For Immediate Release
Washington, DC – The ERISA Industry Committee (ERIC) submitted comments to the Internal Revenue Service (IRS) regarding provisions in the proposed rule, Mortality Tables for Determining Present Value under Defined Benefit Pension Plans.
ERIC is the only national association that advocates exclusively for large employers on health, retirement, and compensation public policies at the state, federal, and local levels. ERIC members provide comprehensive retirement benefits to tens of millions of active and retired workers and their families. We has a strong interest in proposals, such as the proposed rule, that would affect our members’ ability to provide predictable and secure pension benefits in an efficient and tax-compliant manner.
ERIC’s comments stressed that the regulatory process should be more rigorous to determine the economic impact on plan sponsors. ERIC is concerned that revisions to mortality improvement rates could make it difficult for plan sponsors to budget for future cash flows and for participants to plan for retirement if such updates are not provided on a timely basis. ERIC also asked that the IRS allow for a sufficient transition time and not impose unnecessarily burdensome data collection requirements for newly acquired plans.
“It is imperative that the IRS fully vet the economic significance of this proposed rule before putting it into action,” said Will Hansen, Senior Vice President of Retirement and Compensation Policy, ERIC. “Additionally, the IRS must provide plan sponsors ample time to prepare for the increased costs and administrative time associated with the effects of this proposed rule.”
ERIC also submitted a joint comment letter with the American Benefits Council urging the IRS to qualify the proposed rule as subject to President Trump’s Executive Order 13771. This executive order reduces regulatory burdens and costs, through the repeal of two existing regulations for every new regulation, and keeps the total regulation costs from each federal agency static.
Click here to read ERIC’s comments.
Click here to read ERIC’s joint letter with the American Benefits Council.