President Donald Trump on Friday signed an economic stimulus package passed earlier in the day by the House of Representatives and by the Senate on Wednesday.
The legislation is aimed at helping companies and workers affected by the coronavirus outbreak, and offers some temporary relief for retirement plan sponsors and participants.
Defined benefit plan sponsors gained a one-year holiday from making 2020 contributions, while defined contribution plan participants will get relief from rules on taking required minimum distributions and limits on hardship loans.
Plan sponsors did not get other measures sought, including delayed reporting or premium payments to the Pension Benefit Guaranty Corp.
Also, while defined benefit plan sponsors got a contribution holiday, a similar holiday for small businesses to skip DC plan contributions was sought, but did not make it in to the legislation.
The $2 trillion-plus package includes $500 billion for the Federal Reserve to provide liquidity to companies, plus loans for small businesses, state and local governments and hospitals. Employers will get an employee retention tax credit to help people working, while airlines and other industries affected by the crisis will get direct financial aid.
House Ways and Means Chairman Richard Neal, D-Mass., said that Congress will have to consider additional legislation. “Congress must do more to address the significant public health and economic consequences of the coronavirus,” he said in a statement.
