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IRS

New Administration, new Congress

With the focus currently on how President-Elect Biden will staff his new Administration and on the change in control of the Senate, we provide a brief review of the key Administration jobs that President Biden will have to fill, and the key Congressional leadership, that directly affect retirement savings policy, and some of the issues they will be considering.

Biden Administration agency agenda

In this article we review possible retirement policy agency initiatives of a Biden Administration. We will follow up with a discussion of possible legislative initiatives when the Congressional situation becomes clearer.

SECURE 2.0 – the Securing a Strong Retirement Act

On October 27, 2020, House Ways and Means Committee Chairman Neal (D-MA) and Ranking Member Brady (R-TX) released the Securing a Strong Retirement Act – a set of retirement savings policy changes with bi-partisan support. The bill builds on changes made by 2019’s Setting Every Community Up for Retirement Enhancement (SECURE) Act and may provide a template for further improvement of our current retirement savings system.

2021 Increases for Retirement Plans, Social Security

The Social Security Administration just announced benefit increases effective in 2021. Current retirees will receive a cost-of-living increase, beginning in January 2021, of 1.3%, reflecting the increase in CPI-W between the 3rd quarter of 2019 and the 3rd quarter of 2020.

DOL finalizes electronic participant communications safe harbor

On May 21, 2020, the Department of Labor released a final regulation amending current disclosure rules, providing a new “notice and access” safe harbor for the use of electronic communications to satisfy required participant disclosures in retirement plans. The new rule dramatically liberalizes DOL’s electronic communication rules, which (with certain exceptions) previously required that the…Read More

Regulatory update April 2020

In this update we briefly review two issues presented by the layoff or furlough of employees in the current Coronavirus crisis – treatment of outstanding plan loans and possible partial termination – and IRS’s extension to July 15, 2020 of certain filing deadlines. Layoffs/furloughs – plan loans and partial termination rules Generally, we use “layoff”…Read More

2019 year in review

In this article we review some of the significant retirement policy developments of 2019, including Congress’s consideration of broad bipartisan legislation (the SECURE Act), DOL’s electronic participant communications proposal, and the Supreme Court putting three ERISA retirement plan cases on its docket. Legislation Retirement policy-related legislative activity focused on passage of the Setting Every Community Up…Read More

2020 Increases for Retirement Plans, Social Security

The Social Security Administration just announced benefit increases effective in 2020. Current retirees will receive a cost-of-living increase, beginning in January 2020, of 1.6%, reflecting the increase in CPI-W between the 3rd quarter of 2018 and the 3rd quarter of 2019. In addition, the maximum amount of earnings subject to Social Security tax will increase in 2020…Read More