ERIC, along with the American Benefits Council and the Committee on Investment of Employee Benefit Assets, sent a letter to Senate Majority Leader McConnell and Senate Finance Committee Chairman Hatch on frozen defined benefit plans. The letter was a statement of support for legislation that would protect participants and enable employers to continue offering partially frozen DB plans, while also avoiding the adverse impact of nondiscrimination rules on the plans’ tax-qualified status.
The legislation, the Retirement Enhancement and Savings Act of 2016 (RESA), was reintroduced this Congress in two separate bills, S.852 and H.R.1962. The bills would clarify that a plan that passed the nondiscrimination tests at the time it closed would be classified as having passes the tests as long as it was not amended in any discriminatory manner.
Click here to read the letter.