Dear NAGDCA Members,
The summer is off to a fast start! For the first time, we asked our government members to join us in Washington, D.C. to help inform members of Congress about the benefits of pending retirement legislation. Members from across the country joined us for our inaugural D.C. Fly-In event and met with congressional staff and representatives from their respective states.
We were excited to see so many of you take the time out of your schedules to connect with your lawmakers. It made a HUGE difference in our lobbying efforts, and I’m personally very thankful to all of you for representing NAGDCA and your home organizations so well.
NAGDCA’s Legislative Priorities were developed over several years by the dedicated members of the Legislative Committee to help relieve administrative burdens and improve outcomes in public sector defined contribution plans. Nearly all our Priorities were included in the House-passed SECURE 2.0, and we enthusiastically support the legislative proposals coming out the of the Senate this month.
Your attendance at the D.C. Fly-In played a critical role in helping members of Congress understand how our Priorities can help their constituents at home. Cross your fingers that we get a law passed in 2022!
We also met with our industry members at our Industry Roundtable for the first time since 2019. It was wonderful to see everyone (we missed you!) and I was incredibly impressed with the thoughtful and engaged conversation that took place throughout the event. It’s not always easy to open up with your competitors in the room, but our industry members created an open and inviting space for conversation. We were truly in the presence of the industry’s best and brightest.
A highlight was the presentation by Acting Assistant Secretary, Employee Benefits Security Administration, Ali Khawar. While our plans are not governed by ERISA, and therefore not directly subject to the Department of Labor’s regulations, many of the topics he discussed covered important areas relevant to the public sector market. From ESG to crypto to cyber security, it was fascinating to hear how one of the country’s top regulators thinks about the issues facing the retirement industry. For those of you who couldn’t make it, you missed out!
Finally, I cannot give enough credit to the NAGDCA staff and the team at Groom Law for their flawless execution through a very challenging week. When everything goes right, it’s easy to overlook the people making it happen. We tried a lot of new things this year and they made it look easy. I’m extremely fortunate to work with the professionals on our staff. Now let’s do it again in Baltimore in September.
All the Best,
By Groom Law Group
SECURE 2.0. On June 22, the Senate Finance Committee unanimously approved its SECURE 2.0 bill, the Enhancing American Retirement Now (EARN) Act. The Committee released its conceptual Chairman’s Mark, as well as a section-by-section summary in advance of the markup.¹
Several of NAGDCA’s priorities were included in the bill:
- Allowing 403(b)s to invest in collective investment trusts;
- Eliminating the “first day of the month” rule for 457 plans; and
- Exempting designated Roth contributions from the lifetime required minimum distribution rules.
In addition to the above, the EARN Act includes many other popular provisions, such as allowing matching contributions on employee student loan payments, increasing the required minimum distribution age from 72 to 75, and creating a federal “lost and found” database to reunite workers with lost retirement accounts. The EARN Act also allows 403(b) plans to participate in multiple employer plans (“MEPs”) and pooled employer plans (“PEPs”) and modifies the Saver’s Credit to make it refundable and pay it as a direct contribution to the individual’s retirement savings account rather than as a tax refund.
Earlier this month, the Senate Health, Education, Labor and Pensions (“HELP”) Committee approved its version of SECURE 2.0, the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg (RISE and SHINE) Act (S. 4353). The HELP Committee bill focuses on ERISA provisions within the committee’s jurisdiction. Notable provisions in the HELP bill include a new emergency savings account proposal, increased access to retirement plans for part-time workers, and an automatic reenrollment provision.
Congressional staff will now work on combining the EARN Act with the RISE and SHINE Act and then reconciling the Senate legislation with the House-passed Securing a Strong Retirement Act (H.R. 2954). Stakeholders hope to hammer out differences in the bills in coming months and then try to add final retirement legislation to a must-pass spending bill before the end of the year.
¹ The Finance Committee operates differently than most committees in Congress, in that it holds “conceptual markups” during which lawmakers review and approve legislative concepts rather than bill text. Bill text is then drafted after the Committee has approved the conceptual mark.
2023 COMMITTEE SIGN UPS CLOSE JUNE 28
Volunteering with NAGDCA is a great way to get involved with the community and connect with other public sector retirement professionals.
We’re looking for individuals from across the industry with all levels of experience and expertise to fill spots on four standing committees –
- Annual Conference Committee
- Awards Committee
- Legislative Committee
- Research and Content Advisory Committee
If you want to get involved, please click below to learn more and apply for your committee(s) of interest by completing the online sign-up form.
Click here to learn more.
EXECUTIVE BOARD NOMINATIONS CLOSE JUNE 28
The Executive Board seeks nominees for Member-at-Large. Serving on the Board allows you to be directly involved in shaping the future of public sector DC plans administration and supporting plan sponsors from across the country.
We need your voice, experience, and perspective. If you are interested in serving, please click below to complete the nomination form or reach out to Josh Spradling, NAGDCA Deputy Director, at firstname.lastname@example.org with any questions. If you know of someone you think would be a good nominee, please encourage them to submit.
Click here to learn more.
2022 ANNUAL CONFERENCE – REGISTER TODAY!
Join us in Baltimore or online!
Reconnect with the NAGDCA community in Baltimore – September 18-21. Register today for four days of networking and learning with public plan sponsors and industry representatives from across the county.
The 2022 Annual Conference offers you the opportunity to build a national network of contacts, share ideas with peers, learn innovative techniques for improving retirement outcomes, and much more.
Click here to learn more.