PPA Webinar Series #49: Federal and State Retirement Plan Mandates – Pending Legislation and Updates

We will discuss 3 different pieces of legislation that have the potential to impact all employers. Federal legislation enacted in December 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act, enables new types of retirement plans that may make it easier for smaller employers to offer such plans in the future. • Legislation allowing the establishment of Pooled Employer Plans is passed effective January 1st, 2021 • Allows multiple, unrelated employers of any size to participate in a single retirement plan • Typically less expense than a traditional plan • Limited fiduciary risk • Less administrative work than traditional plans According to NAPA (lobby committee in Washington for Retirement Plans), there is legislation in 36 states (and have passed in 12 states already) that is imminent (estimated to pass before year end): • All Companies with 5 (or 10) employees are required to offer a retirement plan by 1/1/2024 • Companies will have a choice between 401k plans or a state sponsored IRA Payroll Deduction plan • All plans must have an auto-enroll provision (3%) • Failure to comply will result in fines ($750/employee/year) • New rules only impact new plans On March 29th, 2022 the U.S. House of Representatives passed the Securing a Strong Retirement Act of 2022. The policy builds on the original SECURE Act — the Setting Every Community Up for Retirement Enhancement Act — from 2019. If passed, the bipartisan legislation could help more individuals better prepare for their future amid today’s uncertain economic landscape. We will discuss highlights of the bill in greater detail.