Legislative Report

Legislation Offers HRA Tax Parity, End to RHS Beneficiary Problem

Today's call-to-action asks that you urge your Representative and Senators to co-sponsor the Tax Equity for Health Plan Beneficiaries Act (HR 1820) in the House of Representatives and its companion bill in the Senate, Tax Equity for Domestic Partner and Health Plan Beneficiaries Act of 2007 (S. 1556), and to work for its prompt enactment.

This technical bill contains a provision that would reverse the Treasury's Revenue Ruling on Health Reimbursement Arrangement (HRA) reimbursements. It stated that whether taxable or not, reimbursements from HRAs may no longer be made to non-spouse or non-dependent beneficiaries. Plans have until December 31, 2008 to comply with the ruling; there are no consequences for these beneficiary reimbursements prior to that date.

Take action to help improve health savings plans for all Americans by contacting your Representatives and letting them know that you support these bills.

• Sample email to send to your representatives

The Washington Perspective is a periodic online newsletter highlighting legislative and regulatory proposals affecting public sector retirement plans.

• January 2008
• November-December 2007
• June 2007
• May 2007
• February 2007
• September 2006
• June 2006

• Miller Ends Pursuit of 401(k) Fee Disclosure Legislation
  House Education and Labor Chairman George Miller (D-CA) recently acknowledged that his bill regarding 401(k) fee disclosure would not clear the House this session. Miller cited opposition from the House Ways and Means Committee and the White House, as well as difficulties gaining momentum for the bill in the Senate, as reasons for abandoning the legislation.
• National Save for Retirement Week Resolution Introduced in the House
  The House of Representatives recently passed H. Res. 1294 designating October 19-25, 2008 as National Save for Retirement Week. A sister resolution, S. Res. 601, introduced on June 25, is awaiting approval in the Senate.
• Penalty-free Withdrawals for Reservists from Retirement Plans to be Allowed
  The Incentives for Older Workers Act, S. 2933, would eliminate barriers for older Americans who want to stay in the workforce longer, and encourage employers to recruit and retain older workers.