The Washington Report

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March 30, 2022

Note to Subscribers

While we do our best to provide timely updates, it is possible that the information shared in the newsletter may change after our publication deadline.

Executive/Legislative

President Biden Releases Fiscal Year 2023 Budget
On March 28, 2022, President Biden released the Fiscal Year (FY) 2023 Budget. Passage of the President’s complete budget is unlikely, as proposals are typically intended as a framework for discussion. The 2023 budget includes a number of provisions and priorities in the upcoming year and offers insight regarding potential future legislative and/or regulatory actions.

The Remarks by President Biden Announcing the Fiscal Year 2023 Budget is available here.

The FY 2023 President’s Budget is available here.
(The website also provides links to the Analytical Perspectives, Budget Appendix, Historical Tables, and Supplemental Materials.)

Congress to Adjourn for Spring Recess
Congress is scheduled to adjourn for spring recess April 11 through April 22, 2022.

Retirement

IRS Publishes Proposed Regulations on MEPs
On March 28, 2022, the Internal Revenue Service (IRS) published proposed regulations relating to certain defined contribution multiple employer plans (MEPs) that are maintained by employers that share a common interest or have a pooled plan provider. The proposed regulations provide an exception to the “unified plan rule” (sometimes referred to as the “one bad apple” rule) where one noncompliant plan may adversely impact all employers in the MEP, unless certain requirements are met. These proposed regulations provide guidance that could affect certain noncompliant employers participating in MEPs, participants in those MEPs (and their beneficiaries), and plan administrators of those MEPs.

Comments on the proposed regulations are due by May 27, 2022. A public hearing on the proposed regulations is scheduled for Wednesday, June 22, 2022. Requests to speak and outlines of topics to be discussed at the public hearing must also be received by May 27, 2022.

The proposed regulations are available here.

Other HR/Employment

DOL, OSHA Announce Proposed Rule Improving Tracking of Workplace Injuries and Illnesses
On March 28, 2022, the Department of Labor’s (DOL’s) Occupational Safety and Health Administration (OSHA) announced a proposed rule which would amend its occupational injury and illness recordkeeping regulation. The current regulation requires certain employers to electronically submit injury and illness information to OSHA. The agency uses these reports to identify and respond to emerging hazards and makes aspects of the information publicly available. The new proposed rule would:

Require establishments with 100 or more employees in certain high-hazard industries to electronically submit information from their OSHA Forms 300, 301, and 300A to OSHA once a year.
Update the classification system used to determine the list of industries covered by the electronic submission requirement.
Remove the current requirement for establishments with 250 or more employees not in a designated industry to electronically submit information from their Form 300A to OSHA annually.
Require establishments to include their company name when making electronic submissions to OSHA.

Establishments with 20 or more employees in certain high-hazard industries would continue to be required to electronically submit information from their OSHA Form 300A annual summary to OSHA annually.

Comments on the proposed rule are due by May 31, 2022.

The news release is available here.

The proposed rule is available here.

EEOC Releases FY 2021 APR and FY 2023 Budget Justification
On March 28, 2022, the Equal Employment Opportunity Commission (EEOC) released the agency’s Fiscal Year (FY) 2021 Annual Performance Report (APR) and its 2023 FY proposed budget. According to the EEOC, key fiscal 2021 performance metrics included higher recoveries through the administrative process; higher merit factor resolutions; rebuilding the litigation program; and more successful mediations. As noted earlier in this newsletter, the President released his 2023 Budget the same day, which also proposes funding allocations for the EEOC. The EEOC Budget Justification states that this funding will “allow the agency to continue rebuilding the agency’s capacity to meet its expanded responsibilities and the needs of the growing U.S. population.”

The news release is available here.

The EEOC Fiscal Year 2021 Annual Performance Report (APR) is available here.

The EEOC Fiscal Year 2023 Congressional Budget Justification is available here.

Aon Webinars

Aon Hosts Webinar on Pension Risk Transfer and Beyond
On Thursday, April 7, 2022, at 12:30 p.m. eastern, Aon’s Pension Settlement Solutions team will host a webinar on Pension Risk Transfer and Beyond. Pension settlements are used by many plan sponsors to manage the cost and risk of their defined benefit plans. The Pension Risk Transfer market continues to grow with the development of more sophisticated insurance solutions. Lump sum offers also remain a viable settlement option to provide financial flexibility in retirement. Aon's Pension Settlement Solutions team will review current market conditions, new trends, and share stories on recent plan sponsor transaction experiences. In this webinar Aon experts will discuss:

The 2021 Pension Risk Transfer market summary and early 2022 experience.
Plan sponsor stories on settlement implementation and strategy development.
Investment perspectives as part of a settlement strategy in the current economic environment.
Review of lump sum solutions amidst the COVID-19 pandemic.