Build Back Better
The Build Back Better Act, the legislative priority of the White House and Democrats to bolster the social safety net and promote clean energy investment, continues to face a precarious future as Senator Joe Manchin (D-WV) has voiced his opposition, citing inflation concerns. A skinnier version of the bill with a reduced cost and narrower policy focus could arise, retaining the retirement provisions from the previous bill. We expect President Biden to keep pushing Congress to get some version of the BBBA passed before the midterm elections.
SECURE Act 2.0
SECURE Act 2.0 has a lot of momentum, as indicated by the passing vote in the House of Representatives on March 29. While a number of checkpoints remain, the House of Representatives completed its work for now, and Senate committees are expected to begin theirs in the coming months. Since the House and Senate bills will have a majority of overlapping provisions that aren’t identical, additional negotiations will be needed. Assuming these procedural hurdles can be overcome, a number of tailwinds should help nudge the bill along, including the retirement of notable leaders in retirement policy such as Senator Rob Portman (R-OH) and Representative Kevin Brady (R-TX), who would like to get this legislation across the finish line as capstones to their careers. Learn more about the SECURE Act 2.0.
As is typically the case in the early days of a new president, regulatory agencies are hard at work to align their agendas with those of the leadership, complete regulations as required by previously passed laws, and surface new priorities. The Department of Labor highlighted a few of these new projects, including guidance on plan disclosures and pooled employer plans. Among the regulations we expect to see in the coming months from the DOL are a new proposed fiduciary
rule that will likely revisit the five-part test for investment advice, final amendments to the ESG/Proxy Voting Rule, and a number of regulations required by the SECURE Act. The DOL is also expected to issue final rules for the new lifetime income illustrations that retirement providers must provide.