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2019 GAC Meetings

ASEA Monthly

The value of ACOPA for pension actuaries was on display during the recent Government Affairs Committee (GAC) meetings in Washington, D.C. Through GAC activities, ACOPA actuaries have the ability to provide input to governmental agencies and staffers of senators and members of the House of Representatives.

From June 8 to June 11, Marty Pippins, our Executive Director, Lauren Okum, Justin Bonestroo, Tom Finnegan and I represented ACOPA during various GAC activities. On June 8 and June 9 (that’s right, Saturday and Sunday), we met with representatives of ARA sister organizations to discuss preparation for the meetings to take place on Monday and Tuesday.

On Monday morning June 10, we met with the PBGC. ACOPA has a great relationship with the PBGC, as evidenced by the PBGC recent progress on coverage issues and providing speakers for the Actuarial Symposium. As evidence of the importance of our relationship, the new Director of the PBGC, Gordon Hartogensis, introduced himself during the meeting.

On Monday afternoon, ACOPA representatives joined other ARA sister organization representatives to meet with the IRS. There were approximately 20 representatives of ARA at the meeting. The IRS had more than 20 attendees and had numerous additional representatives included by conference call. Also, Treasury actuary Harlan Weller was in attendance and was fully aware that he had recently received the GAC comment letter on the need for regulations under Internal Revenue Code Section 404.

Will Hansen, Chief Government Affairs Officer for ARA, scheduled an ambitious day for Tuesday. The original schedule had seven meetings. We had to be flexible with the schedule, as a House bill was being marked up. Several meetings were cancelled and other meetings were scheduled.

One issue that ARA is trying to prevent is the “Wall Street” or financial transaction tax. This potential bill started as a method to tax wealthy Wall Street investors at 10 basis points on any financial transaction. However, recent versions have not excluded retirement plans from the tax. Imagine every deposit and every distribution from a 401(k) or cash balance plan being taxed at 10 basis points! A study estimated that the average expenses of a 401(k) plan would increase by 31 basis points if this bill passed. ARA has been out in front in opposition to this bill and the effort to make sure that retirement plans are excluded if a bill is proposed.

The Tuesday meetings were with both Republican and Democratic congressional staffers. ARA was encouraging Senate approval of the SECURE Act, which had passed the House by a 417-3 margin. However, Senate approval is not certain and various strategies could be implemented.

Pension actuaries who want their voices heard are members of ACOPA. In addition to GAC activities, I just received the invitation to “meet with Congress” at ASPPA Annual. Do other actuarial organizations offer this opportunity?

Have a great summer!

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