The Washington Report
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November 23, 2022
Note to Subscribers
The Washington Report will not be published on November 30, 2022. Look for your next Aon Washington Report on Wednesday, December 7, 2022.
Legislative
Senate Votes to Proceed on Respect for Marriage Act; Moves to Final Passage
On November 16, 2022, the Senate voted 62–37 to proceed on the Respect for Marriage Act (H.R. 8404). After clearing this procedural process, the Senate now needs to vote on the final measure (with any possible amendments). It is uncertain if the Senate will consider the bill before the Thanksgiving recess. If the bill is approved by the Senate it must return to the House for approval.
The Respect for Marriage Act would provide statutory authority for same-sex and interracial marriages. Specifically, the bill “repeals and replaces provisions that define, for purposes of federal law, marriage as between a man and a woman and spouse as a person of the opposite sex with provisions that recognize any marriage that is valid under state law. (The Supreme Court held that the current provisions were unconstitutional in United States v. Windsor in 2013.) The bill also repeals and replaces provisions that do not require states to recognize same-sex marriages from other states with provisions that prohibit the denial of full faith and credit or any right or claim relating to out-of-state marriages on the basis of sex, race, ethnicity, or national origin. (The Supreme Court held that state laws barring same-sex marriages were unconstitutional in Obergefell v. Hodges in 2015; the Court held that state laws barring interracial marriages were unconstitutional in Loving v. Virginia in 1967.) The bill allows the Department of Justice to bring a civil action and establishes a private right of action for violations.”
The White House has indicated its support of the legislation in a Statement of Administration Policy. (Please note: legislative provisions and amendments may be added or changed any time while bills are being considered by the chambers. Readers should always refer to the latest actions and the final legislative text for specific details.)
The full text of H.R. 8404 (including all congressional actions) is available here.
The White House Statement of Administration Policy is available here.
Retirement
PBGC Updates ERISA Section 4044 Mortality Table for 2023 Valuations
On November 18, 2022, the Pension Benefit Guaranty Corporation (PBGC) updated the ERISA Section 4044 Mortality Table for 2023 valuations. This table is used to determine liabilities when a single-employer plan terminates in an involuntary or distress termination. It is also used when a multiemployer plan incurs a mass withdrawal. HTML and Excel versions of the 2023 Mortality Tables are available on the PBGC’s ERISA Section 4044/4050 Mortality Tables webpage. A unisex version of the table is also available. The unisex version is used in specified situations to determine the benefit transfer amount under the Missing Participants Program.
The ERISA Section 4044/4050 Mortality Tables webpage is available here.
PBGC Releases FY 2022 Annual Report; Finances “Continue to Improve”
On November 15, 2022, the PBGC released its Fiscal Year (FY) 2022 Annual Report. “For the second year in a row, PBGC’s insurance programs are both reporting positive net financial positions,” PBGC Director Gordon Hartogensis stated. According to the PBGC, “The Multiemployer Program had a positive net position of $1.1 billion at the end of FY 2022, compared to $481 million at the end of FY 2021, an improvement of $577 million. The Multiemployer Program — which in the FY 2019 Projections Report was projected to run out of money in FY 2026 — is likely to remain solvent for more than forty years, due to the enactment of the American Rescue Plan Act of 2021.” The PBGC’s Single-Employer Program remains “financially healthy with a positive net position of $36.6 billion at the end of FY 2022, compared to $30.9 billion at the end of FY 2021, an improvement of $5.7 billion.”
For specific details about the Single-Employer and Multiemployer Insurance Programs, please refer to the Annual Report.
The news release is available here.
The FY 2022 Annual Report is available here.
Aon Publications
2023 Limits for Benefit Plans
Each year, the U.S. government adjusts the limits for retirement plans, Social Security, Medicare, and other benefit programs to reflect price and wage inflation and changes in the law. As a result, employee benefit plans must be adapted annually to accommodate the new limits. All of the numbers in this report are official unless otherwise indicated.
The 2023 Limits for Benefit Plans bulletin is available here.