Senate Committee Reports Bill Aimed at Bolstering Retirement Savings
In a unanimous, bipartisan vote, 28-0, the Senate Committee on Finance favorably reported the Enhancing American Retirement Now (EARN) Act on Wednesday, June 22. Mirroring its House counterpart, H.R. 2954, the EARN Act includes several provisions designed to aid Americans in the looming retirement crisis. Notably, the bill would increase both the current required minimum distribution (RMD) age and the catch-up contribution limit for employer-sponsored retirement plans, such as the Thrift Savings Plan (TSP).
The EARN Act is designed to expand access to retirement resources and provide Americans with more efficient retirement savings options for the future. Provisions include increasing the RMD age from 72 to 75 (effective after 2031), allowing withdrawals for selective emergency expenses, increasing the catch-up limit for employer-sponsored retirement plans from $6,500 to $10,000 annually for those age 60 to 63 (effective after 2023) and allowing employers to provide matching contributions for student loan payments as if they were elective deferrals. It would also allow individuals to distribute up to $2,500 per year from their retirement accounts for payment of long-term care premiums without an early withdrawal penalty.
For a full summary of the EARN Act, click here.
Related Posts
OPM Finalizes Rule to Protect Civil Servants from Schedule F Reemergence
The Office of Personnel Management (OPM) has officially finalized a rule aimed at protecting career civil servants from the potential reemergence of the Schedule F policy, an initiative from the previous administration that sought to convert most federal employees to at-will workers. Published in the Federal Register on April 4, 2024, this regulation solidifies protections for 2.2 million federal employees, making it challenging for any future administration to reintroduce Schedule F-like policies.
House Panel Advances Bill to Combat FEHB Fraud
The FEHB Protection Act, H.R. 7868, was marked up by the House Committee on Oversight and Accountability on April 10, and then subsequently passed the same day. The bill, and its counterpart in the Senate, S.4035, is aimed at combating fraud in the largest employer- sponsored health insurance program in the United States, the Federal Employees Health Benefits Program (FEHBP). The bill would require federal agencies to verify that an employee is eligible to add a family member to their FEHB health coverage plan.
WEP/GPO Hearing Marks Continued Progress on Priority Advocacy Goal
NARFE and its allies continue to make considerable progress in our ongoing efforts to repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).