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Friday, 14 December 2018 11:58

Retirement Reform Could Hitch a Ride on the Federal Spending Bill

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In federal policy news, the midterm elections are (nearly) over, with a new Democrat-led US House of Representatives and a Republican-led Senate set to be seated for the first time on January 3. North Carolina’s 9th District US Representative will be noticeably absent from the new Congress as investigations continue into possible mail-in voter fraud in this year’s elections.

Before the 116th Congress convenes, however, the current government will be considering a spending bill to fund the government beyond its current deadline of December 21st.

  • A partial government shutdown over the holidays is not out of the question as lawmakers and President Trump continue to debate issues including funding for Trump’s desired border wall with Mexico.

  • Roughly a quarter of the federal government could shut down without a temporary stop-gap bill extending funding until after the holidays or a more comprehensive 2019 funding deal.

  • A shutdown could impact employers with federal contracts, as well as delay federal requests and end-of-year processing. The Departments of State, Interior, Transportation, HUD, and Homeland Security, among several other departments and organizations are all at risk of closure.

  • ‘Essential’ employees at these departments would still report for work despite a shutdown.

We will be watching the spending package closely, as it may include portions of other bills currently being debated. Portions of the Retirement Enhancement and Savings Act which would, among other things, expand Multiple-Employer Retirement Plans as well as the Retirement, Savings, and Other Tax Relief Act which would expand certain retirement plan opportunities for smaller businesses while also fixing some technical issues with last year’s Tax Cuts and Jobs Act could make their way into the federal spending package.

Several of these bills could change employer responsibilities or open up additional opportunities for employer-sponsored retirement plans. However, without being passed and signed by President Trump this year, each of these bills would need to be reconsidered under the new Congress.

In local policy news fit for the season, snowball fights will now be legal in Severance, CO, outside Fort Collins after a local 9-year-old boy lobbied his town’s board members to revoke the existing ban on the wintertime sport.

If you have any questions about your retirement plan structure and how to maximize participation and impact, contact your Fall River Client Manager.





Read 254 times Last modified on Wednesday, 19 December 2018 11:30