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<< Older News  |  September 23, 2021

News

All News > Retirement Plan Policy

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Small Retirement Accounts: Issues and Options (PDF)
The Brookings Institution Link to more items from this source
Sept. 21, 2021

24 pages. "In this paper, [the authors] address issues raised by the presence of small accounts and present ... solutions: [1] extensive reform of rollover and account consolidation rules; [2] enhancement of the saver's credit; [3] creation of a national dashboard and/or a default account consolidator; and [4] developing a system where each worker has only a single account over the course of their career."

Tags: Retirement Plan Administration  •  Retirement Plan Design  •  Retirement Plan Policy

Impact of Various Legislative Proposals on Retirement Income Adequacy (PDF)
Employee Benefit Research Institute [EBRI] Link to more items from this source
Sept. 21, 2021

47 presentation slides. "The combination of [automatic contribution plan/arrangement (ACPA)] and enhanced savers credits are projected to have a huge impact on reducing retirement deficits ... The addition of employer matches on student loans or the 'skinny 401(k)' for ACPA can add up to another 4 percent reduction in retirement deficits whereas auto portability can add 11 to 14 percent ... QLAC modifications can also be beneficial for those in the highest wage quartile who utilize them."

Tags: Retirement Plan Design  •  Retirement Plan Policy

Large IRAs and High-Income Retirement Savers Targeted by Amendment to Budget Reconciliation Bill
Ropes & Gray LLP Link to more items from this source
Sept. 21, 2021

"[S]ome of the key retirement plan rule modifications found in Chairman Neal's amendment: [1] Prohibition on rollovers to Roth IRAs and certain Roth conversions ... [2] Prohibition of certain private investments by IRAs ... [3] Contribution limit for retirement account balances of $10 Million or More ... [4] New reporting mandate for aggregate account balances exceeding $2.5 million ... [5] Extension of the statute of limitations with respect to IRA noncompliance."

Tags: IRAs  •  Retirement Plan Policy

PBGC 5-Year Multiemployer Program Report (PDF)
Pension Benefit Guaranty Corporation [PBGC] Link to more items from this source
Sept. 21, 2021

18 pages. "ARP is expected to extend the solvency of PBGC's Multiemployer Program for a period of more than 20 years, with half of projected scenarios resulting in insolvency by the end of FY 2055 and half of projected scenarios resulting in either indefinite solvency or insolvency after FY 2055."

Tags: Funding of DB Plans  •  Multiemployer Plans  •  PBGC  •  Retirement Plan Policy

An Actuarial Perspective on the 2021 Social Security Trustees Report (PDF)
American Academy of Actuaries Link to more items from this source
Sept. 21, 2021

14 pages. "OASDI finances have been significantly affected by the pandemic and recession of 2020 ... If changes to the program are not implemented before 2034, only 78% of scheduled benefits would be payable after depletion in 2034, declining to 74% by 2095 ... The actuarial deficit increased from 3.21% of taxable payroll to 3.54% of taxable payroll[.]"

Tags: Retirement Plan Policy  •  Social Security

Survey of Industry Support for Small Business Retirement Plan Mandate
PLANSPONSOR; free registration may be required Link to more items from this source
Sept. 20, 2021

"Forty percent of responding readers work in a plan sponsor role, 31% work for/are recordkeepers/TPAs/investment consultants, 23% are advisers/consultants, 3% are attorneys and 3% are CPAs. More than half (54%) of responding reader do not support requiring small businesses to offer a retirement plan for employees.... More than six in 10 (63%) of respondents do not support requiring a protected lifetime income solution to be offered to defined contribution plan participants."

Tags: Retirement Plan Design  •  Retirement Plan Policy

House Budget Reconciliation Text Includes Significant Health, Paid Leave, and Retirement Provisions
Groom Law Group Link to more items from this source
Sept. 20, 2021

"The Budget Legislation creates a new federal paid family and medical leave program ... [T]he Legislation requires employers that have more than five employees to provide access to a retirement plan that automatically enrolls employees by 2023. Governments and churches are exempt from the mandate."

Tags: FMLA and Other Leave  •  Health Plan Design  •  Retirement Plan Design  •  Retirement Plan Policy

Employer Mandate for Offering a Retirement Plan Faces Headwinds
Pensions & Investments Link to more items from this source
Sept. 17, 2021

"The partisan divide on the proposal is a departure from the usual harmony Republicans and Democrats display when it comes to retirement security legislation."

Tags: Retirement Plan Design  •  Retirement Plan Policy

Could CalSavers Go National? Federal Mandated Payroll Deduction Plan Included in Budget Proposal
Murphy Austin Link to more items from this source
Sept. 15, 2021

"Contained in the Biden 3.5 trillion dollar budget proposal is a provision to enact a similar federal mandated program to be effective in 2023.... [U]nlike CalSavers that is run by the state of California with limited employer involvement, the proposal requires the employer to adopt a plan which could be a deferral only 401(k) plan or an IRA based plan. State mandated programs like CalSavers would also qualify."

Tags: Retirement Plan Design  •  Retirement Plan Policy

House Ways and Means Committee Chairman Releases Automatic Contribution Plan Proposal
October Three Consulting Link to more items from this source
Sept. 15, 2021

"Subtitle B of [the 2022 budget proposal] ... includes Chairman Neal's Automatic Contribution Plan or Arrangement (ACPA) proposal, generally requiring all but the smallest employers to provide an automatic contribution retirement plan (e.g., a 401(k) plan with an automatic contribution feature) or auto-IRA for all employees. In this article we review that ACPA proposal."

Tags: Retirement Plan Design  •  Retirement Plan Policy

Ways and Means Greenlights Automatic Retirement Arrangements
American Retirement Association [ARA] Link to more items from this source
Sept. 10, 2021

"The retirement subtitle, which is estimated to cost nearly $47 billion over 10 years, was approved by the Committee Sept. 9 ... [T]he legislation would require employers without employer-sponsored retirement plans to automatically enroll their employees in IRAs or 401(k)-type plans. It also would provide an increase in the credit limitation for small employer pension plan startup costs and adds a new credit for certain small employer automatic retirement arrangements."

Tags: Retirement Plan Design  •  Retirement Plan Policy

The U.S. Needs Only One 401(k) Plan
John Rekenthaler, via Morningstar Link to more items from this source
[Opinion]
Sept. 10, 2021

"Over the decades, the 401(k) industry has gradually standardized. Some variety remains, because sponsors tend to adjust their 401(k) plans incrementally rather than overhaul them abruptly. However, the drive toward conformity is clear: [1] Plan lineups are shrinking, as sponsors eliminate their actively run funds. [2] Almost every plan now includes index funds. [3] Ditto for target-date funds, which are usually a plan's default investment."

Tags: Retirement Plan Design  •  Retirement Plan Policy

Treasury Department 2021-2022 Priority Guidance Plan (PDF)
Internal Revenue Service [IRS], U.S. Department of the Treasury Link to more items from this source
[Official Guidance]
Sept. 10, 2021

"The 2021-2022 Priority Guidance Plan contains 193 guidance projects that are priorities for allocating Treasury Department and Service resources during the 12-month period from July 1, 2021 through June 30, 2022 (the plan year)." [Employee benefit items begin on page 3, including 19 retirement plan items and 16 items relating to executive compensation, employment taxes, health care and other benefits.]

Tags: Executive comp  •  Health Plan Policy  •  Retirement Plan Policy

Editor's Pick Ways and Means Budget Reconciliation Bill: Summary and Analysis of Paid Leave and Retirement Provisions
Brownstein Hyatt Farber Schreck LLP Link to more items from this source
Sept. 10, 2021

"On Tuesday, Sept. 7, House Ways and Means Committee Chair Richard Neal (D-MA) released part of the committee's portion ... [of] the expected $3.5 trillion budget reconciliation measure ... This alert summarizes Subtitles A (Universal Paid Family and Medical Leave) and Subtitle B (Retirement)."

Tags: Health Plan Policy  •  Retirement Plan Policy

Retirement Policies Feature in Draft Budget Language Now Before House Ways and Means Committee
planadviser Link to more items from this source
Sept. 8, 2021

"Budget reconciliation legislation set for debate in Congress ... [includes] a broad mandate for employers to offer retirement plans.... The language ... appears to permit a service/eligibility period of up to two consecutive 12-month periods.... Other provisions would require automatic enrollment retirement plans to include a protected lifetime income distribution option for plan participants."

Tags: Retirement Plan Design  •  Retirement Plan Policy

The Emerging Law of Portable Retirement Benefits
Paul M. Secunda, via SSRN Link to more items from this source
[Opinion]
Sept. 7, 2021

"Americans workers are fifteen times more likely to save for retirement when they are covered by a workplace retirement plan.... [S]elf-employed, small business, and precarious workers must be considered common law employees under employee benefits law so that they can receive the consumer protections and the appropriate template of an approved retirement plan structure provided by ERISA."

Tags: Retirement Plan Design  •  Retirement Plan Policy

CIEBA Testifies at ERISA Advisory Council Hearing on 401(k) Brokerage Windows
Committee on Investment of Employee Benefit Assets Inc. [CIEBA] Link to more items from this source
[Opinion]
Sept. 3, 2021

"[W]hile 54% of CIEBA Members offered some form of a brokerage window, only 2.8% of plan assets are invested through the window.... [W]hile utilization may be low, CIEBA Members still view windows as an important feature to retain participation for savers looking for options outside a 401(k) plan designated menu.... [W]hile windows help participation, undue monitoring obligations would lead plans to potentially eliminate the option in their plans."

Tags: Retirement Plan Investments  •  Retirement Plan Policy

Beware of Unintended Effects of Retirement Savings Public Policies
401(k) Specialist Link to more items from this source
[Opinion]
Sept. 3, 2021

"[A] dramatic expansion in both workplace retirement plans and participation levels would also give rise to equally dramatic increases in: Cashout leakage ... Missing participants ... Lost or 'stranded' accounts ... Uncashed distribution checks ... [C]ombining restrictive withdrawal policies with expanding access could ultimately be self-defeating, as erecting barriers to exit would have a chilling effect on participation and deferral rates."

Tags: 401(k) Plans  •  Retirement Plan Design  •  Retirement Plan Policy

Statement of U.S. Chamber of Commerce to ERISA Advisory Council on Gaps in Retirement Savings Based on Race, Ethnicity and Gender (PDF)
U.S. Chamber of Commerce Link to more items from this source
[Opinion]
Sept. 3, 2021

"EBSA should create a taskforce to review all current reporting and disclosure requirements not only to update them for their general effectiveness, but also to include information and delivery requirements that are relevant to race and gender.... EBSA also should review its current worker publications to see if they address issues related to the retirement gap based on gender and race.... EBSA is not able to do this, they can provide interactive models, calculators and worksheets that are accessible electronically and allow workers to see what happens if they do not contribute to their retirement plan.... EBSA should make it easier for small businesses to understand and provide retirement plans."

Tags: Retirement Plan Administration  •  Retirement Plan Policy

Seventh Circuit: ERISA Does Not Cover Charter School Teachers
DeBofsky Sherman Casciari Reynolds P.C. Link to more items from this source
Sept. 2, 2021

"[T]he court discussed the nature of charter schools and what distinguishes them from purely private schools, which led the court to find: '[A] charter school in Illinois is part of the set of public educational offerings, which makes it appropriate to conclude that the school district may include charter-school teachers in its pension and welfare plans without losing its exemption under ERISA.' " [Graham v. Board of Ed. of City of Chicago, No. 19-2745 (7th Cir. Aug. 10, 2021)]

Tags: ERISA Preemption  •  Health Plan Policy  •  Retirement Plan Policy

Townsend Joins DOL as Retirement Advisor to Secretary of Labor
American Retirement Association [ARA] Link to more items from this source
Sept. 1, 2021

"Kathleen Kennedy Townsend is joining the [DOL] to help advance state and federal efforts to expand retirement savings programs.... Townsend most recently served as Executive Director of Retirement for All, a grassroots advocacy foundation to create universal retirement plans for all. From 2018 to 2019, she was Director of Retirement Security at the Economic Policy Institute, and she has served as a research professor at Georgetown University, where she founded the Center for Retirement Initiatives."

Tags: Retirement Plan Policy

Potential Benefits of Universal Access to Retirement Savings: An Analysis of National Options to Expand Coverage (PDF)
Georgetown University Center for Retirement Initiatives Link to more items from this source
[Opinion]
Sept. 1, 2021

55 pages. "Universal access to retirement savings options would give all workers the opportunity to save, and evidence from other countries, from individual states, and from private sector plans suggests that many would begin to do so, especially when encouraged using default options, such as automatic enrollment."

Tags: Retirement Plan Policy

Chamber of Commerce Says Cookie-Cutter Excessive Fee Suits Harm Participants
PLANSPONSOR; free registration may be required Link to more items from this source
Aug. 30, 2021

"The chamber says the rapid increase in excessive fee litigation is not 'a warning that retirees' savings are in jeopardy,' but proof that converting 'subpar allegations' into settlements has proven to be a lucrative endeavor for attorneys bringing the lawsuits." [In re American National Red Cross ERISA Litigation, No. 21-541 (D.D.C. amicus brief of U.S. Chamber of Commerce filed Aug. 23, 2021]

Tags: Retirement Plan Investments  •  Retirement Plan Policy

ERISA Advisory Council to Meet September 30
Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL] Link to more items from this source
[Official Guidance]
Aug. 30, 2021

"[T]he 208th open meeting of [the ERISA Advisory Council] will be held via a teleconference on Thursday, September 30, 2021.... The purpose of the open meeting is for the members of the ERISA Advisory Council to discuss potential recommendations for the Secretary of Labor on the issues of: [1] Gaps in Retirement Savings Based on Race, Ethnicity and Gender, and [2] Understanding Brokerage Windows in Self-Directed Retirement Plans."

Tags: Health Plan Policy  •  Retirement Plan Policy

Editor's Pick Defined Contribution Plans: Challenges and Opportunities for Plan Sponsors
Jeffery V. Bailey and Kurt D. Winkelmann, via SSRN Link to more items from this source
Aug. 20, 2021

"[The authors] address key challenges facing DC plans and offer associated design and policy recommendations for plan sponsors and other interested parties to consider.... Plan sponsors individually will make the important decisions that have lasting consequences for participants and for society.... [The authors] believe the DC system will be strengthened by informed sponsors advocating for and implementing thoughtful strategic changes to their plans."

Tags: Retirement Plan Design  •  Retirement Plan Policy


<< Older News  |  September 23, 2021

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