We have heard that the House Ways and Means Committee is holding a mark-up of the Retirement Enhancement and Savings Act on Tuesday, April 2. Although the hearing has not been noticed yet, we anticipate that the language is the same that was introduced by Congressmen Kelly and Kind earlier this year, including the provisions on lifetime income disclosure that ERIC has been working to modify. As such, we have sent a letter to Chairman Neal urging him to consider a modification of the language that would provide flexibility for plan sponsors and allow participants to receive individualized information. During this mark-up and after, we will continue to work to modify this language.
During the mark-up, we also anticipate new provisions being added – particularly as revenue raisers:
- Stretch IRA – Although included in the original language, we expect modifications. While the focus of this provision is on IRAs, it also impacts 401(k) plans and pension plans in which a retirement benefit might be passed on to a beneficiary. We are still trying to determine the plan sponsor impact and will share additional information as we learn it.
- Required Minimum Distribution (RMD) – Expansion of the RMD age from 70.5 to 71.
- Long-term/part-time worker retirement coverage.
- Provisions from the Family Savings Act which include the 529 expansion (without the unborn child component) and 401(k) distributions for birth/adoption of a child up to $5,000.
Again, the bill language has not been introduced so there may be changes and additional detail in the coming days.
Also this week, the Senate Finance Committee voted favorably on the nomination of Gordon Hartogensis as Director of the PBGC clearing the way for a Senate floor vote. ERIC sent a letter supporting the nomination.
We will be talking about these issues and many more at ERIC’s 2019 Spring Policy Conference next week. Hope to see you there!
Article by Aliya Robinson, Senior Vice President of Retirement Policy