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To maintain their tax-advantaged status, retirement plans must demonstrate that they are equitable and inclusive. Plans are subject to so-called top-heavy and nondiscrimination rules.
Policymakers should maintain and strengthen top-heavy rules so that benefits are distributed equitably among plan participants.
The amount available to fund people’s retirement in a defined contribution (DC) plan depends on two factors: how much they save over the course of their working lives and whether they withdraw the
Policymakers should facilitate greater portability of retirement plans for workers who change jobs.
Retirement plan distribution rules should be simplified to improve long-term economic security.
Rollovers of lump-sum retirement benefits into another retirement vehicle should be automatic. Regulations should discourage access to such funds before retirement.
Plan participants should receive their guaranteed benefits from the Pension Benefit Guaranty Corporation when an employer files for bankr
Vesting in a retirement plan means different things for participants in defined benefit (DB) and defined contribution (DC) plans.
The maximum vesting period for employers’ contributions to 401(k) plans should be no more than one year.
Social Security integration is an employer practice related to the calculation of the retirement benefits employees receive from a defined benefit (DB) retirement plan.