Insights

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


Retirement Public Policy Strategist

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

Modifying Trump administration final regulations/guidance through  regulation

Very likely    
3. Access/Coverage Guidance a) Supporting state and federal auto-IRA/401(k) programs through regulations

Likely

Per Chairman Neal’s Automatic ARPA legislation

   
  b) Expanding rules for long-term part-time workers Possible    
  c) Expanding opportunities for caregivers saving for retirement Likely    
  d) Mandating auto enrollment/escalation for new plans Likely    
4. Increasing Tax Benefits for Lower- and Middle-Income Taxpayers  a) Increasing the saver’s credit and making it refundable Likely/Possible    
  b) Supporting employer-sponsored emergency savings programs  Possible    
5. Imposing an Overall Cap on Benefits Imposing a cap on aggregate benefits from all retirement plans and IRAs  Likely in certain forms    
6. Other Restrictions on Retirement Benefits for Highly Compensated Employees (HCEs) a) Eliminating or capping catch-up contributions for HCEs Likely    
  b) Reducing retirement contributions or benefits or compensation limits

Unlikely

Though possible regarding compensation limits

   
  c) Eliminating Roth conversions for HCEs Likely    
Disclosures