,,ii  #aafth ,,congress  #ast ,session  
,s4 #ajbj  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,april #c1     
#bjai,mr4 ,young 7for himself1 ,mr4     
,booker1 ,mr4 ,cotton1 and ,mr4 ,jones7 
introduced the following bill2 which was
 read twice and referred to the         
,committee on ,finance  ,a ,,bill  ,to  
provide for an additional               
nondiscrimination safe harbor for       
automatic contribution arrangements4    
#a4 ,short title ,this ,act may be cited
 as the ,retirement ,security           
,flexibility ,act of #bjai4  #b4        
,additional nondiscrimination safe      
harbor for automatic contribution       
arrangements  7a7 ,in general           
,subsection 7k7 of section #dja of the  
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new paragraph3  7#ae7 ,special
 nonelective and matching contribution  
rules for small employers  7,a7 ,in     
general ,in the case of a cash or       
deferred arrangement maintained by an   

eligible employer 7as defined in section
 #djh7p77#b77;,c77i771 for purposes of  
paragraph 7#ac71 the arrangement shall  
be treated as meeting the requirements  
of subparagraph 7,d7 thereof if under   
the arrangement1 the total elective     
deferrals 7as defined in section        
#djb7;g77#c77;,a77 with respect to any  
employee do not exceed an amount equal  
to the applicable percentage of the     
limitation otherwise applicable under   
section #djb7;g74  7,b7 ,applicable     
percentage ,for purposes of subparagraph
 7,a71 the applicable percentage with   
respect to an arrangement is-- 7i7 #dj  
percent in the case of an arrangement   
which does not meet the requirements of 
paragraph 7#ac77;,d7 and is not         
described in clause 7ii7 or 7iii71  7ii7
 #fj percent in the case of an          
arrangement which is not described in   
clause 7iii7 and which would meet the   
requirements of paragraph 7#ac77;,d7    
if--  7,i7 equal to at least were       
substituted for equal to in clause      

7i77,i7 thereof1  7,,ii7 #b percent of  
compensation1 and such matching         
contributions meet the requirement of   
subsection 7m77#aa77;,b7 were           
substituted for #f percent of           
compensation in clause 7i77,i7 thereof1 
and  7,,iii7 #a percent were substituted
 for #c percent in clause 7i77,,ii7     
thereof1 and  7iii7 #hj percent in the  
case of an arrangement which would meet 
the requirements of paragraph 7#ac77;,d7
 if--  7,i7 equal to at least were      
substituted for equal to in clause      
7i77,i7 thereof1  7,,ii7 #d percent of  
compensation1 and such matching         
contributions meet the requirement of   
subsection 7m77#aa77;,b7 were           
substituted for #f percent of           
compensation in clause 7i77,i7 thereof1 
and  7,,iii7 #b percent were substituted
 for #c percent in clause 7i77,,ii7     
thereof4  7,c7 ,reporting ,this         
paragraph shall apply to an arrangement 
only if the plan includes with the      
reports required under sections #fjeg   

and #fjeh--  7i7 the number of employees
 eligible to participate in the         
arrangement1 and  7ii7 the number of    
participants for the plan year4  4  7b7 
,modification of existing automatic     
contribution safe harbor  7#a7          
,qualified percentage  7,a7 ,in general 
,clause 7iii7 of section                
#dja7k77#ac77;,c7 of the ,internal      
,revenue ,code of #aihf is amended by   
striking #aj percent and inserting #ae  
percent4  7,b7 ,conforming amendments   
7i7 ,subclause 7,i7 of section          
#dja7k77#ac77;,c77iii7 of the ,internal 
,revenue ,code of #aihf is amended--    
7,i7 by striking #c percent and         
inserting #c percent1 but not greater   
than #aj percent11 and  7,,ii7 by adding
 and at the end4  7ii7 ,subclause 7,,ii7
 of section #dja7k77#ac77;,c77iii7 of   
such ,code is amended to read as        
follows3  7,,ii7 during any subsequent  
plan year1 the lesser of #a percentage  
point higher than the percentage in     
effect for the preceding plan year or #h

 percent4  4  7iii7 ,section            
#dja7k77#ac77;,c77iii7 of such ,code is 
amended by striking subclauses 7,,iii7  
and 7,,iv74  7#b7 ,automatic re-election
 ,subparagraph 7,c7 of section          
#dja7k77#ac7 of such ,code is amended by
 striking clause 7iv7 and by adding at  
the end the following new clause3  7iv7 
,automatic re-election required ,the    
requirements of this subparagraph shall 
be treated as met only if1 under the    
arrangement1 every #c years each        
employee--  7,i7 who is eligible to     
participate in the arrangement1 and     
7,,ii7 who is not participating1 or is  
contributing less than #c percent of    
compensation1 at the time of            
determination1  is treated as having    
made the election described in clause   
7i7 unless the employee makes a new     
election under clause 7ii74  4  7c7     
,effective date  7#a7 ,in general       
,except as provided in paragraph 7#b71  
the amendments made by this section     
shall apply to plan years beginning     

after ,december #ca1 #bjai4  7#b7       
,immediate automatic deferral for       
current employees not required ,in the  
case of an employer who adopts a        
qualified automatic contribution        
arrangement 7as defined in section      
#dja7k77#ac77;,b7 of the ,internal      
,revenue ,code of #aihf7 after ,december
 #ca1 #bjai1 solely for the first and   
second plan years for which the         
arrangement is in effect1 clauses 7i7   
and 7iv7 of section #dja7k77#ac77;,c7 of
 the ,internal ,revenue ,code of #aihf  
7as amended by this section7 may be     
applied without taking into account any 
employee who--  7,a7 is eligible to     
participate in the arrangement 7or a    
predecessor arrangement7 immediately    
before the date the arrangement goes    
into effect1 and  7,b7 has an election  
in effect on such date either to        
participate in the arrangement or to not
 participate in the arrangement4