Heroes Act Summary

Though unlikely to be enacted now H.R. 6800, The Heroes Act, could be a portent of what we get with a Biden administration so, with that in mind, here are some excerpts taken from a summary prepared by the Democratic staff of the House Committee on Appropriations dealing with pension matters of interest (to me).

Title I – Relief for Multiemployer Pension Plans (pages 30-32 another stab at the Butch Lewis bailout)

Title II – Relief for Single Employer Pension Plans (page 32 gimmicks to lower contributions)

Sec. 301. Waiver of Required Minimum Distributions for 2019. Under current law, generally at the age of 72, individuals must take a required minimum distribution (“RMD”) from their defined contribution plans and IRAs. Due to the market downturn resulting from the COVID-19 pandemic, the balances in these accounts have sharply decreased – in many instances, the market has reduced taxpayers’ accounts more than what their RMD would have been. Therefore, the recently enacted CARES Act waived RMDs for 2020, allowing individuals to keep funds in their retirement plans. This provision expands this relief further by providing that 2019 RMDs would be waived for defined contribution plans and IRAs. (pages 32-3 though still nothing for Defined Benefit plans).

Sec. 307. Modification of Special Rules for Minimum Funding Standards for Community Newspaper Plans. Community newspapers are generally family-owned, non-publicly traded, independent newspapers. The recently enacted SECURE Act provided pension funding relief for a number of community newspaper plan sponsors by increasing the interest rate to calculate those funding obligations to 8%. Additionally, the SECURE Act provided for a longer amortization period of 30 years from 7 years. These two changes enable struggling community newspapers to stretch out their required pension plan contributions over a longer time period. The legislation would expand the SECURE Act relief to additional community newspapers.

DIVISION N – Giving Retirement Options to Workers Act Prepared by the Democratic staff of the House Committee on Education and Labor
Sec.___0001. Short Title: This division may be cited as the “COVID-19 Protections under the Longshore and Harbor Workers’ Compensation Act.
Sec.___0002. Composite Plans The section changes the multiemployer pension system by authorizing what is referred to as a “composite plan.” This new plan is composed of features of a traditional defined benefit plan and of a 401(k)-style defined contribution plan. (pages 62-3)

 

6 responses to this post.

  1. Posted by Rex the Wonder Dog! 🐶🐶🐶🦴🦴🦴 on May 18, 2020 at 4:08 pm

  2. Posted by geo8rge on May 19, 2020 at 7:35 am

    Milliman analysis: Despite investment gains, corporate pensions’ funded ratio drops to 84.0% in April

    https://markets.businessinsider.com/news/stocks/milliman-analysis-despite-investment-gains-corporate-pensions-funded-ratio-drops-to-84-0-in-april-1029207030

    Public pensions are now less than 60% funded: Expert

    https://finance.yahoo.com/video/public-pensions-now-less-60-142450804.html

    Reply

    • Posted by Rex the Wonder Dog! 🐶🐶🐶🦴🦴🦴 on May 19, 2020 at 3:57 pm

      Public pensions are now less than 60% funded
      Stick a fork in these piglets, the game is OVER. This IS the end game right now. Marine1 and EG better get ready for a pension haircut, because it is NOT a matter of when, just how much.

      Reply

      • Posted by PS Drone on May 19, 2020 at 8:28 pm

        To quote Herb Stein, “if something cannot go on forever, it won’t”. That applies to FRB money printing and public sector pension abuses.

        Reply

        • Posted by Tough Love on May 19, 2020 at 8:37 pm

          Have you taken a look at the 90 page SUMMARY of the House Bill calling for $3 Trillion in additional expenditures?

          Unbelievable.

          They ought to call it the …….

          We-Through-In-The-Kitchen-Sink bill.

          Or perhaps the ………

          How-To-Chase-Away-All-Future-Buyers-Of-America’s-Debt bill.

          Reply

        • Posted by E on May 20, 2020 at 10:21 am

          To quote Frank White at the end of “King of New York”…..”I don’t need forever!” 😉

          Reply

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