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Wong agreed that decreasing complexity, as well as unnecessary regulatory burdens, is crucial for business owners to adopt a pension plan. Policymakers can take several steps to encourage sponsorship of DB plans, she said. Streamlining notices and disclosures is one way to simplify the system. In addition, electronic delivery would be “extremely helpful” in eliminating administrative burdens and providing employees vital information, she said. Wong said the Chamber urges the Treasury and Internal Revenue Service (IRS) to set forth a clear and rational approach to Pension Protection Act (PPA) compliance for Pension Equity Plans. “More broadly, because of the complexity of hybrid plans and their regulation, additional guidance is critical to ensure that plan sponsors have enough clarity and flexibility to adopt and maintain hybrid pension plans with legal certainty,” the Chamber said in a statement. Separately, the American Benefits Council issued a statement with their recommendations, saying it strongly supports the current tax incentives for retirement plan contributions. “Some have suggested fundamental changes to the tax treatment of retirement plans, and 401(k) plans in particular, but such proposals are seriously flawed and could be fraught with unintended consequences — especially for those with lower incomes, who find it the most difficult to save,” James A. Klein, president, said in the statement. To forge a retirement system for the future, the Council suggested a number of improvements to manage risks, reduce costs, eliminate administrative burdens and improve coverage including: Promoting financial and investment education; Encouraging electronic communication and disclosure; Providing fiduciary safe harbors for plan sponsors; Facilitating flexible retirement strategies and plan designs; Continuing to stabilize funding obligations; and Conducting a thorough review of pension insurance premiums. Complete statements from the roundtable are available on the Committee’s website at http://www.help.senate.gov/hearings/.
Wong agreed that decreasing complexity, as well as unnecessary regulatory burdens, is crucial for business owners to adopt a pension plan. Policymakers can take several steps to encourage sponsorship of DB plans, she said. Streamlining notices and disclosures is one way to simplify the system. In addition, electronic delivery would be “extremely helpful” in eliminating administrative burdens and providing employees vital information, she said.
Wong said the Chamber urges the Treasury and Internal Revenue Service (IRS) to set forth a clear and rational approach to Pension Protection Act (PPA) compliance for Pension Equity Plans. “More broadly, because of the complexity of hybrid plans and their regulation, additional guidance is critical to ensure that plan sponsors have enough clarity and flexibility to adopt and maintain hybrid pension plans with legal certainty,” the Chamber said in a statement.
Separately, the American Benefits Council issued a statement with their recommendations, saying it strongly supports the current tax incentives for retirement plan contributions.
“Some have suggested fundamental changes to the tax treatment of retirement plans, and 401(k) plans in particular, but such proposals are seriously flawed and could be fraught with unintended consequences — especially for those with lower incomes, who find it the most difficult to save,” James A. Klein, president, said in the statement.
To forge a retirement system for the future, the Council suggested a number of improvements to manage risks, reduce costs, eliminate administrative burdens and improve coverage including:
Corie Russelleditors@plansponsor.com