Washington, DC – The ERISA Industry Committee (ERIC) is working with lawmakers to expand opportunities to help workers save for retirement and employers efficiently administer benefit plans. Today, ERIC submitted a statement for the record to the U.S. Senate Health, Education, Labor & Pensions Committee for its hearing titled “Rise and Shine: Improving Retirement and Enhancing Savings.”
“ERIC applauds Committee members for their focus on strengthening retirement savings opportunities for hardworking Americans. Congress should act this year to improve the retirement system that helps millions of Americans save for their futures,” said Andy Banducci, Senior Vice President of Retirement and Compensation, ERIC.
In its hearing statement, ERIC recommended that forthcoming retirement legislation:
- Maintain electronic disclosure as an option for default distribution
- Should not impose burdensome new administrative requirements
- Strengthen voluntary retiree health care and life insurance benefits by continuing to permit overfunded pension plans to fund them
- Affirm the fiduciary responsibility to optimize financial outcomes for plan participants
- Modernize the definition of a Highly Compensated Employee to reflect salaries in the modern skilled workforce
- Stop unnecessary and harmful PBGC premium increases
- Allow workers to access retirement savings in a personal emergency
- Defend ERISA preemption against efforts to regulate employer-provided retirement plans at the state level
Additionally, earlier this week, ERIC voiced its support for the passage of the “Securing a Strong Retirement Act of 2022 ” (H.R. 2954) by the U.S. House of Representatives.
“ERIC is pleased lawmakers recognize the important role the Securing a Strong Retirement Act of 2022 plays in building on the SECURE Act of 2019. We are especially encouraged by provisions of the bill that would help workers get the most from their retirement plans without increasing the burden on employers, allowing plan sponsors to focus on providing meaningful benefits,” said Banducci.
Some of those ideas that ERIC supports include:
• Allowing employers to make “matching contributions” for employee student loan payments
• Expanding the self-corrections process, reducing unneeded notices, and requiring regulators to review current disclosures and make recommendations to simplify
• Creating a searchable online database to help plan participants locate lost retirement accounts
• Updating the cap for transferring former employees’ retirement funds to an IRA from $5,000 to $7,000
• Allowing plan sponsors to offer de minimis financial incentives to motivate employee participation
• Increasing the age at which minimum required distributions begin to age 75
• Increasing the catch-up limit in plans to $10,000 per year beginning at age 62
• Clarifying the rules for recoupment of inadvertent retirement plan overpayments to innocent participants
Click here to read ERIC’s letter of support for “Securing a Strong Retirement Act of 2022.”
Click here to read ERIC’s written statement to Senate HELP.