” said Rep. Finstad.

“Retirement security is not a one-size-fits-all approach, especially for union workers with multi-employer plans,” said Rep. John B. Larson. “I am proud to join this bipartisan effort with my colleagues to cut through red tape so union workers can adequately save for their retirement. I will continue to fight to ensure all Americans who work their entire lives can retire with dignity, both by enhancing Social Security benefits and expanding access to private retirement plans.”

“Workers in construction, trucking, and manufacturing rely on multiemployer union retirement plans to build financial security and prepare for their futures. While automatic enrollment can be a helpful tool to boost retirement savings, it doesn’t work the same way in multiemployer settings, where frequent job changes and uncoordinated payroll systems pose serious logistical challenges,” said Senator Klobuchar. “Our bipartisan legislation provides relief for workers and businesses with multiemployer union retirement plans, so that we’re not imposing one-size-fits-all mandates where they don’t fit.” 

“Hardworking Ohioans deserve retirement plans that work for them,” said Senator Moreno. “This bill removes unnecessary red tape from automatic enrollment rules, allowing Americans’ rightfully earned benefit plans to continue serving them without added compliance burdens from frequent job changes.”

"We applaud lawmakers for advancing a bipartisan fix that protects the availability and the operational integrity of multiemployer 401(k) plans. MPAERA will help preserve plan flexibility and encourage broader adoption of 401(k) plans, ultimately strengthening retirement security for millions of working families,” said Michael Scott, Executive Director, National Coordinating Committee for Multiemployer Plans (NCCMP).

"The introduction of MEPAERA is a critical step forward for multiemployer plans. By addressing the unintended consequences of SECURE 2.0, this legislation ensures that Taft-Hartley plans can continue delivering efficient, union-negotiated retirement benefits without unnecessary administrative burdens,” said Matt Fairbanks, Chair of the Board, Health&PensionWORKS.

Background:

• Section 101 of the SECURE 2.0 Act requires employers with more than 10 employees to automatically enroll new employees at 3% of pay, increasing annually by 1% up to at least 10% but no more than 15% of pay.
• The 401(k) automatic enrollment provision presents a unique and increased set of challenges for Taft Hartley plans that do not burden single-employer plans in the same manner and that require further legislative reforms.
• Based on data from the International Foundation of Employee Benefit Plans (IFEBP), it is estimated that there are approximately 1,050 multiemployer defined contribution plans. Of these, there are approximately 370 plans with 401(k)s established prior to the enactment of SECURE 2.0 that were “grandfathered” in under draft Internal Revenue Service and Department of the Treasury interpretation of the act, (which are expected to be finalized) these plans would not subject to the automatic enrollment provision. However, legislation is still necessary, both to codify this interpretation and ensure that 401(k) plans remain a viable tool for multiemployer plans into the future.

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