NAGDCA’s Legislative Priorities
NAGDCA advocates for a list of federal legislative priorities, developed by the Legislative Committee and the Executive Board with the advice and support of the legislative affairs team and staff. NAGDCA’s legislative priorities represent solutions to the most pressing federal policy and technical problems facing NAGDCA’s members.
The Executive Board presents the priorities annually in small group meetings with key legislators and their staff on Capitol Hill, to ensure that the voice of all NAGDCA members is heard at the federal level.
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Legislative Priorities
PROTECT AND ENHANCE GOVERNMENTAL DEFINED CONTRIBUTION PLAN FEATURES
Permit Roth IRA Rollovers in Employer Plans
Congress should amend the Internal Revenue Code to permit individuals to roll over their Roth IRAs into qualified plans, 403(b) plans, and governmental 457(b) plans. This amendment would provide individuals with more choice and flexibility, and it would help integrate state-facilitated automatic IRA programs into the larger retirement system.
Allow Emergency Savings in Governmental Plans
Congress should amend the Internal Revenue Code to clarify that governmental defined contribution plans can help participants weather storms by offering pension-linked emergency savings accounts (“PLESAs”).
Enhance Investment Options for 403(b) Plans
Permit Collective Investment Trusts (CIT’s) and separate accounts as investment vehicles in 403(b) plans as they are in other governmental plans.
ADDITIONAL PRIORITIES:
Protect Relevant Retirement Plan Features
NAGDCA opposes Rothification and any reforms that could threaten retirement security for public employees. Lawmakers should preserve key governmental plan features and ensure these provisions are not eliminated through tax code consolidation or other changes.
Enhance Distribution Choice
Allow Qualifying Charitable Distributions (QCDs) from 457(b), 401(a), 401(k) and 403(b) plans, as they are from IRAs.
Clarify Leave Conversion Rules
Clarify Internal Revenue Code to ensure governmental employees can convert accrued leave into defined contribution plan contributions at retirement.
Support National Retirement Security Month (NRSM)
Encourage House and Senate resolutions designating October as NRSM to help promote retirement planning and education across the country.
