Insights

A Fresh Focus on Retirement Policy: What Plan Sponsors Can Expect from the Biden Administration


Retirement Public Policy Strategist

Share
         
Issue Possible Action Likelihood of Enactment/November Likelihood of Enactment/January

1. Department of Labor (DOL) Fiduciary Regulation and SEC Regulation Best Interest (Reg BI)

Reinstating all or part of Obama administration fiduciary regulation (including possibly making rollover recommendations presumptively imprudent) and revising Reg BI

Very likely

Very likely

2. DOL ESG and Proxy Voting Regulations and Private Equity Information Letter

Modifying Trump administration final regulations/guidance through legislation or regulation

Very likely

Very likely

3. Access/Coverage Guidance

a) Supporting state and federal auto-IRA/401(k) programs through legislation or regulations

Possible

Likely

Per Chairman Neal’s Automatic ARPA legislation

b) Expanding rules for long-term part-time workers

Likely

Possible

c) Expanding opportunities for caregivers saving for retirement

Likely

Likely

d) Mandating auto enrollment/escalation for new plans

Likely

Likely

4. Increasing Tax Benefits for Lower- and Middle-Income Taxpayers

a) Increasing the saver’s credit and making it refundable

 

Likely/Possible

Very likely

b) Supporting employer-sponsored emergency savings programs

Possible

Likely

5. Imposing an Overall Cap on Benefits

 

Imposing a cap on aggregate benefits from all retirement plans and IRAs

Possible in certain forms

Likely in certain forms

6. Other Restrictions on Retirement Benefits for Highly Compensated Employees (HCEs)

 

 

a) Eliminating or capping catch-up contributions for HCEs

Possible

Likely

b) Reducing retirement contributions or benefits or compensation limits

Very unlikely

Unlikely

Though possible regarding compensation limits

c) Eliminating Roth conversions for HCEs

 Possible

Likely

Disclosures