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News & Views | Q2 2020 Page 3 of 4

STUDENT LOANS & RETIREMENT PLAN DEFERRALS STILL ON THE RADAR
In May 2019, Senator Ron Wyden (D-OR) introduced legislation to allow employers to make contributions to defined contribution
plan accounts to match their employee’s student loan payments, as if the loan payments were retirement contributions. In mid-
March, Reps Danny Davis (D-IL) and Darin LaHood (R-IL), introduced The Retirement Parity & Student Loan Act of 2020, keeping
the proposal alive.
The matching contribution would only be allowed for student loan debt incurred for higher education. The employee would be
required to provide proof of the loan payments to the plan sponsor in order for the matching contributions to be made.
NAGDCA LEGISLATIVE PRIORITIES
In the spring of every year, the NAGDCA Board works with key representatives in Washington DC to discuss priorities for
improvements to public sector retirement savings plans. In addition to the addition of CITs to 403(b) plans, NAGDCA identified
the following priorities for consideration, some of which are included in current proposed legislation:

• Preserve unique plan features, including pre- and post- • Allow governmental plan participants to roll Roth IRA
tax savings options, special catch up provisions, and assets into their plan; exempt plan Roth assets from the
elimination of plan flexibilities RMD rules

• Permit non-spousal beneficiaries to roll assets to their • Eliminate the “first of the month” rule in 457(b) plans to
governmental plan ease enrollments and contribution changes

• Bi-partisan Congressional support for National Retirement • Allow qualifying charitable contributions from
Security Month in 2020 governmental plans, same as IRAs

NAGDCA is always interested in your ideas for improvements to governmental plans. Your NFP advisor can assist you with
developing and/or communicating your ideas to NAGDCA. For more information on NAGDCA’s legislative priorities, click here.

HELPING PARTICIPANTS THROUGH TURBULENT MARKETS
As a plan sponsor, you are often the first person your participants reach out to when markets are turbulent, as we’ve seen recently.
Understandably, participants are concerned about their savings and what market volatility means for their future. Your plan
provider can be your best resource for answering questions, providing account analyses, and helping employees maintain focus
on their overall goals and time frame.

With the recent market volatility, most of the providers have published timely resources to help participants manage their
investment strategy during major fluctuations. You can ask your provider representative to provide flyers, email hyperlinks, or
otherwise bring education to your workplace that addresses the current influences and their effect on the market and on planning
for retirement.

NFP recently published a commentary, “Staying the Course – Coronavirus and Past Epidemics.” Our commentary was sent out
widely so you should have received it in early March, but it can also be accessed here.