According to BNA Pension and Benefits Reporter, Rep. Earl Pomeroy (D-N.D.) and Sen. Charles Grassley (R-Iowa) are expected to introduce the Phased Retirement Liberalization Act this week. The bill would permit employers to provide in-service distributions from defined benefit plans to workers that reach age 59 1/2 or 30 years of service.
The measure would give employers and employees additional flexibility in easing toward retirement – with workers drawing a partial salary and a partial pension benefit, while their pension continues to grow. In most circumstances under current law individuals may not both remain on the job and draw full/partial pensions from their employer.
Phased retirement arrangements were the focus of an April 3 hearing sponsored by the Senate Aging Committee, which Grassley chairs.
The House Ways and Means Committee is expected to put their pens to work this week, marking up a stand-alone retirement savings package that includes pension policy reform tax provisions and initiatives to expand individual retirement accounts. The starting point is expected to be H.R. 1102 , sponsored by Reps. Rob Portman (R-Ohio) and Benjamin Cardin (D-Md.), which includes a number of pension provisions that would:
- ease some regulatory requirements for qualified plans
- expand pension coverage in the small business sector
- increase pension portability
- phase in an increase in annual contribution limits to individual retirement accounts, from $2,000 to $5,000.
– Nevin Adams email@example.com