|
By Susan J. White and Jonah Mainzer, Susan J. White and Associates, Inc. With Congress finishing up health care reform and transitioning into jobs based legislation it appears that pension and retirement related issues are still on the backburner and may not be taken up until after elections in November.
The economy is now the Administration’s number one priority and a series of jobs bills are currently working their way through Congress. The first bill has already been signed into law and one of the bills currently working its way to the President contains the Roth 457 provision that is a NAGDCA legislative priority.
Executive Board Visit
On March 15-16, the NAGDCA Executive Board held its annual legislative visit and held a series of meetings to discuss the NAGDCA legislative priorities. NAGDCA President Edward Lilly provided these in letters during the meetings held over the two days. The priorities include National Save for Retirement Week, Roth 457, the Saver’s Credit and maintaining the exemption from the 10% penalty for public safety officers. Meetings were held with Representative Allyson Schwartz (D-PA), Representative Sam Johnson (R-TX), majority and minority tax counsel for both the Senate Committee on Finance and the House Committee on Ways and Means, minority counsel to the Senate Committee on Health, Education, Labor and Pensions, the Joint Committee on Taxation and the Department of the Treasury.
National Save For Retirement Week (NS4RW)
During the Executive Board meetings, Representatives Schwartz and Johnson reaffirmed the importance of National Save for Retirement Week and NAGDCA will be working with them to reintroduce the Resolution later in the spring. This would follow the same timeline as last year and allow ample time for planning events during that week in October.
NAGDCA also met with Senate Committee on Health, Education, Labor and Pension (HELP) Senior Counsel for Senator Mike Enzi (R-WY), Ranking Member of the Committee. Enzi was the Republican cosponsor of NS4RW last year and has indicated continued interest, with Senator Kent Conrad (D-ND) and Chairman of the Senate Committee on the Budget, in the lead as in years before. Once health reform is completed in the Senate, NAGDCA will begin work with Conrad and Enzi—proposing action on the Resolution in late spring or early summer.
Roth 457
NAGDCA continues to advocate for a Roth 457 option for state and local government employees. It is currently part of the second jobs bill, H.R. 4213,The American Workers, State, and Business Relief Act of 2010.
The Senate Committee on Finance has supported this provision for a number of years, as it sees the Roth as an important additional savings tool. Importantly, in the current tight federal budget climate, the Roth 4567 provision also raises federal revenue over a ten-year period. The House Committee on Ways and Means in the past has opposed the provision, but a provision last year allowed federal workers to take part in the Roth plans and this may soften opposition. NAGDCA hopes that, in conference, the Senate will support the provision and the House will not oppose it-- allowing the provision to remain in legislation that will likely be sent to the President for signature soon.
Fee Disclosure and Investment Advice
The House Committee on Education and Labor, led by Chairman George Miller (D-CA) passed H.R. 2989, the 401 (k) Fair Disclosure for Retirement Act of 2009. The bill is currently before the House Committee on Ways & Means where it has not moved and it is unknown if the Committee will take up the bill this year.
In the Senate, Chairman Tom Harkin (D-IA), Senate Committee on Health, Education, Labor and Pensions, last year introduce S. 401, The Defined Contribution Fee Disclosure Act of 2009, but no action has been taken on the bill and the Senate has indicated that it will not move on fee legislation this year.
Saver’s Credit
Representative Earl Pomeroy (D-ND) introduced H.R. 1961, The Savings for American Families’ Future Act of 2009. The bill is before the House Committee on Ways & Means but has not moved since it was introduced. Earlier this month Senator Kirsten Gillibrand (D-NY), introduced S. 3090, A bill to amend the Internal Revenue Code of 1986 to expand the availability of the Saver's Credit and to make the credit refundable, which is currently before the Senate Committee on Finance.
NAGDCA supports expansion of the Saver’s Credit and has provided a number of recommendations on how to ensure deposit of the credit into current defined contribution arrangements.
|
