Labor Day Brings Presidential and Congressional Focus on Retirement Plans

Although Health Care continues to be the focal point on Capital Hill during the month of September (the month that brings Congress back to session) Retirement Plans received a pivotal focus to start the month from members of Congress and President Obama. Senior Obama administration officials issued a package of Treasury Department and Internal Revenue Service guidance to promote workplace retirement savings, releasing the documents early Sept. 5 in time for President Obama’s planned weekly radio address on retirement savings. In this address, President Obama said it is “essential” to the economic recovery to make it easier for people to save for retirement, and spoke specifics on:

1) Intention to Propose the Automatic IRA Proposal in his Budget,
2) Expansion of the SAVER’s Credit,
3) Tax Deductions to be Automatically deposited into an IRA,
4) Proposal to allow payments from Unused Sick and Vacation Time to be deposited into Retirement Plans,
5) New Government Website aimed at helping People Learn how to Save for Retirement.

On the Qualified Retirement Plan front, taxpayers can expect the focus to be on Defined Benefit Funding Relief, 401(k) Fee Disclosure Regulations, as well as Independent Investment Advice. Rep. Richard Neal (D-MA) is the key Congressperson on the House Ways & Means Committee, as Chairman Charles B. Rangel’s (D-NY) “Deputized Leader” on the subject matter.

“If you work hard your whole life, you ought to have every opportunity to retire with dignity and financial security. And as a nation we ought to do all we can to ensure that folks have sensible, affordable options to save for retirement.”

-- President Barack Obama