Session Expiration Warning
Pending Legislation: Fall 2013
The Secure Annuities for Employee (SAFE) Retirement Act of 2013 [see "Retirement Reform" section below] from Sen. Orrin G. Hatch, R-UT, proposes a significant number of changes to the public and private retirement systems. Some key provisions in title II of the bill with respect to the private retirement system would:
- Create a new safe harbor deferral-only "Starter 401(k)" plan with automatic enrollment and an $8,000 deferral limit (plus a catch-up for those age 50 and over) for employers who do not have another retirement plan.
- Introduce a new automatic 401(k) safe harbor option, featuring a 6% (rather than a 3%) initial deferral rate.
- Eliminate top-heavy requirements.
- Allow plan sponsors to make electronic delivery of retirement plan documents the default option.
- Allow required minimum distributions to be rolled over into Roth IRAs.
This legislation would also transfer jurisdiction over the fiduciary rules in the tax
code from the Department of Labor (DOL) to the Treasury Department.
On that same topic … the DOL announced in September that its rule (anticipated in
October) that would expand the definition of "fiduciary" under retirement law for
anyone advising a customer about a retirement plan will be delayed until early 2014.
Elsewhere on the regulatory front, the DOL has prepared a fee disclosure guide to
supplement its recent regulations. The guide, which is under review at the Office of Management and Budget as of this writing, is expected to set out the required format of a "roadmap" document to accompany the required disclosures. Retirement industry groups do not think there is a compelling need for the guide.
The following represent bills that are actively being considered by Congress at this time. For more information on these and other bills, go to the Library of Congress website at http://thomas.loc.gov.
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||MAY LOSE VALUE
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