Presentation delivered Lynn D. Dudley, Senior Vice President, Global Retirement and Compensation Policy, American Benefits Council at the marcus evans Employee Benefits & Compensation Summit held in Georgia.

1. The Latest Developments in
Retirement and Compensation Policy
Employee Benefits & Compensation Summit
January 29, 2019

2. 2
Overview
Complex political/legislative environment
• Government shutdown
• House of Representatives investigations
Committees take time to set priorities and
agenda with respect to benefits
• Majority sets the agenda and the rules
Despite gridlock, there are areas of possible
collaboration
• Could retirement policy be one of those?

3. The 116th Congress
Republicans
199
Democrats
235
Disputed
1
U.S. House of Representatives
Republicans
53
Democrats
47
U.S. Senate

4. 4
Fast Facts About the 116th Congress
Greater diversity
Record number of women
Most members in the House have never served with
Speaker Pelosi before
According to Bloomberg Government – average age of
House Member is 57.5 and Senate member is 63 (oldest
member/85 and youngest/29)
• Multiple generations
• Differing views between and within parties
4

5. 5
Overcoming Legislative Gridlock
Regulatory agency activity
Devolving more authority to the states
is attractive to both parties for different
reasons
Judicial Activity
5

6. 6
Retirement Policy Priorities in the House
Retirement policy high priority for Chairman of the Ways
and Means Committee, Richard Neal (D-MA), particularly
improved access and savings opportunities
Multiemployer plan reform
Retirement Plan Simplification and Enhancement Act
(Neal Simplification Bill)
Auto 401(k) bill
Retirement Enhancement and Savings Act (RESA)
Increase in oversight

7. 7
Retirement Policy Priorities in the Senate
Bipartisan approach likely to continue
Finance Committee’s interest in retirement
policy expected to continue under Chairman
Grassley, Ranking Member Ron Wyden
Senators Rob Portman (R-OH) and Ben Cardin
(D-MD) could be leaders
• Retirement Savings and Security Act
(Portman/Cardin)

8. 8
Synergy between Neal Simplification Bill
and Portman/Cardin
Savings Opportunities
• Removing barriers and creating greater access
Plan Administration
• Consolidating notices and easing correction and
overpayment rules
Preservation of Income
• Facilitating use of lifetime income distribution such
as qualifying longevity annuity contracts and
changing minimum distribution rules

9. 9
Issues to Watch
Infrastructure
• Priority for Chairman Neal
Student Loan Match
• Included in Portman/Cardin
• Likely to be introduced in House
Required 401(k)
• Auto Retirement Plan Proposal
• Includes state preemption

10. 10
State Activity Continues
States with enacted legislation
• Oregon, Illinois, California, Connecticut, Maryland,
and Seattle
States/Cities with active proposals –
Michigan, New Jersey, New York City
State fiduciary rules affecting retirement
plans: Nevada and possibly NJ and MD

11. 11
Continued Bipartisan
Bicameral Interest from 115th
RESA
• Could be maintained as a package
• Could be reopened for changes or absorbed in other
legislation
Interest in multiemployer plan solution
• Path unclear
Leakage
Premium legislation

12. 12
Overlapping Regulatory and
Legislative Activity
Missing and unresponsive participants
• Guidance being developed by DOL – best practices
• Retirement Savings Lost and Found Act likely to be reintroduced
Electronic Disclosure
• Part of Executive Order
• Retire Act expected to be reintroduced (continued bipartisan interest)
Student Loans
• Treasury and IRS could issue additional guidance
• Included in Portman/Cardin and Wyden bills, House counterpart
expected

13. Questions/Suggestions
13

14. 14
Find us: