Retirement Policy in the Final Years of the Obama Administration
David N. LevinePrincipal, Groom Law Group, Chartered
Overview
• The Midterms• Short-Term Prospects• Themes for the Future• Other Items On The Radar
The Midterms
• Electoral Prospects• Impact on Legislative Branch Retirement Policy
– Four Committees– Potential for Leadership Changes at All Levels
The Midterms
• Impact on Executive Branch Retirement Policy– No Expected Leadership Changes– Regulatory-Based Final Two Years
Short-Term Prospects
• Lame Duck Post-Election Congressional Session– Plan Shutdown Legislation (the “4062(e)”
Legislation– Multiemployer Plan Funding Relief– PBGC Leadership Appointment?
Themes for the Future
• Starting With Political Reality– The Big Political Landscape . . . The Retirement
Policy Landscape– Budgetary Constraints– Retirement as Revenue Instead of Policy
Themes for the Future
• Collectivization• Convergence• State Activity• Policy Through Regulation and Enforcement
Themes for the Future
• The Evolution of Health Care Policy – Why It Matters to Retirement– Affordable Care Act– Health Care Model Change– Massachusetts Health Care Connector– Department of Labor Health and Welfare
Investigations
Themes for the Future
• Collectivization– USA Retirement Funds
• Looking to Other Models Around the World• Learning From Challenges of the Past
Themes for the Future
• Collectivization– Multiple Employer Plans
• Current Department of Labor Position• Proposed Legislation• Impact on Employers of All Sizes
Themes for the Future
• Collectivization– Collective Investment and Outsourcing
• Increased Use Across Different Plan Types• Use in Outsourcing Arrangements• Expansion of Investment Classes Using
Collective Investment Vehicles
Themes for the Future
• Collectivization– Individual Arrangements With Collective
Management• Outsourced Oversight and MyRAs• Use of Collective Investment Trust Options• Exchange-Type Retirement Programs?
Themes for the Future
• Convergence– Connecting Health Care and Retirement– Focus on Outcomes
• General “Wellness”• A Healthy Workforce• A Retirement-Ready Workforce
Themes for the Future
• Convergence– Budgetary Merging
• Corporate Budgeting• Governmental Budgeting
– Regulatory Guidance and Agency Process Staffing
Themes for the Future
• State Activity– Original Secure Choice Proposal – A Cash Balance
Design– As Often Proposed at the State Level – A Secure
Choice IRA-Style Design– Other Potential State Level “Mandates”– Impact on Large Employers and the Industry
Themes for the Future
• Policy Through Regulation and Enforcement– The Legislative Gap Filled Through Regulation and
Enforcement– Enforcement Before, During and After the
Regulatory Process
Themes for the Future
• Policy Through Regulation and Enforcement– Learning from ESOPs– The Conflict of Interest Rule– Fiduciary Service Provider Compensation Project– Worker Classification Initiatives– Nondiscrimination Rules – Guidance and
Enforcement
Other Items On The Radar
• Legislative Topics– Tax Reform– Auto-Everything– Other Defined Contribution Enhancements– Lifetime Income– Pension Plan Funding
Other Items On The Radar
• Regulatory Topics– Auto Everything– Lifetime Income
• Disclosures• Regulatory Flexibility to Facilitate Solutions
– Brokerage Windows