29 U.S.C. § 1193: Pension-linked emergency savings accounts

include in such individual account plan a pension-linked emergency savings account meeting the requirements of subsection (c); and offer to enroll an eligible participant in such pension-linked emergency savings account; or automatically enroll an eligible participant in such account pursuant to an automatic contribution arrangement described in paragraph (2) of subsection (c). meets any age, service, and other eligibility requirements of the plan; and is not a highly compensated employee. Notwithstanding paragraph (1)(B), an individual who is enrolled in a pension-linked emergency savings account and thereafter becomes a highly compensated employee may not make further contributions to such account, but retains the right to withdraw any account balance of such account in accordance with subsection (c)(1)(A)(ii). For purposes of this subsection, the term “highly compensated employee” has the meaning given the term in section 414(q) of title 26 . not have a minimum contribution or account balance requirement; allow for withdrawal by the participant of the account balance, in whole or in part at the discretion of the participant, at least once per calendar month and for distribution of such withdrawal to the participant as soon as practicable from the date on which the participant elects to make such withdrawal; and maintain over the term of the investment, the dollar value that is equal to the amount invested in the product; and preserve principal and provide a reasonable rate of return, whether or not such return is guaranteed, consistent with the need for liquidity; and offered by a State- or federally-regulated financial institution; may be subject to, as permitted by the Secretary, reasonable restrictions; and may not, for not less than the first 4 withdrawals of funds from the account in a plan year, be subject to any fees or charges solely on the basis of such a withdrawal; and may, for any subsequent withdrawal in a plan year, be subject to reasonable fees or charges in connection with such a withdrawal, including reasonable reimbursement fees imposed for the incidental costs of handling of paper checks. separately account for contributions to the pension-linked emergency savings account of the individual account plan and any earnings properly allocable to the contributions; maintain separate recordkeeping with respect to each such pension-linked emergency savings account; and allow withdrawals from such account in accordance with section 402A(e)(7) of title 26 . A plan sponsor may terminate the pension-linked emergency savings account feature of an individual account plan at any time. $2,500; or an amount determined by the plan sponsor of the pension-linked emergency savings account. the participant may elect to increase the participant’s contribution to such other account; and in the absence of such a participant election, the participant is deemed to have elected to increase the participant’s contributions to such other account at the rate at which contributions were being made to the pension-linked emergency savings account; and in any other case, such plan shall provide that such excess contributions will not be accepted. make contributions at a different rate or amount; or opt out of such contributions. shall select a participant contribution rate under such automatic contribution arrangement that meets the requirements of subparagraph (A); and may amend (prior to the plan year in which an amendment would take effect) such rate not more than once annually. the purpose of the account, which is for short-term, emergency savings; the limits on, and tax treatment of, contributions to the pension-linked emergency savings account of the participant; any fees, expenses, restrictions, or charges associated with such pension-linked emergency savings account; procedures for electing to make contributions to or opting out of the pension-linked emergency savings account, for changing participant contribution rates for such pension-linked emergency savings account, and for making participant withdrawals from such pension-linked emergency savings account, including any limits on frequency; as applicable, the amount of the intended contribution to such pension-linked emergency savings account or the change in the percentage of the compensation of the participant of such contribution; the amount in the emergency savings account and the amount or percentage of compensation that a participant has contributed to the pension-linked emergency savings account; the designated investment option under subsection (c)(1)(A)(iii) for amounts contributed to the pension-linked emergency savings account; the options under subsection (e) for the account balance of the pension-linked emergency savings account after termination of the employment of the participant or termination by the plan sponsor of the pension-linked emergency savings account; and the ability of a participant who becomes a highly compensated employee (as such term is defined in paragraph (3) of subsection (b)) to, as described in paragraph (2) of such subsection, withdraw any account balance from a pension-linked emergency savings account and the restriction on the ability of such a participant to make further contributions to the pension-linked emergency savings account. sufficiently accurate and comprehensive to apprise the participant of the rights and obligations of the participant with regard to the pension-linked emergency savings account of the participant; and written in a manner calculated to be understood by the average participant. The required notices under subparagraph (A) may be included with any other notice under this chapter, including under section 1104(c)(5)(B) or 1144(e)(3) of this title, or under section 401(k)(13)(E) or 414(w)(4) of title 26, if such other notice is provided to the participant at the time required for such notice. If an employer makes any matching contributions to an individual account plan of which a pension-linked emergency savings account is part, subject to the limitations of paragraph (1)(A), the employer shall make matching contributions on behalf of a participant on account of the contributions by the participant to the pension-linked emergency savings account at the same rate as any other matching contribution on account of an elective contribution by such participant. The matching contributions shall be made to the participant’s account under the individual account plan that is not the pension-linked emergency savings account. Such matching contributions on account of contributions under paragraph (1)(A) shall not exceed the maximum account balance under paragraph (1)(A) for such plan year. For purposes of any applicable limitation on matching contributions, any matching contributions made under the plan shall be treated first as attributable to the elective deferrals of the participant other than contributions to a pension-linked emergency savings account. For purposes of subparagraph (A), the term “matching contribution” has the meaning given such term in section 401(m)(4) of title 26 . allow, at the election of the participant, for transfer by the participant of the account balance of such account, in whole or in part, into another designated Roth account of the participant under the individual account plan; and for any amounts in such account not transferred under paragraph (1), make such amounts available within a reasonable time to the participant. may employ reasonable procedures to limit the frequency or amount of matching contributions with respect to contributions to such account, solely to the extent necessary to prevent manipulation of the rules of the plan to cause matching contributions to exceed the intended amounts or frequency; and shall not be required to suspend matching contributions following any participant withdrawal of contributions, including elective deferrals and employee contributions, whether or not matched and whether or not made pursuant to an automatic contribution arrangement described in section 402A(e)(4) of title 26 . The Secretary of the Treasury, in consultation with the Secretary of Labor, shall issue regulations or other guidance not later than 12 months after December 29, 2022 , with respect to the anti-abuse rules described in paragraph (1).