Potential Changes to Retiree Savings, Pensions and Social Security

Several proposals in Congress may get passed and significantly affect my retirement income.  They are summarized in this article from CNBC and quoted below.

Here are the key points from two of the proposals that affect me:

• Secure Act - "The Secure Act would include a bevy of changes to existing retirement rules. Its main goal: to expand access to retirement savings.
  
  It includes measures to allow small employers to band together to offer 401(k) plans, give part-time workers access to retirement plans, take away the 70½ age limit for individual retirement account contributions and raise the age for required minimum distributions to 72, from 70½.
  
  It also would expand the inclusion of annuities in 401(k) plans and put a 10-year time limit on how long non-spouse beneficiaries can stretch out an inherited IRA."
  
• Social Security 2100 Act -  "The Social Security 2100 Act looks to fix that by extending the solvency of the program into the next century...
  
  The proposal would give those who are or will be receiving benefits a raise that is the equivalent of 2% of the average benefit. It would also set the new minimum benefit at 25% above the poverty line.
  
  The plan also would increase the amount of non-Social Security income one can earn before benefits begin to be taxed. The new limits would go to $50,000 for individuals and $100,000 for couples, up from today’s $25,000 and $32,000 thresholds.
  
  In order to pay for those changes, the bill calls for raising payroll taxes on wages over $400,000. Wages up to $132,900 are currently taxed."
  

In addition, there are a three elements that don't affect me much if at all.

• Rehabilitation for Multiemployer Pension Act - "Many so-called multiemployer pension plans are on the brink of running out of money...The new bill would let pensions borrow money to remain solvent so that they can continue to pay retirees. The legislation would create a Pension Rehabilitation Administration within the Treasury Department and a trust fund from which the loans would be distributed.
  
• Health Savings for Seniors Act - " This bill would allow individuals who are on Medicare to continue to contribute to health savings accounts. Currently, they are prohibited from doing so.
  
• Equal Treatment of Public Servants Act - This bill "would enable public workers to get larger Social Security benefits. A current rule, the Windfall Elimination Provision, reduces their benefits based on how much pension income they receive."

A couple of these have been passed by the House, but not the Senate.  The other three are still being considered by the House.

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This is not financial, or retirement advice. Please consult a professional advisor.

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