COLLECTED WISDOM™ on Legislative and Washington DC Actions Impacting Retirement Plans

A directory and index of articles that review what is happening in Congress and Washington DC.

Benefits Council Proposes New Ways to Use Retirement Surpluses to Boost Benefits, Raise Revenue

The American Benefits Council has proposed changes to allow employers to better utilize surplus assets in retirement plans. The first proposal seeks to enable surplus assets from defined benefit pension funds to be transferred to participants' defined contribution plans without having to terminate the defined benefit plan, a change that is currently restricted. The second proposal would allow surplus assets from retiree health accounts to be transferred to cover other benefits, such as active employee health benefits. These changes aim to benefit employees while also increasing revenue for the federal government.

Source: Plansponsor.com, May 2025

Bill Would Lower Retirement Plan Eligibility Age to 18

Senators Bill Cassidy and Tim Kaine have reintroduced the Helping Young Americans Save for Retirement Act, which aims to lower the participation age for ERISA-governed plans from 21 to 18 years old. The bill seeks to encourage retirement savings among younger workers, while still allowing plans to establish a minimum age younger than 18 if they choose. This legislation was previously introduced in November 2023.

Source: Napa-net.org, May 2025

Big Win for Savers: Reconciliation Bill Spares Retirement Plans

The influential House Ways and Means Committee ensured that retirement plans remain unaffected by its reconciliation proposal. "The real story here is what's absent from the proposal, any negative implications for retirement plans," said ARA CEO Brian Graff. He described this outcome as a significant victory for both plan sponsors and participants, as well as for the integrity of the nation's retirement plan system overall.

Source: Napa-net.org, May 2025

Universal Savings Account Proposal Reintroduced

U.S. Sen. Ted Cruz has introduced the Universal Savings Account Act, which aims to create tax-advantaged savings accounts that allow American families to save without the usual restrictions and penalties of traditional accounts. Rep. Diana Harshbarger has introduced companion legislation in the House. USAs would enable participants to save, invest, and withdraw funds freely for any purpose.

Source: Senate.gov, May 2025

Where Will the Trump Admin Take Retirement Policy?

At the NAPA 401k Summit in Las Vegas, ARA CEO Brian Graff posed a question to former Assistant Secretary for Labor for the Employee Benefits Security Administration, Preston Rutledge, about the extent of White House involvement in ERISA matters. Rutledge confirmed, "When it comes to 401ks? Yes, he genuinely cares about them." He noted that the key players in the White House, particularly within the National Economic Council led by Kevin Hassett, are actively engaged in these issues. Graff further inquired whether the fiduciary rule would be a priority for the department. Rutledge affirmed, "It will indeed be a priority. The real question is how they choose to approach it."

Source: Psca.org, May 2025

GOP House Bills Target DOL Audit Process

Two bills proposed by Republican representatives in the U.S. House aim to increase transparency regarding Department of Labor audits. Representative Lisa McClain introduced the Employee Benefit Security Administration Investigations Transparency Act, which mandates annual reports to Congress on the status of DOL audits and ongoing investigations over 36 months. Additionally, Representative Michael Rulli's bill requires the EBSA to report annually on "adverse interest agreements." Both measures seek to amend the Employee Retirement Income Security Act of 1974 to enhance oversight of investigations.

Source: Planadviser.com, May 2025

Retirement Savings for Americans Act Reintroduced, Again

Senators John Hickenlooper and Thom Tillis and Representatives Lloyd Smucker and Terri Sewell have introduced the Retirement Savings for Americans Act of 2025. This is the third time the RSAA has been introduced, having previously been introduced in the last two sessions of Congress.

Source: Ascensus.com, May 2025

Senator Cassidy Proposes Workplace Benefits for Independent Workers

Senator Bill Cassidy, chairman of the Senate Health, Education, Labor and Pensions Committee, released a white paper titled "Portable Benefits" proposing ways to provide workplace benefits to independent workers. His proposals include allowing banks to create escrow or suspension accounts to manage the irregular incomes of independent workers and enabling companies or trade associations to establish Pooled Employer Plans and Safe Harbor 401k Plans for these workers. These plans could automatically enroll workers, provide guidance, and do so without creating an employment relationship that would affect their independent status.

Source: Planadviser.com, April 2025

American Worker Retirement Plan Act Reintroduced in House

Representative Lloyd Smucker reintroduced the Retirement Savings for Americans Act on April 7. The proposed legislation aims to provide federally run retirement savings accounts for low- and middle-income workers who lack access to employer-sponsored plans. If enacted, the Department of the Treasury would manage the program, offering matching contributions of up to 5%, consisting of a 1% automatic contribution and a tax credit match of up to 4%, phased out at the national median income level. Eligible workers would be automatically enrolled at 3% of their income, with the option to opt out or increase contributions. The program is designed to function similarly to existing automatic individual retirement account programs in 20 states.

Source: Planadviser.com, April 2025

Proposal for a Federal Retirement Plan for Private-Sector Workers Reintroduced

The Retirement Savings for Americans Act is a bicameral, bipartisan bill reintroduced by Rep. Lloyd Smucker on April 7. It aims to provide uncovered private-sector workers access to a federally run retirement plan, featuring matching contributions for low- and middle-income participants. While supporters believe the RSAA could enhance retirement outcomes, critics argue it may weaken the private retirement system by reducing employers' incentives to sponsor their own retirement plans.

Source: Asppa-net.org, April 2025

Senators Introduce Bill to Protect Retirement Savings in Bankruptcy

Senators Josh Hawley and Dick Durbin have reintroduced the Protecting Employees and Retirees in Business Bankruptcies Act, aimed at enhancing protections for employee wages and retirement assets during employer bankruptcy filings. Hawley emphasized that the legislation would help employees retain more of their wages, benefits, and retirement savings in such situations. The bill has been referred to the Senate Committee on the Judiciary and is pending a vote.

Source: Psca.org, April 2025

Controversial Retirement Bill Reaches Congress Again

Rep. Lloyd Smucker reintroduced the Retirement Savings for Americans Act, a bipartisan bill aimed at providing eligible private sector workers access to federally run retirement savings accounts. The RSAA, which offers matching contributions for low-to-middle-income Americans without access to employer-sponsored plans, was initially introduced by Sen. John Hickenlooper in December 2022 and later reintroduced by Hickenlooper and Sen. Thom Tillis in October 2023. While proponents argue that the bill could help those lacking retirement savings, critics express concerns about its potential negative effects on the private 401k market, individual savings, and Social Security's financial stability.

Source: 401kspecialistmag.com, April 2025

Senate Bill Seeks to Reverse Retirement Plan Crypto Warning

Senator Tommy Tuberville of Alabama has reintroduced the Financial Freedom Act, which seeks to overturn a 2022 guidance from the DOL that discourages retirement plans from including cryptocurrency and other alternative investments. The legislation would prevent the Labor Secretary from limiting the types of investments available to individual retirement account participants who control their assets. The DOL's guidance highlighted the significant risks associated with crypto investments and warned that they may violate the fiduciary duties of plan administrators, stating that it would investigate any retirement plans that disregard this guidance.

Source: Planadviser.com, April 2025

Tuberville, Donalds Renew Push for Crypto in 401k Plans

Sen. Tommy Tuberville and Rep. Byron Donalds have reintroduced the Financial Freedom Act, aimed at protecting investment options in self-directed 401k brokerage windows. The proposed legislation would prevent the Labor Secretary from limiting the types of investments available to participants in pension plans that allow individual control over assets. It also ensures that fiduciaries can select investment alternatives without interference from the Department of Labor, as long as participants have access to a diverse range of options and decisions are based solely on risk-return characteristics.

Source: Napa-net.org, April 2025

Latest Bill to Waive Early Withdrawal Fee for Fraud Victims

Rep. Haley Stevens has introduced the "No Penalties for Victims of Fraud Act," which aims to ease the financial strain on individuals who have experienced fraud involving their retirement accounts. The legislation proposes to waive the 10% early withdrawal penalty for those withdrawing funds from their 401k or retirement plans before age 59 1/2, provided they can document their fraud losses through law enforcement or court verification. Although victims would be exempt from penalties, they would still be required to repay the amounts withdrawn.

Source: 401kspecialistmag.com, March 2025

State Republican Finance Officials Urge SEC and DOL to Adopt Regulations Prohibiting Use of ESG or DEI Factors

Republican state finance officials from 18 states have called on the acting leaders of the SEC and the DOL to establish regulations preventing asset managers and retirement plan sponsors from incorporating environmental, social, and governance or diversity, equity, and inclusion factors in their decision-making. They cited a recent legal setback for American Airlines as evidence that considering these factors may violate the fiduciary duty of loyalty mandated by ERISA.

Source: Hallbenefitslaw.com, March 2025

Spousal Consent Proposal Re-Introduced in Senate

U.S. Senators Tammy Baldwin and Patty Murray spearheaded a coalition of their fellow lawmakers to reintroduce a bill aimed at safeguarding women's retirement security. The Women's Retirement Protection Act of 2025 seeks to tackle the systemic obstacles women encounter in achieving a secure retirement by enhancing protections and offering improved resources to help women better prepare for their financial futures.

Source: Ascensus.com, March 2025

What Does the Next EBSA Head Think of ESG?

Daniel Aronowitz, President Trump's nominee to lead the Employee Benefits Security Administration, has expressed nuanced views on ESG (Environmental, Social, and Governance) issues through his Fid Guru blog. He argues that while ESG investments are generally poor choices, they are not inherently imprudent. Furthermore, he believes that the ongoing cultural debate over ESG distracts from more pressing fiduciary responsibilities. As the president of Euclid Fiduciary, a fiduciary liability insurance firm, Aronowitz has consistently opposed lawsuits against plan sponsors, which may influence his perspective on ESG-related cases. He is expected to receive Senate approval, although no votes have occurred yet.

Source: Psca.org, March 2025

IRI Reveals Top Retirement Legislation Priorities for 2025

The Insured Retirement Institute introduced its 2025 Federal Retirement Security Blueprint, emphasizing the importance of maintaining current tax treatment for retirement savings and promoting the use of protected, guaranteed lifetime income solutions. Unveiled during a press conference, the Blueprint includes 33 proposals aimed at enhancing retirement security for American workers and retirees. IRI President and CEO Wayne Chopus expressed hope for collaboration with Congress and the administration to implement these policies and help more Americans achieve financial security in retirement.

Source: 401kspecialistmag.com, March 2025

How SECURE 3.0 Could Reshape the 401k Fiduciary Regulatory Landscape and Why That's a Good Thing

401k plan sponsors and fiduciaries are facing a potential significant regulatory change with the forthcoming SECURE 3.0 legislation, designed to modernize retirement plans, boost participation, and improve financial security. This law is expected to build on prior SECURE Acts, which expanded access to employer-sponsored plans and introduced lifetime income options. Experts believe SECURE 3.0 could fill gaps in the current retirement system, ensuring greater long-term financial stability for retirees. Future changes might also involve alterations to the tax treatment of ERISA plans to incentivize saving while easing regulatory burdens on businesses, influenced by shifting political dynamics.

Source: Fiduciarynews.com, February 2025

President Issues Regulatory Freeze: Will the DOL Fiduciary Rule Saga Continue?

Since Donald Trump's inauguration on January 20, 2025, there has been a movement toward deregulation. On his first day, he issued a presidential memorandum called "Regulatory Freeze Pending Review," which functions similarly to an executive order. This freeze memo is particularly important as it could jeopardize the 2024 Retirement Security Rule, known as the fiduciary rule, which outlines the definition of investment advice fiduciary under ERISA. Since the fiduciary rule had not yet been implemented, the article reviews how the freeze memo will affect its progress.

Source: Carltonfields.com, February 2025

401k Auto Feature in Works Despite Other Trump Priorities

The next generation of automatic features in 401k plans will allow employees changing jobs to choose between the default savings rate of their new employer or the higher rate from their previous employer. Mark Iwry, a senior fellow at the Brookings Institution, anticipates this innovation will be implemented within the next 24 months. He emphasized that the technology is available, and the focus is now on industry implementation and troubleshooting.

Source: Pionline.com, February 2025

2025 Outlook for Pension Legislation, Rules and Litigation

The new administration has quickly issued several executive orders and memoranda to reverse previous orders and initiate new agency actions, including a standard directive for agencies to withdraw unpublished materials as of Inauguration Day. Meanwhile, there are expectations for a bipartisan SECURE 3.0 bill, following the SECURE Act of 2019 and SECURE 2.0 Act of 2022, although it is unlikely to be finalized before 2026. This year will focus on gathering input through hearings and discussions. While agency rules are currently frozen, litigation against government rules continues, including participant lawsuits where the previous administration supported these cases. It is anticipated that the new administration may drop appeals against rulings that overturn previous rules and may take opposing stances in future legal matters.

Source: Segalco.com, February 2025

Judge Denies Request to Block DOGE from Accessing DOL Data

A federal judge has ruled that the plaintiffs, including the AFL-CIO, challenging the Department of Government Efficiency's access to data at the DOL do not have standing to sue. This decision allows DOGE to continue its operations for now. The plaintiffs had filed a complaint seeking to block the DOL from sharing sensitive information with DOGE, claiming violations of the Privacy Act and potential harm to employees. Judge John D. Bates acknowledged concerns about the defendants' conduct but ultimately dismissed the case due to a lack of alleged injury by the plaintiffs.

Source: Napa-net.org, February 2025

Auto Enrollment Boost on the Menu in Two States

Legislation in two states aims to enhance retirement plan coverage by expanding automatic enrollment. This approach intends to increase participation in retirement savings plans by making enrollment automatic for employees, thereby broadening the impact and reach of these programs.

Source: Asppa-net.org, February 2025

DOGE Puts DOL in its Sights; Labor Groups Push Back

Labor groups, including the American Federation of Government Employees and the AFL-CIO, filed a lawsuit on February 5 challenging the Department of Government Efficiency and its authority over the Department of Labor. DOGE, created by an executive order from President Donald Trump and led by Elon Musk, has faced criticism for demanding access to sensitive government systems. The lawsuit claims that DOGE's authority over DOL violates the Privacy Act and the Administrative Procedures Act, and it was filed in the U.S. District Court for the District of Columbia.

Source: Asppa-net.org, February 2025

House and Senate Reintroduce CITs in 403b Plans Legislation

Legislators have reintroduced two bills aimed at allowing the use of collective investment trusts in 403b plans. Named the Retirement Fairness for Charities and Education Institutions Act of 2025, the bills were presented in the House as H.R. 1013 and in the Senate as S. 424.

Source: 401kspecialistmag.com, February 2025

Is SECURE 3.0 on the Horizon?

SECURE 2.0, introduced over two years ago, significantly enhanced opportunities for Americans to save for retirement. As advisers, plan sponsors, and recordkeepers navigate the new provisions, legislators and policymakers are already considering potential developments for a SECURE 3.0. Observers and lobbyists are discussing possible advancements in retirement policy, as well as the challenges that may arise in future policymaking efforts.

Source: Planadviser.com, February 2025

The Trump Administration's Priorities for Retirement Plans: D.C. Pension Geek Podcast With Brad Campbell

In this recent episode of D.C. Pension Geeks, American Retirement Association CEO Brian Graff and former Assistant Labor Secretary Brad Campbell discussed the future of retirement plans under a potential second Trump Administration. They covered key topics such as the fiduciary rule, environmental, social, and governance considerations, litigation reform, and alternative investments, providing insights into the current landscape and upcoming changes in retirement policy.

Source: Napa-net.org, February 2025

Trump Executive Order Means Any New DOL Regulation Requires Elimination of 10 Existing Ones

President Trump's "Unleashing Prosperity through Deregulation" executive order mandates that any federal agency, including the DOL, must identify at least 10 existing regulations to repeal for every new rule or guidance it proposes. This approach is expected to limit the introduction of new regulations by the DOL and its Employee Benefits Security Administration over the next four years. Rather than seeing an influx of new regulations, it's likely that existing ones will be vacated in line with this policy.

Source: 401kspecialistmag.com, February 2025

Anticipated Retirement Policies Under the Second Trump Administration

Lawmakers are considering the SECURE 3.0 Act to enhance retirement savings access for Americans. Proposed measures may involve simplifying the rollover process, establishing default investments in retirement plans, and increasing coverage for more workers. Additionally, President-elect Trump is anticipated to extend the 2017 Tax Cuts and Jobs Act, set to expire at the end of 2025, which could boost retirement savings through increased disposable income. Conversely, if Congress lets the legislation lapse, taxes on withdrawals from retirement accounts may increase.

Source: Hallbenefitslaw.com, February 2025

ERISA Moments: DOL Investigations - Priorities for 2025

Faegre Drinker attorneys Fred Reish and Brad Campbell provide concise updates on current trends and developments in ERISA in their quick-hit series. This latest episode focuses on the Department of Labor's priorities for investigations in 2025. This series offers a high-level overview of important topics within the ERISA realm.

Source: Spotlightonbenefits.com, January 2025

More Than $1B to Plans, Participants, Beneficiaries in 2024, Says EBSA

In fiscal year 2024, the Department of Labor's Employee Benefits Security Administration facilitated recoveries exceeding $1 billion for benefit plans, participants, and beneficiaries. EBSA oversees over 800,000 private-sector pension plans, which are part of a larger system protecting 156 million workers, retirees, and dependents in the U.S. The plans under EBSA's oversight, covered by ERISA, collectively hold approximately $14 trillion in assets.

Source: Asppa-net.org, January 2025

Senate HELP Looks at Key Retirement Policy Priorities

During a January 22 hearing, the Senate Committee on Health, Education, Labor and Pensions (HELP) outlined key priorities for the current congressional session, with a focus on retirement-related issues. Their priorities include improving benefits portability, redefining "independent contractor," ensuring adequate funding for the Pension Benefit Guaranty Corporation, reforming pharmacy benefit managers, and addressing the rising costs of prescription drugs.

Source: Asppa-net.org, January 2025

Bipartisan Bill Introduced to Simplify Retirement Savings Distribution Options

The "Retirement Simplification and Clarity Act," a bipartisan bill introduced by Reps. Jimmy Panetta and Darin LaHood, aims to enhance flexibility and provide clearer guidance for Americans on retirement savings. The legislation addresses existing barriers and complexities, empowering individuals with better options and straightforward information for securing their financial futures. It specifically aims to reform the complicated 402(f) Notice process, which is issued to individuals leaving their employers and seeking distributions from their 401k plans, based on recommendations from the Government Accountability Office.

Source: 401kspecialistmag.com, December 2024

What the 2025 Tax Debate Could Mean for 401ks

Key provisions of the Tax Cuts and Jobs Act of 2017 are scheduled to expire at the end of 2025. During that year, it is anticipated that a Republican-controlled government will seek to extend these tax cuts and may consider retirement tax incentives as a way to offset potential revenue losses. Brian Graff, CEO of the American Retirement Association, says that any tax bill could lead to broader changes in the entire tax code.

Source: Napa-net.org, December 2024

Trump Appoints Proponent of Federally Run Retirement Plan to Key Policy Position

President-elect Donald Trump has appointed Kevin Hassett as the Director of the White House National Economic Council. Hassett previously served as Chair of the Council of Economic Advisers during Trump's first term and was instrumental in creating the Tax Cuts and Jobs Act of 2017. He also advised Trump on economic policy during the campaign. Recently, he gained attention for a 2021 white paper co-written with economist Teresa Ghilarducci, which criticized 401k plans.

Source: Napa-net.org, December 2024

Brad Campbell Discusses New Department of Labor Leadership

Chavez-DeRemer's nomination as Secretary of Labor is seen as "unusual" due to her pro-union stance and positions on health care benefits, which may not sit well with many Senate Republicans because of her opposition to right-to-work laws. Additionally, she has not publicly addressed the Department of Labor's fiduciary rule, and notably, as a member of the House Committee on Education and the Workforce, she was the only Republican to vote against a resolution to roll back this rule. Brad Campbell suggests that Trump's election does not necessarily imply opposition to the fiduciary rule, with Chavez-DeRemer's nomination serving as a prime example.

Source: Faegredrinker.com, November 2024

Trump, New Congress Will Likely Continue Bipartisan Work to Expand 401k Coverage: Mercer

Policy experts at consultancy Mercer suggest that despite Republican control of the House and Senate under President-elect Donald Trump, bipartisan efforts to expand employer-sponsored retirement plan coverage may continue. Geoff Manville noted during a Washington policy briefing that policymakers are likely to collaborate on further initiatives, often referred to as "SECURE 3.0," while the SECURE 2.0 Act of 2022 is being implemented. He emphasized that retirement issues are expected to remain a largely bipartisan focus in Congress, particularly regarding the guidance from agencies related to SECURE 2.0.

Source: Planadviser.com, November 2024

DOL Has Been Improperly Sharing Information With Plaintiffs' Bar, House Republicans Allege

Rep. Virginia Foxx, who chairs the House Committee on Education and the Workforce, has accused the DOL of "abusing its authority." She is calling for an investigation by the DOL’s Office of the Inspector General into allegations that the DOL and the Employee Benefits Security Administration have been secretly sharing confidential information with a plaintiffs' attorney to target plan fiduciaries. Foxx claims the DOL is collaborating with these attorneys to bypass legal protections by conducting investigations that serve as a pretext for obtaining information used in private lawsuits.

Source: Ntsa-net.org, November 2024

Insecurity for ERISA's Retirement Security Rule After Trump's Election?

The election of Trump is expected to have significant consequences for federal agencies, particularly regarding the Retirement Security Rule under ERISA. There is speculation about whether financial institutions will begin to dismantle their compliance efforts related to rollover solicitations due to the fluctuating regulatory stance of the DOL on the definition of "investment advice" in ERISA's fiduciary rules. This ongoing uncertainty may finally be nearing resolution, suggesting that clarity on the future of ERISA's fiduciary rules could be forthcoming.

Source: Wagnerlawgroup.com, November 2024

Five Ways Trump's Election Could Change Employee Benefits

Attorneys are preparing for potential changes to tax, investment, and health policies that could arise from Donald Trump's second term as president, particularly regarding employee benefit plans. Trump's administration is expected to roll back regulations established under President Biden related to retirement advice, investment selection, and healthcare protections. Brigen Winters from Groom Law Group emphasizes that the expiration of tax provisions in 2025 will be a critical issue impacting employee benefits and retirement health benefits.

Source: Wagnerlawgroup.com, November 2024

Lisa Gomez Expects Fiduciary and ESG Rules to Face Reversals Under New Administration

Assistant Secretary of Labor Lisa Gomez indicated that the incoming Trump administration may implement changes to retirement security regulations and financial fiduciary standards. Speaking at the PLANADVISER 360 conference, she noted that the Department of Labor's existing retirement security rule, which defines when financial professionals become fiduciaries for retirement plan participants, might not align with the new administration's priorities. These changes are expected to significantly impact retirement plan investing and ESG guidelines.

Source: Planadviser.com, November 2024

Will It Be Feast or Famine for Retirement Policy in the Lame Duck?

As President-elect Trump prepares to return to the White House and Republicans gain control of Congress, the upcoming lame-duck session will involve finalizing unfinished legislative business. The outcomes of the recent election are expected to influence proceedings, as outgoing members may seek to leave a legacy. However, the potential for passing retirement policy legislation will largely depend on lawmakers' willingness to discuss issues beyond essential bills.

Source: Napa-net.org, November 2024

Another Trump Term May Change Tax Treatment of Retirement Plans

With President-elect Donald Trump securing another term as president, retirement industry experts believe there will be various implications on retirement plans and policy in the coming four years, including the risk of changes to the deferred-income-tax treatment of most retirement plan contributions, sources said.

Source: Plansponsor.com, November 2024

ERISA Experts See Regulation Pullback as Key Theme of Trump Rule

The return of President-elect Donald Trump and a potential Republican majority in Congress is expected to significantly impact the employer-sponsored retirement plan industry. Experts anticipate several changes, including the likely repeal of the fiduciary rule, a shift in how environmental, social, and governance factors are considered in investments, continued tax cuts, and more relaxed regulations on alternative investments in defined contribution plans. While some changes may enhance services, there are concerns about potential obstacles, such as efforts to find revenue from tax-advantaged savings and the dropping of a proposed national individual retirement account mandate.

Source: Planadviser.com, November 2024

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