Key Legislative Issues

In partnership with clients, ICMA-RC has earned more than 50 national awards since 2008 for public employee education campaigns and initiatives that help investors go green, save responsibly for retirement and reach their financial goals.

On October 20, 2011, the IRS announced the various adjustments applicable to retirement plan contribution limits for 2012. Many of the limitations will change for 2012 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment.

ICMA-RC is proud to participate in National Save for Retirement Week, an effort taking place October 16-22, 2011 in cities and states across the U.S. to encourage employees to achieve their personal retirement goals. ICMA-RC has been a proud supporter of National Save for Retirement Week since its inception in 2006.

ICMA-RC’s new mobile myAccount feature allows retirement plan participants to view their retirement savings account information any where and at any time. Using a smartphone, participants can log into myAccount, where they can view account information.

Representatives Jim McDermott (D-WA), Richard Hanna (R-NY), Earl Blumenauer (D-OR), and Nan Hayworth (R-NY) introduced the Tax Parity for Health Plan Beneficiaries Act (H.R. 2088) in May 2011. A companion bill (S.1171) was introduced in June 2011 by Senators Chuck Schumer (D-NY) and Susan Collins (R-ME) with 13 additional original cosponsors.

The Department of Labor conducted a Request for Information in the spring of 2011 regarding electronic disclosure by employee benefit plans.

Senators Herb Kohl (D-WI) and Mike Enzi (R-WY) introduced in May 2011 the Savings Enhancement by Alleviating Leakage in 401(k) Savings Act (SEAL Act, S. 1121) to reduce pre-retirement leakage from retirement plans.

The House Ways & Means Committee Oversight Subcommittee conducted a hearing on the transparency and funding of state and local government defined benefit plans in May 2011. This was an initial hearing following reintroduction earlier this year of the Public Employee Pension Transparency Act in the House (H.R. 567) by Representatives Devin Nunes (R-CA), Paul Ryan (R-WI), and Darrell Issa (R-CA); and introduction of a companion bill (S. 347) in the Senate by seven republican senators.

The Department of Labor delayed the effective date of the service provider fee disclosure regulations to Jan. 1, 2012. The regulations are intended to make it easier for plan fiduciaries to assess the reasonableness of the compensation paid for services and to highlight potential conflicts of interest that may affect a provider’s performance.

Legislation that would alter Required Minimum Distributions (RMD) from pension plans has been introduced in both the Senate and the House. H.R. 2021, led by Rep. John Boehner (R-OH), would extend the suspension of RMD requirements through 2012. It was referred to the House Committee on Health, Employment, Labor, and Pensions.