WILKES-BARRE — U.S. Senators Pat Toomey, R-Lehigh Valley, and Tim Scott (R-S.C.) and U.S. Representatives Peter Meijer (MI-03) this week introduced the Retirement Savings Modernization Act to bolster Americans’ retirement savings by allowing workers to diversify assets included in defined contribution plans, such as 401(k) plans.
This legislation will amend the Employee Retirement Income Security Act of 1974 (ERISA) to clarify that private sector retirement plan sponsors may offer plans, including both pensions and 401(k)s, that are prudently diversified across the full range of asset classes.
Since 1982, pension plans have incorporated exposure to asset classes outside of the public markets, such as private equity and real estate. Even though they are covered by the same law, 401(k) plans almost never incorporate exposure to alternative assets due to fiduciaries’ anticipated litigation risk.
“With inflation at record highs, a stock market downturn, and a potential recession on the horizon, many Americans are rightfully concerned about their financial future,” said Sen. Toomey. “Our legislation will provide the millions of American savers invested in defined contribution plans with the option to enhance their retirement savings through access to the same wide range of alternative assets currently available to savers with defined benefit pension plans.”
Until the 1970s, most Americans working in the private sector relied on pension plans for retirement. Today, however, the vast majority of private sector workers rely on 401(k) plans. In 2019, 85.5 million Americans participated in defined contribution plans such as 401(k) plans, while only 12.6 million Americans participated in private pension plans.
Medicare open enrollment
begins Oct. 15, ends Dec. 7
The Pennsylvania Department of Aging (PDA) this reminded consumers that the annual open enrollment period for Medicare beneficiaries will begin Oct. 15, and end Dec. 7.
Any new coverage selected or changes to existing benefits will take effect Jan. 1, 2023.
During open enrollment, new Medicare beneficiaries can sign up for Medicare Prescription Drug coverage and health plans to complement Medicare, and current Medicare beneficiaries can review and join, switch, or drop Medicare Advantage or Prescription Drug Coverage so that it better meets their needs.
In order to help Medicare beneficiaries sort through their options, the department offers free, objective health benefits counseling through Pennsylvania Medicare Education and Decision Insight (PA MEDI). Through Pennsylvania’s 52 Area Agencies on Aging (AAAs), PA MEDI counselors can assist Medicare beneficiaries with plan comparisons, help with enrollment in a new plan, and evaluate eligibility for any of Pennsylvania’s Medicare cost-savings programs.
During this time of year, consumers may see television ads or hear them on the radio with celebrities endorsing Medicare Advantage plans’ extra benefits and free offers. Although these ads may mimic official Medicare communication, the ads are from brokers or agents who receive financial incentives to enroll beneficiaries in these plans.
“When comparing insurance plan options, older adults should consider their current health situation, plan benefits, access to providers, available plans in their area, and overall costs, coverage and convenience being offered,” said Secretary of Aging Robert Torres.
Meuser supports bill to protect
farmers from harsh requirements
U.S. Rep. Dan Meuser, R-Dallas, this week joined more than 80 of House colleagues in introducing a bill that will prevent the Securities and Exchange Commission (SEC) from requiring farmers to include climate-related disclosures in the statements and periodic reports, leading to an unreasonable burden on them.
U.S. Rep. Frank Lucas (R-OK) sponsored the “Protect Farmers from the SEC Act.” The bill is in reaction to a rule proposed in March by the SEC that would require registrants to include climate-related disclosures in their statements and periodic reports. Farmers are not currently “registrants” or subject in any way to the jurisdiction and oversight of the SEC, but the proposed rule would change that.
In addition to a significant amount of information about climate-related risks, a registrant would be required to disclose information about its direct greenhouse gas, emissions, and indirect emissions from purchased energy. Also, the rule would necessitate disclosure of indirect emissions from upstream and downstream activities, which would lead to a task for farmers that would be complicated and laborious.
Under the proposed requirement, public companies would be mandated to report emissions data from farms and ranches of all sizes, since a significant majority of agricultural products will be used or sold by a publicly traded company. The rule would add economic pressure to companies and burden all agricultural producers, particularly small and mid-sized farms.
“Farmers in my district and across the United States are under extraordinary pressure now, due to prolonged and painful inflation. To add an additional regulatory demand to them is unacceptable,” Meuser stated.
In the United States, 98% of all farms are independent, family operations. A massive reporting requirement and the tracking of emissions data that would be placed on farmers be an undue hardship on them. The increased production costs and difficulty in supplying emissions data to public companies will hinder the ability of U.S. farmers and ranchers to complete in global markets and encourage market conciliation in the agriculture sector.
The bill would:
• Prohibit the SEC from requiring an issuer of securities to disclose greenhouse gas emissions from upstream and downstream activities in the issuer’s value chain arising from a farm.
• Define the production, manufacturing or harvesting of an agricultural product through the Agricultural Marketing Act of 1946, outlines upstream and downstream activities and defines greenhouse gases.
• Remove the SEC’s exemptive authority in relation to this Act.
Toomey, Republicans demand explanation for
dawn raid on pro-life activist family home
U.S. Sen. Pat Toomey, R-Lehigh Valley, and a group of Senate Republicans this week demanded an explanation from the Justice Department and FBI for the “abnormal and aggressive” dawn raid on the home of a pro-life advocate in Pennsylvania last week.
More than two dozen federal agents, some using ballistics shields and long guns, arrived to arrest the pro-life advocate on Friday, September 23, for an incident that occurred nearly a year prior and for which local authorities dismissed all charges. The show-of-force raid by the FBI followed multiple overtures about cooperation by the advocate’s attorneys to the federal prosecutor’s office in the Eastern District of Pennsylvania, which went unanswered over the course of weeks.
“Based on reports and allegations, the actions taken by the FBI reasonably call into question whether they complied with DOJ’s use of force policy. The FBI must explain their justification for their actions…,” the senators wrote.
Toomey said a simple arrest warrant can be served by a pair or small number of agents, and are often eschewed in favor of a court summons in cases involving non-violent offenders. The use of such significant manpower and resources, stands in stark contrast to the apparent lack of response to the series of violent attacks on crisis pregnancy centers across the country.
Toomey, Manchin call on DOE to enforce laws
to protect students from sexual misconduct
U.S. Senators Pat Toomey, R-Lehigh Valley, and Joe Manchin (D-W. Va.) this week wrote Secretary of Education Miguel Cardona questioning the Department of Education’s actions regarding states’ failure to institute policies that protect students from educators who engage in sexual misconduct.
For years, K-12 schools across the country have failed to stop the horrific practice of “passing the trash,” under which schools allow educators to quietly resign—including, at times, with positive recommendation letters—rather than face disciplinary action for committing a sexual crime against a student. This enables sexual predators to seek other educational jobs and continue assaulting students.
The senators wrote:
“Our legislation (Section 8546 of the Elementary and Secondary Education Act (ESEA) sought to end the horrific practice, known as ‘passing the trash’ or ‘aiding and abetting sexual abuse.’ Yet, seven years after its enactment, the patchwork of state laws identified in the Report show that many states have failed to sufficiently prohibit the practices that contributed to a student’s death, such as the false letters of recommendation that allowed a school employee to transfer schools with a ‘clean’ record. The findings in the Report underscore the need for stronger enforcement to ensure that states comply with this important provision of law. Further, we are concerned that the Department has yet to put into place a concrete timeline by which states must come into compliance.”