Democratic Senator Patty Murray says her bill would be a strong first step toward addressing some of the key hurdles facing women as they save for retirement in defined contribution plans; there are also proposed protections for part time workers and lower income individuals.
Tag: retirement plan legislation
A trio of bills introduced before the House Ways and Means Committee this week offer the first detailed look at Republican Congressional leaders’ hopes for “Tax Reform 2.0,” which include many initiatives supported broadly by retirement industry stakeholders.
"As businesses become more aware of employee ownership's advantages—which include higher corporate performance, a share in the rewards for employees, and a retirement plan that often outperforms other alternatives—it is easy to see employee ownership increasing,” said ESOP Association President J. Michael Keeling.
He says he will seek legislation that would require pension plans managed by religious organizations in Rhode Island to send regular updates on the financial health of the pensions to their plan participants.
The bills would allow for pooled employer plans, incentivize employers to adopt plans with automatic enrollment; allow employers to automatically enroll their workers in emergency savings accounts; and make it easier for individuals to automatically save their tax refunds.
The bill would create an online database for participants to find "lost" retirement accounts and would change rules for automatic cashouts and rollovers.
The legislation helps protect defendants who settle lawsuits from claims from co-defendants.
A press release about the bill mentions a Government Accountability Office report in which the GAO said: “Congress should consider establishing an independent commission to comprehensively examine the U.S. retirement system and make recommendations to clarify key policy goals for the system and improve how the nation promotes retirement security.”
A hearing focused on four bipartisan proposals, but a couple of witnesses also urged passage of the Retirement Enhancement and Savings Act of 2018.
It would provide $500 million in support of employee stock ownership plan (ESOP) programs and would operate through the Small Business Administration.
David Levine, principal at Groom Law Group, said there is a real chance of a big impact on the retirement plan agenda if Republicans take losses in the mid-terms, so he expects a huge push to pass everything they can before then.
Senators have reintroduced the Retirement Enhancement and Savings Act, and the Small Business Council of America has a concern about one section of the bill.
The Bipartisan Budget Act of 2018 established the committee and requires that it hold public hearings, and vote on its findings and legislative recommendations no later than November 30.
Several provisions of the two-year budget bill affect retirement plans.
According to a press release on Senator Chuck Schumer’s website, the new law would create a Joint Select Committee to Solve the Multiemployer Pension Crisis.
Wolters Kluwer Legal & Regulatory U.S. issued a white paper, “Tax Cuts and Jobs Act Will Present Retirement, Benefits, Executive Compensation and Payroll Professionals with New Challenges in 2018."
The IRS notice also includes a modified unisex version of the mortality tables for use in determining minimum present value for distributions with annuity starting dates that occur during stability periods beginning in the 2019 calendar year.
In addition to expanding access to MEPs, the bill would facilitate lifetime income disclosure and clarify the current annuity selection safe harbor.