Pilot programs for the gig economy

(a) In general The Secretary of the Treasury and the Secretary of Labor shall, in cooperation and after reviewing a survey of relevant academic literature and consulting with relevant companies, establish pilot programs to encourage independent workers to save for retirement, including— (1) a program that allows an independent worker to round down any compensation paid to the independent worker to the nearest whole dollar amount and automatically contribute the amount of compensation in excess of such whole dollar amount as an elective employee contribution to a pooled employer plan in which the independent worker is enrolled, a solo 401(k) of the independent worker, or a suspension account; and (2) a program that allows an independent worker to designate an amount that will be automatically deducted from the compensation paid to the independent worker for, as selected by the independent worker, each pay period or monthly, quarterly, semi-annually, or annually and automatically contributed as an elective employee contribution to a pooled employer plan in which the independent worker is enrolled, a solo 401(k) of the independent worker, or a suspension account. (b) Coordination with safe harbor plan rules As provided by the Secretary of the Treasury (or such Secretary's delegate), the pilot programs under subsection (a) may be conducted in or through the use of safe harbor plans, and any such plan participating in such a pilot program shall not be treated as failing to meet any requirement applicable to such plan by reason of such participation. For purposes of the preceding sentence, the term safe harbor plan means any qualified cash or deferred arrangement which meets the requirements of paragraph (11), (12), (13), or (16) of section 401(k) of the Internal Revenue Code of 1986. (c) Definitions For purposes of this section: (1) Independent worker The term independent worker has the meaning given the term in section 3(43)(E) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(43)(E)). (2) Pooled employer plan The term pooled employer plan has the meaning given the term in section 3(43) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(43)). (3) Solo 401(k) The term solo 401(k) means a qualified cash or deferred arrangement (as defined in section 401(k)(2) of the Internal Revenue Code of 1986) covering a single participant (or a single participant and such individual's spouse). (4) Suspension account The term suspension account means an account that is established and maintained on behalf of an independent worker that— (A) allows for the deposit of amounts by the independent worker, including the amounts described in paragraphs (1) and (2) of subsection (a); (B) allows for the independent worker to withdraw amounts deposited in the account and— (i) contribute such withdrawn amounts to a pooled employer plan in which the independent worker is enrolled; or (ii) contribute such withdrawn amounts into a simplified employee pension as provided under section 408(k)(10) of the Internal Revenue Code of 1986; and (C) provides that any amount remaining in the account at the end of each year, after any withdrawals under subparagraph (B), shall be returned to the independent worker in a lump sum.