Sept.Senate Committee on Finance Markup
Senate Committee on Finance
Markup
Wednesday, September 21, 2016
Key Topics & Takeaways
- The Miners Protection Act of 2016: The Committee approved S. 1714, the Miners Protection Act, which relates specifically to coal miners’ health and pension benefits in a 18-8 vote.
- The Retirement Enhancement and Savings Act of 2016: The Committee approved the Retirement Enhancement and Savings Act, which includes a variety of broadly-applicable retirement related benefits, such as multiple employer plans and a repeal of the maximum age for traditional IRA contributions, in a 26-0 vote.
Bills Considered
- S. 1714, the Miners Protection Act of 2016
- The Retirement Enhancement and Savings Act of 2016
Opening Statements
In his opening statement, Chairman Orrin Hatch (R-Utah) stated that the Miner’s Protection Act of 2016 and the Retirement Enhancement and Savings Act of 2016 displayed the Committee’s willingness to find bipartisan solutions. He added that the Retirement Enhancement and Savings Act will provide a number of options that will expand access to employer-sponsored retirement plans for workers in companies of all sizes. Hatch thanked Sen. Mike Enzi (R-Wyo.) for his leadership in allowing Multiple Employer Plans (MEPs) to be open to participation by unrelated employers.
In his opening statement, Ranking Member Ron Wyden (D-Ore.) stressed that modernizing retirement savings policies in this country is “long overdue.” He added that the Retirement Enhancement and Savings Act of 2016 includes “smart, bipartisan and modern policies” due to the longevity of Americans. He voiced his support for small businesses that want to offer savings plans benefits to employees through Open MEPs, thus eliminating the administrative costs and “red tape” that is associated with maintaining plans, and described Open MEPs as a “common sense solution.”
Sen. Sherrod Brown (D-Ohio) highlighted his amendment on Open MEPs that would dramatically expand workers’ access to tax deferred retirement savings through their employers. He described Open MEPs as “an almost perfect solution to the partial solution of the pension problems in our country.”
Sen. Richard Burr (R-N.C) touted his Achieving a Better Life Experience (ABLE) to Work Act Amendment that would enable individuals with disabilities who work and earn income to save additional amount in their 529A (or ABLE) account above the current annual maximum contribution (up to the Federal Poverty Level) and to be eligible for the Saver’s Credit.
S. 1714, the Miners Protection Act of 2016
The Chairman’s mark of the Miners Protection Act of 2016 included enhancements to health and pension benefits for mine workers. Enzi affirmed that the bill sets a dangerous precedent for the 1,237 multi-employer pension plans that are currently underfunded. He added that the bill bails out a private sector business plan with taxpayer dollars, which he did not support.
Brown stated that “the bill is the first step in keeping our promise to the mine workers,” and that it would provide relief to mine workers in “dire” financial conditions.
Final Vote
S. 1714 was approved by the Committee by a vote of 18-8.
The Retirement Enhancement and Savings Act of 2016
The Chairman’s mark of the Retirement Enhancement and Savings Act of 2016 included broad retirement-related benefits, such as enhancements to 401(k) plans, MEPs, a repeal of the maximum age for individual retirement account (IRA) contributions, and a start-up credit for small employer plans.
Wyden Amendment
Wyden offered and then withdrew an amendment that would allow employers to make matching contributions to their 401(k) retirement plans on behalf of their employees who made student loan payments, but were unable to afford to also contribute to their 401(k) plans. He added that under this provision, a plan may elect to treat student loan payments the same as an elective contribution to a 401(k) plan. Sen. Bill Nelson (D-Fla.) voiced his support for the amendment.
Chairman Hatch discharged two potential amendments, the ABLE to Work Act (S. 2702) and the ABLE Financial Planning Act (S.2703), as they will be part of the Committee’s discharge process.
Final Vote
The Retirement Enhancement and Savings Act of 2016 was approved by the Committee in a 26-0 vote.
For more information on this markup, please click here.
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Senate Committee on Finance
Markup
Wednesday, September 21, 2016
Key Topics & Takeaways
- The Miners Protection Act of 2016: The Committee approved S. 1714, the Miners Protection Act, which relates specifically to coal miners’ health and pension benefits in a 18-8 vote.
- The Retirement Enhancement and Savings Act of 2016: The Committee approved the Retirement Enhancement and Savings Act, which includes a variety of broadly-applicable retirement related benefits, such as multiple employer plans and a repeal of the maximum age for traditional IRA contributions, in a 26-0 vote.
Bills Considered
- S. 1714, the Miners Protection Act of 2016
- The Retirement Enhancement and Savings Act of 2016
Opening Statements
In his opening statement, Chairman Orrin Hatch (R-Utah) stated that the Miner’s Protection Act of 2016 and the Retirement Enhancement and Savings Act of 2016 displayed the Committee’s willingness to find bipartisan solutions. He added that the Retirement Enhancement and Savings Act will provide a number of options that will expand access to employer-sponsored retirement plans for workers in companies of all sizes. Hatch thanked Sen. Mike Enzi (R-Wyo.) for his leadership in allowing Multiple Employer Plans (MEPs) to be open to participation by unrelated employers.
In his opening statement, Ranking Member Ron Wyden (D-Ore.) stressed that modernizing retirement savings policies in this country is “long overdue.” He added that the Retirement Enhancement and Savings Act of 2016 includes “smart, bipartisan and modern policies” due to the longevity of Americans. He voiced his support for small businesses that want to offer savings plans benefits to employees through Open MEPs, thus eliminating the administrative costs and “red tape” that is associated with maintaining plans, and described Open MEPs as a “common sense solution.”
Sen. Sherrod Brown (D-Ohio) highlighted his amendment on Open MEPs that would dramatically expand workers’ access to tax deferred retirement savings through their employers. He described Open MEPs as “an almost perfect solution to the partial solution of the pension problems in our country.”
Sen. Richard Burr (R-N.C) touted his Achieving a Better Life Experience (ABLE) to Work Act Amendment that would enable individuals with disabilities who work and earn income to save additional amount in their 529A (or ABLE) account above the current annual maximum contribution (up to the Federal Poverty Level) and to be eligible for the Saver’s Credit.
S. 1714, the Miners Protection Act of 2016
The Chairman’s mark of the Miners Protection Act of 2016 included enhancements to health and pension benefits for mine workers. Enzi affirmed that the bill sets a dangerous precedent for the 1,237 multi-employer pension plans that are currently underfunded. He added that the bill bails out a private sector business plan with taxpayer dollars, which he did not support.
Brown stated that “the bill is the first step in keeping our promise to the mine workers,” and that it would provide relief to mine workers in “dire” financial conditions.
Final Vote
S. 1714 was approved by the Committee by a vote of 18-8.
The Retirement Enhancement and Savings Act of 2016
The Chairman’s mark of the Retirement Enhancement and Savings Act of 2016 included broad retirement-related benefits, such as enhancements to 401(k) plans, MEPs, a repeal of the maximum age for individual retirement account (IRA) contributions, and a start-up credit for small employer plans.
Wyden Amendment
Wyden offered and then withdrew an amendment that would allow employers to make matching contributions to their 401(k) retirement plans on behalf of their employees who made student loan payments, but were unable to afford to also contribute to their 401(k) plans. He added that under this provision, a plan may elect to treat student loan payments the same as an elective contribution to a 401(k) plan. Sen. Bill Nelson (D-Fla.) voiced his support for the amendment.
Chairman Hatch discharged two potential amendments, the ABLE to Work Act (S. 2702) and the ABLE Financial Planning Act (S.2703), as they will be part of the Committee’s discharge process.
Final Vote
The Retirement Enhancement and Savings Act of 2016 was approved by the Committee in a 26-0 vote.
For more information on this markup, please click here.