For Immediate Release
Washington, DC – The ERISA Industry Committee (ERIC) has been actively advocating for improvements to the private retirement system.
ERIC submitted a statement to the Senate Finance Committee’s hearing on the Retirement Enhancement Security Act (RESA). The statement highlighted ERIC’s support for several aspects of RESA, including:
- A permanent fix for nondiscrimination testing for frozen plans
- More flexible options in providing lifetime income disclosure notices to avoid one-size-fits-all mandates
- A comprehensive resolution to the multiemployer pension plans crisis
- Measures to facilitate electronic delivery to modernize notice and disclosure rules
- Provisions that would allow employers to assist workers in saving for retirement while paying off student loan debt
- Expanding the allowance of pension transfers to retiree health and welfare plans to protect retirees.
“The ERISA Industry Committee applauds the Committee’s efforts to strengthen and improve the private retirement plan system,” said Aliya Robinson, Senior Vice President, Retirement and Compensation, ERIC. “ERIC believes the Retirement Enhancement Security Act is a good first step, but that more comprehensive measures must be taken to modernize and update the system.”
- Protects retiree health care and life insurance benefits by expanding the use of transfers from generously overfunded pension plans
- Encourages increased retirement savings by expanding the automatic enrollment safe harbor and allowing for “matching contributions” for student loan payments
- Updates outdated retirement provisions relating to mortality tables and the required minimum distribution age
- Eases administrative burdens on plan sponsors by expanding the self-corrections process and consolidating notice requirements.
“ERIC is appreciative that the Retirement Security and Savings Act of 2019 includes helpful provisions that recognize the cost and compliance burdens imposed on pension and retirement plans, as well as numerous proposals that address these challenges while supporting employers in their efforts to provide critical voluntary benefits to their employees, retirees, and families,” said Robinson.