Your Congress at Work

Here is a rundown of retirement-related legislation that Congress will most likely tackle upon their return from summer break, according to CNBC.

The Secure Act includes measures to allow small employers to band together to offer 401(k) plans, give part-time workers access to retirement plans, take away the 70½ age limit for individual retirement account contributions and raise the age for required minimum distributions to 72, from 70½. It also would expand the inclusion of annuities in 401(k) plans and put a 10-year time limit on how long non-spouse beneficiaries can stretch out an inherited IRA.

The Social Security 2100 Act would keep the program solvent into the next century. Only 80 percent of promised benefits will be payable by the year 2035. The Act also includes other changes including increasing payroll taxes, giving those who are or will be receiving benefits a raise that is the equivalent of 2% of the average benefit. It would also set the new minimum benefit at 25% above the poverty line, and increase the amount of non-Social Security income one can earn before benefits begin to be taxed. 

The Rehabilitation for Multiemployer Pensions Act would let pensions borrow money to remain solvent so that they can continue to pay retirees. The legislation would create a Pension Rehabilitation Administration within the Treasury Department and a trust fund from which the loans would be distributed. Multiemployer pension plan sponsors would also still be eligible to apply for loans through the Pension Benefit Guaranty Corporation, under certain conditions. It is projected that the PBGC will use up its assets for these plans by the end of 2025.

Some other bills in early stages of consideration:

The Health Savings for Seniors Act is a bipartisan bill that would allow individuals who are on Medicare to continue to contribute to health savings accounts. Currently, they are prohibited from doing so.

The Equal Treatment of Public Servants Act would enable public workers to get larger Social Security benefits. A current rule, the Windfall Elimination Provision, reduces their benefits based on how much pension income they receive.

Learn More:
https://www.cnbc.com/2019/08/10/congress-weighs-changes-to-retiree-savings-pensions-social-security.html