Wednesday Robinson

2018 National Press Foundation
Understanding Private Pensions
Aliya Robinson
Executive Director, Retirement Policy
U.S. Chamber of Commerce
Understanding Private Pensions
Overview
• US Chamber of Commerce
• Current Legislative/Regulatory Issues
 Multiemployer Pension Plan Reform
 RESA/Tax 2.0
 Association Retirement Plans
• 116th Congress
 Congressional Make-up
 Issues
U.S. Chamber of Commerce
• Founded in 1912 by President Taft
• Single voice for the business community at the
national level
– Today, the Chamber represents more than 3 million
businesses of all sizes, sectors, and regions
• The U.S. Chamber of Commerce is a federation
Current Legislative/Regulatory Issues
• Multiemployer Pension Plan Reform
• Retirement Enhancement and Savings Act of
2018/Tax 2.0
• Association Retirement Plans
Multiemployer Pension Reform

Background
• Multiemployer plans are benefit plans that are maintained by
two or more employers and are collectively bargained.
• Most multiemployer plans are required to have an equal
number of employer and union representatives on their Board
of Trustees.
• The current multiemployer system consists of about 1400
plans, covering approximately 10 million participants.
• Reasons for the Crisis

– Funding Rules
– Demographics
– 2008 Financial Crisis
https://www.uschamber.com/report/the-multiemployer-pension-plan-crisis-the-
history-legislation-and-whats-next

Reasons for the Crisis
• Funding Rules
– The minimum required contribution to a multiemployer plan is the amount
needed, if any, to balance the accumulated credits and accumulated debits to the
funding standard account.
– If the debits exceed the credits, there is a negative balance and contributing
employers must pay the amount necessary to balance the account.
• If participating employers do not make the contribution necessary to balance the funding
standard account, the plan has a minimum funding deficiency and contributing employers can
be assessed excise taxes on top of having to make up the deficiency.
• On the other hand, if the plan was overfunded, it would have to increase benefits in order to
prevent paying an excise tax on the overfunding.

• Demographics
– Decline of Union Membership
• The Bureau of Labor Statistics (BLS) reports that in 1983, there
were approximately 12 million American workers covered by a
collective bargaining agreement, which represented 16.8% of the
American workforce. By 2016, the number had fallen to about 7.6
million, or 6.4% of the workforce.

• Demographics
– Fewer Active Workers
• Of the 50 largest employers that participated in the Central States plan in
1980, only four remain in business today. More than 600 trucking
companies have gone bankrupt and thousands have gone out of business
without filing for bankruptcy.
• During the period 1974 to 1999, employment of US workers in the steel
industry has decreased from 521,000 to 153,000.
• At its peak, in 1923, coal employed 883,000 workers. Today, about 53,000
people work in coal mining.

• Demographics
– In 1980, there was a three to one ratio of active participants to inactive participants. By
2010, this ratio had decreased to less than one to one.

• 2008 Financial Crisis
– Prior to 2008, 80% of plans had funding levels in excess of
80% (referred to as the “green zone”) while only 9% of
plans were in critical status, or the “red zone.”
– By 2009, in the wake of the market collapse, the rate of
green zone plans plummeted to 38%, while the percentage
of plans in the red zone increased to 30%.

The Crisis
Approximately 130 multiemployer pension plans –
including two of the largest plans - are in “Critical and
Declining Status” which means they are projected to
become insolvent within 15 years. These plans cover
approximately 1 million participants and retirees.

The Crisis
As of September 2018, the Multiemployer Program of
the Pension Benefit Guaranty Corporation has a deficit
of $53.9 billion and is expected to be insolvent by the
end of FY 2025.

The Crisis
The “Contagion Effect” - If a large, “systemically important,”
plan was to become insolvent, it has the potential to
adversely impact the contributing employers and their
participation in other plans. Conversely, if one of the large
employers were to exit a plan, it would significantly and
negatively impact the plan, the remaining contributing
employers and ultimately the beneficiaries.

The Crisis
The “Contagion Effect”
• https://www.uschamber.com/report/the-multiemployer-pension-plan-crisis-businesses-and-jobs-risk
• https://www.powrnow.net/wp-content/uploads/2018/09/2018-AB-Report.pdf
• http://nccmp.org/wp-content/uploads/2018/05/Multiemployer-Pension-Crisis-The-Cost-of-Congress-
Doing-Nothing-May-16-2018-Updated-Aug-14-2018.pdf

The Crisis - Current Impact on Employers
• Withdrawal Liability
– Fear of Future Withdrawal Liability Assessment Jeopardizes
Current Business Opportunities
– Partial Withdrawal Liability Assessments
• High Contribution Rates
– Cost
– Competiveness

Joint Select Committee on the Insolvency of Multiemployer
Pension Plans
• Committee Overview
– Created as part of the Bipartisan Budget Act of 2018
– Tasked with providing recommendations and legislative language to
improve the solvency of multiemployer pension plans and the Pension
Benefit Guaranty Corporation.
– Made up of 16 members - 4 each to be appointed by the Speaker of the
House, House Minority Leader, Senate Majority Leader, and Senate
Minority Leader.

Joint Select Committee on Solvency of Multiemployer Plans
Senate
Orrin Hatch (R-UT)* Sherrod Brown (D-OH)*
Lamar Alexander (R-TN) Joe Manchin (D-WV)
Michael Crapo (R-ID) Heidi Heitkamp (D-ND)
Rob Portman (R-OH) Tina Smith (D-MN)
* Co-Chairperson
House
Virginia Foxx (R-NC) Richard Neal (D-MA)
Phil Roe (R-TN) Bobby Scott (D-VA)
Vern Buchanan (R-FL) Donald Norcross (D-NJ)
David Schweikert (R-AZ) Debbie Dingell (D-MI)

Joint Select Committee on the Insolvency of Multiemployer
Pension Plans
• Process for 2018
– Must conduct at least 5 meetings, including at least 3 public hearings
– Committee report on findings and recommendations due by
November 30, 2018
– Senate must vote on any motion by Committee before last day of
session
Joint Select Committee Hearings
Date / Location Hearing Title / Witnesses
April 18, 2018 The History and Structure of the Multiemployer Pension System
Washington, DC Thomas Barthold, Joint Committee on Taxation | Ted Goldman, American Academy of Actuaries
May 17, 2018 The Structure and Financial Outlook of the PBGC
Washington, DC Tom Reeder, Pension Benefit Guaranty Corporation
June 13, 2018 Employer Perspectives on Multiemployer Pension Plans

Washington, DC Chris Langan, UPS | Aliya Wong, US Chamber of Commerce
Mary Moonkamp, Schnuck Markets | Burke Blackman, Egger Steel Company
July 13, 2018 Understanding What’s at Stake for Current Workers and Retirees
Columbus, OH Bill Martin and Roberta Dell, Spangler Candy Company | David Gardner, Alfred Nickles Bakery, Inc.
Larry Ward, retired coal miner | Brian Slone, apprentice instructor, Millwright Local 1090
Mike Walden, National United Committee to Protect Pensions
July 25, 2018 How the Multiemployer Pension System Affects Stakeholders
Washington, DC James Naughton, Kellogg School of Management | Joshua Rauh, Hoover Institution, Stanford University
Kenneth Stribling, retired Teamster | Timothy Lynch, Morgan Lewis and Bockius

Potential Reforms Publicly Discussed
• Loan Proposals
• Funding standards
– Mandated actuarial assumptions
– Other changes to funding rules, targets
• Restrictions on plan asset allocations - For example, equities,
alternatives, etc.
• Benefit designs – The composite plan design (“GROW” Act)

Draft Proposal
• Partition:
– Orphan liabilities are transferred to the PBGC and the PBGC becomes the
payor for these benefits.
– Increase in the PBGC guarantee.
• Additional PBGC premium payments:
– New variable rate premium.
– New retiree premium based on zone status of the plan.
– New active participant premium.
– New exit premium.

Draft Proposal
• Funding Rule Changes:
– Cap the discount rate
– Limit asset smoothing
– Limit credit balances
• Changes to Funding zones
– Plan Failure at 5 years to insolvency – similar to plan termination

Where are we now?

Where are we now?
• Hatch, Brown Commit to Continued Work on Pension Crisis Past Nov. 30
– Press Release, 11/29/18 https://www.brown.senate.gov/newsroom/press/release/hatch-brown-commit-to-continued-work-on-
pension-crisis-past-nov-30
• Sen. Lamar Alexander (R-Tenn) said Thursday that in the next Congress the HELP
Committee, which he chairs, will pick up where the supercommittee leaves off.
"We will have no choice but to do that," Alexander said during an executive
session of the committee. Alexander has already discussed the task with Ranking
Member Sen. Patty Murray, he said, and worked out jurisdictional kinks with the
Finance Committee.
– Politico, 11/30/2018 https://www.politico.com/newsletters/morning-shift/2018/11/30/pension-deadline-expires-436727

Where are we now?
We appreciate the hard work of both the members and staff of the Joint Select
Committee on Solvency of Multiemployer Pension Plans. While we are
disappointed that the Committee was not able to propose legislation by the
deadline, we are pleased with the important progress the Committee has
made, particularly with the difficulty of the issues involved. To build on this
progress, resolve the multiemployer pension crisis, save thousands of
businesses and jobs, and bring retirement security to millions, we recommend
that Congress establish another Joint Committee in 2019. The Chamber will
continue to work with our members, Congress, and other stakeholders to find
a resolution to this crisis.
-U.S. Chamber of Commerce
Retirement Enhancement and Savings Act of 2018
• Open Multiple Employer Plans

– Eliminates the requirements that:
• participating employers must share a nexus; and
• one “bad apple” rule (a single employer who violates a
requirement can disqualify the entire plan).
• Disclosure Regarding Lifetime Income
– Requires benefit statements provided to defined contribution plan
participants to include a lifetime income disclosure at least once
during any 12-month period.
– The disclosure must illustrate the monthly payments the participant
would receive if the total account balance were used to provide
lifetime income streams, including a qualified joint and survivor
annuity for the participant and the participant’s surviving spouse and a
single life annuity.
– The Secretary of Labor is directed to develop a model disclosure.
• Fiduciary Safe Harbor for Selection of Lifetime Income Provider
– Provides an optional safe harbor for fiduciaries to satisfy the prudence requirement
with respect to the selection of insurers for a guaranteed retirement income
contract and are protected from liability for any losses that may result to the
participant or beneficiary due to an insurer's inability in the future to satisfy its
financial obligations under the terms of the contract.
• Portability of Lifetime Income Options
– Permits qualified defined contribution plans, section 403(b) plans, or governmental
section 457(b) plans to make a direct trustee-to-trustee transfer to another
employer-sponsored retirement plan or IRA of lifetime income investments or
distributions of a lifetime income investment in the form of a qualified plan
distribution annuity, if a lifetime income investment is no longer authorized to be
held as an investment option under the plan.
• Increase Small Employer Pension Plan Start-Up Costs
– Increases the start-up credit to the greater of
• $500 or
• the lesser of
– $250 multiplied by the number of nonhighly compensated employees of the eligible
employer who are eligible to participate in the plan or
– $5,000.
– The credit applies for up to three years.
• Creates a Small Employer Automatic Enrollment Credit
– Creates a new tax credit of up to $500 per year to employers to defray startup costs for new
section 401(k) plans and SIMPLE IRA plans that include automatic enrollment. The credit is in
addition to the plan start-up credit allowed under present law and would be available for
three years. The credit would also be available to employers that convert an existing plan to an
automatic enrollment design.
• Nondiscrimination Rules for Frozen Defined Benefit Plans
– Modifies the nondiscrimination rules with respect to closed
plans to permit existing participants to continue to accrue
benefits.
• Repeal of Maximum Age for Traditional IRA Contributions
– Repeals the prohibition on contributions to a traditional IRA by
an individual who has attained age 70½.
• Removes Auto Enrollment Safe Harbor Cap
– Removes the 10% cap under an automatic enrollment safe
harbor plan.
• Simplifies Safe Harbor 401(k) Rules
– Eliminates the safe harbor notice requirement, but maintains
the requirement to allow employees to make or change an
election at least once per year.
– Also permits amendments to non-elective status at any time
before the 30th day before the close of the plan year.
• Modification of PBGC Premiums for Cooperative and Small Employer Charity
(CSEC) Pension Plans
– Establishes individualized rules for calculating PBGC premiums for CSEC plans
• Modifications to Required Minimum Distribution Rules (Stretch IRA)

– Modifies the required minimum distribution rules with respect to defined contribution plan
and IRA balances upon the death of the account owner. Under the legislation, for aggregate
account balances over $450,000, distributions to individuals other than the surviving spouse
of the employee (or IRA owner), disabled or chronically ill individuals, individuals who are not
more than 10 years younger than the employee (or IRA owner), or child of the employee (or
IRA owner) who has not reached the age of majority are required to be distributed by the end
of the fifth calendar year following the year of the employee or IRA owner’s death. The
modification would limit the tax subsidy for retirement savings once the needs of the
individual and surviving spouse, and certain other beneficiaries, have been met.
• Treat Certain Taxable Non-Tuition Fellowship and Stipend Payments as Compensation for IRA
Purposes
– Allows stipends and non-tuition fellowship payments received by graduate and postdoctoral students to be
treated as compensation which can be used as the basis for IRA contributions.
• Expansion of IRA Ownership of S Corporation Bank Stock
– Permits any IRA to be a shareholder of any S corporation that is a bank.
• Prohibits Loans Through Credit Cards
– Prohibits the distribution of plan loans through credit cards or similar arrangements, except under existing
arrangements available before September 21, 2016.
• Treatment of Custodial Accounts on Termination of Section 403(b) Plans
– Deems custodial accounts held by IRS approved nonbank trustees pursuant to a termination of section
403(b) plan to be IRAs.
• Clarification of Retirement Income Account Rules Relating to Church-Controlled Organizations
– Clarifies which individuals may be covered by plans maintained by church controlled organizations.
• Plans Adopted by Filing Due Date for Year May Be Treated as in Effect as of Close of
Year
– Permits businesses to treat qualified retirement plans adopted before the due date (including
extensions) of the tax return for the taxable year to treat the plan as having been adopted as
of the last day of the taxable year.
• Combined Annual Reports for Group of Plans
– Directs the IRS and DOL to effectuate the filing of a consolidated Form 5500 for similar plans.
• Increased Penalties for Failure to File Retirement Plan Returns
– The Form 5500 penalty would be modified to $100 per day, not to exceed $50,000.
• Pension Plan Acceleration of PBGC Premium Payment
– Accelerates the payment of variable-rate premiums for single employer pension plans for
which the due date under present law occurs during the period after September 30, 2027, and
before June 1, 2028, to September 30, 2027.
Retirement, Savings, and Other Tax Relief Act of 2018
(Family Savings Act / Tax 2.0)
• Provisions similar to RESA:
– Multiple employer plans; pooled employer plans.
– Disclosure regarding lifetime income.
– Fiduciary safe harbor for selection of lifetime income provider.
– Increase in credit limitation for small employer pension plan startup costs.
– Small employer automatic enrollment credit.
– Rules relating to election of safe harbor 401(k) status.
– Portability of lifetime income investments.
– Increase in 10 percent cap for automatic enrollment safe harbor after 1st
plan year.
Provisions similar to RESA (cont’d):
– Certain taxable non-tuition fellowship and stipend payments treated as
compensation for IRA purposes.
– Qualified employer plans prohibited from making loans through credit cards
and other similar arrangements.
– Treatment of custodial accounts on termination of section 403(b) plans.
– Clarification of retirement income account rules relating to church-controlled
organizations.
– Plan adopted by filing due date for year may be treated as in effect as of close
of year.
– Modification of nondiscrimination rules to protect older, longer service
participants.
– Modification of PBGC premiums for CSEC plans.
• Provisions not in RESA
– Penalty-free withdrawals from retirement plans for individuals in case
of birth of child or adoption.
• Exempts distributions of up to $7,500 from the 10% penalty in the
case of a birth or adoption.
– Repeal of maximum age for traditional IRA contributions.
– Exemption from required minimum distribution rules for individuals
with certain account balances.
• Exempts individuals with less than $50,000 across all eligible
retirement plans (other than defined benefit plans) from required
minimum distribution rules.
Provision Left Out

– The creation of “Universal Savings Accounts,” to which an
individual could contribute $2,500 after-tax each year, and
withdraw from tax-free for any purpose.
Status of RESA and Tax 2.0
RESA
• The Finance Committee unanimously reported RESA as S. 3471 in the 114th
Congress.
• Has not been reported out of Committee in the 115th Congress.
• In September, the House passed the Family Savings Act.
• On November 26, House Ways and Means Committee Chairman Kevin Brady
released a tax and oversight package that includes the Retirement, Savings, and
Other Tax Relief Act of 2018.
Omnibus????
Association Retirement Plans

• On October 23, the Department of Labor issued a proposed rule on
Association Retirement Plans (ARPs) which expands sponsorship
opportunities for multiple employer plans.
• The rule parallels the rule on Association Health Plans (AHPs) and
the intent is for entities that sponsor an AHP to also be able to
sponsor an ARP.
• Comments on the proposal are due on December 24.
• https://www.dol.gov/general/topic/association-retirement-plans
The 116th Congress
Congressional Make-up
Committee Chair Ranking Member
Senate HELP Committee Lamar Alexander (R-Tenn.) Patty Murray (D-Wash.)
Senate Finance Committee Charles Grassley (R – Iowa) Sen. Ron Wyden (D-Ore)
House Education and the Bobby Scott (D-Va.) Virginia Foxx (R- NC)
Workforce (Labor) Committee
House Ways and Means Richard E. Neal (D-Mass.) Kevin Brady (R-Texas)
Committee
The 116th Congress
Retirement Bills Introduced by Congressman Neal
– H.R.4524 — Retirement Plan Simplification and Enhancement
Act of 2017
– H.R.4523 — Automatic Retirement Plan Act of 2017
– H.R.4444 — Rehabilitation for Multiemployer Pensions Act
– H.R.3910 — To amend the Internal Revenue Code of 1986 to
make lifetime income and managed account options of defined
contribution retirement savings plans portable.
– H.R.3499 —Automatic IRA Act of 2017
*Out of 18 total bills
The 116th Congress
Retirement Bills Introduced by Congressman Neal - Details
H.R.4524 —Retirement Plan Simplification and Enhancement Act of 2017
With respect to employer-provided retirement plans, the bill modifies requirements regarding:
• automatic enrollment;
• coverage rules for long-term, part-time workers;
• employer contributions;
• the timing for adopting a qualified retirement plan;
• correcting errors;
• financial incentives for contributing to a plan;
• the portability of lifetime income and managed account investment options;
• distribution options;
• notices and disclosures to participants;
• interest rates for defined benefit plans; and
• due dates for employer pension contributions..
The 116th Congress
H.R.4524 —Retirement Plan Simplification and Enhancement Act of 2017 (cont’d)
The bill also:
• repeals the maximum age for traditional Individual Retirement Account (IRA) contributions,
• modifies the rollover options that are available to nonspouse beneficiaries,
• increases the age at which participants are required to begin taking distributions,
• exempts participants with retirement plan balances that do not exceed $250,000 from the
required minimum distribution rules,
• expands tax credits for small employers that adopt certain retirement plans,
• makes the saver's tax credit available on Form 1040-EZ,
• modifies the required minimum distribution requirements for life annuities,
• modifies the requirements for qualifying longevity annuity contracts,
• modifies the rules for fiduciaries who make economically targeted investments, and
• establishes an Office of the Participant and Plan Sponsor Advocate within the Internal
Revenue Service.
The 116th Congress
H.R.4523 — Automatic Retirement Plan Act of 2017
This bill amends the Internal Revenue Code to require certain employers to maintain automatic contribution
retirement plans for employees. Governments, churches, small employers (10 or fewer employees), certain
new businesses, and employers who already maintain certain retirement plans are exempt from the
requirement. The bill also:
• imposes an excise tax on employers who fail to maintain an automatic contribution plan;
• increases the dollar limitation for the tax credit for small employer pension plan startup costs;
• allows a tax credit for small employers who adopt automatic contribution retirement plans;
• modifies certain nondiscrimination rules that would otherwise apply to the automatic contribution plans;
• modifies certain fiduciary, qualification, and administrative rules that apply to multiple employer plans;
• allows states to continue certain programs that require automatic contribution plans;
• allows a refundable tax credit for certain retirement savings contributions and requires the Department of
the Treasury to pay the credit as a contribution to the applicable retirement account; and
• provides for the portability of lifetime income investment options by permitting a rollover into another
retirement plan if the investment is no longer authorized to be held as an investment option under an
employer-sponsored plan.
The 116th Congress
H.R.4444 —Rehabilitation for Multiemployer Pensions Act
• This bill establishes the Pension Rehabilitation Administration within the Department of the Treasury and
a related trust fund to make loans to certain multiemployer defined benefit pension plans.
• To receive a loan, a plan must be either in critical and declining status (including any plan with respect to
which a suspension of benefits has been approved) or insolvent, if the plan became insolvent after
December 16, 2014, and has not been terminated.
• Treasury must issue bonds to fund the loan program and transfer amounts equal to the proceeds to the
trust fund established by this bill. The Pension Rehabilitation Administration may use the funds, without a
further appropriation, to make loans, pay principal and interest on the bonds, or for administrative and
operating expenses.
• The bill amends the Employee Retirement Income Security Act of 1974 (ERISA) to allow the sponsor of a
multiemployer pension plan that is applying for a loan under this bill to also apply to the Pension Benefit
Guaranty Corporation (PBGC) for financial assistance if, after receiving the loan, the plan will still become
(or remain) insolvent within the 30-year period beginning on the date of the loan.
• The bill also appropriates to the PBGC the funds that are necessary to provide the financial assistance
required by this bill.
The 116th Congress
H.R.3910 — To amend the Internal Revenue Code of 1986 to make lifetime income and
managed account options of defined contribution retirement savings plans portable.
• This bill amends the Internal Revenue Code to allow distributions from certain tax-favored
employer-sponsored retirement plans if a lifetime income investment or managed account
investment is no longer authorized to be held as an investment option under the plan.
• If a lifetime income or managed account investment is no longer authorized to be held as an
investment option under the plan, the bill allows: (1) qualified distributions of a lifetime
income investment or a managed account investment, or (2) distributions of a lifetime
income investment in the form of a qualified plan distribution annuity contract.
• A "qualified distribution" is a direct trustee-to-trustee transfer to an eligible retirement plan.
A "qualified plan distribution annuity contract" is an annuity contract purchased for a
participant and distributed to the participant by an employer-sponsored retirement plan.
The 116th Congress
H.R.3499 — Automatic IRA Act of 2017
• This bill amends the Internal Revenue Code to: (1) require certain employers who do not maintain qualifying retirement
plans or arrangements to make available to their eligible employees a payroll deposit individual retirement account (IRA)
arrangement (automatic IRA arrangement) which grants such employees the right to opt-out of participation; (2) require the
Department of the Treasury to provide employers with a model notice for notifying employees of their opportunity to
participate in an automatic IRA arrangement and for providing details regarding the election period; (3) impose a penalty on
employers who fail to provide eligible employees access to an automatic IRA arrangement; (4) allow employers who do not
have more than 100 employees a tax credit for costs associated with establishing an automatic IRA arrangement; and (5)
increase the dollar limitation on the tax credit for small employer pension plan startup costs.
• The bill establishes an Automatic IRA Advisory Group to make recommendations regarding automatic IRA investment
options.
• Treasury and the Department of Labor must jointly conduct feasibility studies on: (1) extending spousal consent
requirements to automatic IRA arrangements; (2) automatically transferring amounts saved by employees in retirement
bonds into alternative, private sector, diversified investments when employees' automatic IRA balances reach a certain
dollar level; (3) using investment data to notify individuals with multiple small balance retirement accounts of consolidation
options; and (4) using investment arrangements associated with automatic IRAs to assist in addressing the problem of
abandoned accounts.
• Treasury and Labor must also prescribe administrative guidance for the use of multiple employer plans by December 31,
2018.
The 116th Congress
Issues for the 116th Congress
• Multiemployer Pension Reform
• RESA/Tax 2.0 Leftovers
• State-Sponsored Retirement Plans/Mandatory Plans
• RESA 2.0
• Portman-Cardin 2.0
The 116th Congress
State-Sponsored Retirement Plans/Mandatory Plans
Federal retirement mandates?
• H.R.4523 — Automatic Retirement Plan Act of 2017
• H.R.3499 —Automatic IRA Act of 2017
State-Sponsored Retirement Plans

• In 2017, Congress issued two resolutions of disapproval under the
Congressional Review Act of regulations promulgated by the Department
of Labor that would have allowed states and cities to create mandatory
private sector retirement savings plans not governed by ERISA.
• Nonetheless, Oregon, Illinois, and California have moved forward
The 116th Congress
State-Sponsored Retirement Plans/Mandatory Plans
https://www.uschamber.com/report/state-auto-iras-the-wrong-answer
The 116th Congress
State-Sponsored Retirement Plans - Oregon
• Already required for employers with more than 100 employees.

• https://employer.oregonsaves.com
The 116th Congress
State-Sponsored Retirement Plans - Illinois
• As of November, all employers with 500 or more employees are required to participate in the
program.
• https://www.ilsecurechoice.com/
The 116th Congress
State-Sponsored Retirement Plans – California
• Pilot program started December 1

• Employer registration starts July 1, 2019
• https://www.calsavers.com/
The 116th Congress
State-Sponsored Retirement Plans – California
• In May 2018, The Howard Jarvis Taxpayers Association
filed the suit in U.S. District Court in Sacramento, naming
as defendants the program and California state Treasurer
John Chiang, chairman of the California Secure Choice
Retirement Savings Investment Board, which administers
the program.
• The complaint seeks a declaration by the court that the
state law creating the CalSavers plan is pre-empted by
the Employee Retirement Income Security Act.
The 116th Congress
RESA 2.0/Portman-Cardin 2.0

Top Issues
• Expand coverage for long-term part-time workers - require employers
with a 401(k) plan to allow long-term part-time workers to make
contributions.
• Treatment of student loan payments as elective deferrals for purposes of
matching contributions
• Saver’s Credit – make it refundable and expand eligibility.
• Electronic Delivery – Allow electronic delivery as the default delivery
option for required notices and disclosures.
• Missing Participants—Helping employers find lost participants and
beneficiaries to find lost accounts
The 116th Congress
RESA 2.0/Portman-Cardin 2.0

Additional Issues
• New automatic enrollment safe harbor – Because there is concern that
the current safe harbor of 3% is too low, there is an effort to increase the
allowable minimum percentage and allow for auto-escalation thereafter.
• Amendment to/Elimination of top heavy rules
• Increase in age for required beginning date
• Update the mortality rules underlying the RMD rules
• Correction of inadvertent plan violations – allow for self-correction of
inadvertent plan violations under the IRS’ Employee Plans Compliance
Resolution System
Questions?
Aliya Robinson
arobinson@uschamber.com
202-463-5458

Wednesday Robinson

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2018 National Press Foundation

Understanding Private Pensions

Multiemployer Pension Reform

Multiemployer Pension Reform

• Reasons for the Crisis

Multiemployer Pension Reform

Multiemployer Pension Reform

Multiemployer Pension Reform

Multiemployer Pension Reform

Multiemployer Pension Reform

Multiemployer Pension Reform

Multiemployer Pension Reform

Multiemployer Pension Reform

Multiemployer Pension Reform

Multiemployer Pension Reform

Multiemployer Pension Reform

Multiemployer Pension Reform

Multiemployer Pension Reform

June 13, 2018 Employer Perspectives on Multiemployer Pension Plans

Multiemployer Pension Reform

Multiemployer Pension Reform

Multiemployer Pension Reform

Multiemployer Pension Reform

Multiemployer Pension Reform

Multiemployer Pension Reform

• Open Multiple Employer Plans

• Modifications to Required Minimum Distribution Rules (Stretch IRA)

Provision Left Out

Association Retirement Plans

State-Sponsored Retirement Plans

• Already required for employers with more than 100 employees.

• Pilot program started December 1

RESA 2.0/Portman-Cardin 2.0

RESA 2.0/Portman-Cardin 2.0

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