Washington Insights - Summer 2018
June 14, 2018 | By Jon Vogler
Retirement reform bills take center stage at congressional hearing
The House Education and the Workforce’s Subcommittee on Health, Education, Labor and Pensions heard testimony on May 16 about four bipartisan bills that would simplify and modernize retirement plan access and administration.
The four bills discussed were:
- The Retirement Security for American Workers Act (H.R. 854), which would (1) allow unrelated employers to offer open multiple employer plans (MEPs) and (2) generally eliminate the “one bad apple” rule.
- The Retirement Plan Modernization Act (H.R. 4158), which would raise the automatic cash-out limit from $5,000 to $7,600 and index it for inflation.
- The Receiving Electronic Statements to Improve Retiree Earnings Act (H.R. 4610), which would authorize the electronic delivery of retirement plan documents.
- The Increasing Access to a Secure Retirement Act (H.R. 4604), which would modify the rules that provide a fiduciary safe harbor when selecting an annuity provider.
In this edition of Washington Insights, we will review the intent of these bills (as well as pertinent testimony) and offer an overview of their likelihood of passage. In addition, we will examine a separate bill known as the Federal Retirement Commission Act, recently introduced in the Senate. This bill would establish a federal commission to review private retirement benefit programs and report to Congress on how to improve private retirement security in the United States.