Rep. Neal Reintroduces Retirement Legislation

This week, Representative Neal (D-MA) introduced The Retirement Plan Simplification and Enhancement Act of 2013. This bill is a reintroduction of H.R. 4050 from last year, with some changes. Highlights of the provisions and changes to the bill are as follows:


Expanding Coverage:

• Modify the automatic safe harbor to remove the cap limiting escalation of deferrals to no greater than 10% of pay;

• New automatic enrollment safe harbor (default contributions 6% in year 1; 8% in year 2 and 10% in subsequent years); required employer matching contributions of 50 cents on dollar for first 2% of pay and 30 cents on dollar for next 8% of pay;

• Change coverage rules for long-time part-time workers; and

• Amendment to top heavy rules to allow employers to test participants who have not met the statutory age requirement and service requirements separately to determine top heavy contributions.

Congressman Neal's summary is available here.

A copy of the bill is available here.

ERIC members and guests can read more here.