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RISE Up: Retirement Reform Invoice Launched in Home

Share this…FacebookPinterestTwitterLinkedin The chairman and rating member of the Home Training and Labor Committee have launched—and plan to behave on—bipartisan…

By Staff , in Retirement Accounts , at November 9, 2021

The chairman and rating member of the Home Training and Labor Committee have launched—and plan to behave on—bipartisan laws that shares some overlap with SECURE Act 2.0.

The Retirement Enchancment and Financial savings Enhancement (RISE) Act (H.R. 5891) was launched Nov. 5 by committee Chairman Bobby Scott (D-VA); Rep. Virginia Foxx (R-NC), the committee’s rating Republican; Rep. Mark DeSaulnier (D-CA), Chairman of the Subcommittee on Well being, Employment, Labor and Pensions (HELP) Committee; and Rep. Rick Allen (R-GA), the HELP Subcommittee’s rating Republican. 

The Training and Labor Committee additionally introduced that it plans to mark up the RISE Act on Wed., Nov. 10 at 1:00 p.m. EST. The markup will likely be livestreamed right here. 

Whereas almost all of the provisions within the invoice seem like contained within the SECURE Act 2.0, the Home Methods and Means Committee and the Training and Labor Committee do share some jurisdiction over retirement points. Included within the RISE Act are the next modifications, in line with a abstract. 

  • A number of Employer 403(b) Plans. The laws would broaden the scope of the SECURE Act’s pooled employer plan or open a number of employer plan provisions to permit unrelated public schooling and different non-profit employers to hitch a single 403(b) plan.
  • Pooled Employer Plan Modification. This part clarifies {that a} named fiduciary is liable for amassing contributions in a PEP and implementing written contribution assortment procedures which are affordable, diligent, and systematic. A number of trustees will stay liable for holding belongings of the plan. 
  • Retirement Plan Modernization Act. Employers at the moment might switch former workers’ retirement accounts from a office retirement plan into an Particular person Retirement Account if their balances are between $1,000 and $5,000. The invoice will increase the restrict from $5,000 to $7,000. 
  • Small Fast Monetary Incentives for Contributing to a Plan. Employers could be permitted to supply de minimis monetary incentives, comparable to low-dollar reward playing cards, to spice up worker participation in office retirement plans. 
  • Enhancing Protection for Half-Time Employees. The requirement for part-time staff to take part in an employers’ retirement financial savings plan could be lowered from three years of service with the employer to 2 years. 
  • Retirement Financial savings Misplaced and Discovered. A nationwide on-line searchable database on the Division of Labor (DOL) could be established, enabling retirement savers, who might need misplaced monitor of their pension or 401(ok) plan, to seek for the contact info of their plan administrator.
  • Efficiency Benchmarks for Asset Allocation Funds. The DOL could be directed to replace its tips concerning benchmarking investments, comparable to target-date funds, that embrace a mixture of asset lessons. This part additionally requires DOL to report back to Congress on the effectiveness of its benchmarking necessities. 
  • Eliminating Pointless Plan Necessities Associated to Unenrolled Individuals. The requirement for employers to offer sure notices to workers who haven’t elected to take part in a office retirement plan could be eliminated. Employers would nonetheless be required to ship annual eligibility notices to unenrolled contributors to encourage participation. 
  • Restoration of Retirement Plan Overpayments. This part clarifies and improves the principles associated to recouping overpayments to retirees to assist plan sponsors and defend plan contributors. 
  • Evaluation and Report back to Congress Regarding Reporting and Disclosure Necessities. The DOL, the Treasury Division and the Pension Profit Warranty Company (PBGC) could be required to evaluation reporting and disclosure necessities for pension plans and make suggestions to consolidate, simplify, standardize and enhance such necessities. 
  • Evaluation of Pension Threat Switch Interpretive Bulletin. This part requires DOL to evaluation the present interpretive bulletin governing pension danger transfers and report back to Congress on its findings. 

“We’ve a duty to create an economic system the place American staff can retire with dignity and security,” Scott stated in a written assertion. “These insurance policies are a step in the fitting route towards a safer retirement for staff and their households. I’m happy to have partnered with Rating Member Foxx, HELP Subcommittee Chair DeSaulnier, and HELP Subcommittee Rating Member Allen on this bipartisan invoice and look ahead to advancing it in our Committee this week.”

Nonetheless Ready for SECURE Act 2.0 

The Securing a Sturdy Retirement Act of 2021 (H.R. 2954)—a.ok.a. “SECURE Act 2.0”—was accredited by the Home Methods and Means Committee in Might by a unanimous voice vote, nevertheless it has not but been thought of by the Home of Representatives. Whereas this invoice is prone to go on a bipartisan foundation, it has been at the moment overshadowed and delayed by negotiations on the Construct Again Higher Act. 

The SECURE Act 2.0 builds on the 2019 SECURE Act and consists of a number of provisions superior by the American Retirement Affiliation. With the RISE Act now rising, it appears attainable the 2 payments could possibly be merged earlier than motion by the total Home.

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