A bipartisan pair of Senators introduced another retirement-focused piece of lame duck legislation, including more than 50 provisions aimed at increasing savings in DC plans and IRAs.
Tag: retirement plan legislation
The consensus in early commentary is that the new House proposal appears to closely align with bipartisan legislation with potential majority support in the Senate.
Mostly party-line House action this week included passage of the Family Savings Act, which features key provisions drawn directly from the popular Retirement Enhancement and Savings Act.
The amendment is a fiduciary rule safe harbor for the selection of a lifetime income provider for retirement plans.
The IRS has issued two modified safe harbor explanations which take into consideration changes related to qualified plan loan offsets and other statutory changes.
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.
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.