For Immediate Release
Washington, DC – The ERISA Industry Committee (ERIC) today briefed Congressional staff on how lawmakers can help large employers strengthen the defined contribution plans they offer their employees.
The event was led by ERIC’s President and CEO, Annette Guarisco Fildes and Aliya Robinson, Senior Vice President of Retirement and Compensation Policy, and featured executives from ManTech International Corporation and Fidelity Investments.
The panel discussed a series of proposals ERIC is promoting to modernize defined contribution and 401(k) plans and how those ideas can be used to strengthen retirement security for millions of workers and families across the country. The proposals were created in response to feedback from ERIC member companies – the nation’s largest employers across all industries – on the changes confronting employers and workers.
“Defined contribution plans provide significant retirement benefits but can be much more effective retirement plans if Congress modernized some of the underlying rules that were adopted in the 1980s,” said Annette Guarisco Fildes, President and CEO, ERIC. “We asked our member companies that are on the front lines of redefining employee benefits, what updates needed to be made so that the plans would work for their employees in today’s world.”
ERIC’s proposals include:
- Modifying and providing additional flexibility to the definition to a highly compensated employee
- Expanding contribution opportunities for older workers and workers who have taken unpaid leave
- Permitting participants to withdraw or use limited, pre-tax elective deferrals for critical short-term financial needs without imposing an early distribution tax penalty
- Allowing employer contributions that match student loan payments
- Promoting electronic delivery of plan notices and disclosures
- Simplifying notices and disclosures
- Relaxing required minimum distribution rules
“Our national retirement policies must support the continued growth and success of the defined contribution plans to guarantee that workers can enjoy retirement,” said Aliya Robinson, Senior Vice President of Retirement and Compensation Policy, ERIC. “ERIC will work with lawmakers and regulators to promote changes to the retirement system that respond to current needs and protect the future savings of employees.”
Click here to read more about the proposals.