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COLLECTED WISDOM™ on Legislative Items Impacting Retirement Plans

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

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ESG Would Get Massive Boost From DOL Proposed 401k Rule

A proposed rule issued Wednesday by the DOL bodes extremely well for ESG investment managers, especially because the regulator clarified that target-date funds and other default products that use the investment criteria are permissible in 401ks. But the DOL went a step further, noting that it is retaining the so-called "tie-breaker" test for investments, meaning that all else being equal, financially immaterial factors can give one product an edge over another. The proposal also clarifies that ESG can be material when it comes to proxy votes that plan sponsors make on behalf of participants.

Source: Investmentnews.com (registration may be required), October 2021

Labor Department Issues ESG Rule Proposal for 401ks

The DOL has issued its much-anticipated rule for the use of ESG investments in retirement plans, effectively walking back two Trump-era rules that were finalized last year. In the single rule proposal, "Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights," the DOL would modify requirements outlined in the two rules from last year, "Financial Factors in Selecting Plan Investments" and "Fiduciary Duties Regarding Proxy Voting and Shareholder Rights."

Source: Investmentnews.com (registration may be required), October 2021

Budget Bill Seeks Retirement Plan Mandate, Roth Conversion Ban

Nearly all employers would have to offer retirement plans with automatic enrollment, and the saver's credit would turn into a government matching plan contribution under the current House version of a roughly $3.5 trillion budget package. Other retirement-related proposals would ban Roth conversions in employer plans and cap retirement benefits for high earners. Although the retirement provisions may change as the Senate weighs in, they stand a good chance of surviving in any final package.

Source: Mercer.com, October 2021

Congress Considers Mandatory Auto-Enrollment IRAs

All eyes are on Congress as it wrestles with a $1 trillion infrastructure bill and a $3.5 trillion budget reconciliation bill. The House Ways and Means Committee markup of the reconciliation bill would require certain employers with five or more employees to automatically enroll employees in a payroll deduction IRA. This requirement would take effect on January 1, 2023.

Source: Wagnerlawgroup.com, October 2021

EBSA Nominee Addresses Fiduciary Rulemaking, Women's Protection

Lisa Gomez, who was nominated to serve as Assistant Secretary of Labor for the Employee Benefits Security Administration, tackled a wide range of issues during her Oct. 7 Senate confirmation hearing.

Source: Napa-net.org, October 2021

2021 Retirement Plan Regulatory Update

While businesses and the people they employ continued to navigate the ever-changing landscape of COVID-19, 2021 has brought new and refurbished legislature top of mind for plan sponsors. Despite the SECURE Act's debut nearly two years ago, many plan sponsors are just now contemplating whether to adopt some of the provisions. Meanwhile, plan sponsors are gearing up for the House of Representative's proposed SECURE 2.0 bill. This 15-page paper covers this development, the IRS' EPCRS changes, updates from the DOL, a review of notable updates in retirement plan fee litigation cases, plus much more.

Source: Multnomahgroup.com, October 2021

Bipartisan Aura Around Retirement Savings Diminishes in Reconciliation

Partisan tension has surrounded most issues in Washington, D.C. over the last several years with a few notable exceptions. One of them was retirement-savings policy. For the moment, "was" is the operative word because of a massive bill that is creating brittle politics on Capitol Hill. Republicans are upset about auto-IRA and other proposals in the $3.5 trillion budget reconciliation package. Will their ire carry over to SECURE 2.0?

Source: Investmentnews.com (registration may be required), October 2021

Proposed Bill Would Create Portable Retirement Accounts

Representative Jim Himes and Senator Mark Warner have announced legislation to establish universal, portable retirement accounts. The Portable Retirement and Investment Account (PRIA) Act of 2021 would create such accounts for every American at birth, in conjunction with the issuance of a Social Security number.

Source: Futureplan.com, September 2021

Legislation Introduced to Establish Portable Retirement Accounts

Touted as a way to help gig workers, part-time workers and those without access to an employer-sponsored account, legislation has been introduced in both the House and Senate to create universal, portable retirement accounts.

Source: Ntsa-net.org, September 2021

Treasury Pulling Back From Student Loan Retirement Plan Rules

The Biden administration has pulled back from working on new rules that would allow employers' retirement plans to make contributions to retirement savings plans based on their workers' student loan payments.

Source: Bloomberglaw.com, September 2021

New Bill Aims to Solve for the Retirement Plan Coverage Gap

The Portable Retirement and Investment Account Act of 2021 would create accounts for people soon after they are assigned a Social Security number that they could contribute to whenever they don't have access to an employer-sponsored plan.

Source: Planadviser.com, September 2021

Courts Giving DOL More Time to Claim ERISA Violations

The Department of Labor is relying on a recent Supreme Court decision to effectively extend the amount of time the agency has to bring fiduciary breach claims. DOL investigations often last years, so it is common for DOL to run up against the statute of limitations under ERISA.

Source: Groom.com, September 2021

Regulators Unveil Proposed Changes to Group Form 5500 Reporting

The proposal unveiled Tuesday would establish a new type of direct filing entity called a Defined Contribution Group Reporting Arrangement and add a new Schedule DCG -- detailing individual plan information -- that such reporting groups must file.

Source: Pionline.com, September 2021

A Rumor of the Death of GoPs

The retirement industry got two new plan types via the SECURE Act, pooled employer plans (PEPs) and "groups of plans" (GoPs). But proposed regulations issued on Sept. 14 might effectively kill the GoP provision as a useful product tool. This piece reflects the author's first look at the proposed rule, not a detailed analysis.

Source: Asppa.org, September 2021

House Panel Votes to Rein in Large Retirement Account Balances

Mega-Roth, backdoor IRAs and large retirement account balances would be limited under legislation approved Sept. 15 by the House Ways and Means Committee. In a near party-line vote of 24-19, the changes were approved as part of the $3.5 trillion Build Back Better Act reconciliation.

Source: Asppa.org, September 2021

Townsend Joins DOL as Retirement Advisor to Walsh

Kathleen Kennedy Townsend is joining the Department of Labor to help advance state and federal efforts to expand retirement savings programs. In an emailed statement, Townsend explained that on Aug. 30 she started a new role as Labor Secretary Marty Walsh's Representative on Retirement and Pension Issues.

Source: Asppa.org, September 2021

Suite of Bipartisan Retirement Savings Bills Reintroduced

Sens. Todd Young and Cory Booker have reintroduced several bills to help boost retirement security for individuals and families. Citing data by the DOL showing that more than 40 million people do not have access to any workplace retirement plan, the pair introduced four bills Aug. 4 that, among other things, would expand automatic enrollment in retirement plans, as well as make it easier for individuals to build emergency savings.

Source: Asppa.org, August 2021

Biden's Nominee to Head EBSA Reflects Aggressive Rulemaking Agenda

President Joe Biden's nominee to head the Labor Department's Employee Benefits Security Administration, Lisa Gomez, hints that the DOL is serious about rulemaking. Her career is rooted in ERISA, and her keen understanding of the law would help the DOL as it seeks to implement new rules, lawyers said.

Source: Investmentnews.com (registration may be required), August 2021

Congress Urged to Act on Numerous Retirement System Changes

In a hearing before the Senate Finance Committee, witnesses urged lawmakers to include changes such as mandatory coverage, student loan provisions, and emergency savings in whatever legislative package materializes, such as the SECURE 2.0 bills in the House and Senate.

Source: Investmentnews.com (registration may be required), July 2021

Khawar: Cryptocurrency Guidance on the Horizon

Speaking July 27 at the 2021 NAPA D.C. Fly-In Forum, the Acting Assistant Secretary for the DOL's Employee Benefits Security Administration outlined the key areas the department is working on, including both cryptocurrency and cybersecurity issues.

Source: Asppa.org, July 2021

DOL Official Sheds Light on Rollover Recommendations

Cautioning those looking to "game the system," a senior Labor Department official affirmed July 27 that suggesting investments that could occur after a rollover is tantamount to recommending the rollover, and if it meets the rest of the five-part test will constitute fiduciary advice regardless of how it's phrased.

Source: Asppa.org, July 2021

Gomez Nominated for EBSA Post

President Biden has nominated Lisa M. Gomez for Assistant Secretary of Labor for the Employee Benefits Security Administration. Ms. Gomez is a partner at the law firm of Cohen, Weiss and Simon and chair of the firm's management committee.

Source: Ascensus.com, July 2021

Senate Democrats Introduce Bill Providing 401k, IRA Match

Ron Wyden, the ranking member of the Senate Finance Committee, and six other Democratic senators have introduced legislation that would enhance the incentives to save for retirement. The existing nonrefundable saver's credit would become a $1,000-a-year matching contribution from the government.

Source: Investmentnews.com (registration may be required), July 2021

Women's Retirement Protection Act Reintroduced in Congress

U.S. Senator Patty Murray, who is the current chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, and Representative Lauren Underwood have reintroduced the Women’s Retirement Protection Act of 2021. According to the lawmakers, the legislation aims to address the gender-based retirement savings gap and bolster women's financial security overall.

Source: Planadviser.com, July 2021

Comparison of Provisions in SECURE 2.0 and Cardin-Portman

Groom has prepared a comparison of the provisions in two key retirement bills being considered by the 117th Congress: the Securing a Strong Retirement Act of 2021 (H.R. 2954, "SECURE 2.0") and the Retirement Security & Savings Act (S. 1770, "Cardin-Portman").

Source: Groom.com, July 2021

House Panel Crafting Bill to Limit IRA Savings

House Ways and Means Committee Chairman Richard Neal is mulling legislation that would limit "the total amount of money that can be saved in tax-preferred retirement accounts, and putting an end to the tax-dodging some do when saving in IRAs," he told ThinkAdvisor via email on Thursday.

Source: Treasuryandrisk.com, July 2021

Kennedy Introduces Bills to Boost Retirement Savings

Two bills have been introduced in the U.S. Senate designed to help Americans keep -- and have more control over -- their retirement savings. Sen. John Kennedy introduced the Keeping Your Retirement Act and the Increasing Retirement Amount Act on June 7.

Source: Napa-net.org, June 2021

'Secure Act 2.0' Likely to Become a Reality

The U.S. Senate's Improving Access to Retirement Savings Act, which is its version of the House's Securing a Strong Retirement Act, is likely to become law and improve America's retirement savings system in meaningful ways. That's the expectation of retirement plan executives about the bill.

Source: Planadviser.com, June 2021

Enhancing Emergency and Retirement Savings Act Introduced

The legislation would provide a penalty-free "emergency personal expense distribution" option from employer-sponsored retirement plans and IRAs. The proposal would allow for one emergency distribution per calendar year of up to $1,000 from the individual's total nonforfeitable accrued benefit under the plan. The bill requires that the withdrawn funds be paid back to the plan before an additional emergency distribution from that same plan is allowed.

Source: Ascensus.com, June 2021

Bill Would Allow Penalty-Free Withdrawals From 401ks, IRAs

Sen. James Lankford introduced legislation Tuesday that would allow retirement plan participants to dip into their savings for emergencies. "The Enhancing Emergency and Retirement Savings Act of 2021" would "encourage participation in retirement plans' by giving individuals penalty-free access to funds should a family emergency hit," Lankford said.

Source: Thinkadvisor.com, June 2021

Biden Expected to Advance a More Stringent Fiduciary Rule, Advocate for Retirement Income and ESG Investing

Industry experts reflect on what President Joe Biden has done in his first months in office with respect to retirement plans and what they still see coming down the road from his administration.

Source: Planadviser.com, June 2021

Executive Order Includes Review of ESG Factors in Retirement Plans

President Biden issued an Executive Order on Climate-Related Financial Risk, which includes a directive to the DOL Secretary to consider publishing, by September 2021, a proposed rule to suspend, revise, or rescind the Financial Factors in Selecting Plan Investments and Fiduciary Duties Regarding Proxy Voting and Shareholder Rights final rules that were published during the Trump administration regarding environmental, social, and governance investments and proxy voting by employee benefit plans.

Source: Ascensus.com, May 2021

Bill Would Allow Retirement Plans to Use ESG Investments

U.S. Senators Tina Smith and Patty Murray and U.S. Representative Suzan DelBene have introduced legislation in both chambers of Congress that they say would provide legal certainty to workplace retirement plans that choose to consider environmental, social, and governance factors in their investment decisions or offer ESG investment options.

Source: Planadviser.com, May 2021

Portman, Cardin Reintroduce Sweeping Retirement Reform Bill

In what may be their final act teaming up on retirement security legislation, the bipartisan duo of Sens. Rob Portman and Ben Cardin on May 21 reintroduced their Retirement Security and Savings Act (S. 1770). Like the previous version introduced in the last session of Congress, the 163-page bill includes more than 50 provisions designed to strengthen Americans' retirement security by addressing four major opportunities in the existing retirement system.

Source: Napa-net.org, May 2021

Senate Retirement Legislation Introduced

The Improving Access to Retirement Savings Act was introduced this week by Senator Charles Grassley, Senator Maggie Hassan, and Senator James Lankford. "The bill provides common-sense, bipartisan solutions that will help address the challenges and obstacles that continue to inhibit savings and producing income during retirement," wrote Paul Richman, IRI Chief Government and Political Affairs Officer.

Source: Myirionline.org, May 2021

Major Bipartisan Retirement Reform Bill Gets House Committee Approval

The House Ways and Means Committee passed a major bipartisan package of retirement reforms clearing the way for possible House approval this year. The legislation carries over most provisions from an earlier version of the bill but contains some tweaks and several additional sections, including some revenue offsets that would direct more workplace savings into after-tax Roth accounts. It also draws several provisions from broad Senate legislation (S 1431) introduced in the prior Congress and likely to see reintroduction soon, suggesting that a combined retirement bill may advance this year.

Source: Mercer.com, May 2021

The Beltway Is Buzzing With Retirement Proposals

The word of the moment in Washington, D.C. when it comes to retirement activity is busy. Legislative and regulatory proposals are floating through the halls of Congress and in the offices of agencies such as the Department of Labor, said Preston Rutledge, who served as assistant secretary of labor for the Employee Benefits Security Administration under President Donald Trump.

Source: Insurancenewsnet.com, May 2021

Senate Committee Hearing Explores Retirement Security Measures

The Senate Health, Education, Labor, and Pensions (HELP) Committee will hold a hearing this week to examine issues surrounding retirement security and measures Congress may consider to help more of America's workers and retirees save and plan for their golden years.

Source: Myirionline.org, May 2021

Summary of Provisions in the Securing a Strong Retirement Act of 2021

This chart summarizes the "Securing a Strong Retirement Act of 2021" as marked up by the House Ways and Means Committee on May 5, 2021.

Source: Groom.com, May 2021

Congressional Leaders Call for GAO Review of TDFs

The Chairpersons of two of the leading retirement plan committees in Congress are calling for a review of target-date funds. Sen. Patty Murray, Chair of the Senate Committee on Health, Education, Labor & Pensions, and Rep. Robert Scott, Chairman of the House Committee on Education & Labor, have written to the head of the Government Accountability Office, asking them to conduct a review of target-date funds.

Source: Napa-net.org, May 2021

American Rescue Plan Act Brings Retirement Plan Relief

The Act, which is largely focused on COVID-19 relief, brings with it a few notable retirement plan relief provisions (and one executive compensation change to help foot the bill). These provisions can be broken down into (1) single-employer pension funding relief, (2) expansion of Code Sec. 162(m) that limits deductions on executive compensation, (3) multiemployer pension funding relief, and (4) increase in PBGC premiums for multiemployer plans.

Source: Groom.com, May 2021

What's in the New SECURE Act 2.0?

Most of the provisions that were contained in the earlier version are retained in the new one. But the "SECURE Act 2.0" legislation that the House Ways & Means Committee will mark up includes several new provisions as well as changes to some of the existing provisions. This is a summary of some of the additional changes and new provisions in the SSRA.

Source: Asppa.org, May 2021

Securing a Strong Retirement Act Re-Introduced

This legislation is the first comprehensive bipartisan retirement legislation introduced in 2021. Securing a Strong Retirement Act of 2021 expands upon and includes additional provisions from the SSRA of 2020. While this bill (and others) have been coined by many as "SECURE 2.0," it is prudent to follow retirement legislation developments by bill name for clarity and think of "SECURE 2.0" in the context of retirement reform generally.

Source: Ascensus.com, May 2021

Ways & Means to Mark Up SECURE Act 2.0

The U.S. House Ways & Means Committee will be focusing on a markup of what's been called SECURE 2.0, legislation that includes several key provisions championed by the American Retirement Association. Chairman Neal and the Committee's ranking Republican, Rep. Kevin Brady, first introduced the Securing a Strong Retirement Act last October as a sequel to the 2019 SECURE Act. While they have yet to formally introduce the legislation in the new Congress, that bill is expected to form the basis of the May 5 markup.

Source: Napa-net.org, May 2021

IRS Clarifies Partial Plan Termination Relief Under 2020 Legislation

On April 27, the Internal Revenue Service issued informal guidance on partial plan terminations as part of the COVID-related tax relief provided under The Taxpayer Certainty and Disaster Tax Relief Act of 2020, part of the Consolidated Appropriations Act of 2021. The Relief Act was intended to provide a measure of relief for qualified plan sponsors that experienced layoffs due to COVID-19.

Source: Groom.com, May 2021

Securing a Strong Retirement Act of 2021

House Ways and Means Committee Chairman Richard Neal and ranking Republican member Kevin Brady on May 3 reintroduced the Securing a Strong Retirement Act of 2021. The bill follows the bipartisan model of success that led to the enactment of the SECURE Act in December 2019, balancing provisions sought by consumer groups with changes sought by providers of retirement plan services, and drawing together legislative proposals that have been introduced by members of Ways and Means.

Source: Americanbenefitscouncil.org, May 2021

Senate Bill Would Allow 401k Match for Student Loan Payments

Student loan payments would be entitled to earn "matching" 401k retirement contributions from employers under a bill introduced by Senate Finance Chairman Ron Wyden. The proposal would enable Americans to build retirement savings while repaying their student debt even if they can't afford to make their own contributions to a 401k plan.

Source: Investmentnews.com (registration may be required), May 2021

Senators Collins, Warner Introduce Bill to Boost Retirement Savings Plans

Senators Susan Collins and Mark Warner have introduced the SIMPLE Plan Modernization Act to provide greater flexibility and access to small businesses and their employees seeking to use the SIMPLE (Savings Incentive Match Plan for Employees) plans as a retirement savings option.

Source: Planadviser.com, April 2021

American Rescue Plan Act Contains Many Employee Benefits Related Provisions

On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 into law. Many of the provisions in this sweeping legislation bring changes to the employee benefits world of which employers should take note of and which are summarized here.

Source: Benefitsnotes.com, April 2021

Expanding Coverage Likely Next Target for Lawmakers

With the multiemployer relief legislation cleared from Congress' docket, look for policymakers to turn to efforts to expand retirement plan coverage, ARA staff explained during a March 23 NAPA webcast. Will Hansen, Chief Government Affairs Officer at the American Retirement Association, and Andrew Remo, the organization's Director of Legislative Affairs, offered their take on the legislative outlook for the rest of the year, as well as what retirement policy provisions we may see in forthcoming legislation.

Source: Asppa.org, March 2021

Consolidated Appropriations Act: What Plan Sponsors Need to Know About Retirement Plan Relief

The Consolidated Appropriations Act, 2021 is mostly known for the $900 billion it provided in additional stimulus funding for pandemic relief. But the law also contains several useful provisions for retirement plans, including non-COVID disaster emergency relief, multiemployer, and defined benefit plan changes, and updates to partial plan terminations. All of these provisions are discretionary and have very narrow applicability. Regardless, plan sponsors should take the time to understand the relevant parts of the law and see whether the various provisions might benefit their organizations and plan participants.

Source: Bdo.com, March 2021

DOL Nominee Says Cybersecurity, Retirement Savings High Priority

Julie Su, who was nominated to serve as Deputy Secretary of Labor, spent much of her nomination hearing defending her record as California's labor secretary, but she did field a couple of questions about retirement policy.

Source: Asppa.org, March 2021

Freeze on 401k Contribution COLAs Removed From Stimulus Bill

The American Retirement Association announced Thursday that, after a week of intense lobbying by the industry advocacy organization, the freeze on the annual cost-of-living adjustments (COLAs) for contributions to defined contribution plans contained in the stimulus bill supported by President Biden has been pulled.

Source: 401kspecialistmag.com, March 2021

ERISA Fiduciaries Under a Biden Labor Department: What Is on the Horizon?

President Biden has been in office for 34 days and his nominee for Secretary of Labor, Marty Walsh, has not yet been confirmed. Nonetheless, several issues in the ERISA fiduciary space have already garnered the new administration's attention and there are certain clues about how this Department of Labor may impact the regulation and enforcement of ERISA's fiduciary standards.

Source: Morganlewis.com, February 2021

COVID Relief Bill Puts Ceiling on DC Plan Limits

As part of the push to enact a nearly $2 trillion stimulus bill, the House Ways & Means Committee moved forward February 11th with a proposal to freeze retirement plan contribution limits to help offset the cost of multiemployer plan relief. On a party-line vote of 25-18, the committee approved the Butch Lewis Emergency Pension Plan Relief Act of 2021.

Source: Asppa.org, February 2021

SECURE Act 2.0: Key Provisions Affecting Retirement Plans

Late last year, House Ways and Means Committee Chairman Richard E. Neal and Ranking Member Kevin Brady introduced the Securing a Strong Retirement Act of 2020, a bipartisan legislative proposal that includes changes designed to encourage plan adoption, promote retirement savings, and fix certain plan administration problems. As retirement income issues gain an expanding focus, broker-dealers, RIAs, and their advisors need to understand changes that could impact their clients. This article comments on a number of the key provisions.

Source: Brokerdealerlawblog.com, February 2021

Multiemployer Plan Bailout Caps Benefit Plan Limits

Legislation before the House Ways & Means Committee plans to help pay for a multiemployer plan bailout by utilizing a budget gimmick that would freeze retirement plan contribution limits, though not for collectively bargained plans. More specifically, the Butch Lewis Emergency Pension Plan Relief Act of 2021, included as subtitle H of a nine-part package that the committee plans to mark up this week, would impose a cost-of-living freeze.

Source: Asppa.org, February 2021

Committee Chairmen Introduce Multiemployer Pension Plan Reform in House

Representative Neal, Chair of the House Ways and Means Committee, and Representative Scott, Chair of the House Education and Labor Committee, introduced nearly identical bills, the "Emergency Pension Plan Relief Act of 2021," into the committees they chair. This article covers the key multiemployer plan provisions of the bills, particularly from the standpoint of contributing employers.

Source: Octoberthree.com, February 2021

2021 Could See More Retirement and Health Legislation

There is optimism that one or more savings-focused bills could be enacted in 2021. Several introduced during the past two years will likely be re-introduced in the 117th Congress.

Source: Futureplan.com, January 2021

Rep. Neal Releases Policy Priorities for Equity in Retirement Security

House Ways and Means Committee Chairman Richard Neal has laid out his party's vision for economic equity in health care and retirement. In a letter included in his Policies and Priorities report, Neal says one of their priorities is increasing retirement security for U.S. workers, which would be achieved by policies strengthening Social Security benefits, growing multiple employer plan participation, and mandating automatic enrollment for 401k plans.

Source: Plansponsor.com, January 2021

What Labor Nominee Walsh Means for the Fiduciary Rule's Future

President Biden named Boston Mayor Martin Walsh as his nominee for Secretary of Labor. Walsh's nomination raises questions for the future of the DOL's fiduciary rule, which regulates investment fiduciaries under ERISA. In particular, the new fiduciary rule guidelines promulgated by the DOL in December 2020 appear to be in jeopardy under a Biden administration with Walsh as Labor Secretary.

Source: 401kspecialistmag.com, January 2021

Retirement Plan Relief in Consolidated Appropriations Act, 2021

The Consolidated Appropriations Act, 2021 combines COVID-19 stimulus relief with several year-end appropriations bills, and it includes numerous provisions that will impact retirement plans. The retirement plan relief provisions in the CAA are divided between (1) qualified disaster relief (including actions Congress has historically taken to relax normal retirement plan distribution and withdrawal rules in light of a natural disaster) and (2) separate COVID-19 relief (including new rules for retirement plans in light of the ongoing COVID-19 pandemic).

Source: Truckerhuss.com, January 2021

2021 Appropriations Bill Includes New and Expanded Relief for Employee Benefit Plans

The Consolidated Appropriations Act, 2021 was passed and signed into law in late December 2020. In addition to funding for the current fiscal year, the Act also includes numerous provisions addressing employee benefit plans and providing a range of relief provisions relating to the COVID-19 pandemic and other disasters. While many of these changes are new, some of them extend or add on to previous legislation issued earlier in 2020 under the CARES Act. This article describes the key provisions of the Act applicable to employer-sponsored welfare and retirement plans.

Source: Huntonak.com, January 2021

Appropriations Act Includes Several Provisions Applicable to Qualified Retirement Plans

The Consolidated Appropriations Act of 2021 includes several provisions affecting qualified retirement plans. A relaxation of the partial plan termination rules should provide relief to plans which see unusual turnover in the number of active participants during the COVID-19 pandemic. Other provisions, including an amendment of the CARES Act which allows coronavirus related distributions to be made from money purchase pension plans, may provide retroactive relief to plan sponsors.

Source: Reinhartlaw.com, January 2021

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