June 23, 2021
House Education and Labor subpanel holds retirement hearing
The June 23 House Education and Labor Subcommittee on Health, Education, Labor, and Pensions hearing on "Examining Pathways to Build a Stronger, More Inclusive Retirement System" included discussion of additional measures that could be taken to broaden coverage, including automatic enrollment, and a relitigating of the multiemployer relief included in the American Rescue Plan Act.
Chairman Mark DeSaulnier (D-CA) said if Congress had failed to address the multiemployer pension crisis, the total cost to the U.S. taxpayers — in terms of lost tax revenue and increased social safety net spending due to pensioners' difficulty making ends meet — would be between $170 billion and $240 billion over the 10-year budget window. He also expressed interest in retirement policy in light of longer life spans.
Ranking member Rick Allen (R-GA) said following the bipartisan support for the original SECURE Act, "Democrats went in a different direction and used pandemic relief as an excuse to bail out failing multiemployer pensions without any structural reforms to hold unions and businesses accountable for the mismanagement of their pension plans." He said, "defined contribution plans present employees a flexible pathway to realize their retirement goals" and "this committee must lead the way in working together to expand on the SECURE Act and ensure that Americans are secure in their retirement."
Additional information is available in the attached Tax Alert.
House Education & Labor retirement hearing