by Joseph P. Trybula, CFP^®, AIF^®, Diversified Financial Advisors

In 2019, The Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law. While it is likely the most well-known of the retirement bill, in recent years, two other significant retirement bills were introduced in the 116th Congress as well. These are the Retirement Security and Savings Act, introduced in May 2019, and the Securing a Strong Retirement Act, introduced in October 2020.

While neither of these bills received a vote in the 116th Congress, improving the retirement system has always gathered bipartisan support and the new Congress, the 117th, likely will have these bills on their agenda.

How will these bills impact participants in employer retirement plans?

Each of the bills introduced contain main provisions aimed at improving retirement security for Americans. Below is a summary of some of the key provisions the bills contain:

Enhance the new plan startup credit for small employers.

The SECURE Act increased an existing tax credit to 50% of the costs of starting a plan to a maximum credit of $5,000 per year for three years for employers with 100 or fewer employees. Before this SECURE Act change, which became effective in 2020, the maximum credit was $500. The Neal-Brady bill would increase the credit to 100% for employers with 50 or fewer employees.

Provide tax credits for plan contributions made by small employers.

Employers with up to 50 workers that establish a plan would be entitled to a credit for contributions made on behalf of their employees. The maximum credit per employee would be $1,000 in the first two years, $750 in the third, $500 in the fourth and $250 in the fifth. The credit amount would be phased out for employers with between 51 and 100 employees.

Enhance the Saver’s Credit.

Currently, a tax credit of up to $1,000 is available to low and moderate income workers who contribute to their employer retirement plan. Both bills would increase the income limits, making more retirement savers eligible for the credit. The Neal-Brady bill would increase the credit amount to $1,500. Under the Portman-Cardin bill, even savers who owe no federal tax would be able to claim the credit.

Require new plans to include auto enrollment and auto escalation.

New 401(k) plans would be required to automatically enroll employees at a starting rate of at least 3% of their pay and annually increase the rate by 1% until it reached 10%. Employees could opt out. Some exceptions would apply, including businesses with no more than 10 employees and organizations that have been in business for less than three years. Existing plans would be grandfathered.

Increase the catch-up amount for individuals age 60 or over to $10,000.

Currently, participants 50 or older can make catch-up contributions to their 401(k) plans. The catch-up limit for 2021 is $6,500. The bills would raise the limit to $10,000 for participants 60 or older.

Increase the starting age for required minimum distributions (RMDs) to 75.

The SECURE Act raised the age at which retirement plan distributions must begin from 70½ to 72. These bills would push off the starting age by three more years.

Exempt individuals with balances under $100,000 from the RMD rules.

Under both bills, individuals whose aggregate balances in IRAs and employer plans (other than defined benefit plans) did not exceed $100,000 would not be required to take distributions.

Permit qualified charitable distributions from qualified plans.

Under current law, individuals 70½ or older can directly transfer tax-free up to $100,000 per year from an IRA to a 501(c)(3) charitable organization. The bills would expand this provision to include distributions from employer plans, including 401(k)s.

Reduce the penalty for failing to take required minimum distributions.

The bills would lower to 25% the current 50% excise tax for failing to take an RMD from a plan or IRA.

Require long-term, part-time employees the option to join 401(k)s sooner.

The SECURE Act will require employers to permit employees who work at least 500 hours in three consecutive 12-month periods to contribute to their 401(k) plans beginning in 2024. The bill would shorten the three-year requirement to two years.

Create a retirement savings “lost and found.”

The bill would establish an online mechanism that would enable individuals to search for lost retirement accounts.

Permit matching contributions on behalf of employees who are repaying student loans.

Many employees miss out on employer-matching contributions for retirement because they are paying off student loans. The bills would permit employers to make matching contributions to 401(k) plans for the benefit of these employees.

Time will tell.

Only time will tell what provisions will actually be included in the final package, but it is likely many of these provisions, along with additional proposed changes, could be included in a comprehensive “SECURE 2.0” package.

Contact Joe Trybula at joe@printers401k.com or 800.307.0376 for more details.

Disclosure: This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. Investment Advice and 3(38) Investment Fiduciary services offered through Diversified Financial Advisors, LLC, a Registered Investment Advisor. 3(16) Administrative Fiduciary Services provided by PISTL Service Corporation. Discretionary Trustee services provided by Printing Industries 401k Trustees. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Since 2010, the Two Sides campaign by nonprofit organization Two Sides North America, Chicago, Illinois, has successfully influenced the change or removal of misleading environmental claims by more than 700 organizations globally and more than 130 in North America, including many of the world’s largest corporations.

With huge pressures on the economy, banks, telecom providers, utility companies and even governmental organizations are increasingly focused on switching their customers from paper to digital services to cut costs. All too often their customer communications attempt to mask these cost-saving efforts, justifying the switch with unfounded environmental marketing appeals such as “Go Green – Go Paperless” and “Choose e-billing and help save a tree.”

TSNA President Phil Riebel stated that not only are these greenwash claims in breach of established environmental marketing rules, but they are hugely damaging to an industry which has a solid and continually improving environmental record. Far from “saving trees,” a healthy market for forest products such as paper encourages the long-term growth of forests through sustainable forest management. Many of the organizations the organization engages are surprised to learn that over the last 30 years, US forests have grown by some 18 million acres while net forest area in Canada has remained about the same.

For more information, visit www.twosidesna.org.

Henkel Adhesive Technologies, Düsseldorf, Germany, a supplier of high-impact solutions in adhesives, sealants and functional coatings, has joined the global consortium toward a Circular Economy for Labels (CELAB). The consortium is dedicated to creating a more sustainable self-adhesive labeling industry. The organization brings together companies across the matrix and liner industry value chain, working together to address the wide variance in production processes and recycling capability in different markets.

With CELAB, Henkel joins other leading companies to facilitate collaboration at a global level, foster regional initiatives and find and encourage the universal adoption of industry best practices.

Brian Lawrence, business development director at Henkel, stated that in order to truly rethink packaging and create a viable circular economy, companies must all work together across the entire value chain. This is why Henkel became one of the first members of CELAB and is looking forward to working side-by-side with self-adhesive label manufacturers to align and engage our global resources.

CELAB will work to increase education and focus on regional options to promote material recycling for all components to improve the sustainability of products.

Paul Nathanson, a senior principal at Bracewell LLP and spokesperson for CELAB, stated that brands are eager to communicate their commitment to sustainability in response to consumer demands to reduce their carbon footprint. With increased recycling capability gradually emerging from suppliers, producers, waste management, chemical recyclers and others, there is a tremendous opportunity to facilitate collaboration with partners up and down our industry’s value chain.

With regional groups in Europe and North America, CELAB will address the wide variance in production processes and recycling capability in different markets. Different work streams will address matrix and release liner recycling, including analyzing technical issues, promoting recycling networks, interacting with government regulators and educating the industry and public.

Created with consumers in mind, Henkel’s packaging adhesives offer high-impact solutions to allow fast moving consumer goods companies to achieve efficient and reliable options. The products deliver label solutions which assure secure and sustainable packaging for consumers.

For more information, visit www.henkel.com.

UEI^® Group, Kansas City, Kansas, with companies that supply and manufacture products and services for the foil stamping and embossing industries, announced that Greg Louder has been appointed as a direct sales professional for the Group.

Based in Maine, Louder will service customers in Maine, New Hampshire, Upstate New York, Massachusetts, Rhode Island, Connecticut and Vermont, and in Ontario and Quebec, Canada, for Universal Engraving and Infinity Foils, Inc. His areas of specialty include engraved foil stamping and embossing dies/rotary cylinders/flexible dies, lock-up systems, hot/cold/digital stamping foils, makeready supplies and decorative glitter.

Louder has a background in graphic arts, specifically finishing and offset/narrow web printing industries. He graduated from the University of Notre Dame with a bachelor’s degree in business administration and an MBA.

For more information, visit www.ueigroup.com.

Swiss mechanical engineering company Gietz, Gossau, Switzerland, takes over the majority shares of MABEG Systems GmbH, Moerfelden-Walldorf, Germany, as part of a succession plan.

MABEG, founded in 1946, has been managed by Jens Gebel, CEO, and Michael Grübel, CFO, as managing partners since 2009. In 2011, Dr. Daniel Burkhardt, CMO, joined the management team as managing director and partner. After almost 10 years together, Gebel and Grübel are handing over their shares to Gietz Deutschland GmbH, which thus becomes the majority shareholder. Burkhardt keeps his shares.

In this context, Gebel is relinquishing his management at his own request and will continue to manage his previous areas of work at MABEG as operations director. Grübel will remain managing director and CFO until his departure in mid-2021, thus ensuring a smooth transition at his resort. Burkhardt will continue to run MABEG as managing director and CEO. This ensures continuity and thus the important connections to partners, customers and suppliers.

“Especially nowadays it is important for business partners, regardless whether they are customers, suppliers or banks, that the baton is handed over early and that continuity is maintained. We achieved this with our partner of choice Gietz. By this handing over, the two companies will make it even better to be able to offer our customers around the world additional new joint product innovations and professional service. I’m really looking forward to the collaboration/future,” said Gebel.

Hansjörg Gietz explained that as a medium-sized Swiss mechanical engineering company, it is a big step and responsibility to make an acquisition in Germany. Both companies are active in the high-quality packaging segment, so the company can jointly offer customers comprehensive concepts.

For more information, visit www.gietz.ch.

PRINTING United Alliance, Fairfax, Virginia, and Idealliance, Alexandria, Virginia, have announced the intent to merge. The board of directors at each company have unanimously voted in favor of the merger. Last year, SGIA and PIA officially merged to become PRINTING United Alliance, the largest, most comprehensive printing and graphic arts association in the country. This new venture with Idealliance will further support the association’s investment into the long-term success and fortitude of the industry.

Ford Bowers, CEO, PRINTING United Alliance, stated that over the past few years, PRINTING United Alliance has focused on bringing those efforts and institutions that are having the greatest impact in printing together under one roof. The organization is excited that Idealliance may join it as the preeminent standards, training and educational association in its industry. Its media outlets and reach into various printing segments, the many events it conducts, including the PRINTING United Expo, and membership of more than 6,000 companies will all serve to strengthen and expand the work of Idealliance as an “association within an association,” both domestically and internationally, and through its mission will continue to help the industry thrive.

Dick Ryan, CEO, Idealliance, stated that Idealliance is renowned as a leader in certifying and training color management professionals around the world. To continue moving Idealliance’s programming forward, this merger will provide significant growth opportunities through PRINTING United Alliance’s robust platforms and aligns with many of the association’s current offerings and strategies for success. In partnership with PRINTING United Alliance, Idealliance aims to provide global standardization, training and certification programs for the printing and packaging supply chain to all graphic communications professionals. This partnership will allow it to expand efforts into new markets to train and certify professionals, processes and systems around the globe. Together, the two organizations seek to serve the printing and packaging industry better than ever before.

The proposed merger of the two organizations will be finalized March 1. Further information and details will be forthcoming.

For more information, visit PRINTINGUnited.com.

BOBST of Switzerland, a supplier of equipment and services to packaging and label manufacturers, has announced that it has sold its 1,000th folder-gluer from its production site in India.

Mumbai-based folding carton specialist Ajanta Print Arts has taken delivery of the VISIONFOLD 110 A2, described as the ultimate all-rounder for folding-gluing.

Ajanta Print Arts is a third-generation family-run packaging company that produces litho-laminated, folding cartons, plastic cartons, blister cards and shelf-ready packs for the food, personal care, pharmaceuticals and FMCG markets.

Vivek Khanna, partner at Ajanta Print Arts, said the VISIONFOLD is ideal for the multiple packaging formats the company runs yet doesn’t compromise on quality and speed. Ajanta Print Arts trusts BOBST to deliver machines that meet its needs, while at the same time enabling it to support its customers with excellence at every level.

Bobst India operates from its 20,000 sqm world-class manufacturing site in Pune and employs about 400 people. Venugopal Menon, zone business director of sales, folding carton & corrugated board – Indian Subcontinent at Bobst India, said the VISIONFOLD was the ideal solution for Ajanta Print Arts, having ticked the boxes for all of the company’s needs in terms of performance, versatility, quality and efficiency.

Bobst India is delighted to have been able to supply the company with a machine that delivers on all its touchpoints. In addition, it is significant for the Bobst India team that the 1000th one has been purchased by an Indian company, while the folder-gluers it manufactures can be installed anywhere in the world.

For more information, visit www.bobst.com.

Digital print enhancement press provider Scodix, based in Israel, has announced record-breaking numbers of enhanced prints during the fourth quarter 2020 holiday season in North America. Scodix customers in North America surpassed a combined total of more than 50 million cards with personalized and embossed foils for the 2020 peak holiday season between Thanksgiving and Christmas Day.

Two main factors affecting Scodix’ success during the 2020 holiday season were the Scodix Studio Web-2-Print Automation Workflow package coupled with the Scodix Ultra Digital Enhancement Press throughput and reliability. The Scodix Studio Web-2-Print automation workflow maximized throughput by automating print data pre-processing, while the Scodix Ultra press printed continuously in three shifts daily during the entire period, ensuring on-time delivery.

For more information, visit www.scodix.com.

Channeled Resources Group (CRG), Chicago, Illinois, a manufacturer of blank shipping labels, release liner and a supplier of laminated papers and films, has appointed Matt Cain as director of manufacturing, effective immediately.

Currently the general manager of a CNC manufacturing operation in Wisconsin, Cain’s entire career prior was in the converting world. In addition to operations and manufacturing, he has experience in information systems. The bulk of his career was spent with Tekkote, a release liner manufacturer in New Jersey. Cain held multiple roles there including manager of planning and systems, IT manager and vice president of operations.

Cain holds a bachelor’s degree in business administration from Juniata College in Huntingdon, Pennsylvania. He will be based at the CRG plant in Marathon City, Wisconsin.

For more information, visit www.channeledresources.com.

The Sustainable Green Printing Partnership (SGP), Sayville, New York, an authority in sustainable printing certifications, has announced the elections of new officers and directors. Jonathan Graham, TE Connectivity, is new chair of SGP and its 501 8c) 3 affiliated SGP Foundation.

Graham stated that he looks forward to leading SGP in 2021 as it is firmly established with nearly 13 years of certifying printing facilities’ sustainability practices. According to Graham, SGP certified printers are sustainability leaders, the SGP Board will continue to engage with retailers and print buyers to promote and require SGP certification. SGP certified printers are moving the needle for the entire printing industry to be more sustainable.

In addition to Graham, the new officers are:

• Marci Kinter, PRINTING United Alliance, secretary & vice chair technical
• Theresa Vanna, Primex Plastics Corporation, vice chair marketing
• George Fuchs, NAPIM, vice chair technology
• Jodi Sawyer, FLEXcon, vice chair suppliers
• Doreen Monteleone, Ph.D., D2 Advisory Group/FTA, treasurer

The four new SGP directors elected are:

• Sean Carr, HH Global
• Ben Covert, Piedmont Plastics
• Bryan Rose, Cooley/Group
• Kristin Spanier, Shawmut Communications Group

Returning directors include:

• Frank Bailey, Smyth Companies, LLC
• Rosalyn Bandy, TLMI
• Adrian Cook, 3M
• Suzanna Eversole, REI- Recreation Equipment Inc.
• George Glisan, Ph.D., Appalachian State University
• John Heaney, The Advertisers Printing Co., Inc.
• Nicole Papadakis, North American Plastics
• Nadine Seitz, Yunker Industries

For more information, visit www.sgppartnership.org.