Insurable Interest Canadian Insurance Blog

In response to public concern, Labor said it has narrowed the collection request from what was previously proposed. The information will help Labor establish and maintain the complete database contemplated by section 523 of ERISA. Labor is seeking “basic information about individuals of a certain age who may be owed benefits under ERISA retirement plans.” Specifically, EBSA states that it’s asking for the name and Social Security number of any participant who: separated from service; is owed a benefit from the plan; and is 65 or older. “The fundamental purpose of any job-based retirement plan is to pay promised benefits to the workers who participate in those plans and plan beneficiaries,” Lisa Gomez, assistant secretary for Employee Benefits Security, said in a statement. “Our goal, which we believe plan sponsors and administrators and their service providers share, is to make sure that workers and their beneficiaries receive all the retirement benefits they earned and were promised through their working careers so that they can look forward to a secure and enjoyable retirement,” Gomez said. The Retirement Savings Lost and Found database “will be another tool to help plans carry out this responsibility.”   Credit: Mike Scarcella/ALM

Travel considerations: Clients who frequently travel within the United States or abroad might benefit from plans that offer broader coverage. Original Medicare, often supplemented by a Medigap plan, might be more suitable for clients who travel often, as some Medicare Advantage plans have limited networks. Provider preferences: Some clients may have long-standing relationships with certain health care providers. Verifying that the selected Medicare plan includes these providers in its network is essential. Convenience and simplicity: Some clients may prioritize the simplicity of managing their health care. Medicare Advantage plans, which often bundle services including vision, dental and prescription drugs, may appeal to clients seeking a more streamlined approach. Paying for Medicare Plans Your clients can use various sources of retirement income to pay Medicare costs. Social Security benefits: Most Medicare Part B premiums are automatically deducted from Social Security benefits. You should factor this into a client’s overall retirement income planning. Required minimum distributions (RMDs): For clients over age 73, RMDs from IRAs and other retirement accounts can be used to help pay Medicare premiums. Pension income: If applicable, pension income can also be allocated to cover Medicare expenses. You should review your client’s pension plans and help them structure...

The 2017 tax cuts did produce some positive economic effects, but they were far more modest than the Trump administration and some Republicans forecast, said Kyle Pomerleau, a senior fellow with the American Enterprise Institute. “It will be important to watch to see if markets start to panic if enough deficit spending is being contemplated, or if they’ll decide to look through it,” said Martha Gimbel, executive director of The Budget Lab at Yale and a former White House economist under Biden. Tariff Issues Trump has vowed to impose a tariff of 10% to 20% on all imported goods plus 60% on Chinese products and promoted that as an offset for tax cuts. But lawmakers will have to decide whether to enact those tariffs in the tax bill so the revenue can be officially counted — a difficult vote for Republicans, especially those who want free trade. They could also just assume revenue would continue from presidentially imposed duties, even though Trump might later strike a trade deal that drops them. “There’s always a way to make things work,” said Dave Camp a senior policy advisor at PwC and a former Republican chairman of the House Ways and Means Committee....

That said, “the moment tax reform is on the table, everything is on the table. In order to pass the reconciliation bill, they must generate sufficient revenues to meet the agreed upon net number. This is where surprises can appear,” Bush pointed out. Retirement Policy While Secure 2.0 regulatory guidance is anticipated next year, the Labor Department’s fiduciary and ESG rules put forth under the Biden administration “are natural focal points for the incoming administration and Congress,” said Mark Iwry, the former head of national retirement policy during the Obama-Biden administration, who’s now a nonresident senior fellow at the Brookings Institution in Washington. Groom Law Group attorneys noted on a recent webcast that among the Secure 2.0 changes anticipated next year are projects such as the retirement “lost and found” registry, savers match and portability studies. Catch-up contribution changes and part-time employee rules are also expected in early 2025, the lawyers said. Iwry noted that two major factors should “limit the impact” of the presidential transition on Secure 2.0. First, the law “was famously bipartisan, largely because much of it was proposed by and for industry stakeholders,” Iwry said. Second, “plan sponsors and their advisors, recordkeepers and other service providers need...