Washington, DC (November 28, 2021) – The ERISA Industry Committee (ERIC) continues to work with lawmakers to expand opportunities for workers and optimize resources for retirement savings. Today, ERIC submitted a statement to the U.S. Senate Special Committee on Aging for its hearing titled “A Financially Secure Future: Building a Stronger Retirement System for All Americans.”
“The pandemic wasn’t just a health care crisis; it also impacted many Americans financially, including their ability to save for the future. ERIC applauds the Senate Aging Committee for holding this important hearing, and we look forward to working with Congress to expand avenues for retirement savings for millions of people,” said Andy Banducci, Senior Vice President of Retirement and Compensation, ERIC.
To expand retirement savings opportunities for workers, ERIC recommends:
- Allowing defined contribution plans to permit participants to withdraw or use limited, pre-tax elective deferrals for critical short-term financial needs without imposing an early distribution tax penalty
- Expanding cafeteria plans to allow participants additional pre-tax benefit options
- Increasing catch-up limits in plans
- Increasing the age for required minimum distributions to age 75
- Providing a safe harbor for the recovery of retirement plan overpayments
- Modifying the definition of a Highly Compensated Employee
ERIC also urged Congress to pass legislation that will allow employers who offer retirement plans to optimize resources by eliminating unnecessary administrative burdens. Specifically, ERIC asked for lawmakers to:
- Maintain electronic disclosure as a default distribution
- Simplify reporting and disclosure requirements
- Prevent raising single-employer Pension Benefit Guaranty Corporation premiums to offset non-retirement legislation
- Establish an Office of Retirement Savings Lost & Found
- Protect ERISA preemption in efforts to increase retirement coverage
“Congressional leaders in both parties have introduced legislation to strengthen retirement savings. ERIC is determined to help Congress advance policies that promote retirement security for workers and help employers efficiently provide valuable retirement benefits,” said Banducci.
Click here to read ERIC’s full written statement.