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Join NAGDCA Executive Director Matt Petersen, along with Brigen Winters, Michael Kreps, and Diana McDonald from Groom Law Group, for a comprehensive post-election update. They break down the election results and their potential impact on public sector retirement.

Major takeaways for governmental plan sponsors:

  1. Election Outcomes and Unified Control - The recent election has established unified Republican control across the Presidency, House, and Senate. This may simplify legislative passage, though the filibuster and potential use of reconciliation could shape the process.
  2. Legislative Priorities in Lame Duck Session - Key legislative actions during the lame duck session include FY2025 appropriations, a supplemental disaster aid bill, and the defense bill. Relevant retirement-related topics are Social Security reform, SECURE 2.0 technical corrections, and telehealth extensions.
  3. Expiring Tax Provisions - Portions of the 2017 Tax Cuts and Jobs Act are set to expire at the end of 2025, which could impact individual, corporate, and estate tax rates. Budget reconciliation may be used to extend certain provisions, although this could lead to reductions in tax incentives.
  4. Retirement Policy Implementation - Ongoing SECURE 1.0 and 2.0 implementations involve projects like the retirement "lost and found" registry, savers match, rollovers/portability studies, and new disclosure requirements. Additional regulations, such as catch-up contribution changes and part-time employee rules, are expected in early 2025.
  5. Project 2025 and Governmental Plan Funding - Project 2025 has highlighted significant funding shortfalls in public plans, with market-based underfunding estimated at $6.501 trillion as of FY2021. Increased attention to investment practices, particularly regarding ESG, may lead to more oversight or legislative focus.
  6. Other Potential Retirement Legislation - Certain retirement bills, including coverage expansion efforts like the Auto IRA and TSP for All, appear stalled. However, preliminary discussions around SECURE 3.0 indicate that additional reforms may be on the horizon in the longer term.

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  • November 14, 2024 Create Date
  • November 14, 2024 Last Updated
Post-Election Legislative Update