Pending Bills Would Impact DB Plans

At the DB Regulatory Update workshop session at the 2018 ASPPA Annual Conference, Marty Pippins, Executive Director of ACOPA, provided an update on legislation on Capitol Hill that if enacted, would have significant impacts on defined benefit plans. Pippins also serves as the American Retirement Association’s Director of Regulatory Policy.

Bills in the House of Representatives

Legislation currently pending in the House include:

The Family Savings Act (H.R. 6757), sponsored by Rep. Kelly. Based on the RESA legislation introduced in the Senate by Sen. Orrin Hatch, the bill was passed by the full House in September by a bipartisan, 240-177 margin, meaning that 10 Democrats voted for it. (Click here for more information about H.R. 6757.) 

The Save Community Newspaper Act (H.R. 6377), sponsored by Rep. Paulsen. Last action: reported out of House Ways & Means Committee in July 2018. The bill would provide for and extended shortfall amortization period. “The Save Community Newspaper Act is quite interesting in that it’s limited to employers that meet the definition of a community newspaper, and it does seem to geared toward smaller community newspapers with legacy pension plans,” Pippins said. “The bill says that rather than having to use a 7-year shortfall amortization, just do it over 30 years. Similarly, rather than using the interest rates prescribed under the Code to amortize your liability using your discount rates, just use 8%.”

The Automatic Retirement Plan Act of 2017 (H.R. 4523), sponsored by Rep. Neal. (Click here for more information about H.R. 4523.) 

The Retirement Plan Simplification and Enhancement Act of 2017 (H.R. 4524), sponsored by Rep. Neal. Among other things, the bill would expand the Self-Correction Program under EPCRS. (Click here for more information about H.R. 4524.) 

Bills in the Senate

Legislation currently pending in the Senate include:

The Retirement Enhancement and Savings Act of 2018 (RESA) (S. 2526), sponsored by Sens. Hatch and Wyden. (Click here for more information about S. 2526.) 

The Small Business Employees Retirement Enhancement Act (S. 3219), sponsored by Sens. Cotton, Young, Heitkamp and Booker. S. 3219 includes a provision that would create a ‘fiduciary free’ open MEP model. (Click here for more information about S. 3219.) 

The Protecting Taxpayers Act (S. 3278), sponsored by Sens. Portman and Cardin. Primarily a tax administration measure, S. 3278 would also expand the Self-Correction Program under EPCRS. (Click here for more information about S. 3278.)