NAGDCA’s Legislative Priorities
NAGDCA advocates for a list of federal legislative priorities, developed by the Legislative Committee and the Executive Board with the advice and support of the legislative affairs team and staff. NAGDCA’s legislative priorities represent solutions to the most pressing federal policy and technical problems facing NAGDCA’s members.
The Executive Board presents the priorities annually in small group meetings with key legislators and their staff on Capitol Hill, to ensure that the voice of all NAGDCA members is heard at the federal level.
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Legislative Priorities
PROTECT AND ENHANCE GOVERNMENTAL DEFINED CONTRIBUTION PLAN FEATURES
ENHANCE INVESTMENT OPTIONS FOR 403(b) INVESTORS
Permit Collective Investment Trusts (CIT’s) and separate accounts as investment vehicles in 403(b) plans and deemed IRA’s as they are in other governmental plans.
RECOGNIZE UNIQUE PLAN FEATURES
NAGDCA reminds Congress that public sector retirement plans serve a unique work force with unique needs. Therefore, our plans are not subject to ERISA and NAGDCA encourages the Congress to legislate in ways that account for this.
In some instances, such as investments and portability, parity with private sector plans is important to reduce administrative complexity. However, plans created under Internal Revenue Code sections 457(b) and 403(b) also contain distinct features such as special catch-up provisions that should be maintained, and not eliminated through Code consolidation, Rothification, or other changes that would harm retirement security for public employees.
SUPPORT NATIONAL RETIREMENT SECURITY MONTH
To elevate the importance of personal retirement planning, we encourage the House and the Senate to introduce and pass a resolution to support October as National Retirement Security Month in 2024.
IMPROVE ROTH PLANS
Allow Roth 457(b), 401(k), and 403(b) plan participants to roll Roth IRA assets to their plans.
REASONABLE IMPLEMENTATION TIMELINES
Given the complexities in state and local law enabling requirements, administration, and payroll that government plans face, NAGDCA urges Congress to consistently delay the implementation date of government-applicable legislative provisions by 90 days after the close of the third regular legislative session of the legislative body with the authority to amend the plan from the publication of final regulations, or sooner at the plan’s election.
ENHANCE DISTRIBUTION CHOICE
Allow Qualifying Charitable Distributions (QCDs) from 457(b), 401(a), 401(k) and 403(b) plans, as they are from IRAs.
