Link: https://www.asppa.org/news/multiemployer-plan-bailout-caps-benefit-plan-limits
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Excerpt:
Legislation before the House Ways & Means Committee plans to help pay for a multiemployer plan bailout by utilizing a budget “gimmick” that would freeze retirement plan contribution limits—though not for collectively bargained plans.
More specifically, the Butch Lewis Emergency Pension Plan Relief Act of 2021, included as subtitle H of a nine-part package that the committee plans to mark up this week, would impose a cost-of-living freeze on:
the Code Section 415(c) annual contribution limit for defined contribution plans;
the Section 415(b)(1)(A) annual defined benefit limit; and
the Section 401(a)(17) annual compensation limit.
This appears to be designed to fill a budget hole in the 10-year scoring window—and as such would freeze these limits starting in calendar year 2030.[1] Ironically, it’s scored to lose money in the years leading up to the effective date, apparently anticipating that individuals will be inclined to increase contributions before the limits are imposed.
Author(s): TED GODBOUT AND NEVIN E. ADAMS
Publication Date: 9 February 2021
Publication Site: ASPPA