MAP-21 Extension Approved by House and Senate Committees
On Thursday, July 10, both the House Ways and Means (W&M) and the Senate Finance Committee (SFC) marked up bills to extend funding for the highway trust fund. Both bills include extension of the Moving Ahead for Progress in the 21st Century Act (MAP-21) interest stabilization provision to provide part of the necessary funding.
The W&M bill extends the 10% corridor through 2017, and the SFC bill only through 2015. Both allow plan sponsors to opt-out for years beginning before Jan. 1, 2014. The opt-out could be complete or for benefit restriction purposes only. Both also include a technical correction for small plans that use end-of-year valuation dates. The correction applies the first segment rate to the five years beginning on the plan’s valuation date instead of the first day of the plan year. Neither bill includes the “stretch IRA” provision that was in the original version of the SFC proposal, and neither would increase PBGC premiums.
Congress is likely to complete action on a highway trust fund bill before leaving for the August recess. With a MAP-21 extension included in both the House and Senate proposals, it appears an extension of the 10% corridor in MAP-21 is coming soon. The question remaining is how long an extension.
Judy Miller is ASPPA’s Director of Retirement Policy.