115th Congress, 1st Session

Legislative Proposals

National Savings Proposals

Other Reform Proposals

Legislative Proposals

National Savings Proposals

The Automatic Retirement Plan Act of 2017

Introduced as HR 4523 by Representative Richard Neal (D-MA) on December 1, 2017.

This bill would require all employers to offer a retirement plan. The proposal would generally require all employers to maintain a 401(k) or 403(b) plan. Small employers (10 or fewer employees), and new businesses (not in existence for three years) would be exempt from the requirement to maintain a plan.

In addition, the legislation provides that the states that have already enacted state auto IRA programs can continue such programs. Specifically, the bill provides that generally a state auto IRA requirement would apply to an employer in lieu of the federal requirement if the state auto IRA legislation was adopted before the date of enactment of this bill.

The proposal would also include a portability of lifetime income options, modification to the Saver’s Credit, and authorization to require additional reporting. The proposal provides relief from the one bad apple rule applicable to multiple employer plans (“MEPs”) and relieves small employers (up to 100 employees) in open MEPs of fiduciary and administrative duties as long as the designed MEP provider meets certain requirements.

Referred to the Committee on Ways and Means, and to the Committee on Education and the Workforce.

Source: Congress.gov; Bill summary by House Ways and Means Committee.

  • Automatic IRA Act of 2017

    SENATE BILL

    Introduced as S. 1861 by Senator Sheldon Whitehouse (D-RI) in the 115th Congress on September 26, 2017.

    This bill would make it easier for both workers and employers to set up and use a retirement plan by requiring employers who do not provide a qualified retirement plan and who have 10 or more employees to automatically enroll every worker into an Auto-IRA unless the employee chooses to opt out. Employers could receive tax credits to offset the cost of setting up the accounts.

    This bill has been read twice and referred to the Committee on Finance.

    Source: Congress.gov; Bill summary authored by Senator Whitehouse’s press release. 

    HOUSE BILL

    Introduced as H.R. 3499 by Representative Richard Neal (D-MA) in the 115th Congress on July 27, 2017. A previous version of this bill was introduced in the 114th Congress. (See: Automatic IRA Act of 2015)

    This bill amends the Internal Revenue Code to: (1) require certain employers who do not maintain qualifying retirement plans or arrangements to make available to their eligible employees an automatic IRA arrangement which grants such employees the right to opt-out of participation; (2) require the Secretary of the Treasury to provide employers with a model notice for notifying employees of their opportunity to participate in an automatic IRA arrangement and to provide participants with an annual statement setting forth payments, earnings, value, and other specified information; (3) impose a penalty on employers who fail to provide eligible employees access to an automatic IRA arrangement; (4) allow employers who do not have more than 100 employees a tax credit for costs associated with establishing an automatic IRA arrangement; and (5) increase the dollar limitation on the tax credit for small employer pension plan startup costs.

    The bill establishes an Automatic IRA Advisory Group to make recommendations regarding automatic IRA investment options. It also directs the Secretary of the Treasury and the Secretary of Labor to jointly conduct feasibility studies on: (1) extending spousal consent requirements to automatic IRA arrangements; (2) automatically transferring amounts saved by employees in retirement bonds into alternative, private sector, diversified investments when employees’ automatic IRA balances reach a certain dollar level; (3) using investment data to notify individuals with multiple small balance retirement accounts of consolidation options; and (4) using investment arrangements associated with automatic IRAs to assist in addressing the problem of abandoned accounts.

    The Secretaries must also prescribe administrative guidance for the use of multiple employer plans by December 31, 2018.

  • American Savings Account Act of 2017

    Introduced as H.R. 1083 by Representatives Jared Huffman (D-CA) and Suzanne Bonamici (D-OR) on February 15, 2017.

    Originally introduced in the 114th Congress, this bill would create a new American Savings Account (ASA), a personal, tax-advantaged retirement savings plan modeled after the high-quality plan offered to federal workers since 1986, and make it available to every private sector American worker currently without access to an employer-sponsored savings plan such as a 401(k) or 403(b) plan. As workers switch jobs more frequently, they are less likely than in the past to be covered by a traditional employer-sponsored retirement savings plan, according to a recent study based on Census data.

    This legislation would automatically enroll private sector workers, including full-time, part-time and contract, whose employers do not currently provide qualified retirement savings plans in an American Savings Account. Workers would be able to discontinue their participation, or change their contribution level between two to ten percent to be deposited in the ASA from each paycheck. The bill would also permit employers to provide tax-advantaged matching or non-matching contributions to employee ASA accounts, allow self-employed individuals and 1099 independents to enroll, and protect substantially similar state programs to provide universal access to retirement savings accounts.

    This bill has been referred to the House Committee on Ways and Means. 

    Source: Congress.gov; Bill summary from Representative Huffman’s press release.

  • This bill has been referred to the Committee on Ways and Means and the Committee on Education and the Workforce.Source: Congress.gov. Bill summary authored by the Congressional Research Service.

Other Reform Proposals

Small Business Add Value for Employees (“SAVE”) Act

Introduced as H.R. 4637 by Representative Ron Kind (D-WI) and Representative David G. Reichert (R-WA) on December 13, 2017.

This bill would remove the “common bond” requirement for multiple employer plans and would enable small businesses to pool together, regardless of industry, to offer retirement plans to their employees. It also amends the Internal Revenue Code of 1986 to encourage retirement savings by modifying requirements with respect to employer-established IRAs.

This bill has been referred to the Committee on Education and the Workforce in addition to the Committee on Ways and Means.

Source: Congress.gov; Bill summary authored by Congressman Kind’s press release.

Receiving Electronic Statements to Improve
Retiree Earnings (“RETIRE”) Act

Introduced as H.R. 4610 by Representative Jared Polis (D-CO) and Representative David P. Roe (R-TN) on December 11, 2017.

This bill amends the Employee Retirement and Income Security Act of 1974 and the Internal Revenue Code of 1986 to provide for the electronic delivery of pension plan information. Under current law, employer are required to send documents such as notices, disclosures, and statements through paper mail. This bill would allow retirement plan sponsors to automatically enroll participants in electronic delivery for plan communications, providing employees online access to their retirement information, lowering administrative costs, and providing for more timely access to plan information. Participants would have the option to opt out and receive paper statements at any time with no additional cost.

This bill has been referred to the Committee on Education and the Workforce in addition to the Committee on Ways and Means.

Source: Congress.gov; Bill summary authored by Congressman Polis’ press release.

Increasing Access to a Secure Retirement Act

Introduced as HR 4604 by Representative Tim Walberg (R-MI) and Representative Lisa Blunt Rochester (D-DE) on December 7, 2017.

This bill establishes specific guidelines for employers who want to include annuities on their retirement plan menus by removing the regulatory uncertainty that hinder employers from offering guaranteed lifetime income products to their workers. By clarifying rules surrounding annuity plans, this bill would allow a greater number of employees the option of annuities as a part of their benefits packages.

This bill has been referred to the House Committee on Education and the Workforce.

Source: Congress.gov; Bill summary authored by Congressman Walberg’s press release.

The Retirement Plan Simplification and
Enhancement Act of 2017

Introduced as HR 4524 by Representative Richard Neal (D-MA) on December 1, 2017.

The legislation would amend dozens of retirement related rules and regulations, which would simplify the process and expand accessibility. The bill would encourage businesses to adopt auto-enrollment plans by creating new safe harbors; make access to the Saver’s tax credit easier; repeal the maximum age date for making IRA contributions; increase the age for required minimum distributions; allow for de minimus financial incentives to be provided to encourage to employees to contribute to a retirement plan; provide for qualifying longevity annuity contract reforms; and several other qualified retirement plan rule adjustments.

Referred to the Committee on Ways and Means, and to the Committee on Education and the Workforce.

Source: Congress.gov; Bill summary by House Ways and Means Committee.

Tax Cuts and Jobs Act

HOUSE BILL

Introduced as H.R. 1 by Representative Kevin Brady (R-TX) on November 2, 2017.

This bill amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. Subtitle F – Simplification and Reform of Savings, Pensions, Retirement under Title I (Tax Reform for Individuals) and Subtitle I – Compensation under Title III (Business Tax Reform) cover proposals relating to retirement savings. A summary document of the bill is available, including summaries of the above sections (here and here, respectively).

On November 13, 2017, this bill was reported amended from the Committee on Ways and Means and have been placed on the Union Calendar.

On November 15, 2017, the House Committee on Rules will convene to discuss H.R. 1.

On November 16, 2017, the House passed H.R. 1 with a vote of 227 to 205.

On November 27, 2017, it was received in the Senate and read for the first time.

On November 28, 2017, it was read for the second time.

On November 29, 2017 it was laid before the Senate by motion. Senator McConnell has proposed S.Amdt.1618 Amendment SA 1618.

On December 2, 2017, the latest version of the bill was passed by the Senate with a vote of 51 to 49.

On December 5, 2017, the Speaker appointed a conference committee and message on the House action was received in the Senate and held at desk.

On December 7, 2017, the Senate appointed conferees to the committee.

On December 13, 2017, the conference committee on H.R. 1 held a meeting. View the meeting on the Senate Finance Committee page.

On December 15, 2017, conference report H. Rept. 115-466 was filed.

The bill passed both the Senate and House on December 20, 2017.

Source: Congress.gov; Bill summary authored by the Congressional Research Service.

SENATE BILL

From November 13-16, 2017, the U.S. Senate Committee on Finance held open executive sessions to consider the Tax Cuts and Jobs Act. On November 16, 2017, the Committee voted to approve the final passage of the Tax Cuts and Jobs Act. More information on the bill is available here including:

On November 28, 2017, this bill was introduced as S. 1 by Senator Michael B. Enzi (R-WY).

Source: Congress.gov; More information available on Senate Finance Committee’s page.

  • IRA Preservation Act

  • Introduced as H.R.4189 by Representative Mike Kelly (R-PA) on October 31, 2017.The Bill would reduce the disadvantages of individual retirement arrangements with respect to employer-sponsored retirement plans by helping taxpayers comply with laws affecting individual retirement arrangements, by providing for reduced penalties under the Internal Revenue Code of 1986 for certain self-corrections with respect to such laws, and for other purposes. More specifically, the bill would:
    1. Reduce the excise taxes for voluntary correction of common IRA errors;
    2. Harmonize the treatment of IRAs with employer plans; and
    3. Define Individual Retirement Arrangements

    Source: Congress.gov; Bill summary authored by the Congressional Research Service.

    Retirement Plan Modernization Act

    Introduced as H.R. 4158 by Representative Tim Walberg (R-MI) and Representative Gregorio Kilili Camacho (D-MP-At Large).

    This bill provides an update to the automatic IRA rollover limit for former employees’ assets by raising the automatic IRA rollover limit, based on the rate of inflation, from $5,000 to $7,600 and allows for future increases to be indexed for inflation. Under current law, automatic IRA rollovers occur if a participant is no longer employed by the employer sponsoring the retirement plan and their balance is between $1,000 and $5,000. Congress has periodically adjusted the cash-out limit over the years to reflect increasing costs of administration; however, the last time it was updated was 1997.

    This bill has been referred to the Committee on Education and the Workforce in addition to the Committee on Ways and Means.

    Source: Congress.gov; Bill summary authored by Congressman Walberg’s press release.

    Portability of Lifetime Income and Managed Account Options

    Introduced as H.R. 3910 by Representative Richard E. Neal (D-MA) and Representative Mike Bishop (R-MI).

    This bill amends the Internal Revenue Code of 1986 to make lifetime income and managed account options of defined contribution retirement savings plans portable. This bill would add a new section at the end section 401 titled “Portability of Lifetime Income and Managed Account Options”. This section would create a qualified trust as a part of a defined contribution plan to allow:

    1. Qualified distributions of a lifetime income investment or a managed account investment
    2. Distributions of a lifetime income investment in the form of a qualified plan distribution annuity contract

    The distributions must be made 90 days prior to the date on which such lifetime income investments or managed account investments are no longer authorized to be held as an investment option under the plan.

    This bill has been referred to the House Committee on Ways and Means.

    Source: Congress.gov; Bill summary authored by the Congressional Research Service.

    Small Employer Retirement Savings Auto-Enrollment Credit Act

    Introduced as H.R. 3902 by Representative Mike Bishop (R-MI) and Representative Richard E. Neal (D-MA).

    This bill amends the Internal Revenue Code to allow a three-year $500 business-related tax credit for eligible small employers who include and maintain an automatic contribution arrangement in an employer-sponsored retirement plan. An “eligible employer” is an employer with no more than 100 employees who received at least $5,000 of compensation from the employer for the preceding year.

    The amendments made by this bill will apply to taxable years beginning after December 31, 2017.

    Source: Congress.gov; Bill summary authored by the Congressional Research Service.

    Resolution to Support the Goals and Ideals of National Retirement Security Week

    Introduced as S.Res.274 by Senator Michael B. Enzi [R-WY] in the 115th Congress on September 28, 2017. This Resolution:

    1. Supports the goals and ideals of National Retirement Security Week (October 15-October 21, 2017, including raising public awareness of the importance of saving adequately for retirement;
    1. Acknowledges the need to raise public awareness of a variety of tax-preferred retirement vehicles that are used by many people in the United States but could be used by more; and
    1. Calls on States, localities, schools, universities, nonprofit organizations, businesses, other entities, and the people of the United States to observe National Retirement Security Week with appropriate programs and activities, with the goal of increasing the retirement savings and personal financial literacy of all people in the United States, thereby enhancing the retirement security of the people of the United States.

    Submitted in the Senate, considered, and agreed to without amendment and with a preamble by Unanimous Consent.

    Source: Congress.gov; Resolution summary authored by the Congressional Research Service.

    Making Your Retirement Accessible (“MyRA”) Act

    Introduced as H.R. 3653 by Representative Joseph Crowley (D-NY) in the 115th Congress on August 15, 2017.

    This bill amends the Internal Revenue Code to establish an employee retirement option known as a MyRA account. A MyRA account functions as a Roth Individual Retirement Account (“Roth IRA”). An employee who elects to establish a MyRA account may contribute any portion of a tax refund or make automatic payroll contributions to the account.

    The Treasury Department will credit each account with retirement bonds earning the same annual percentage interest rate as the Federal Thift Savings Plan G Fund. The full balance of a myRA account is rolled over into a Roth IRA upon maturity which cannot exceed 30 years or when the balance of the account reaches $15,000.

    Employers are required to provide notice to employees via paystubs about how they can create a myRA account. Employers that already offer an employer-sponsored retirement plan are not required to make direct deposits into myRA account on behalf of employees who choose to participate in the myRA program. The bill imposes a tax on any employer equal to $100 per day for noncompliance with the employer requirements of the law.  The penalty is waived if a compliance failure is deemed an unintentional failure to comply.

    This bill has been referred to House Committee on Ways and Means.

    Source: Congress.gov; Bill summary authored by the Congressional Research Service.

    Retirement Security Act of 2017

    Introduced as S.1383 by Senator Susan Collins (R-ME) and Senator Bill Nelson (D-FL) in the 115th Congress on June 20, 2017.

    This bill aims to address the estimated $7.7 trillion gap in retirement savings among American households. It would enable more businesses to join multiple employer plans (MEPs) to offer retirement programs to their employees. Businesses would be allowed to share the administrative burden of a retirement plan without requiring a connection between them. The bill protects members of a MEP from losing their tax benefits if one employer in a MEP fails to meet the minimum criteria necessary for retirement plans to obtain tax benefits. The Treasury is directed to simplify, clarify, and consolidate required notices to lessen costs, and is directed to make the “saver’s credit,” which reduces the tax burden on low- and middle-income individuals who contribute to retirement plans, available on Form 1040 EZ. Lastly, the bill prevents the IRS from challenging the tax benefits of plans that provide employees with an employer match on contributions of up to ten percent of their pay.

    This bill has been read twice and referred to the Senate Finance Committee.

    Source: Congress.gov and Senator Susan Collins’s press release.

    Graduate Student Savings Act of 2017

    HOUSE BILL

    Introduced as H. 3136 by Representatives Joe Kennedy III (D-MA), Luke Messer (R-IN), Richard Neal (D-MA) and Bradley Byrne (R-AL). This bill would remove barriers to retirement savings for nearly a million students. This legislation would reclassify taxable stipend or fellowship income as “compensation” and allow graduate school students to place some of these funds into an Individual Retirement Account (IRA).

    This bill has been referred to the House Committee on Ways and Means.

    Source: Congress.gov and Representative Kennedy’s press release. 

    SENATE BILL 

    Introduced as S.1379 by Senators Elizabeth Warren (D-MA), Mike Lee (R-UT), Ron Wyden (D-OR), and Tim Scott (R-SC). This bill amends the Internal Revenue Code and allow funds from a graduate student or postdoctoral fellow’s stipend or fellowship to be deposited into an individual retirement account (IRA). As of now, fellowship or stipend funding, while taxed by federal and state governments, is not considered compensation and therefore cannot be used to contribute to tax-preferred retirement accounts.
    This bill has been read twice and referred to the Senate Finance Committee.

    Source: Congress.gov and Senator Elizabeth Warren’s press release.

    Portable Benefits for Independent Workers Pilot Program Act

    SENATE BILL

    Introduced as S.1251 by Senator Mark Warner (D-VA) in the 115th Congress on May 25th, 2017.

    This bill would establish a portable benefits pilot program at the US Department of Labor. It would allow for $20 million in competitive grants to states, local governments, and nonprofits for pilot projects to design, implement and evaluate new models ($15 million) or assess and improve existing models ($5 million) for portable benefits for independent workers such as contractors, temporary workers, and self-employed workers. Eligible models should provide work-related benefits and protections such as retirement savings, workers compensations, disability insurance, sick leave, training and other benefits.

    The bill has been read twice and referred to the Committee on Health, Education, Labor, and Pensions.

    Source: Congress.gov and Senator Mark Warner’s press release.

    HOUSE BILL

    Introduced as H.R. 2685 by Representative Suzan DelBene (D-WA) in the 115th Congress on May 25th, 2017.

    This bill would establish a portable benefits pilot program at the US Department of Labor. It allows $20 million for competitive grants to states, local governments, and nonprofits for pilot projects to design, implement and evaluate new models ($15 million) or assess and improve existing models ($5 million) for portable benefits for independent workers such as contractors, temporary workers, and self-employed workers. Eligible models should provide work-related benefits and protections such as retirement savings, workers compensations, disability insurance, sick leave, training and other benefits.

    The bill has been read twice and referred to the House Committee on Education and the Workforce.

    Source: Congress.gov and Representative DelBen’s press release.

    Preserve Rights of States and Political Subdivisions to Encourage Retirement Savings Act

    HOUSE BILL

    Introduced as H.R. 2523 by Representative Suzanne Bonamici (D-OR) and Representative Joe Crowley (D-NY) in the 115th Congress on May 18, 2017.

    This bill clarifies that states and localities can implement voluntary retirement savings plans while still complying with federal law. This legislation also provides the Department of Labor the ability to overcome the barriers of a Congressional Review Act that prohibits an agency from issuing regulations that are substantially similar to ones that have been repealed through resolutions of disapproval.

    This bill has been referred to the House Committee on Education and the Workforce.

    Source: Congress.gov; Bill summary authored by Representative Bonamici’s press release.

    SENATE BILL

    Introduced as S.1035 by Senator Martin Heinrich (D-NM) and Senator Chris Murphy (D-CT) in the 115th Congress on May 3, 2017.

    This bill amends the Employee Retirement Income Security Act (ERISA) of 1974 to ensure that states and cities can continue to have retirement savings programs for private sector workers who do not have access to one. This bill would exempt individual retirement plans established and maintained by a state or division of the state from ERISA as long as the program is established by law of the state, implemented and administered by the state or political subdivision, state adopts measures to ensure that employees are informed about their rights under the program, participation is voluntary for employee. Also, the rights of the employee, former employee, or beneficiary are only enforceable by the above mentioned people or an authorized representative of such a person, or by state or political subdivision. The employer can only collect employee contributions through payroll deductions and remit them to the program, notify employees of the program and maintain records, provide information to state or subdivision on operation of the program. The employer may not contribute funds or bonuses to employees to convince them to participate and has no authority, control, or responsibility of the program.

    This bill has been read twice and referred to the Committee on Health, Education, Labor and Pensions.

    Source: Congress.gov and Senator Heinrich’s press release.

    SEAL Act

    SENATE BILL – Shrinking Emergency Account Losses Act of 2017

    Introduced as S. 940 by Senator Michael B. Enzi (R-WY) and Senator Bill Nelson (D-FL) in the 115th Congress on April 25, 2017.

    This bill would amend the Internal Revenue Code, with respect to loans made from a qualified employer pension plan, to: (1) extend the period for repayment of loans if a plan terminates or a plan participant becomes unemployed, and (2) prohibit plans from allowing the use of credit cards or similar arrangements to access loan amounts. It also requires the Secretary of the Treasury to modify regulations governing hardship distributions from qualified employer pension plans to allow participants to make additional contributions to a plan during the six month period following a hardship distribution.

    This bill was introduced as S. 324 in the 114th Congress and as S.606 in the 113th Congress by Senators Enzi and Nelson.

    This bill has been read twice and referred to the Senate Finance Committee.

    Source: Congress.gov; Bill summary authored by the Congressional Research Service.

    HOUSE BILL – Savings Enhancement by Alleviating Leakage in 401(k) Savings Act

    Introduced as H.R. 2030 by Representative Sam Johnson (R-TX) and Representative Richard E. Neal (D-MA) in the 115th Congress on April 6, 2017.

    This bill would amend the Internal Revenue Code, with respect to loans made from a qualified employer plan, to: extend the period for repayment of loans if a plan terminates or a plan participant becomes unemployed. The amendments shall apply to transfers made after December 31, 2017. This bill also requires the Secretary of the Treasury to modify regulations governing hardship distributions from qualified employer plans to allow participants to make additional contributions to a plan during the six month period following a hardship distribution.

    A version of this bill was introduced as S. 1121 in the 112th Congress by Senator Herb Kohl (D-WI) and Senator Michael B. Enzi (R-WY).

    This bill has been referred to the House Committee on Ways and Means.

    Source: Congress.gov; Bill summary authored by the Congressional Research Service.

    Lifetime Income Disclosure Act

    HOUSE BILL

    Introduced as H.R. 2055 by House Representative Luke Messer (R-IN) and House Representative Mark Pocan (D-WI) in the 115th Congress on April 6th, 2017.

    This bill would require retirement plans such as 401(k)s to regularly disclose the real world benefit of savings. Thus, 401(k) statements would be required to include a person’s current savings and how the current savings would be translated into a monthly paycheck for life.

    The bill has been referred to the House Education and the Workforce Committee.

    Source: Congress.gov ; Bill summary authored by Congressman Messer’s press release.

    SENATE BILL

    Introduced as S.868 by Senator Johnny Isakson (R-GA) and Senator Chris Murphy (D-CT) in the 115th Congress on April 6th, 2017.

    This bill would require 401(k) plan sponsors to inform participants of the projected monthly income they could expect at retirement based on their current account balance. More specifically, defined contribution plans which are subject to ERISA would be required to annually inform participants of how their account balance would translate into a monthly income stream based on age at the time of retirement and other factors. The legislation directs the Department of Labor to issue tables that employers can use in calculating an annuity equivalent and model disclosure. Employers and service providers who use the model disclosure and follow the prescribed assumptions and Department of Labor rules will be insulated from liability.

    This bill has been referred to the Senate Health, Education, Labor and Pensions Committee.

    Source: Congress.gov; Bill summary authored by Senator Isakson’s press release.

    Reducing IRS and ERISA Reporting Burden for Small Businesses

    HOUSE BILL

    Introduced as H.R.1688 by House Representative Linda T. Sanchez (D-CA) and House Representative David P. Roe (R-TN) in the 115th Congress on March 22, 2017.

    The bill would reduce duplicative filing costs for small businesses looking to offer retirement plans to their employees and sole-proprietors. It directs the Department of Labor (DOL) and the Treasury Department to allow employers and sole-proprietors participating in retirement plans administered the same way to file a single aggregated Form 5500, a required annual return that provides important compliance information to DOL and Treasury. Under current law, despite sharing a common administrative framework, each individual plan is still required to file a separate Form 5500 to satisfy reporting requirements under ERISA and the Internal Revenue Code. This bill would eliminate duplicative reporting by plan administrators, which will reduce costs for small businesses that maintain retirement plans. To provide DOL and Treasury time to implement this change, the proposal has an effective date of no later than January 1, 2021.

    The bill has been referred to the House Committee on Ways and Means and House Committee on Education and the Workforce.

    Source: Congress.gov; Bill summary authored by Congresswoman Sanchez’s press release.

    SENATE BILL

    Introduced as S. 695 by Senator Mark R. Warner (D-VA) and Senator Susan M. Collins (R-ME) in the 115th Congress on March 22, 2017.

    The bill directs the Department of Labor (DOL) and the Treasury Department to allow employers and sole-proprietors participating in retirement plans administered in the same way to file a single aggregated Form 5500, a required annual return that provides important compliance information to DOL and Treasury. Under current law, despite sharing a common administrative framework, each individual plan is still required to file a separate Form 5500 to satisfy reporting requirements under the Employee Retirement Income Security Act and the Internal Revenue Code. This bill would eliminate duplicative reporting by plan administrators, which will reduce costs for small businesses that maintain retirement plans. The proposal has an effective date of no later than January 1, 2021.

    Source: Congress.gov; Bill summary authored by Senator Collins’ press release.

    Retirement Security for American Workers Act

    Introduced as H.R. 854 by Representative Vern Buchanan (R-FL) on February 3, 2017.

    This bill would amend the Internal Revenue Code of 1986 to modify the qualification requirements with respect to certain multiple employer plans with pooled plan providers to make it less costly for small businesses to set up retirement plans. It would allow businesses to join together in multiple employer plans (MEPs) to share the administrative burden and costs of offering a retirement plan. A version of this bill was previous introduced in December 2016.

    This bill has been referred to the House Committee on Education and the Workforce and Committee on Ways and Means.

    Source: Congress.gov; Bill summary authored by Representative Buchanan’s press release.