ABA, Groups Call for Legislative Action on Retirement Plans Due to Coronavirus

Acknowledging the challenges currently facing American workers and retirees as the coronavirus pandemic continues, ABA joined two dozen other trade organizations in a letter to Congress last week seeking immediate relief for retirement plan participants, retirees and employers offering retirement plans.

In light of significant declines in the stock market in recent days, the groups asked lawmakers to grant a temporary waiver for minimum distribution rules to ensure that individuals won’t be required to take distributions before being able to recover their losses. The groups also called on Congress to streamline loan procedures and liberalize hardship distribution rules, which would allow participants to have immediate access to some of their retirement accounts at a time when many are facing serious economic challenges due to the pandemic.

Additionally, the groups called for extended filing, notification and payment deadlines; relief for defined benefit plans; and relief from single-employer PBGC premiums.