Massive Changes To Retirement System Buried In Behemoth Omnibus Bill | Eastern North Carolina Now

    Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is Ben Zeisloft.

    Significant changes to the retirement system are included in the $1.7 trillion omnibus bill moving through Congress.

    The 4,155-page piece of legislation could codify $858 billion in defense spending and nearly $773 billion for discretionary programs. Among other provisions, the bill funds border security for foreign nations, offers contributions for LGBTQ pride centers, and christens various federal properties with the names of powerful lawmakers. Secure Act 2.0, an overhaul to the current retirement savings regime, is also buried in the bill, which members of Congress must pass by Friday to fund the government through the current fiscal year.

    Among the most significant changes is the automatic enrollment of employees in 401(k) or 403(b) programs for companies that offer matching benefits, according to a summary from the Senate Finance Committee. Workers would be required to enroll at a rate of 3% before contributions automatically increase by 1% each year until a 10% threshold is reached.

    Employees could choose to opt-out of the program at any time, while exemptions exist for small businesses with 10 or fewer employees, church programs, and government plans. The Senate Finance Committee said that automatic enrollment would boost "participation by eligible employees generally, and particularly for Black, Latinx, and lower-wage employees."

    One portion of the bill would allow companies to make matching 401(k) contributions on behalf of employees attempting to pay off student loans rather than making deposits into their retirement savings accounts. The measure is "intended to assist employees who may not be able to save for retirement because they are overwhelmed with student debt, and thus are missing out on available matching contributions for retirement plans."

    The new provision occurs as a policy from the Biden administration to forgive as much as $20,000 in student loan debt per borrower awaits a ruling from the Supreme Court. The program is now on hold after a ruling from the Court of Appeals for the Eighth Circuit, which granted standing to a lawsuit from multiple Republican state attorneys general who contended that the White House illegally bypassed Congress while drafting the policy.

    Another portion of the Secure Act 2.0 would allow employers to offer "small immediate financial incentives" for contributing to a retirement plan. Though current law bars employers from offering gift cards and similar incentives to boost participation, the new legislation would remove such restrictions.

    The bill would also allow savers to pull $1,000 from their 401(k) or IRA account to meet an emergency expense without incurring the 10% penalty for early withdrawals. Only one such withdrawal could occur each year, while savers could only be eligible for other emergency funds in the subsequent three years if they return the original $1,000 withdrawal.

    Insured Retirement Institute Chief Government and Political Affairs Officer Paul Richman asserted in a statement that the Secure Act 2.0, which follows the Secure Act passed three years ago, would "help millions more workers and retirees with significant improvements to the nation's private retirement system" and add "billions to the retirement savings for small business workers, part-time workers, employees with student loan debt, military spouses, low-income workers, and others."

poll#166
With the Midterm Elections less than one week away: What do you consider the top issues that you will be voting on to be corrected by your better representation?
  Education
  Crime
  Big Government getting Bigger
  Biden /Democrat controlled Spike in Energy Cost
  Inflation created by Legislation of Majority in Power
  Gender Reassignment
  Corrupted Bureaucratic /Service (DOJ, FBI, etc.) Institutions
  Abortion
  Discredited Legacy Media
  Ending the Corruption of Dishonest Politicians
  Corruptive Influence of Social Media
  Wide Open Southern Border
319 total vote(s)     What's your Opinion?

Go Back


Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published)
Enter Your Comment ( no code or urls allowed, text only please )




Marines Receive Woke Report Which Says To Stop Calling Drill Instructors ‘Sir,’ ‘Ma’am’ Daily Wire, Guest Editorial, Editorials, Op-Ed & Politics Sen. James Lankford Paints Frightening Picture Of What Is Happening At Southern Border


HbAD0

Latest Op-Ed & Politics

Goldman Sachs recently informed its clients that it expects home values to tank in four major markets across the U.S. amid worsening economic conditions.

HbAD1

REAL Definition The Left Doesn’t Want You To See
After getting into yet another public spat with ChatGPT, Representative Alexandria Ocasio-Cortez has accused the program of wanting to date her.
Former Trump administration official Mike Pompeo accused Rep. Adam Schiff (D-CA) of leaking classified information.
A unanimous N.C. Court of Appeals panel has ruled that University of North Carolina System students cannot sue for partial refunds of tuition and fees paid for the spring 2020 semester.
Meta announced Wednesday it will end former President Trump’s suspension from Facebook and Instagram, saying the penalty imposed after January 6 was “an extraordinary decision taken in extraordinary circumstances,” and sternly pledging to enforce “certain guardrails” on Trump in the future.

HbAD2

Members of Cornerstone Calvary Community Congregation City Church were in for a shock this past Sunday as they were greeted at the doors to the church by an army of state-of-the-art robo-greeters.

HbAD3

 
Back to Top