The bill would establish a Pension Rehabilitation Administration (PRA)—an entirely new agency within the Department of the Treasury authorized to issue bonds in order to finance loans to certain multiemployer pension plans.
Among some 50 other provisions aimed at improving retirement readiness in the U.S., the bill substantially increases the tax credit under current law for small businesses that adopt a new qualified retirement plan.
"The new legislation contains language addressing key IRI concerns including providing retirement plan participants with an illustration of how current savings would translate into an income stream in retirement and enhancements to automatic enrollment and contribution escalation features in retirement plans,” says Cathy Weatherford, president and CEO of the Insured Retirement Institute.
Before the House passed the Family Savings Act, leadership added the Senate’s annuity selection safe harbor provision from RESA, potentially increasingly the appetite for compromise legislation.
The House Ways and Means Committee Chairman submitted an amendment to the Family Savings Act.
The modifications take into consideration changes related to qualified plan loan offsets and other statutory changes.
Among other things, the Main Street Employee Ownership Act focuses on increasing the role of the Small Business Administration (SBA) in facilitating ESOPs by allowing the SBA to make loans to companies that they can then reloan to ESOPs.
General Treasurer Seth Magaziner announced that he will seek legislation in the 2019 General Assembly session that would require pension plans managed by religious organizations in Rhode Island to send regular updates on the financial health of the pensions to their plan participants.
A package of bills sponsored by four U.S. Senators would also increase access to workplace retirement savings accounts and help workers who already have retirement accounts save more.
The bill establishes steps retirement plan sponsors can take to avoid violations of RMD and ERISA rules, among other things.
A newly filed challenge to St. Joseph Health Services of Rhode Island’s retirement plan claims the plan at some point failed to be a church plan, and entities administering or associated with the plan hid this to keep from adhering to funding rules as defined by ERISA.
Among other things, the commission would be charged with submitting to Congress recommendations on how to improve or replace existing private retirement programs.
The hearing focused on four bipartisan proposals, and hearing witnesses expressed their support for these proposals, while some also urged legislators to move forward on the Retirement Enhancement and Savings Act of 2018 (RESA).
The bill would amend Section 7(a) of the Small Business Act, expanding loans to small business employers for the purpose of transferring ownership of the company to employees.
Changes to the treatment of executive compensation and NQDC plans may look unfavorable, but sources say they remain a valuable benefit for employees.
Attorneys anticipate a big push to get retirement plan-related legislation passed before mid-term elections could have a big impact on Congressional retirement plan agendas.