2 Retirement Security Bills Authored by Rep. Panetta Pass the U.S. House of Representatives

SALINAS, CA – On Tuesday, March 29 two retirement security bills authored by Rep. Jimmy Panetta (D-Carmel Valley), the Public Service Retirement Fairness Act and the Family Attribution Modernization Act, passed the U.S. House of Representatives. They were included in the Securing a Strong Retirement (SECURE 2.0) Act, which is a bipartisan bill that would expand automatic enrollment in employer provided retirement plans, simplify rules for small businesses, and help those near retirement save more for longer. Rep. Panetta was able to secure the inclusion of his two bills that will directly benefit public servants and women small-business owners through his position on the House Ways and Means Committee. “It’s been over ten years since we implemented major retirement planning reforms, and we are long overdue for a modernization of the outdated rules and regulations that are hurting our seniors,” said Rep. Panetta. “The SECURE 2.0 Act will make it easier for Americans to save more and simplify their planning, and the two provisions I secured will directly benefit our public servants and women small-business owners. I’m glad that the federal government is doing its part to get rid of burdensome regulations, while providing a path to a strong and healthy retirement.” Public Service Retirement Fairness Act: This bipartisan bill will level the playing field and ensure public sector and non-profit retirement-savings programs have the same access to low-cost investments as private sector retirement plans do. Faculty and staff at K-12 public education institutions, nonprofit hospitals, charitable organizations, and other nonprofits have access to 403(b) defined-contribution retirement-savings plans to save money for the future. 403(b) plans are similar to 401(k) plans offered in the private sector, but they cannot invest in Collective Investment Trusts (CITs). There is no reason why 403(b) defined-contribution plans should not be permitted to invest in CITs. This legislation fixes this inequity by allowing 403(b) plans to offer these kinds of investments. Family Attribution Modernization Act: This bipartisan bill would modernize current tax law that penalizes small businesses in community property states, and disproportionately impacts women business owners. There currently exist nine community property states, including California. Under the existing tax laws, spouses in these states are automatically considered to own half of all property obtained during the marriage. As a result, business owners must bundle their business with that of their spouse when performing retirement plan coverage and nondiscrimination tests. That is harmful to the growing number of women-owned businesses, especially if there is a dispute in a family or separation, as the businesses are forced to interact and be considered joint-owned under the attribution rule. The Family Attribution Modernization Act would eliminate this attribution rule to ensure business owners are not unfairly penalized for living in a community property state.