Washington, DC – The ERISA Industry Committee (ERIC) is working with lawmakers to protect and support retirement security for American workers and retirees during and after the pandemic.
“With the continued and uncertain impact of COVID-19 on the economy this winter, Congress must act now to protect retirement savings as well as support financial wellness options for all Americans,” said Aliya Robinson, Senior Vice President of Retirement and Compensation Policy, ERIC.
In a statement sent to the U.S. Senate Subcommittee on Social Security, Pensions, and Family Policy ahead of today’s hearing “Investigating Challenges to American Retirement Security, ERIC asked for COVID relief policies and support of Chairman Portman and Senator Cardin on “The Retirement Security and Savings Act” (S. 1431). ERIC also recommended several long-term policies that would further support workers and retirees, including:
- Recovering retirement plan overpayments from innocent participants
- Creating a pension registry to help plan sponsors locate hard-to-find plan participants
- Modernizing the definition of a highly compensated employee
- Promoting emergency savings funds
In addition to our standalone statement, ERIC joined four other trade associations in a joint statement to the Subcommittee specifically on single-employer pension funding stabilization relief.
Earlier this week, ERIC outlined priorities for Congress on potential legislative relief related to employee benefits that we consider “unfinished business” – relief Congress has worked on but not completed:
- Relief for single-employer pension plans by providing extensions of the amortization period and the pension funding stabilization percentages as stated under the HEROES Act
- Reform of the multiemployer pension plan system
- Strengthening of retiree health care by expanding permissible transfers under IRS Code section 420 to pay for retiree health and retiree life insurance benefits
- Supporting 401(k) retirement plans by allowing catch-up contributions for those impacted by COVID-19
- Temporary relief from testing requirements for employers that reinstate 401(k) matching contributions for the 2020 plan year – administrative testing requirements should not deter employers from reinstating their valuable retirement plan matching contributions
“Our recommendations are simple, straightforward, easily implemented, and will have an almost immediate and positive impact on employees and retirees. Not implementing these changes will impede the economic recovery of American businesses and individual workers, and the negative effects will last long after the pandemic is over,” said Robinson.