Tag: retirement plan new legislation

The close passage of the Heroes Act in the House of Representatives, with 208 yeas and 199 nays, underscores the difficult path ahead for the fourth coronavirus relief package.

The bill would require an explanation of how a lump sum was calculated—including the interest rate, mortality assumptions and whether any additional plan benefits were included in the lump sum, such as early retirement subsidies.

The House Ways & Means Committee has already approved the bill, which mirrors many of the key provisions of the Retirement Enhancement and Savings Act.

Introduction of the bill follows a private letter ruling from the IRS in August in which it approved a plan sponsor's plan amendment to offer a student loan repayment benefit to employees.